0:02 if you can Master supply and demand you
0:03 will be able to trade with the large
0:05 institutions find big risk for all
0:07 trades and Bank consistent profits in
0:09 this video I'm going to share some vital
0:10 points about institutional Supply
0:13 demands that most people simply don't
0:14 know and it's these critical points that
0:16 have now helped countless of our members
0:18 get funded and Bank their first ever
0:20 profit splits this video explains what
0:22 is supply and demand how to read
0:23 institutional order flow how to
0:25 mechanically draw the zones how to find
0:27 high probability institutional zones and
0:29 I'm going to drop some serious source
0:31 for you here and finally how to enter
0:34 and exit for maximum profit but first to
0:36 take advantage of the market you must
0:38 understand the true reasons as to why
0:40 price moves does the price fall from
0:42 here to there because there are more
0:44 sellers than buyers nope this is wrong
0:46 keep watching to find the truth now as
0:49 history has repeatedly shown Traders are
0:51 often a very emotionally charged group
0:53 when millions of them get together in a
0:55 highly emotional money game of fear
0:57 greed and uncertainty their combined
0:59 Behavior takes on a herd mentality and
1:01 we can spot this on our price charts and
1:04 make money from it how well you've got
1:06 millions of Market participants putting
1:07 millions of orders through the market
1:10 for a million different reasons all of
1:12 this behavior and participation is what
1:13 drives the order flow that is put
1:15 through the market and that order flow
1:17 is what prints price action on our
1:19 charts and that price action creates
1:21 patterns these patterns repeat
1:23 themselves over and over time and time
1:25 again and that allows us to make high
1:27 probability forecasts of where price may
1:29 move in the future because when those
1:31 big institutions enter trades they
1:33 cannot hide their order flow and we can
1:35 spot their footprints in the market if
1:37 you know what to look for let me explain
1:39 currency exchange rates move up and down
1:41 as a result of supply and demand from
1:44 Market speculators no trades can take
1:46 place unless both the buyer and the
1:48 seller agree on a price so this drives
1:50 the price of currency pairs where buyers
1:52 bring with them demand for the pair
1:53 applying that upward pressure on prices
1:56 while sellers bring Supply applying
1:58 downward pressure on prices the market
1:59 runs like a continuous auction
2:01 throughout the day with buyers and
2:02 sellers competing with each other to get
2:05 the best possible price now in a perfect
2:07 and free market this would be quite a
2:09 smooth and fair process but in the final
2:12 financial markets this is often a heavy
2:14 manipulated process let me explain
2:16 markets work in two-way auctions both
2:18 buy and sell sides of liquid instruments
2:20 or have blocks of orders on both the bid
2:22 and the offers we can see this
2:24 visualized on the order book on the left
2:25 hand side you can see all of the bids
2:27 from the buyers and this shows how much
2:29 volume is demanded at each price level
2:31 and then on the right hand side you can
2:32 see all of the offers from the sellers
2:35 as this is also called the ask price and
2:37 this shows how much volume is supplied
2:39 at each price level and the more volume
2:40 that there is at each price level the
2:42 more liquid the market is think of it
2:45 like an auction house or Ebay where if
2:46 you are the buyer then you are making
2:48 bids for it and you either sell it it's
2:50 the price you're offering it or the
2:52 price you're asking for someone to pay
2:54 for it now remember a trade can only
2:56 take place if both the buyer and the
2:58 seller agree on a price so to execute an
3:01 order it must be paired with an opposite
3:03 order of equal size for example so sell
3:05 10 Lots there must be a buyer willing to
3:08 buy them at the ask price and vice versa
3:10 this is how the markets move now what
3:12 most people don't know is that there are
3:14 two types of orders where both buyers
3:16 and sellers can be passive or aggressive
3:19 passive Traders use limit orders and
3:20 they are waiting for price to hit them
3:22 so all of these orders that you see on
3:24 the bid and the ask they are limit
3:26 orders so if they were only passive
3:28 orders then the market wouldn't move
3:30 because all of those orders are waiting
3:32 to be hit so this is where aggressive
3:34 orders come into play aggressive buyers
3:35 and sellers they are trading at the
3:37 current market price and they are not
3:39 waiting for the market to come to them
3:41 but to do that they have to cross the
3:43 spread to buy at the ask price or cross
3:45 the spread to sell at the bid price most
3:47 execution platforms look like this where
3:49 you buy on the right hand side as that
3:51 is the current ask price and you must
3:53 cross that spread to be an aggressive
3:55 buyer and if you want to sell then you
3:56 must cross the spread to the left to hit
3:58 the bid and it's this interplay between
4:00 passive and aggressive orders is what we
4:03 call order flow so let's take a look at
4:05 a very oversimplified example of what
4:07 can happen on the order book in a live
4:09 market imagine this was the order book
4:11 for euro dollar and a large institution
4:14 wants to buy 10 000 Lots at Market so
4:16 this is an aggressive order they have to
4:19 buy 10 000 Lots at the best ask price
4:22 but as you can see there are only 103
4:24 lots available for sale at that current
4:27 ask price so the price will rapidly
4:29 shoot up as it instantly absorbs all of
4:32 the supply at each level until all 10
4:36 000 lots have been filled at 1.1539 due
4:37 to that huge imbalance between supply
4:40 and demand and now the market is sitting
4:42 at what is deemed to be fair value
4:44 between buyers and sellers so price has
4:46 to keep moving up to search for enough
4:48 liquidity to fill the order institutions
4:51 cannot hide those huge imbalances that
4:53 they cause in the market so if you know
4:54 how to spot their footprints on a chart
4:56 then you can trade with their order flow
4:58 rather than getting smashed against it
5:00 so what does this look like on a
5:01 Candlestick chart here you can see price
5:04 impulsively moving to the upside as
5:05 aggressive buyers keep pushing price
5:07 higher and higher until they find enough
5:10 Supply to fill their demand and price is
5:12 then rebalanced likewise here you can
5:14 see aggressive sellers liquidating all
5:15 of these bids pushing the price lower
5:17 and lower until they have consumed
5:20 enough demand to fill their supply and
5:22 this is how markets move when there is
5:23 an overwhelming imbalance between supply
5:26 and demand price will keep moving to
5:28 search for new liquidity to rebound its
5:30 price and this is happening every single
5:32 second that the markets are open now
5:34 obviously you and me were not quite
5:35 trading at the size big enough yet to
5:38 move those big liquid markets so how do
5:39 we make sure that we are trading on the
5:41 right side of that institutional order
5:42 flow and that's where supply and demand
5:44 zones come into play but how do we
5:46 identify these zones when prices moving
5:48 sideways in a Range this is where orders
5:51 are being accumulated or distributed as
5:53 price moves into the bottom half of the
5:55 range this is where buyers step in to
5:57 buy at discount cheap prices and then as
5:58 price moves into the top half of the
6:01 range sellers step in to short at
6:03 premium expensive prices you want to buy
6:05 low and sell high right pretty simple
6:07 eventually aggressive buyers will cause
6:09 an overwhelming imbalance between Supply
6:11 on demand and this is where price will
6:13 rapidly break out the range to the
6:15 upside to search for more liquidity to
6:17 absorb the demand and this is what
6:19 creates those demand zones now we don't
6:21 trade the initial breakout as this is
6:23 where losing Traders fomo into long
6:25 positions and they buy the highs instead
6:28 we wait for price to return to that zone
6:30 and then we look for our entry models to
6:31 get long as this is where the wrist
6:34 reward will be on our side and we are
6:35 buying where the institutions will be
6:37 now why does price return to the zone
6:39 and then continue from there well at
6:42 this level there is not enough demand to
6:44 keep pushing price higher so we wait for
6:46 price to return to the demand Zone where
6:47 there is previous institutional buyers
6:50 they will have a vested interest to make
6:51 sure that price does not trade any lower
6:53 and they keep their initial long
6:56 positions in profit and it's also likely
6:58 that they did not get filled on all of
6:59 their original position so they will
7:01 want to get along with their remaining
7:03 orders at these discounted prices
7:04 because remember they're going to want
7:07 to buy as cheaply as possible now there
7:09 are some other theories but we won't get
7:11 into those in this video and the exact
7:12 opposite happens in the creation of
7:14 Supply zones where prices in a Range
7:16 sellers will then cause an overwhelming
7:18 imbalance between supply and demand as
7:20 price will rapidly break up to the
7:22 downside but again we will wait for
7:24 price to pull back to that Supply Zone
7:26 to then look for potential shorting
7:28 opportunities and it's a four-step
7:30 process where we have the range the
7:32 initiation the mitigation and the
7:34 continuation and it's that continuation
7:37 is what we are looking to trade in line
7:39 with the institutional order flow this
7:41 is the cycle and heartbeat of the market
7:43 where order flow will continue in One
7:45 Direction until there is an overwhelming
7:47 imbalance between supply and demand in
7:49 the opposite direction price is
7:50 constantly seeking liquidity to
7:52 rebalance price so here you can see
7:54 price rapidly initiates out of the range
7:56 to the downside creating a supply Zone
7:58 it's likely this was backed by
8:00 institutional involvement price then
8:01 pulls back to mitigate the supply Zone
8:03 where we can look to get short to catch
8:05 the continuation you can see the sustain
8:07 bearish order flow as Supply is clearly
8:10 in control but markets are obviously
8:11 don't move in One Direction Forever
8:13 eventually the market moves low enough
8:15 to discount prices where demand then
8:17 comes into the market to overpower
8:19 Supply then we see the sustained bullish
8:22 order flow and institutions will defend
8:23 the last levels that they entered at to
8:25 keep their running positions in profit
8:27 the highest probability trades will
8:29 always be in line with autoflow so just
8:31 don't bother trying to fight it so how
8:33 do we mechanically draw supply and
8:35 demand zones in the same way every
8:37 single time there are three types of
8:39 supply and demand zones the first two
8:40 are the ones that I recommend you use
8:43 these are range and pivot zones the
8:45 names are pretty self-explanatory a
8:46 range created zone is where price
8:48 clearly initiates out of a range of
8:50 candles you draw the Zone from the top
8:52 to the bottom of the range a pivot zone
8:54 is where there is a pivot in price
8:56 caused by only one or two candles you
8:58 can draw this from the single candle
9:00 that is engulfed or you can include the
9:02 second candle too depending on how
9:04 refined you want to be for a supply Zone
9:06 it's usually a bullish candle where the
9:08 next thrust candle closes below its low
9:11 this can be called a buy to sell zone
9:13 for demand it's usually a bearish candle
9:15 where the next thrust candle closes
9:17 above its high and this can be called a
9:19 cell to buy zone now I'm not personally
9:21 that strict on the cell to buy or buy to
9:23 sell method because sometimes I will
9:25 draw a demand Zone on a Buddhist candle
9:27 that's then engulfed by another bullish
9:29 candle and vice versa because I'm just
9:30 looking for those pivot Points in price
9:32 you know where price has sort of paused
9:33 and is moving sideways and then price
9:37 clearly initiates out the range but for
9:39 a demand Zone that thrust candle must
9:41 close above the previous candle's high
9:43 and for a supply Zone the thrust candle
9:45 must close below the previous candles
9:48 low for it to be a valid Supply Zone and
9:50 you can see how a range Zone can be
9:51 refined to a pivot zone or even a
9:53 fractal Zone which is just the wick
9:55 however more refinement does lead to
9:57 increased accuracy giving you that
9:59 smaller stop loss which in turn gives
10:01 you that higher risk reward but it does
10:03 increase the probability of more
10:05 mistrates as price might not tag you
10:07 into the position once enough orders
10:09 have been filled find a consistent
10:11 balance that works for you and stick to
10:13 it so your Edge can play out in the long
10:14 run you know don't be chopping and
10:16 changing just because you feel like it I
10:18 recommend that you start with always
10:20 looking to take the single candle pivot
10:21 as this gives the best balance between
10:24 risk's reward and also getting entered
10:26 into enough positions now remember that
10:28 the market is made up of all of those
10:30 orders transacting with each other but
10:31 we make sense of that complicated order
10:34 flow with our Candlestick charts if you
10:36 see a range Creator Zone on one time
10:38 frame this will be a pivot Zone on a
10:40 higher time frame so if you see this
10:42 range Creator Zone on let's say the one
10:44 hour chart the zone is made up of four
10:46 candles but if you go up to the four
10:48 hour chart what do you think that zone
10:50 is going to look like you guessed it it
10:53 will be a single candle four hour pivot
10:56 Zone because for one hour candles are
10:58 going to make up one for our candle so
11:00 when you truly understand the fractal
11:02 nature of markets you don't even need to
11:03 change time frames to be able to
11:05 visualize what price action will look
11:07 like on that other time frame so that's
11:09 why a lower time frame range will be a
11:11 higher time frame pivot Zone and vice
11:13 versa here are three types of fractal
11:14 supply and demand zones the first is an
11:17 inside bar this is when a candle fails
11:18 to break the previous candles high and
11:20 low and it trades inside of it inside
11:22 bars are a range on a lower time frame
11:25 the second type of fractal zone is sell
11:28 to buy or buy to sell wixoms foreign
11:30 when price is bullish and moving to the
11:32 upside it looks like there isn't a
11:34 demand Zone because price doesn't form a
11:35 pullback on that time frame but those
11:37 Wicks represent a pullback on a lower
11:39 time frame as you can see price moves to
11:41 the upside then it pulls back as the
11:43 next candle starts to form and then
11:45 pushes up again so if you were to look
11:47 down on the lower time frame this will
11:49 be a lower time frame pivot or range
11:51 created demand and the exact opposite
11:53 happens for buy to sell Wick zones which
11:55 represent lower time frame Supply the
11:57 third type of fractal zone is where you
11:58 have a very large width and instead of
12:00 drawing the big pivot Zone you can
12:02 refine it to just the wick of the candle
12:04 as this will be a lower time frame pivot
12:06 or range zone now as all of those are
12:08 fractal refinements they are simply a
12:10 way of looking at lower time frame zones
12:12 on your time frame so I would actually
12:14 recommend that you kind of ignore those
12:16 for now and you just concentrate on the
12:18 pivot and range zones on that same time
12:20 frame that you're looking at because
12:22 those will contain the most orders and
12:24 therefore should give you those higher
12:26 probability moves now obviously not all
12:28 Supply demand zones are created equal
12:31 there are very specific criteria that
12:33 must be met for it to be an
12:34 Institutional supply and demand Zone
12:36 there are eight key areas for us to
12:38 focus on and the first is whether the
12:40 Zone led to a break of structure this is
12:42 the simplest and most effective filter
12:44 that you can use it takes a ton of money
12:45 to break structure on a liquid
12:47 instrument and the more significant that
12:49 the structure it breaks the more
12:51 significant The Zone swing structure is
12:53 stronger than internal which is stronger
12:55 than fractal so zones that cause a break
12:57 of spring structure they're going to be
12:58 the most likely ones to cause the next
13:00 break of Swing structure here you can
13:02 see this demand Zone broke the daily
13:04 swing high so then when price returns to
13:06 Zone there is enough demand within there
13:08 to break the neck swing High number two
13:11 is if it is a flip zone now the key here
13:13 is that you must see that interaction
13:15 between supply and demand until one
13:16 overpowers the other here you can see
13:18 supplier was in control but when price
13:21 returns to it Supply tries to make a
13:23 lower low but it fails to do its job
13:25 because huge demand steps into the
13:27 market to overpower it that pattern that
13:29 shows us that supply has now flipped to
13:31 demand and this is a high probability
13:34 area for us to get lots but remember you
13:36 must see that interaction first for it
13:38 to be valid number three are sweep zones
13:40 these are zones where liquidity is swept
13:43 and taken as they are created but why is
13:44 this important well remember
13:47 institutions need opposing liquidity for
13:49 them to trade against so that they can
13:51 get minimal slippage when they enter and
13:52 exit the market so if they're buying
13:54 they need a lot of Supply to buy against
13:57 there will be a lot of sell orders below
13:59 this low and that's generated from
14:00 people's stop losses from early buyers
14:02 and then breakout traders who are trying
14:04 to sell that low but the institutions
14:06 know this and they will use that cell
14:08 size liquidity behind that low in order
14:10 to get long so if you see a sweep Zone
14:12 this signals it was created with
14:14 institutional involvement number four is
14:16 inducement and this is another liquidity
14:19 concept that can get very technical but
14:21 essentially you just want to see is
14:23 there available liquidity in front of
14:25 the zone why well same reason as before
14:27 institutions are going to need need that
14:29 opposing liquidity to enter the market
14:31 with minimal slippage here you can see
14:33 there is available liquidity behind this
14:35 low for institutions to use to buy
14:36 against but if there isn't any available
14:39 liquidity then very often these zones
14:40 are trapped and they will usually fail
14:42 here you can see that there is
14:44 absolutely no available liquidity in the
14:46 leg so this is a very obvious trap as
14:48 institutions will not be selling it
14:50 number five is the Zone stacked with
14:52 another higher time frame Zone the more
14:54 you can stack zones across time frames
14:55 the more orders there should be in that
14:58 area increasing the probability of the
15:00 move number six do you have alignment
15:01 with the higher time frames because the
15:03 more time frames that you have aligned
15:05 the higher probability of that trade
15:06 here it might look like a high
15:08 probability cell to follow the bearish
15:11 trend on the M5 but the M15 is bullish
15:13 and it's just mitigated the M15 demand
15:16 at the strong M15 low so now the M5 is
15:18 likely to also switch bullish
15:20 understanding multi-time frame analysis
15:22 will help you to avoid a ton of losses
15:25 as time is power and higher time frame
15:27 will usually win number seven is The
15:29 Zone well priced generally the highest
15:31 probable demand zones will be buying in
15:33 discount prices which is in the bottom
15:35 50 of the range or selling premium
15:38 prices in the top 50 of the range this
15:40 also improves your risk rewards because
15:41 we want to buy low and sell high right
15:44 and last but not least number eight is
15:46 the Zone unmiticated it's just a fancy
15:48 way of saying is the Zone completely
15:49 fresh or has it already been touched
15:52 because if you see a Zone with touches
15:54 then it's very likely that a lot of the
15:56 resting orders within that zone have
15:58 already been filled so I try to focus on
16:00 zones that are completely fresh as these
16:02 usually give the strongest move when
16:04 price mitigates them now combining as
16:06 many of those confluences together are
16:07 going to give you the highest probable
16:09 institutional demand zones to trade from
16:11 so now you know how to identify high
16:13 probability zones how do you actually
16:15 trade from them well there are countless
16:18 ways but here are three main methods the
16:20 first one is just simply setting a limit
16:23 order directly on the Zone the second is
16:24 to wait for a reversal Candlestick
16:26 formation at the Zone but this is best
16:28 combined lined with a liquidation too or
16:31 finally you can use a lower time frame
16:33 break of structure for more confirmation
16:35 and increase risk to reward we will
16:37 cover entry models in Far More depth in
16:39 a later video so make sure you subscribe
16:41 so you don't miss that but before you're
16:42 even going to enter a trade you should
16:44 know exactly how and where you're going
16:46 to exit now I could do a whole series on
16:48 just train management alone but in my
16:50 opinion if you want to get consistently
16:52 profitable as soon as possible my
16:54 recommendation is to always use the
16:56 fixed R method so this is where you
16:58 always Target the same amount such as 3r
17:00 for example it's a set and forget
17:02 approach that helps to keep emotions
17:04 very low as you're not chopping and
17:05 changing between arbitrary technical
17:07 targets at the end of the day trading is
17:09 purely a probabilities game and the
17:11 fixed our method just helps to put the
17:13 numbers in your favor now watch this
17:15 next video in the series to see a full
17:16 walkthrough of how we trade
17:19 institutional zones in depth and if it
17:20 isn't live to share make sure you hit
17:22 that subscribe button so you don't miss it
