HOw to trade supply and demand levels on chart

HI Readers,

I took a trade on Crude oil based on price action and that is why I’ve decided to put this on blog. While you decide to give yourself an edge and take another step forward, then this post is entirely dedicated to you.

Points to need to know while marking supply and demand levels on Chart

We can see rejections and try to read as many charts as we can. First of them comes to mind is candelsticks. Candlestick alone is not tradeable. You need to learn to trade approach to the levels whenever they got rejected. Alone reliability on chart is not good enough. You need to learn to read the chart and reason for rejection.

Trade History and MPL (Maximum Pain level ) is very good way of reading a chart. Price rejecting and carrying the momentum to test previous supply and demand level is good indicator of price action when those levels are approached.

Multiple test of the level is another good way to identify opportunity. Multiple tests include 3 tests of the support and resistance levels is good enough . Three dives is my favorite pattern when you trade Compression but when you are trading history level & QML level, then this candlestick approach is very good way to identifying an opportunity.

On the chart above you can saw a small candlestick above the level (HIstory level), which is good indicator is that price try to stay above that level but failed to do so. then we see three tests of the level followed by FO (fakeout)

After an FO is posted on the Chart, next thing you must keep in mind that If we see a bearish Engulfing. Bearish engulfing are good sign of orders on the places when it left the area. One thing you must keep in mind. Price action must be strong enough and orders are left on the level because if we see a small dozi then we probably might see accumulation of order before price left that supply area.

Price left the area strongly and followed by failed attempts which probably is very good sign of pending orders. Price engulf the demand below from where we saw a failed test & Final is the approach which was quite low momentum but when it reached the level, It did not take any time but to go strongly towards the next demand which was around 53.80 area.

Stay tuned for more charts. Don’t forget to subscribe the blog & leave comments in case you have any doubts.

Characteristics of Flag Order

Forex trading is all about reading order flow. If you are unable to read order flows then it is very difficult to spot who is dominating the market. Even in opposite reactions, it is important that we saw participation of buyers & Sellers or vice a versa. Following chart will probably clear the doubts you have mind. In order to clear your doubts, I’ve also posted Live trade that I took on August 21,2021 of Brent Oil.

Comments are welcomed