Trading a modified supply and demand


Euro still has not reached top supply - if euro drops now I suspect our newest high demand will hold price for one more run up. I will short euro at 1.1180 - the two newest demands below this will be my targets - the SL will be top of supply plus 3 pips. By adding the next part of SD will beg more questions - pivot highs - when price makes a new high the retrace will be into demand(in this case) - as a general rule you will get three pivot highs or lows - the last - pivot 3 will be your strongest reaction. The pivot highs here are merely trading tools to be aware where price is. I am sorry I did not see your post kiwi - ok


I suspect price will return to bottom demand - .6593 the zone is 13 pips deep - the target is .6657 64 pips up. The play is well in progress. I would rather short at top supply, but this is how I see it and those are the bars of interest the volume roc threw

Yeah this confirms what I see. Thanks for that.


Here is euraud 1 hr top at 1.5267 - bar of interest which created demand at 1.5208 - this should hit demand. Cross pairs are not my favorite but this looks viable to me. 41 pips to target

Hi Kate,

Sorry for my poor inquiry.
Which is your main trading time frame? 1H? can it still usable for 4H or daily?
First, you use volume ROC to determine supply/demand zone. How you setup for the volume ROC?
How you decide the supply/demand zone to be last? Or how long your target the zone to be valid? i saw few zone you drawn very long, but some very short.
Second, how you determine how spread is the zone is? Because i refer to your zone, there are some bar very wide some very narrow.

Sorry i’m quite inexperience in seeing demand/supply.

Sorry, i hope you can take me onboard. im very sincere to learn your method.


I see you there Champ Let me get back to you in the morning ok. This is a failed trade - the trade was stop lossed for 1.5269 it reached 1.5277 before shedding 120 pips


Philip I missed my entry by 5 pips into demand only to see it has reached supply now - good trade for you. I put the view to 5 min so you could see how the volume piled in here


Aussie hit my stop loss 7 pips below demand and climbed and still climbing to first supply - and sometimes with supply and demand especially modified will not make all trades or entry orders


euro hit demand - not leaving the zone as fast as I would like to see - but top supply remains target at 1.1180 and we have seen no conviction for a move up in the volume roc

Yeah I actually made some pips based on that. Although I used some confirmation from my other work.

There is one thing I have been meaning to talk to you. I think it would be great actually. I just improved an indicator on trading view to improve the timing of COT Index. Just in case you don’t know. COT Index is a famous indicator based on the positions of commercials. It is updated every week by the Commitment of Traders Report.

The reason I went long New Zealand is because commercials (the mega-bucks banks) are holding a massive long position on New Zealand. Normally this leads to (at least) a multi-week rally in New Zealand.

My initial targets are 0.6787 and 0.7046 based on the weekly chart.

But if we can combine that with your areas of interest we’d basically know what big money is thinking.

I tried doing an analysis on the weekly chart and I faced massive difficulties. If you can do New Zealand weekly just as an example I’d be very thankful.


I recognize the hardship of supply and demand as we start with larger timeframes and drill down till we find a tradable zone. Its very difficult to put SD into one timeframe with a fixed roc volume - however on the majors only I will switch just to 30min TF with Volume ROC 16 - so this will put everybody on the same page. OK supply and demand zones what qualifies where we set targets - I will draw it up on one of my trading view charts - tradeinterceptor is not user friendly - give me a few minutes


I do not know if you can read all this or if these images can be enlarged. In supply and demand the zones generally are identified at the bottom or top of momentum bars. The zones are played through entry orders. The zones are fresh once and once only. Price action is directly related to left side of page - not the bars behind - the bar directly opposite price action. If price is advancing supply will be broken and price will replenish on demand. If price is falling demand will be broken and price will replenish on supply. Supply is always on top and demand is always on the bottom.

21pips.com | Forex, the bouncing zones 1 this will help understand alittle of SD


the above was 2hr GbpJpy here is the view on 1 hr - I think you will see the obvious supply zone - the quality of price action at the zone matters - we want a decisive strong action away from zone - price that lingers is pretty indicative the zone will fail - as in my euro demand yesterday


UsdChf on the 30 min. The bar of interest where volume increased has held as well price formed supply then broke low below both. Presently price is back to first demand which is not fresh(price has been here already). Price is more likely to break this level and pick up on demand below which is fresh - however we have two supply areas above we can exploit if price reaches there -

First of all - really great trade Philip. Second the break down starts at weekly and goes to lot lower TF - I will draw it up but the effect may not be what you expect - the lower TF I go with SD the more accurate it becomes for the zones


As you can see the weekly is hard to break down without breaking it down into the smaller TF - however you have supply areas above showing how price collapsed on itself - the wick low at .7161 - which will be in play - then two small supply areas - the zones you be looking for are hidden within the wicks - the zones are deep but not too bad - to get down to a more clearer zone again you need to go to smaller time frames - alternatively price may consolidate here as we had a lot of volume to buy last week



We know price remains in retracement as supply has held and price is breaking demand - wick high in target


Here is the traditional SD on GJ - if I expect Yen to break my pivot low 2 and I have pound within 17 pips of top supply as posted in my plays at beginning of week - then I expect GJ to minimally hit pivot 0 which is your wick low - admin I hope you are ok with me teaching SD as I go along - to understand the system traders have to know how to trade supply and demand


Price presently is in demand which we should see price move up and replenish on supply above at 1.0963 to 1.0984 before moving down to bottom demand at 1.0835 where we should get a strong reaction to move up to minimum 1.1023. The bottom demand is traditional as well shows large roc on the volume