Watch Sam seidens video webinars on YouTube. Trust me, if you watch enough of them to understand what he is trying to teach you, you will never want to use any indicator and you will start to trade along side the banks. Never pay for lessons. Is all free online
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Your right they are support and resistance area. But you need to view it as supply and demand zones. Levels in which there are orders waiting to be filled by banks and institutions. Once you can see the chart for what it is, you will start to trade better. The chart candles just show you filled orders. The white space is where all the unfilled orders are. And they can be identified by location of fresh supply and demand. The entire chart is supply demand driven and is the imbalance that moves the market.
This is true. Donāt just watch them once. Bookmark them and watch againā¦ and againā¦and again.
This video helped me tremendously ā¦
Also use the BP search tool above. Punch in supply and demand and you will have plenty of reading for the weekend!
@Epidot has a great thread on SD. Another one that I found useful was @kate25 Understanding Supply and Demand.
Good luck,
KC
You should not be trading Supply and demand Zones on their own. Even though they are very helpful but some times institutions do give false breakouts to hit stop looses of retailers like us.
So you can look for confirmation candles when price returns to the zones.
For example for a supply zone when a price returns a bearish pin bar or bearish engulfing will be a good signal to go short.
Similarly for demand zones we should look for bullish reversal candles.
And lastly you should look for time frame continuety.
I have fount the supply and demand zones to work best when i find a zone at a high time frame and trade it at lower timeframe within the direction of over all trend