Quickly Improve Your Supply And Demand Trading With This Simple Trick

Want to see your results skyrocket, find the best zones to trade, and make more money with supply and demand (S & D)?

Then you should definitely keep reading today’s post.

Trust me, this one’s a game changer!

Improving your S & D trading usually involves finding better zones to trade. That’s where everyone tends to focus. But hey, while it’s important (and you should totally do it) to aim for those top-quality zones, I’ve got a little secret for you…

You can boost your results not just by finding better zones or waiting for more signs, but by trading a specific type of zone.

Curious to know what it is?

Then let’s get started…

If You Want To Improve Your Trading, Focus On These Zone ONLY

Let me cut to the chase and give it to you straight:

The fastest, simplest way to improve your supply and demand trading? Focus on trading rally-base-drop/drop-base-rally zones over any other zones.

It’s that simple.

No secret tips, no need to find special zones at support & resistance levels or round numbers (although, that can help).

  • STOP trading rally-base-rally/drop-base-drop zones
  • START trading rally-base-drop/drop-base-rally zones.

Why, you ask?

Let’s break it down…

One big misconception in supply & demand trading is thinking rally-base-rally/drop-base-drop zones will reverse price just as much as rally-base-drop/drop-base-rally zones. It’s easy to think that since all zones look similar, they all behave the same.

But that’s just not true…

A few years ago, when I was losing more than I was winning, I wanted to see if rally-base-drop/drop-base-rally zones were actually better than rally-base-rally/drop-base-drop zones.

I had just had several losses in a row, and I had a feeling it was because I was trading from rally-base-rally/drop-base-drop zones – which I suspected didn’t work very well.

So, I decided to analyze my last 50 trades…

I looked at each trade, noted if it was a rally-base-rally/drop-base-drop zone or a rally-base-drop/drop-base-rally zone, and whether it was a win or a loss.

Guess what?

Most of my losses came from rally-base-rally/drop-base-drop zones.

There were different reasons why; some zones caused a small price reversal before crashing, which some people wouldn’t count as a loss or a failed zone. And, they weren’t all because the zone itself was bad. A few were because I messed up my entry, moved my stop loss too soon, and so on.

But overall, most of my losses came from rally-base-rally/drop-base-drop zones!

That’s what my analysis showed.

So, I stopped trading rally-base-rally zones and started focusing on rally-base-drop and drop-base-rally zones. And you know what?

My results improved.

I didn’t become a winning trader straight away… that took a few more years.

But my trading results got better, and I started making more money.

So, I think it’s a better idea to focus on rally-base-drop/drop-base-rally zones rather than rally-base-rally/drop-base-drop zones. I know rally-base-rally/drop-base-drop zones can work and sometimes can make you a lot of money.

I traded them for a long time and had some great trades because of them.

But in the long run, they just don’t compare to rally-base-drop/drop-base-rally zones.

Why Rally-Base-Drop And Drop-Base-Rally Zones Perform Better

I bet you’re starting to get this, right?

If you want to improve your supply and demand trading skills, forget about those RBR/DBD zones. Instead, focus on making trades from RBD/DBR zones.

But why?

Why are RBD/DBR zones better?

Why are they more likely to cause a reversal than RBR/DBD zones?

Here’s the secret: It’s all about the banks and their sneaky ways of entering trades.

Banks create supply and demand zones when they take profits, place trades, or close trades. They then make price return to complete any remaining trades or grab the rest of their profits. They can’t do this straight away because there aren’t enough orders ready.

I know, if you’ve read some of my other stuff, this is pretty straightforward.

But hold on, here’s where it gets interesting…

Banks can only enter trades when they have enough opposing orders to match against theirs – sell orders if they want to buy, and buy orders if they want to sell. Also, the size of their trades and how much profit they can take depends on the number and size of these opposing orders.

So, think about it…

If the banks want to place a buy trade or take profits from a sell trade, they need loads of other traders to be selling. The more traders selling, the bigger the buy trades they can make, or the more profit they can take off any open sell trades.

And yes, the opposite is true too!

If the banks want to sell – either to place a trade or take profits from a buy trade – they need other traders to be buying.

The more people buying, the more profit they can take and the bigger the sell trades they can make.

So what’s the point?

Supply and demand zones created by thousands of orders coming in are more likely to cause a reversal, because the banks created the zones by entering massive positions.

Let’s take an example:

If the banks enter a huge buy trade, the resulting demand zone must be strong because:

A. The banks wouldn’t enter unless they thought the price would go up, and…

B. The banks would protect their trade if the price started going the wrong way. They’d step in and push the price up, causing price to reverse from the zone.

So, why are RBD/DBR zones stronger than DBD/RBR zones?

Well, the number of orders coming in (traders buying or selling) depends on what price is doing, right?

If the market’s falling, most traders are selling, obviously.

And if it’s falling a lot, like after a large decline or when price has been going down for a while, that means lots of people are selling.

This gives the banks more orders to enter large trades with.

So, to sum it up: The price move BEFORE the zone forms determines how strong the zone is.

It has to!

That’s what controls how many people are buying and selling, and therefore how many orders the banks can use to enter trades or take profits.

It’s not the move away, like most experts say; it’s the move BEFORE the zone was made.

I can’t go into too much detail on this…

We’d be here all day, and there’d be no reason for you to buy my books if I gave it all away.

But the reason RBR/DBD zones aren’t as powerful as RBD/DBR zones is they always form AFTER price has been rising or falling for a while. This leads to the banks not having enough orders to enter trades, close trades, or take profits.

Check out the example below…


When price has already risen and a zone forms, like with RBR/DBD zones, most traders are doing now the polar opposite of what the banks need:

Instead of selling, they’re buying due to the rise.

Since only a few traders are selling, the banks can’t place massive buy orders because there aren’t enough orders to available.

So, the RBR zone likely won’t cause the price to flip or ‘reverse’.

Think about it: why would banks want the price to return and reverse from a zone where they only placed a few small buy trades?

There’s no reason for them to bring the price back!

So, price might not return at all, which often happens with RBR/DBD zones. Or, if it does return, it might just zoom past without stopping or only cause a small dip.

That’s why RBR/DBD zones often fail and lead to losses.

Now, let’s look at how RBD/DBR zones form…

RBD/DBR zones always form after price has already been moving in the opposite direction for a significant amount of time.

In our example, price goes down, forms a base, then reverses and starts rising.

The fact price was falling before the base formed is crucial.

If price has already been falling for a while, most traders are selling. This means banks have lots of sell orders to either place buy trades with or take substantial profits off sell trades. Either one could cause a significant reversal and form a demand zone.

Remember: banks need sell orders to buy and buy orders to sell.

So, with more retail traders selling, banks can place larger trades or take more profits off existing trades That’s why these zones, and RBD/DBR zones in general, are stronger than RBR/DBD zones.

Banks have a much bigger incentive to protect a zone and make price reverse when it returns because they’ve placed more substantial trades.

The Bottom Line

So, does it make sense now why RBD/DBR zones are stronger?

The zones form due to the banks placing bigger trades—and sometimes, closing trades to make a profit. It’s not the move away that matters, nor is it the way the zone forms, as some experts might say.

It’s because they place larger trades, giving them a stronger reason to make price reverse when it returns.

Try sticking to RBD/DBR zones for a while and see if you get better results. I’m not saying you won’t find RBR/DBD zones that cause reversals sometimes, because you will.

However, in the grand scheme of things, the zones don’t perform as well compared to RBD/DBR zones. They might give you an occasional small bounce here and there, but nothing like the significant trend-changing reversals we see from RBD/DBR zones.

So, you’re better off avoiding them and trading RBD/DBR zones only.

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6 thoughts on “Quickly Improve Your Supply And Demand Trading With This Simple Trick”

  1. Why Rally-Base-Rally/Drop-Base-Drop Zones Work Better?
    You made a silly mistake, should be: Why Rally-Base-Drop/Drop-Base-Drop Zones Work Better ?

  2. Hi Team,

    I have sent couple mail regarding VIP membership still not received any response.

    Please replay my queries.

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