Supply and Demand
Sankar
Supply and Demand
Decisive and Indecisive candle types
Candle Body (between Open and Close) weightage is greater than 50%
(from the total price diff. between open to High) can be considered as
Decisive candle
Candle Body (between Open and Close) weightage is Less than 50%
(from the total price diff. between open to High) can be considered
as Indecisive candle
Supply and Demand
Types of Supply and Demand
Key Rules for Taking Trade
1. Boring Candle is the Base (supply / demand zone), which is located in the
center of Rally (Bullish) / Drop (Bearish) candles
a. To identify the boring candles quickly– use Boring Candle indicator
by Surjeet Kakkar in trading view platform
2. Minimum Target should be 1:3 if less than that, strictly not to consider
3. Base candle (Boring) selection criteria - between the Rally/Drop candles
Max. 3 boring candle is allowed. If more boring candles appeared
between R/D candles, Avoid that trade
4. Imbalance should be there to consider the validity of above supply /
demand zones
a. Identification of Imbalance: there should be a gap between the
Low/High of Base candle and the 4th candle Low/High
b. Ex. Image
Supply and Demand
5. Trade Setup (if buy trend)
a. Entry: Top of the Base Candle
b. Stop Loss: Bottom of the Base Candle
i. If the Candle closed above the SL level is Proper SL level
ii. If the candle didn’t close, then one time (only) can reenter
c. Target: Previous High
Additional Note:
High Probability of success (continuous pattern) is Travel towards Trend (Trend
is your Friend), which is Rally-Base-Rally and Drop-Base-Drop setup
Low Probability of success (reversal pattern) is Travel against Trend, which is
Rally-Base-Drop and Drop-Base-Rally setup
Supply and Demand
VALID & INVALID SETUP
To be discussed with Trainer
BASE CANDLE & INSIDE CANDLE MARKING
To be discussed with Trainer
Supply and Demand
EXAMPLES: RALLY-BASE-RALLY
Entry not
Script: GOLD – 1hr triggered
Date: 26 Feb 24 Entry not
triggered
Script: US Oil, 1 hr
Date:
Note: Powerful entry, because the third candle is closed well above the base
candle - Is it correct?
Supply and Demand
Script: GOLD – 1hr
Date: 28 Feb 24; 15.30pm
Script: EUR USD – 1hr
Date: 08 Mar 24
Supply and Demand
Why SL Hit? Or I captured wrong location?
Script: EUR USD – 1hr
Date: 30 Jan 24
Script: EUR USD – 1hr
Date: 26 Jan 24
Supply and Demand
EXAMPLES: DROP-BASE-DROP
Script: BTCUSD – 1hr
Date: 13 Feb 24; 19:30
Script: BTCUSD – 1hr
Date: 1 Feb 24
Supply and Demand
Script: NAS100USD – 1hr
Date: 14 Feb 24
Script: NAS100USD – 4hr
Date: 3 Aug 24
In the above scenario, is the target level marked is correct?
Supply and Demand
Script: Banknifty – 4hr
Date: 1 Feb 24
Supply and Demand
EXAMPLES: RALLY-BASE-DROP
Script: Silver – 4hr
Date: 16 Feb 24
Script: Silver – 4hr
Date: 17 Nov 24
Supply and Demand
Script: Wipro – Day
Date: 25 Feb 24
Script: Deltacorp – 4hrs
Date: 7 Feb 24
Supply and Demand
EXAMPLES: DROP-BASE-RALLY
Script: Deltacorp – 4hrs
Date: 29 Nov 24
Script: NAS100USD – 1DAY
Date: 25 APR 23
Supply and Demand
Script: NAS100USD – 4hr
Date: 07 Mar 24
Doubts
1) How to check imbalance in multiple base candle zone? If it is DBD, from
which candle low to next candle high?
2) If there are multiple entry points (with supply/demand) we identified in a
bearish / bullish area, how to fix the target points?
Sell Point 1
Sell Point 2
Target point - This????
Target point - This????
Supply and Demand
“Risk comes from not
knowing what you're doing”
