Master Institutional Supply and Demand Trading (ULTIMATE STRATEGY GUIDE)

if you can Master supply and demand you

will be able to trade with the large

institutions find big risk for all

trades and Bank consistent profits in

this video I'm going to share some vital

points about institutional Supply

demands that most people simply don't

know and it's these critical points that

have now helped countless of our members

get funded and Bank their first ever

profit splits this video explains what

is supply and demand how to read

institutional order flow how to

mechanically draw the zones how to find

high probability institutional zones and

I'm going to drop some serious source

for you here and finally how to enter

and exit for maximum profit but first to

take advantage of the market you must

understand the true reasons as to why

price moves does the price fall from

here to there because there are more

sellers than buyers nope this is wrong

keep watching to find the truth now as

history has repeatedly shown Traders are

often a very emotionally charged group

when millions of them get together in a

highly emotional money game of fear

greed and uncertainty their combined

Behavior takes on a herd mentality and

we can spot this on our price charts and

make money from it how well you've got

millions of Market participants putting

millions of orders through the market

for a million different reasons all of

this behavior and participation is what

drives the order flow that is put

through the market and that order flow

is what prints price action on our

charts and that price action creates

patterns these patterns repeat

themselves over and over time and time

again and that allows us to make high

probability forecasts of where price may

move in the future because when those

big institutions enter trades they

cannot hide their order flow and we can

spot their footprints in the market if

you know what to look for let me explain

currency exchange rates move up and down

as a result of supply and demand from

Market speculators no trades can take

place unless both the buyer and the

seller agree on a price so this drives

the price of currency pairs where buyers

bring with them demand for the pair

applying that upward pressure on prices

while sellers bring Supply applying

downward pressure on prices the market

runs like a continuous auction

throughout the day with buyers and

sellers competing with each other to get

the best possible price now in a perfect

and free market this would be quite a

smooth and fair process but in the final

financial markets this is often a heavy

manipulated process let me explain

markets work in two-way auctions both

buy and sell sides of liquid instruments

or have blocks of orders on both the bid

and the offers we can see this

visualized on the order book on the left

hand side you can see all of the bids

from the buyers and this shows how much

volume is demanded at each price level

and then on the right hand side you can

see all of the offers from the sellers

as this is also called the ask price and

this shows how much volume is supplied

at each price level and the more volume

that there is at each price level the

more liquid the market is think of it

like an auction house or Ebay where if

you are the buyer then you are making

bids for it and you either sell it it's

the price you're offering it or the

price you're asking for someone to pay

for it now remember a trade can only

take place if both the buyer and the

seller agree on a price so to execute an

order it must be paired with an opposite

order of equal size for example so sell

10 Lots there must be a buyer willing to

buy them at the ask price and vice versa

this is how the markets move now what

most people don't know is that there are

two types of orders where both buyers

and sellers can be passive or aggressive

passive Traders use limit orders and

they are waiting for price to hit them

so all of these orders that you see on

the bid and the ask they are limit

orders so if they were only passive

orders then the market wouldn't move

because all of those orders are waiting

to be hit so this is where aggressive

orders come into play aggressive buyers

and sellers they are trading at the

current market price and they are not

waiting for the market to come to them

but to do that they have to cross the

spread to buy at the ask price or cross

the spread to sell at the bid price most

execution platforms look like this where

you buy on the right hand side as that

is the current ask price and you must

cross that spread to be an aggressive

buyer and if you want to sell then you

must cross the spread to the left to hit

the bid and it's this interplay between

passive and aggressive orders is what we

call order flow so let's take a look at

a very oversimplified example of what

can happen on the order book in a live

market imagine this was the order book

for euro dollar and a large institution

wants to buy 10 000 Lots at Market so

this is an aggressive order they have to

buy 10 000 Lots at the best ask price

but as you can see there are only 103

lots available for sale at that current

ask price so the price will rapidly

shoot up as it instantly absorbs all of

the supply at each level until all 10

000 lots have been filled at 1.1539 due

to that huge imbalance between supply

and demand and now the market is sitting

at what is deemed to be fair value

between buyers and sellers so price has

to keep moving up to search for enough

liquidity to fill the order institutions

cannot hide those huge imbalances that

they cause in the market so if you know

how to spot their footprints on a chart

then you can trade with their order flow

rather than getting smashed against it

so what does this look like on a

Candlestick chart here you can see price

impulsively moving to the upside as

aggressive buyers keep pushing price

higher and higher until they find enough

Supply to fill their demand and price is

then rebalanced likewise here you can

see aggressive sellers liquidating all

of these bids pushing the price lower

and lower until they have consumed

enough demand to fill their supply and

this is how markets move when there is

an overwhelming imbalance between supply

and demand price will keep moving to

search for new liquidity to rebound its

price and this is happening every single

second that the markets are open now

obviously you and me were not quite

trading at the size big enough yet to

move those big liquid markets so how do

we make sure that we are trading on the

right side of that institutional order

flow and that's where supply and demand

zones come into play but how do we

identify these zones when prices moving

sideways in a Range this is where orders

are being accumulated or distributed as

price moves into the bottom half of the

range this is where buyers step in to

buy at discount cheap prices and then as

price moves into the top half of the

range sellers step in to short at

premium expensive prices you want to buy

low and sell high right pretty simple

eventually aggressive buyers will cause

an overwhelming imbalance between Supply

on demand and this is where price will

rapidly break out the range to the

upside to search for more liquidity to

absorb the demand and this is what

creates those demand zones now we don't

trade the initial breakout as this is

where losing Traders fomo into long

positions and they buy the highs instead

we wait for price to return to that zone

and then we look for our entry models to

get long as this is where the wrist

reward will be on our side and we are

buying where the institutions will be

now why does price return to the zone

and then continue from there well at

this level there is not enough demand to

keep pushing price higher so we wait for

price to return to the demand Zone where