MODULE 2 – Supply and Demand

In the second module “Supply & Demand,” we will start strategy building. You will begin learning a specific set of rules, black and white, which you will follow to analyze charts based on Supply and Demand objectively. In this module, you will learn the concept of Supply and Demand, and how to identify and locate Supply and Demand zones based on a simple, yet a specific set of rules.

Ultimately, low risk, high reward, and high probability are the key factors any trader and investor should be looking at. We show you how this can be achieved by looking at Supply and Demand Imbalances.

Lesson 1: Concept

We know that institutions are very profitable in the market. We also know that retail traders are struggling to generate profits and generally lose money. Understanding the role each participant plays in the financial market place will build a strong investing and trading foundation.

Therefore, we teach you how to analyze and follow institutional trading activity based on Supply and Demand. We will also spend some time talking about misconceptions of ordinary retail traders. Why would we want to follow retail trader’s strategies like support and resistance or trendlines when we know retails traders are generally losing money and institutions often trade against them?

We will guide you through a simple real-world case study to show you what happens when big institutions like banks participate in the market, and more importantly how we can examine their trading footprints to spot significant market turning points before they happen.

Lesson 2: Formations of Imbalance

Now you are ready to learn our unique Supply and Demand formations, what each Supply and Demand formation generally looks like and how to trade them.

Lesson 3: Zone Identification

This lesson builds on the previous experience. You will learn to follow a process-based step by step rule set, how to identify Supply and Demand zones. We will put the learning into practice showcasing how this is done in a real and live market environment.

Lesson 4: Zone Refinement

Now you can identify Supply and Demand zones in the price chart. Using practical examples, you will learn different ways of line placement to pinpoint the origin of imbalance. After this lesson, you will be able to locate, identify and pinpoint Supply and Demand zones using our rule-based and straightforward process.

Lesson 5: Time Frames

We translate the theories of Supply and Demand into the price chart using a unique three-step process. In this lesson, you will learn about the three steps and why it is vital for us to look at multiple time frames. Furthermore, depending on your financial objectives, short term trading vs. long term trading, you will learn to use a different set of time frames for each process.

At this stage, we will evaluate with you, which time frames best suit your lifestyle as well as financial objectives.

Lesson 6: Location

The first step of our unique 3-step process is Location: When we talk about trading, one thing easy to say is “buy low, sell high,” however, how can we objectively translate this theory into any given price chart? In this lesson, we will show you a simple set of rules which will guide you through the process of analyzing the location of price. Whether price is high, low or in equilibrium and therefore, you will understand on which side of the trade you want to be. If price is low, you want to be a buyer. If price is high, you want to be a seller.

Finally, we will put the learning into practice showcasing how this is done in a real and live market environment.

Lesson 7: Direction

“Trend is your friend, until the end of the bend.” The second step of our unique 3-step process is Trend: Trend can be the most challenging part of trading if you do not have a clear ruleset in place, which will guide you through the analysis. In this lesson, we will show you our interpretation of trend.

Our unique trend analysis will help you to identify the direction a market is moving and more importantly when the market is likely to change its direction.

Finally, we will put the learning into practice showcasing how this is done in a real and live market environment.

Lesson 8: Decision Process

This lesson is all about decision making. In the world of trading, we must have a clear and objective set of rules to eliminate emotional distress, subjectivity and second-guessing. We will share our unique action matrix, which is designed to help you execute trades without hesitation, and as automated as possible.

To make your learning as convenient as possible, you will be able to find our action matrix in a ready to use document. Just go to your download section “Get Notes” of your classroom and download the “Action Matrix” sheet.