All language subtitles for nbvcxw

Hey, everybody. Welcome back.
Here's another video for the

Currency Pro Academy course.
Today, we're going to be

talking about supply and demand
in a very refined way and that

is flip zones. So, let's start
diving into what exactly I'm

talking about. So, in the last
video, we learned about supply

and demand basics, how we
highlight with our rectangle

tool, the consolidative areas
within the market. Um in this

video, we're going to go over a
much more refined approach,

okay? So, we're on the hourly
time frame right now on Euro

USD and I have a few zone
marked out here we're going to

start with the higher time
frame first the 1 hour and then

we're going to drop down to
lower time frames so first of

all I have a zone right here
the this rectangular zone and

this is a one hour demand zone
and basically instead of

instead of highlighting this
entire consolidation what I'm

doing is refining it down to
the last opposing candle before

the momentum kicked into the
market right this is very

similar to order blocks which
we're going to learn in the

next section but it's basically
order blocks and supply and

demand are very similar things
there's just minor differences

right but this is the last
bearish candle before the

bullish up move where all the
momentum kicked in so that is

my refined supply zone I mean
sorry demand zone so instead of

having my rectangle tool like
this to cover the entire

consolidation what I'm doing
instead is refining it down to

that one last candle the last
low momentum opposing candle

before all the high momentum
kicked into the market okay so

that explains that that's my
one hour demand zone now I also

have two more demand zones
above it and those are more

visible on lower time frames.
So the one hour time frame is

the first place I like to start
for order blocks and supply and

demand zones. Four hour is just
for basically gauging the

direction of the market. Uh but
one hour and 15 minute is where

I locate my my real zones to
trade from. So let's drop down

to the 15 minute now that we've
gone over the first demand

zone. And so now that we're on
the 15 minute we can take a

look at the second demand zone
that I've highlighted here. So

this one right here same exact
concept I highlighted the the

last small low momentum bearish
candle before bullish momentum

kicked into the market right we
have a lot of volume being

pumped into the market there
this is the very last candle

now it doesn't really matter if
it's bullish or bearish candle

all that matters is that it's a
low momentum candle right

before the actual momentum
kicked into the market okay

that's where a lot of people
get confused they think it has

to be a bearish candle it
really doesn't technically like

a candle like this could be
looked at as well if it were in

a different place like if it
were down here doesn't matter

if it's bullish or bearish
doesn't matter about the color

some people have just one solid
color on their charts instead

of a two tone color scheme I
just prefer this just visually

I like it so that's that's what
I do but just to clarify

doesn't matter if it's bullish
or bearish all that matters is

that it's a low momentum candle
and it's right before the

actual momentum kicked in
that's all we're trying to do

is locate the last point of
demand before the market kicked

into gear okay so this was the
1 hour candle now that we're

down to the 15 minute we have
this one here that's easily

identifiable and then we have
another one up here as well I'm

going to go over that shortly
but yeah that those are the two

zones that are visible from
here and now we're going to

drop down to the five minute
time frame because as you can

see price started trading down
but it never actually reached

that demand zone and of course
not this one either but it's

good to have them on the
charges so you're aware of

where price could go. It also
helps with setting profit

targets once you have entered
the trade. So I was monitoring

this one. Price came close but
just didn't quite make it

there. So I leave it on the
chart and continue to monitor

price. But as price kicked into
kicked into gear again. We saw

a clear break of market
structure. Right? There's a

break of structure here as
well. That's what prompted me

to highlight this as well. But
now we have another break of

structure right price kicked in
to high momentum broke through

market structure and so that
prompted me to look at more

recent price action and to do
that I was down on the on the 1

minute time frame I like to
scalp this pair on the one

minute time frame so let me
just adjust this really quick

okay so as you can see the same
concept all over again right we

have the last low momentum
candle before the bullish

momentum kicked into the market
and on the one minute time

frame we have we have more
break of structure here very

minor structure but still break
of structure nonetheless but

again that prompted me to look
for a demand zone for price to

trade back to to mitigate right
because similarly to order

blocks which we're going to go
over in the next video supply

and demand zones and order
blocks in order for them to be

validated or at least have more
confluence it has to be paired

with a break in market
structure okay so that's what

happen with all of these zones
we had a break of structure

here the point of origin was
this one hour demand zone we

had another break of structure
here the point of origin was

sorry we had a break of
structure here the point of

origin was this demand zone and
same thing here we have a break

of structure technically this
is a point of origin on the 15

minute but I was going much
more refined than that because

I was looking for an intraday
trade so I was on the lower

time frames so again on the 1
minute time frame break of

structure of this area price
pushed right through it this

was the point of origin and the
last low momentum candle before

high momentum kicked into the
market okay so that's what

prompts me to highlight this
demand zone so again this is

the most recent demand zone we
of course have two others below

it but it would take quite some
time for price to get there so

I'm always looking at the most
recent price action because if

I want to get in the trade it's
not going to help me if I'm

targeting something you know
all the way down here or

whatever like it has to be in
recent price action if I

want to catch a trade that day
for example it has to be up to

date right so I'm always
targeting the most recent zone

and monitoring that closely so
as you can see price had a huge

impulse and then started moving
downward in a very corrective

manner you can see how this is
this whole move here is all

very high momentum full body
bullish candles we had one

large full body bearish candle
but from that point on we're

just kind of messing around
just consolidating in a

downward in a downward motion
very corrective manner right

however we did mitigate this
demand zone we actually

mitigated 50% of the demand
zone so this can really be

considered mitigated from this
point on right sometimes price

just taps into the top of the
area and then trades away but

to me personally it's it's
fully mitigated once it's hit

at least the 50% zone right
sometimes it can trade lower

than that of course but 50% and
I'm looking at it as fully

mitigated so this is a fully
mitigated demand zone and so

this is where the flip comes
into play alright so the whole

concept of this video basically
other than refining our supply

and demand to the last candle
instead of the consolidative

zone the flip zone is basically
a very refined entry style it's

one of my personal favorites
it's not the only way I enter

trades as we're going to go
over in in later videos but it

is one of my favorites
especially for scalping Euro

USD on the one minute time
frame because this happens

almost everyday okay so let me
explain what the supply and

demand flip is okay so as we've
already explained we have a

demand zone right here price
mitigates this demand zone and

then trades away from it okay
so if this demand zone were

strong enough to hold then
technically price would

continue trading higher and
higher and higher we would have

a break of structure maybe a
pull back and then continue

higher again right we have
bullish order flow but what a

flip zone is is when you you
watch price react to the zone

it has to trade away from the
zone and then if price has

enough bearish momentum now to
break through the zone that's

what the flip is because then
we would be looking for a

supply zone to target instead
of a demand zone right so it

flips from demand to supply so
let's see if that's what

happens here or if price just
takes off to the upside instead

let's play price forward Okay
so price dropped to the

downside and clearly violated
this zone okay so let me just

go over this briefly one more
time price came down into the

demand zone mitigated it fully
traded away from it but failed

to create new highs see instead
of you know breaking structure

here breaking structure here
breaking structure here and

continuing bullish order flow
we couldn't even break this

minor here. Price traded away
from the demand zone but didn't

have enough momentum to create
new highs. So instead we just

kind of topped out right here
right? And then from that point

on price fails to the downside.
So what that tells me is that

demand was temporarily
respected but overall supply is

taking control and pushing
price to the downside. So

that's the flip. It flips from
demand to supply. Okay so now

that now that the demand zone
has been violated This is also

of course a break of structure.
So let's map that out because

this was our low. And we
clearly broke that low. Right?

To map that out okay so that's
our break of structure so now

that we have a break of
structure and a confirmed flip

zone where can we look for
entry well since supply is in

control we have to locate our
last point of supply before the

momentum kicked into the market
and technically like like we

went over in the last video for
being general about it the

entire consolidation zone is
right here okay that's the

entire consolidation zone but
that is an extremely messy way

to enter a trade especially on
the one minute time frame like

we don't want to do that we
want more precision than that

right we don't this massive
stop loss because that means in

order to achieve a good risk
reward ratio we would have to

be targeting extreme extreme
lows just to get a a profitable

trade right so we want to be
more precise than that so like

I explained earlier what we can
do is refine our supply zone to

the very last point of supply
and that was again doesn't

matter if it's a bullish or
bearish candle in this case it

is a bullish candle low but all
that matters is that it's the

last candle before momentum
kicked into the market so this

bullish candle right up here
let me just draw it this

bullish candle right here is a
very small bodied you know

wicks on both sides no
directional bias it's a very

low momentum candle there's no
volume in the market at that

point right immediately after
that candle prints on the chart

we see these huge full body
bearish candles kick into the

market causing this break of
structure okay so that's a very

important takeaway these full
body candles broke the

structure but the point of
origin is this last candle

here. That is our refined
supply zone. Okay? So now that

we have that mapped out on on
the chart with our supply zone

template it's just a great
template that has an S for

supply that is now our ideal
entry point okay so in this

case what I would do is I
wouldn't refine it any further

I'm already on the one minute
time frame I never trade below

that to be honest so at this
point I would set a sell limit

order right at the bottom of
that supply zone Stop loss can

be Two pips is fine. Keep in
mind we're trading Euro USD

here so that's one of the
tightest spreads across all

brokers. It doesn't matter who
you're with. Euro USD is the

most commonly traded pair in
the market so it has the lowest

spreads by far. So two pips is
perfectly reasonable. Um to be

honest I don't really go any
lower than that. Like

technically you can keep the
stop loss just above the zone

but I'm not trading with a stop
loss of like one to one. five

pips. That's just too tight for
me. I don't like that. You

never know what's going to
happen with a broker and

spread. So I like to keep it a
bit safer. So in this case two

would be reasonable even even
2. 5 to to three pips would be

reasonable but again completely
up to you doesn't matter in

this case for this example I'm
going to go for two pips so now

we can get into targets right
because we've already set our

stop loss we've set our entry
we've confirmed why we're

entering this trade right we
had a demand to supply flip

supply is in now in control the
supply created a break of

structure we've located the
point of origin and that is our

target entry point right now in
of targeting profit for this

trade we can simply target the
higher time frame demand zones

right because we had them there
for a reason the the thought

process is that eventually some
point at some point price is

going to be drawn to those
zones like a magnet okay

they're unmitigated demand
zones so now if supplies in

control we can anticipate that
eventually price is going to

reach those demand zones to
mitigate them as well just like

we had a mitigated zone here
price needs to mitigate all

those other zones as well so we
have two here we have two time

frame zones. The 15 minute and
the one hour zone that we

identified earlier. So if you
want to be a little more modest

or if you want like an actual
intra day trade you can

certainly just go for the first
zone here and as you can see

you know two pip stop loss 18.
7 pip target profit which

leaves us a 9. 35 risk reward
ratio which is absolutely

phenomenal can't complain about
that that is more than most

traders make in a month if not
a quarter some traders don't

even make that in a year to be
honest so that right there is

phenomenal. Uh now if you
wanted to be a little more

ambitious you could certainly
target the bottom zone here.

Keep in mind we should be
confident in this because we

know that supply is now taking
control and we're seeing

bearish order flow because
we've had a break in market

structure prices moving
impulsively to the downside

right like all the signs are
there for supply to take over

and so we should be confident
in in targeting these lower

demand zones right so for this
example I'm going to target the

lowest demand zone for 39 pips
of profit which increases the

risk reward ratio to 19. 5
sounds absurd to some people I

know but you know let's just
watch this play out and see

what happens because it is more
than it it's entirely possible.

These kind of moves happen
everyday in the market. It's

all about having a precise
entry and knowing what you're

doing and being able to read
market structure and order

flow. So let's play price
forward and see what happens.

See if this trade gets
triggered and how it progresses

from there.

Okay so we're moving back up
correctively. There we go. So

we're triggered into the trade.
Let's just move this over a

little bit. Okay. Yeah so
triggered into the trade. So

far basically zero draw down.
Just wicked into it a little

bit. Uh so no draw down so far.
Let's see how it plays out.

Okay so right away we have some
pretty insane momentum. So you

can see how well respected this
supply zone is right? Price

needs to come back up and
mitigate that point of origin

that caused this break of
structure in the first place.

We need to mitigate that zone.
And you can see as soon as it's

mitigated that's when momentum
kicks in because it like price

gathered all the fuel that it
needs basically. It was you can

look at this as stopping at the
gas station for fuel with your

vehicle right? Price was
stopping at stopping for fuel

as soon as it it took off to
the downside. Just melted away.

And of course that causes
another break of structure. So

we can map that out. I know
it's visually obvious that

price broke structure but I
like to map it out anyways. Um

just to remind myself at the
start of the next day or

whatever the next trading day.
Just to remind myself the

current order flow of the
market. So if I have breakup

structures to the downside
mapped out on my chart. It's a

constant reminder that we are
currently in bearish order

flow. So let's continue to play
in price forward and see how

this progresses. Okay so that
was quick. So if you were

targeting this first zone here
for nine pointthree five R I

believe it was. Uh nine point
3five risk reward ratio. Your

take profit would have been
hit. You would have been done

for the day. Uh how long did
that take?

Under 15 minutes. Yeah. So less
than 15 minutes and you would

have made almost 10% profit so
that's that is absurd so yeah

if you were targeting that
first zone you would have been

done for the day within 15
minutes potentially even done

for the month it depends on
your targets right so that's

how easy it can be if your
analysis is precise as we as we

were here in this example but
of course for this example

we're targeting the lower zone
so let's see if that ends up

happening let's play price
forward once again another

break of structure here because
that was our low price

impulsively broke below it
Right? That impulsive bearish

candle broke right through it.
And then correctively moving

upwards again. Of course more
entries can be taken right?

Like I'm not factoring any any
scaling in opportunities here.

Like there's supply here right?
So you could technically take a

trade from there. Um I don't
know if it would be a win or a

loss. I have to play this
forward and see what happens

but technically you could be
scaling in at any corrective

move within this down move. And
treating it as a new supply

zone. But Let's continue to
move price and see what

happens. Okay so yeah that
would have been a a minor loss

if you took another scaling
trade from there. But overall

the position is still in profit
so let's see how this plays

out.

Okay moving quite correctively.
Oh there we go. Okay let's

extend this forward so we know
that we're still in the

position here. Right so Another
clear break of structure here.

Right? So we're still in the
trade. Uh yes price was oops.

Price was moving basically
sideways for quite some time.

It would certainly take some
emotional control and

discipline to be able to to
withstand that. However if you

can it really pays off in the
end right? Like if you trust

your analysis enough then you
should be able to be

comfortable holding this whole
trade here. And of course you

can you can trail your stop
loss to certain points if you

like. If that makes you feel
more comfortable or you can

certainly you for example, you
could set your ultimate take

profit for this bottom zone but
you could have removed like 50%

of your position at the first
zone, right? In that way, no

matter what happens, you've
already won, right? So, as soon

as we hit this first zone here,
you could take off the majority

of your position and move the
stop loss to break even so that

there's no risk left on the
table and you've already won.

So, at that point, you're just
playing with house money,

right? So, whatever happens
happens. Uh that's what I do

quite often as well. I don't
just leave the entire thing

running and just hoping for the
best. I'll often secure at

structural points and supply
and demand levels such as this.

Move stop loss to break even
and then just let it run and

see what happens, right? So,
let's let's keep going and see

what happens here. Oh, almost
hit take profit. And let's see

what happen. Yeah, there we go.
So, hit the full take profit.

Which would be yeah about
nineteen and a half nineteen

and a half risk reward ratio.
So if you're risking 1% capital

that's almost 20% gained in one
single trade. And it took a

total of

two two hours so this is still
within one trading day right

we're on the one minute time
frame so if you wanted to hold

this entire trade you know just
over two and a/ 2 hours and

this is this is an insane
insane profit for for that

short amount of time nineteen
and a half hour is absolutely

insane so yeah that is how we
can utilize supply and demand

and refine it to the last can
and have this refined entry

style the flip zone right so
just to go over the criteria

here one more time we have a
clear demand zone price

mitigated the demand traded
away from the demand right

that's the key factor we have
to reject the demand zone if we

just blew right through the
demand zone that is not a flip

zone whatsoever it has to
respect it temporarily move up

higher but then it has to show
signs that there's not enough

momentum to create new
structural highs right and

that's exactly what we did here
we made equal highs instead of

making a new high okay price
wasn't able to gain enough

momentum enough buying power to
break these structural highs

and create new highs there
wasn't enough momentum for that

so that's an early warning sign
that price is most likely

going to break structure to the
downside and gain more bearish

momentum and that's exactly
what happened so again demand

zone got mitigated we traded
away from it failed to make new

highs and then traded through
creating a break of structure

okay as soon as the break of
structure happens that's when

our our bullish order flow
changes to bearish order flow

so that's when we can start
looking for sales and that's

when the supply zone can be
identified as we did here and

that supply zone is our entry
point and from that point on

you can see as soon as price
mitigated that supply right

there that last point of supply
we just absolutely melted to

the downside huge profit Taking
potential here. Corrective

move. Just regaining some fuel
for price to make this next

massive bearish high momentum
move to the downside.

Ultimately hitting the final
take profit for 19 and a half

R. Okay. So I really hope you
guys gained a lot of value from

this example. Um feel free to
take notes and just watch it as

many times as you want. It's
here for you. It's part of the

membership. So watch it as many
times as you'd like. Gain as

much from it as you can. Uh as
you watch it and more. You may

pick up on some things that you
didn't understand at first. So,

that would be a great idea. So,
stay tuned for the next video

guys and I'll talk to you soon.