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Supply & Demand Trading Strategy

The document outlines a trading strategy based on supply and demand zones, emphasizing the importance of aligning trades with institutional investor behavior. It explains key concepts such as demand and supply zones, market psychology, and patterns of accumulation and distribution, while providing actionable steps for retail traders. By mastering this strategy, traders can improve their accuracy and profitability by following the movements of 'smart money' and avoiding common pitfalls.
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0% found this document useful (0 votes)
84 views25 pages

Supply & Demand Trading Strategy

The document outlines a trading strategy based on supply and demand zones, emphasizing the importance of aligning trades with institutional investor behavior. It explains key concepts such as demand and supply zones, market psychology, and patterns of accumulation and distribution, while providing actionable steps for retail traders. By mastering this strategy, traders can improve their accuracy and profitability by following the movements of 'smart money' and avoiding common pitfalls.
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Supply & Demand Trading Strategy

Banks Don’t Want You To Know About


Wysetrade
1.43M subscribers
https://www.youtube.com/watch?v=P0VomcX8DGM

🔍 Introduction

Trading based on supply and demand zones provides a powerful edge by aligning your trades with the
behavior of institutional investors, often referred to as "smart money" or "the big boys." These zones are
where price reversals occur due to the large volume buying or selling by banks and institutions. Understanding
and applying this method allows retail traders to ride these waves, avoid false breakouts, and improve trade
accuracy and profitability.

🧠 Summary of Key Concepts

🎯 What Are Supply and Demand Zones? (0:45–2:39)

 Demand Zone: Area where price reverses upwards; institutions consider the asset undervalued and
buy heavily.
 Supply Zone: Area where price reverses downwards; institutions consider the asset overvalued and sell
or short heavily.
 Zones are areas, not lines. Treat them as regions where big money positions are entered or exited.

💼 Market Psychology & Institutional Behavior (4:41–5:22)

 You can’t move the market, but you can follow the big players.
 Institutions accumulate at demand zones and distribute at supply zones.
 Timing news releases around these zones is a common tactic by big money to trigger volatility and
maximize profits.

📈 Accumulation & Distribution (7:35–9:21)

 Accumulation: Sideways price action at demand zones as institutions load up gradually.


 Distribution: Sideways price action at supply zones as institutions offload gradually.
 Watch for patterns like falling wedges (accumulation) and ascending triangles (distribution).

🔁 Reaccumulation & Redistribution (9:21–12:25)

 Reaccumulation: Adding to long positions after initial uptrend.


 Redistribution: Adding to short positions after initial downtrend.
 Key to recognizing continuation trades within strong trends.
🧠 Price Action Predicts News (13:00–13:38)

 Smart money’s moves appear in price weeks before big news events.
 Price action = a real-time reflection of institutional positioning.

📅 Higher Time Frame Zones (13:49–15:21)

 Weekly and Monthly supply/demand zones = higher probability of significant reversals.


 Mark these on your chart for big trade setups.

🎭 False Breakouts (16:33–19:52)

 Price may pierce through a zone slightly, trapping retail traders.


 Look for multi-timeframe confirmation (e.g., trendline breaks on lower timeframes).
 False breakouts offer high-quality entries with defined risk.

🛠 Trade Management (20:00–22:15)

 Know where to place and move your stop-loss.


 Don’t exit too early or too late.
 Avoid emotional decisions—follow structure and plan.
 Examples of both ideal and suboptimal scenarios are presented.

✅ Application Steps (With Timestamps)

Step 1: Identify Zones (0:45–2:39)

 Use historical reversals to identify demand and supply zones.


 Mark them on multiple timeframes (daily, weekly, monthly).
 Example: Intel, Snapchat, Mastercard charts.

Step 2: Confirm Market Sentiment (4:41–5:36)

 Look for big money activity (double action of buyers/sellers).


 Match direction with true market momentum.

Step 3: Look for Accumulation or Distribution Patterns (7:35–9:21)

 At demand zones: Look for falling wedges.


 At supply zones: Look for ascending triangles.
 Wait for breakouts from these patterns.

Step 4: Monitor for Reaccumulation/Redistribution (9:21–12:25)

 In uptrends: Wait for reaccumulation zones for buying dips.


 In downtrends: Wait for redistribution zones for shorting rallies.
Step 5: Anticipate & Confirm False Breakouts (16:33–19:52)

 Price breaks slightly past a zone? Zoom in on lower timeframes.


 Confirm trend change (e.g., ascending triangle breakout, neckline break).
 Enter only with confirmation, not assumptions.

Step 6: Execute Trade (20:00–20:21)

 Enter near supply/demand with stop loss below/above the zone.


 Target the next major zone.

Step 7: Manage the Trade (20:25–22:15)

 Use trailing stop or partial exits.


 Watch for trend changes; move your stop-loss accordingly.
 Don’t close too early out of fear or too late due to greed.

Step 8: Analyze Higher Timeframe Zones (13:49–15:21)

 Watch weekly/monthly levels for long-term trend shifts.


 Example: IBM, Alibaba, Bitcoin.

📘 Guidelines for Use

 ✅ Always trade in the direction of institutional momentum.


 ✅ Use multi-timeframe analysis. Confirm setups on 1H/4H/Daily charts.
 ✅ Wait for pattern confirmation before entering (e.g., triangle breakouts, higher highs/lows).
 ❌ Don’t treat zones as exact lines. Treat them as flexible regions.
 ✅ Mark all key higher timeframe zones before trading daily setups.
 ❌ Avoid emotional trading. Stick to predefined entries, exits, and stops.
 ✅ Log each trade with screenshots for improvement and reflection.

🔗 Resource & Platform Link

 🔧 Tools Mentioned: tools.wisetrade.com


 🎓 Full Training and Advanced Methods: https://wisetrade.com

🧾 Conclusion

Mastering supply and demand trading is not just about identifying zones—it’s about understanding the
underlying behavior of smart money and executing with structure, discipline, and confirmation. By
incorporating multi-timeframe analysis, false breakout tactics, and trend-based trade management, retail
traders can level the playing field and profit alongside institutions. This strategy allows you to avoid common
retail traps, make better entries, and capture larger moves with more confidence and consistency.
(0:00) Hey guys, welcome back to another episode. (0:03) In this video, we're going to show you how to trade
supply and demand like the banks. (0:08) Not knowing this will put you at a huge disadvantage, as you'll
forever be on the wrong side of (0:13) trades, as you'll be trading against big money institutions and against
smart money.

(0:19) Here's exactly what we'll be covering in this video. (0:23) Now, if you want to know the exact key trading
tools we use, meaning what programs, apps, (0:28) plugins, and brokers we use, go to tools.wisetrade.com.
(0:33) The link is also available in the description below. (0:36) As always, please hit the like button on this
video, as it allows for our team to keep producing (0:41) more free content for you.

(0:43) So let's dive right into it. (0:45) What are supply and demand zones? (0:50) Now this zone below, where
price reverses upwards from, is known as a demand zone. (0:55) Notice how many times price reacts to this
demand zone, which shows how important they (1:00) are to identify.

(1:01) The reason we call it a zone is because you should treat it as a general area where price (1:06) has
reversed from previously. (1:09) Demand zones are areas where the big boys and large banks and institutions
are deeming (1:14) the asset as cheap and as a value buy to them, so they will often buy up and accumulate a
(1:20) ton of assets at these demand zones. (1:22) This also means there is a double action that occurs at
demand zones.
(1:26) You have big money buyers consistently deciding to open new long positions and big money sellers
(1:32) consistently deciding to close their short positions. (1:35) This double action is what creates explosive
upwards momentum from these demand zones. (1:41) So knowing that these zones are where the big boys
and smart money are watching and (1:45) looking to take action, you want to follow what the big money and
smart money is doing (1:49) and enter long where they are entering long to ride their momentum for explosive
gains.
(1:55) Now, this zone above where price reverses downwards off of is known as a supply zone. (2:01) Notice
how many times price reacts to the supply zone, which shows how important they (2:05) are to identify. (2:08)
Supply zones are areas where the big boys and large banks and institutions are deeming (2:13) the asset as
expensive and as a price premium, so they will often offload and distribute (2:19) their assets at these supply
zones.

(2:21) This also means there is a double action that occurs at supply zones. (2:25) You have big money buyers
consistently deciding to close long positions and big money sellers (2:30) consistently deciding to open new
short positions. (2:33) This double action is what creates explosive downwards momentum from these supply
zones.
(2:39) So knowing that these zones are where the big boys and smart money are watching and (2:43) looking
to take action, you want to follow what the big money and smart money is doing (2:47) and enter short where
they are entering short to ride their momentum for explosive gains. (2:53) Let's show this again. (2:56) This is
the Snapchat stock.

(2:58) This zone here has acted as demand here and supply here. (3:02) Notice how many times price has
reacted to the zone. (3:05) This zone here is a demand zone.

(3:08) Again, notice all the reactions to this zone on many separate occasions. (3:12) And down here, a swing
low demand zone with these two reversal points. (3:20) This is the target stock.

(3:22) Along the top is your supply zone. (3:24) Notice all the times price has reacted to the zone. (3:27) Along
the bottom is the demand zone.
(3:29) Again, notice all the times price has reacted to this zone. (3:35) This is the Intel stock. (3:36) Along the
top is your supply zone.

(3:39) Notice all the times price has reacted to this zone. (3:41) Along the bottom is the demand zone. (3:43)
Again, notice all the times price has reacted to this zone.

(3:47) So a question you probably have. (3:49) What's the difference between supply and demand versus
support and resistance? (3:53) Supply and demand is the market psychology and driving market force behind
what creates (3:58) support and resistance levels. (4:00) If you go back and watch all our past videos, there is a
reason we state to treat support (4:04) and resistance as general areas and not as a solid line or solid number
because of the (4:09) supply and demand concept that anchors support and resistance.
(4:14) So one more example. (4:16) This is the Mastercard stock. (4:18) This supply zone here is a standard
zone.

(4:21) This demand zone here is a standard zone. (4:24) This supply zone up here is known as a swing high
supply zone, which represents a very (4:29) expensive area and is one the big boys are watching closely. (4:32)
This demand zone down here is known as a swing low demand zone, which represents a very (4:37) cheap area
and is one that the big boys are watching closely.

(4:41) So why are supply and demand zones important to understand? (4:46) You as a trader cannot move the
market. (4:49) You are simply looking for clues to tell you what the big guys, big banks, and large (4:53)
institutions are doing and trying to follow their moves to ride their wave. (4:58) The big guys and smart money
aren't just going to move money around at any random area (5:03) or get in and out of positions at low quality
pricing areas.

(5:07) They want to get in at the best price and get out at the best price to maximize gains (5:11) and limit risk.
(5:12) And they will manipulate the market to achieve these goals. (5:16) Let me rephrase that.

(5:17) They have the power and money and leverage to manipulate the market to achieve these (5:22) goals.
(5:22) Now, this is the most important part. (5:24) You follow the big guys and follow smart money to achieve
two key things.

(5:29) One, true market direction, which is knowing the correct direction the market is going (5:33) next. And
two, directional momentum. (5:36) You want to be trading with moving momentum because if you enter into a
trade without (5:40) directional momentum, your trade will often move sideways and you'll either break even
(5:44) or make very little from the trade.
(5:46) Now, one bonus smart money concept no one will tell you about. (5:49) You'll often notice big news
about companies or assets being suspiciously released or (5:55) unearthed exactly when price is at very key
supply or demand zones. (6:00) This is not an accident.

(6:01) And there is a reason why it occurs over and over again. (6:04) On the left is the block stock monthly
time frame and on the right is the block stock (6:09) weekly time frame. (6:10) The block stock is at a very key
monthly supply zone, meaning price is deemed expensive (6:16) by the market.

(6:16) This area here where price is at is this same area here on the weekly time frame. (6:21) So then what
happens next? (6:23) Hindenburg goes on to release their negative damning report about the shady dealings
of (6:28) block and the stock tanks downwards, netting short sellers an easy profit. (6:33) Here's the takeaway.
(6:34) The big boys will leverage price being expensive and at supply zones and then (6:39) intentionally time
the release of bad news as an additional confluence factor to more (6:44) easily sway the stock or asset
bearish. (6:47) In the case of block, big buyers who were in long profitable positions know that price (6:52) is at
a premium at the supply zone. (6:54) So they're already more willing to unload those positions, especially
combined with (6:58) negative news.

Now, this also applies in the opposite direction. (7:02) When an asset is cheap and at a demand zone, the big
boys will intentionally time the (7:07) release of positive news as an additional confluence factor to more easily
sway the (7:12) stock or asset bullish. (7:13) Maybe we'll reveal more smart money secrets in future videos,
but we do cover this all (7:18) in depth with our members on our site at wisetrade.com. (7:21) So moving on to
the next topic, accumulation and distribution.
(7:28) Now, before we continue, make sure to hit the like button on this video as it allows (7:32) our team to
continue to produce more videos for you. (7:35) At areas of supply and demand, you won't always have price
reversed drastically once it (7:40) reaches there. You'll often have price chopped sideways first before taking
off.

(7:45) This is the result of the concept of accumulation and distribution. (7:49) So starting with the concept of
accumulation. (7:53) When price is at a key demand zone, the big guys cannot load up and buy everything they
(7:58) want all at once because it takes time to accumulate such large positions.

(8:02) Also, if they enter too much all at once, then the market would catch wind and price (8:07) would take
off upwards right away and they wouldn't be able to fill all their orders, (8:11) meaning less profit since their
position will be a lot smaller as they haven't acquired (8:15) everything they wanted yet. (8:16) So what they
do is they gradually load up and spread out their buys at these demand (8:21) zones, creating the sideways
price movement and consolidation you see forming at these (8:25) demand zones and is known as the process
of accumulation. (8:29) Notice how this accumulation process also forms a falling wedge pattern.
(8:32) Once the big boys have completed all their buys, the market explodes upwards. (8:37) Now moving on
to the concept of distribution. (8:42) When price is at a key supply zone, the big guys cannot offload their
entire position all (8:46) at once due to the sheer size of it all.

(8:48) They need to offload gradually and in chunks. (8:51) This again causes sideways price movement and
consolidation to form, and it's a (8:55) reflection of the process of distribution. (8:58) Notice how this
distribution process also forms an ascending triangle pattern.

(9:02) Once all their selling is done and all new short positions are complete, a massive (9:06) reversal occurs.
(9:07) Now, a key concept. (9:09) You'll often see different types of patterns naturally forming at supply and
demand (9:14) areas because they are a reflection of the process of accumulation and distribution (9:19)
occurring in real time.
(9:21) Now, moving on to the concept of reaccumulation and redistribution. (9:27) Now, before we continue,
we've had a lot of requests asking us to use a white (9:30) background over a black background. (9:32) So do
you want us to switch over to a white background or stick with the black (9:35) background? (9:36) Let us
know in the comments below right now, and we'll tally all the comments to (9:39) make a decision.

(9:44) Also, make sure to hit the like button on this video as it allows our team to (9:48) continue to produce
more videos for you. (9:51) At this swing low demand area, the big boys loaded up heavy here, which resulted
(9:56) in price taking off upwards and breaking through the next supply level. (10:01) The directional bias is
clearly long and upwards.
(10:04) So you want to trade with this upwards momentum. (10:06) Price then pulls back to the supply turned
to demand zone. (10:11) Notice how price chops sideways, consolidated and forms both a channel (10:15)
pattern and a descending triangle pattern.

(10:17) This all shows the process of reaccumulation, which is when the big boys (10:22) continue to add to
their winning long position for even larger profits. (10:26) Again, the big boys aren't just going to add to their
winning positions at any (10:30) random place. (10:31) They still look for these demand areas and areas of
value within a moving trend.

(10:36) Once price breaks above the patterns and forms a higher high, this signals the big (10:41) guys have
completed their buying and the next leg of the moving uptrend will (10:45) continue. (10:46) They will often
target this next supply area for a big exit with massive gains. (10:51) Now moving on to the concept of
redistribution.

(10:54) This is the Goldman Sachs stock on the left is the four hour timeframe and on (10:59) the right is the
one hour timeframe. (11:00) These reversal points here make this a key supply zone. (11:04) As price came
back up, notice price chopping around the supply zone, (11:07) consolidating and forming a descending
triangle pattern, which shows the (11:11) process of distribution and the big boys unloading their long
positions that (11:15) they took on at this demand zone here.

(11:17) Previously, once the pattern breaks below the trend change is confirmed and (11:21) you had a great
pullback short trade setup here at the bottom of the broken (11:25) pattern, at the demand turned to new
supply zone and where the trend line (11:28) crossed, making it an area of confluence and was a high quality
short trade setup. (11:33) Now, this is very important to point out the big boys unloaded their long (11:37)
positions and opened massive short positions up here, whereas you got in (11:42) down here because you are
riding their wave, meaning you will often get in (11:45) later than the big boys as it is more secure this way.
(11:49) So your first profit target would be this next demand zone here.
(11:52) Now there was a second short continuation trade setup here at this (11:56) fresh demand turned to
new supply zone. (11:58) Once price was approaching the zone, you were looking inside of this area on the
(12:02) lower one hour timeframe on the right for trend change price action. (12:05) You had consolidation
and a trend change pattern through the lower high and (12:10) break of the neckline and lower low.

(12:12) This represents the process of redistribution occurring as you are in a (12:16) current moving
downtrend and the big boys are continuing to add big block orders to (12:21) their already large short
positions for even bigger profits. (12:25) Once they have finished loading up at this area of value within the
moving (12:28) downtrend price tanks downwards and breaks right through the demand zone. (12:32) Now,
this is a very important point.

(12:34) The reason price broke right through the demand zone so easily is because the (12:38) demand zone is
no longer valid as all the buy orders and small profit taking (12:43) short positions were already filled and
completed during this previous touch here. (12:47) So there are most likely little to no orders at this demand
zone this time (12:52) around, hence why price blows right through it with heavy momentum and (12:55)
netting everyone massive gains. (12:58) Now, a very important concept to understand.

(13:00) There is a reason we always say that price action is a reflection of what is (13:05) occurring in the
market in real time, because even though the banking crisis (13:09) definitely helped further feel this drastic
move down on a banking stock, (13:13) like Goldman Sachs, price action already showed you what was
occurring weeks (13:18) before the banking crisis actually happened. (13:20) To be more specific, price action
is a reflection of what the big guys are (13:24) doing behind the scenes. (13:26) And don't be fooled.
(13:26) They all knew what was coming way before the crash actually happened, and they (13:30) started
moving their money accordingly, which is reflected in the trend change (13:34) bearish price action you saw
occurring on the Goldman stock weeks before the (13:38) actual banking crisis occurred. (13:42) Now, moving
on to the next topic, weekly and monthly supply and demand zones. (13:49) Supply and demand zones found
on the weekly and monthly timeframe hold more (13:53) weight and are of higher quality.

(13:55) Higher quality means there is a higher percentage chance of price reacting and (14:00) reversing off
these levels, but not just a slight bounce, but a true reversal that (14:04) will move a greater distance, meaning
more profit. (14:08) This is the IBM stock weekly timeframe. (14:11) This swing high supply zone at the top
here was valid all the way back in 2018.

(14:16) It was still valid in 2019, still valid in 2020, still valid in 2021, still valid (14:23) in 2022, and still valid in
2023. (14:27) This shows how key these higher timeframe supply and demand zones are. (14:32) This next
supply zone formed in 2019.
(14:35) Look at how many times it was still valid years and years after, even as recently (14:39) as 2022, this
demand zone here formed in 2019. (14:44) And again, look at how many times it was still valid years and years
(14:47) after, even as recently as 2023. (14:50) Then you have your remaining demand zones.

(14:54) Weekly and monthly supply and demand zones are where the big guys are looking to (14:58) take on or
offload massive positions. (15:01) Slow moving institutions aren't going to do these massive movements of
money (15:05) off of minor lower timeframe levels. (15:07) Now you don't sit there and trade these higher
timeframe levels during (15:10) your day-to-day trading process, but you should have these zones marked and
(15:14) labeled so that when you happen to be approaching these key weekly and (15:17) monthly zones, you
should be ready as these are huge money-making trades.

(15:21) So let's show this again. (15:25) On the left is the Bitcoin monthly. (15:28) And on the right is the
Bitcoin weekly price came down right to this monthly (15:32) supply turned to new demand zone, tapped it
and reversed, even when looking (15:37) inside of where price touched, but on the weekly timeframe, you had
a wide (15:40) divergence right at the monthly demand zone, which signaled momentum (15:44) loss and a
possible reversal.
(15:46) You also have the falling wedge pattern and accumulation occurring. (15:49) And once the pattern
broke above this triggered the move upwards, (15:56) this is the Alibaba stock. (15:57) On the left is the
monthly timeframe and on the right is the weekly timeframe.

(16:01) This point here is the all time low pricing, which creates a (16:05) very high quality demand zone.
(16:07) As price came all the way down to this zone, notice how it tapped it and (16:11) reversed producing
great long trades. (16:13) You then had this monthly supply zone here due to these multiple (16:16) monthly
reversal points, making it a great exit point.

(16:19) You had a perfect shrinking candlestick pattern followed by a candle color (16:23) change right at the
monthly and weekly supply zone for a great exit. (16:27) Now, moving on to the next topic, false breakouts at
supply and demand zones (16:33) and how you can use them to your advantage. (16:36) Now, before we
continue, tell us in the comments below right now, what (16:40) video topics we should cover next.

(16:42) Be very, very specific. (16:48) Also, don't forget to like this video as it goes a long (16:50) way in
supporting our team. (16:53) This is the TD Bank stock.
(16:55) On the left is the weekly timeframe and on the right is the daily timeframe. (17:00) These reversal
points here give you a key supply zone. (17:03) As price comes back up, notice how price breaks slightly past
the zone.

(17:07) Now support and resistance breakout traders would have been trapped as (17:10) they all took long
breakout trades, assuming that since price broke (17:14) through, it will continue on upwards. (17:16) But now
you as a supply and demand trader will know to treat (17:19) these zones as general areas. (17:21) Also, this
zone is a swing high and key weekly level, meaning there's a (17:25) higher percentage chance price will
reverse, even if it goes slightly past it.

(17:29) So you can also use these trapped breakout long trades to your (17:33) advantage, knowing that all
their stop losses are somewhere in this area here. (17:37) And once all those stop losses get hit combined with
the big boys, (17:40) unloading their long positions and opening new short positions, this (17:43) will trigger a
massive swing in the opposite direction. (17:46) Now, even though you know all of this, you still need a trend
change (17:49) confirmation inside of this area to confirm that this was indeed a false breakout.

(17:53) Don't leave anything to chance. (17:54) When you look inside of this area on the lower daily timeframe
on the right, (17:58) you had a trendline break and lower low, which confirms the false breakout from (18:02)
the higher timeframe and confirms the reversal and is when you would take (18:05) short entries through the
even lower intraday timeframes to take it even (18:09) further once the second longer term trendline breaks,
this signals an even (18:13) larger move is coming to the downside. (18:15) So let's show this again.

(18:19) This is a theorem now to point something out first on the monthly timeframe. (18:23) Notice how price
recently came down and tapped this old supply turned to (18:27) demand zone showing how well these zones
work, even if historical. (18:31) So let's pull up the Ethereum weekly, daily, and one hour to show this trade set
up.

(18:36) The top left is the ether weekly. (18:39) The top right is the ether daily, and the bottom is the ether one
hour timeframe. (18:44) Remember that this is a monthly demand zone.

(18:47) We previously showed you this demand zone was also recently (18:50) respected here close by to the
left. (18:52) As price came back down to this key demand zone, you had (18:56) consolidation and
accumulation occurring followed by a break of the (19:00) trendline and higher high, giving you a very clear
bullish bias, meaning (19:04) you want to look for long trades. (19:06) So you then look inside of this area for a
long continuation (19:09) trade on the daily timeframe.

(19:11) These reversal points here give you a demand zone. (19:14) Now as price pulls back, notice how it
breaks slightly past the demand zone (19:18) at this point, because you are a multi timeframe trader and you
had already (19:22) analyzed the price action on the higher timeframes, you would know that (19:25) the true
market direction is long and upwards. (19:28) What this means is this might be a false breakout if there (19:31)
is an intraday trend change.
(19:32) So when you look inside of this false breakout area, but on the one hour (19:35) timeframe, you had an
ascending triangle pattern, and once it broke above (19:39) with a higher high, this signals a trend change from
a downtrend to an (19:42) uptrend and confirms the false breakout from the daily timeframe. (19:45) You
would then go to the even lower timeframes to look for a long (19:48) entry point using our entry and exit
strategy and key tool. (19:52) So moving on trade exits and trade management.

(20:00) So you entered the short trade set up here at the supply zone and you (20:04) target this next demand
zone here. (20:06) Price gets there and your position automatically closes for a profit. (20:10) Great.

(20:11) You then enter a long trade set up here at the demand zone and you (20:15) target the next supply
zone again. (20:18) Price gets there and your position automatically closes for a profit. (20:21) Another
profitable trade.

(20:22) But now this is what occurs in the best case scenario. (20:25) But as a trader, you should know that it
doesn't always play (20:28) out as picture perfect as this. (20:30) Alternatively, these scenarios can occur
instead after you enter scenario.

(20:35) Number one, you enter on this long trade set up here and are (20:38) targeting this next supply zone
here. (20:40) But before price gets there, it reverses all the way back down (20:43) and you would end up with
a loss. (20:46) Without knowing how to manage a position correctly, you would have (20:48) taken a loss on
this trade instead of knowing where to lock in profits.

(20:54) Scenario number two, you enter on this long trade set up here and are (20:57) targeting this next
supply zone here. (20:59) Price starts to pull back and you think it will come all the way back down. (21:03) So
you let your emotions take over and you manually close out the position.

(21:07) Then what happens? (21:08) Price takes off upwards, hits your target, and even continues on further
(21:12) for a massive profit you missed out on. (21:15) Again, not knowing how to properly manage a trade
means you're at a (21:19) huge disadvantage and leaving a lot of money on the table scenario. (21:26) Number
three, you enter on this long trade set up here and price (21:29) hits your profit target.

(21:30) So you close out the position, but closing it out was premature because (21:34) price continued on
even further for even larger gains. (21:38) Again, you need to know what to do to lock in gains, but also still be
able (21:43) to take advantage if price continues on. (21:46) In all of these scenarios, where do you initially
place your stop loss? (21:51) Where do you move your stop loss if there is a trend change before (21:54) price
reaches your target? (21:55) To not only protect your position and lock in gains, but also to not have it (21:59)
hit by accident in case price swings before continuing on.
(22:02) How do you know how to correctly manage your position to maximize gains, to (22:06) not miss those
big profitable trades, but also protect yourself from losses? (22:11) We answer all these questions in depth on
our site at wisetrade.com. (22:15) Everything we've covered in this video is only the foundational concepts, but
(22:19) we go in depth into a lot of advanced strategies and methods only available (22:23) on our site at
wisetrade.com. (22:25) So go check that out now, as we have some limited time special (22:28) things available
for you. (22:30) As always, please hit the like button, subscribe, but most importantly, turn (22:35) on the
notifications bell to stay notified about a lot of exciting (22:38) projects we have dropping soon. (22:40) And
last thing, make sure to go subscribe to our Instagram account at wisetrade.

(22:45) So thanks for watching and I'll see you in the next episode.

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