I've got a question for you, so have you ever looked at a chart and just wondering to yourself what the hell is this thing doing, because i have to sometimes right: it's it's in our best interest as investors and traders who use technical analysis to be able To uh figure out what's going on and sometimes it's hard well, thankfully, i have uh i've done some. Some digging right. I've spent a lot of time here trying to find technical analysis points to be able to get across, and i found what i would consider to be probably the greatest technical analysis or stock market hack that i've been able to discover in my time in the stock Market and that is based on supply and demand zones. So i'm going to walk you through this.

I promise you, this isn't click bait, i've actually back tested this, and i'm going to show you literally how you can utilize this as a strategy. This is going to kind of be what our walkthrough is essentially on, what we're going to be doing here for the day how to read supply and demand zones. Psychology, basically what they mean and why they're important i'm gon na give you five examples. I've got five tickers picked out in which i'm gon na lay out supply and demand zones for you and show you how price actually respects and reacts to them, and then what i personally do to implement that strategy into my basic technical analysis, so that you can Use that too, if you were interested in doing so, but without but without further ado and before we get into the video, what is up everybody want to trade trades, we figured you could talk faster, don't give classes like your personality, i'm not a function of our Experts so take it to the grain of salt.

Let's get into this bad boy, so we're gon na start off here, basically with how to read supply and demand zones. So what are they right? What is the supplied and demand zone the supply zone and demand zone? Essentially, what you can think of is, as demand is the opposite of supply right. So, if there's heavy demand, it means that there's not a lot of suppliers, a lot of buying pressure, so the opposite of demand in this instance is going to be supply. If there's a lot of supply, typically, that means you're going to see selling pressure so to put very simply right.

A demand zone typically means you're going to see price action go up and a supply zone means you're, typically going to see price action go down. Now. The cool thing about supply and demand zone is it's all dependent on where the price action is right. You can look at the overall price action.

I'll show you this on an actual chart here in a second, so you can see exactly what i'm talking about, but there are some time supply zones that are respected as the man zones and then vice versa depends on how the price is reacting to them. Now this is different than resistance and support resistance and support. You can view essentially as levels that are hard to break through right. You can have touch points and touch points and touch points like, for instance, right here.

This would be a level of resistance. In the same way that this would be a level of support because it's hard to break underneath, but a supply and demand zone is different right and i'm going to show you exactly what i mean by that. So what i want to do now is show you an example of a supply and a demand zone, so i've got something drawn up right here on uh plug power. So let me just pull it plug here.

Really, quick and i'll. Show you exactly what i'm talking about. I've got supply and demand zone drawn up. So what are you looking for in order to find a supply and or demand zone you're? Looking for the choppy price action before a big move, either to the upside or the downside? So what do i mean by that right? Well, here's an instance where you see a pretty hard push to the downside, a nice volatile break underneath and a nice glance.

You would think to yourself: isn't this just a break underneath the level of support, but no, not really. I mean, if you're looking at this on a different time frame. That's not really a level of support at all. In fact, that's kind of hovering right above a level of support, that's entirely different, which is where you can utilize this on top of support and or resistance.

So what ended up happening here? Is you have this choppy price action right? You have chop chop chop that a breakdown heart underneath and it follows up with a couple hours of candles. This is an hourly time frame. You can't see that, but that's the time frame that we have here. So this is a supply zone because the price action drops beneath it, meaning that selling pressure will likely come from that specific zone.

In the same way, demand zones work the exact same way: you're. Looking for the price action before a large move to the upside right - and you have that right here - that choppy price action you're trying to take the bottoms and the tops of the wicks of candles before a big move to the up or down side. Just as you have here tops and the bottoms of the candles before you get a big move to the downside, tops and bottoms of the candles right before you get a big move to the upside. This is a demand zone that is a supply zone.

Now let me show you how this is respected by the general price action i haven't. Even this is how much confidence i have and what this actually means. I haven't even looked at how plug power has respected these levels throughout the chart, but i'm going to extend this and show you why this is a utilizable strategy and how you can actually take advantage of supply and demand zones. Let me get into the psychology of it because i think it's important to understand not what something is, but why something is as well.

But you want to understand both sides of that. So you can take advantage of and truly grasp the strategy and what it actually is. So just extending this out right. What do we see here so far? Well, with plug power, you can see that the supply zone essentially has acted as a point in which you can expect upcoming volatility.

Now, where this is probably the most utilizable and i'll get into this more with strategy is, if you're, an options trader. So if you play long calls long puts so, you can do this with stock too right. It's entirely up to you, but you can expect this to be points in which you see volatile pushes either to the upper downside because of the fact that it's a supply zone likely to see selling pressure. So what do we see here? Right? One specific instance: it touches that supply zone and instant volatility ensues.

You see a huge push to the downside. Now what happened here you have this demand zone, it enters the demand zone. That's why it's a zone right, it's not a specific level. It's a zone.

What happens when it enters it is demand ensues. Buying pressure, ensures you get a big push to the upside look at that same thing right here, big push to the upside once it has entered that zone. What happened here rejected above that zone big push to the downside, big push to the downside. You can see exactly what i'm talking about.

If we extend this even a little bit further, you can see exactly what happened today. Big push to the downside, false break out of that overall supply zone. So now you can understand and grasp where this actually comes in handy and we'll get into the psychology here a little bit. But essentially, what you want to be able to do with these supply and demand zones is take advantage of the volatility between big moves to the up and or down side.

If you do play the call options or put options, marked long calls, which means buy to open or long puts, which means buy, to open and sell to close positions. So now that we've gone through that right, we kind of understand that you can rewind this too. If you need to watch that again, but i try to break that down the simplest way that i possibly could now, let me understand what they are and how to find them, how to read them. What do they actually mean right? Why is this important? So if you look at the chart here, what do you see? You know essentially happening with plug power? Well, here's the thing just based on basic statistics.

The majority of the stock market is controlled by institutional investors or whales, aka smart money, meaning the guys that have lots of cash, that's always moving in the stock market. So here's the truth of the matter right majority of stocks. You have some that are exceptions right where they're mainly owned by retail investors and and uh. You know the little guy, whatever most stocks are moved by the big guys.

So what do you see here with the supply and demand zone? What is actually happening? Well in these specific zones, since we know that smart money controls the majority of the stock market right, the majority of the liquidity, you can anticipate and actually assume that most big moves are smart money, algorithms, high frequency trading, computers, big firms that are deciding distinctively to Make big pushes to the up or the downside? Essentially what this is is by reading supply and demand. You can predict what big money is going to do. You can predict the exact zones in which these computers, these high frequency trading, computers and algorithms and big firms, because that's the majority of what they do. The zones in which they're going to either a push selling pressure based on supply or b push buying pressure based on demand.

That's the psychology of it. These zones are literally exact spots where big firms and institutions - hedge funds, algorithms, high frequency trading right. That's where they step in and push the dollar signs to get stocks. Freaking moving, and you can take advantage of that.

You literally literally literally can't and i'm gon na, show you five examples because i've back tested this - i i ran it through my discord through my patreon. I showed people exactly what this whole process looked like and i just back tested it right. My essentially what i look to do and i'm going to actually draw this uh. I've got them drawn out pre ahead of time, for you i'll show you the exact zones in which i picked them out, but i just wanted to trade based on supply and demand zones.

I didn't even use any other form of technical analysis, purely supply and demand zones. Essentially, if, if a stock drops down into a supply zone right, it's gon na push back up our demand zone, i should say a demand zone such as right here. I would go long, i'd buy a long call and if it entered a supply zone, i would sell that long call. Essentially just trading back and forth between the zones now check this out.

We have three different zones right here, which can each act as supply and or demand zones, depending on where the price action is. Since the price action right here is above that zone, it would act as a demand zone likely, meaning that you're gon na get a push back to the upside once it exits out of that zone with some pretty heavy volatility. Now, what do we see here with snapchat right? Well, what happened with snapchat? This is the day that i back tested and i showed essentially, i took these five traits on uh. What would have been august 30th? I came back here to snapchat.

I said if it enters this overall supplies or demand zone, i'm going to execute that trade, and it did it bam smack down to that freaking uh that demand zone and ran right up here into that supply zone and what ended up happening. You know you could have actually taken profits right here and walked away because majority of the time it rejects. You can see that right here, but what ended up happening is it came up and it tested out another supply zone from previous price action. Now, where does this actually come from right? I can show you these exact moves.

You can see this right here, choppy price action before a big move to the upper downside. You have that right here, choppy price action, big move to the downside. You have another example. This one stems from right here, choppy price action before a big move to the downside, choppy price action before a big move to the upside right.

These are literally predictable zones and what i did is i took the trade right here at that level of demand. It rolled right through this level of supply and roll right into the next level of supply and look exactly where it re freaking rejected. Look we're rejected. It's not any level of resistance.

The resistance is up here: 78 dollars. 79. That's supply and demand i'll show you another example: draftkings right draftkings was another execution in which you could have taken advantage of supply and or demand zone. So we look back on august 30th.

What ended up happening? Well, i saw this has a pretty nice flow. I liked it as a long call position, and i saw that it dropped into this demand zone prior from a different level of price action from way way way way back here, check this out choppy price action for a big move to the upside choppy price action. Big move to the upside choppy price action: where is this one? This is probably ways back some of these date back pretty far choppy price action, big move to the downside, you get my point. These all coincide to big big levels, and i said to myself: okay, based on what i've seen here about the way that the stock has moved in the past with supply and demand zones.

I will execute a trade if it enters into this demand zone now check this out enters the demand zone right here. If you were flipping calls this exact day, it dropped down to 58.69 and went back up to 60 and 30 cents. You could have netted incredible gains off of a trade here just based on getting in at the demand zone getting out at the supply zone. Another example, but derna check this out august 30th touch is down on the freaking demand zone.

The immediate market open enters the supply zone rejects. You could have literally sold the long call position gotten into a long put position and wrote it back down almost verbatim down to the freaking demand zone. You can come back and find all these stocks and map this out yourself, but it's literally the same stuff check this out choppy price action, big move, the upside choppy price action, big, really upside, choppy price action, big movie upside; that's it that's it! It's literally predicting the big moves, the big volatility points in which you have to watch specific zones to take trades. I don't know if i've, probably given you enough, i'm probably giving you enough, but i'm gon na show you another one.

Anyways right check this out, we'll rock nvidia. Here's another example: choppy price action right here, big move to the upside rejects, literally at that exact level. This isn't even resistance. That's not resistance! My friends, there's nothing, there's no resistance! There that's a level of demand and it rejected right there and bounced back up because buying pressure steps in that's for high frequency traders, that's for big money for whatever reason or another, deemed it necessary to ensue with buying pressure.

You can see the same thing right here. This acts, essentially as a uh supply zone. You can anticipate that just based on what we can see about the way the stock is trading, we'll actually even make this a finer overall zone, so i would anticipate you can backtest this yourself. I'm actually recording this on tuesday, uh august 31st, so feel free.

To fact check this yourself, but i'd be almost willing to bet that a couple days down the road, you're gon na have a touch point and a rejection here back to the downside with moderna another example, you can see it i'll finish it off with one more. I want to show you uh we're going to show you a small cap right, i'm going to show you a small cap here we're going to pull up wish. This is a stock, a small cap stock that i actually ended up trading uh not too long ago wish right here, exact same thing: you have a little bit of choppy price action, big move to the downside and how was it respected? This is a level of demand rejects with big moves to the upside. In the same way, you have a supply zone right here, big move to the downside, choppy price action rejected, rejected almost rejected.

You want to take advantage of the zones between supply and demand in order to implement a good trading strategy, profitability and consistency. Now, what do i mean by that now, based on technical analysis? I think that is super super important, knowing how to read candles, knowing how to use your indicators knowing how to use the v-wap, knowing how to use all that stuff super important. But once you have those basics down, i think this is literally the most sure-fire. No fomo no easy way to have a plan to be consistent with that plan and that's, ultimately, what makes trader successful is consistency not giving into emotions being able to read a chart for what it is, and you can do that here without having to worry about Fomo or any of that emotional stuff that comes into it, because you're literally trading, the algorithms you're hacking, the algorithms you're literally just riding the waves that all these big institutions are riding you're predicting where the big money's going to step in and make big purchases.

You find a ticker out there. It works with large caps, it works with small gaps. I'd argue almost better with large caps, because the movements are so predictable, but you can find any ticker out there, and this is going to be a respectable pattern that you can trade and i'm telling you that with the utmost freaking certainty, because i've seen it you Can see this on anything, i showed you six different tickers now which these levels are respected, they bounce back and forth. I mean, i think the best example seriously is moderna.

It bounced literally off of the demand zone up into the supply zone back down to the demand zone right, you could have traded both sides of that at the exact same day and walked away making stupid money. I mean the volatility here is nuts and it was predictable. It was only predictable, like i had this mapped out on my discord the day before, just based on literally the simplest concept, i mean it's worth learning. I think this is a really really cool concept, and hopefully i explain this in a solid way, but if there's anything you can take away from this, it's that you can actually make this an emotionless process just based on a plan based on a strategy based on Things that you can implement and keep yourself in check with with rules, you can be able to do this, it's super doable, so the reason i make these kind of videos is because i think it's important not to tell you guys what to do right.

I want to teach people how to fish, not necessarily feed them a fish, and if you can understand this concept, it's something you can apply to your own trading and make some pretty solid money. Of course, i'm not a financial advisor. I say that all the time, but i i challenge you guys to learn about it. I think it's something very interesting and uh hopefully pulled some value away from that.

So that's what i've got for this bad boy, yada, yada yada! You know we'll drop like your stormwinds catch you on the next one light taps, always much love and peace.