Supply and Demand vs Support and Resistance

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Supply and Demand vs Support and Resistance

Рет қаралды 8,326

Күн бұрын

Supply and Demand vs Support and Resistance - They should not be confused, though often labeled interchangeably.
Support and Resistance in Forex, or any other trading is typically when the price keeps bouncing from a certain area. The issue with this is that price cannot 'break through' the previous price. Therefore, using an example that there is a MAJOR uptrend on EURUSD after a year of sideways movement, on the way back down, the price does not react to the ranging market - it reacts to Supply and Demand levels within the major uptrend. Everything else before that uptrend is now irrelevant.
Supply and Demand is simple to predict when adding Liquidity concepts in to the market, but is extremely easy to spot once price has already been printed. This can be shown with wick rejections and order blocks.
TIP: Drop down to lower timeframes at key areas where you've spotted Supply and Demand to see just how the price reacts to it. It'll likely be very different to user-drawn support and resistance.
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#forex #supportandresistance #supplyanddemand

Пікірлер: 96

@Fahama Жыл бұрын

I used to be a big fan of The Secret Mindset, The Moving Average, ICT, etc. But since I started watching your videos mate, I can't watch any other trading video at all. You're literally the best on KZfaq!

@TradeForexwithPaul Жыл бұрын

What a compliment mate. Thank you so much. I'm really glad you're finding value in the videos :)

@azzamabdullah3469 Жыл бұрын

how much money have you made, using Paul's tactics?

@davideggleton5566 Жыл бұрын

@@azzamabdullah3469 Seems to me that is absolutely the wrong question to ask. How much money have you made? (wrong question) ... If someone has made 10K, is that good? Depends on many other factors. How much did they start with? How long did it take them to make that profit? How much risk allowed per trade? What draw down was incurred during that period? How many trades were taken to achieve that result?

@nikzmolik 10 ай бұрын

Bro love the irony and humour put into this. Thank you for the video and shared knowledge.

@TradeForexwithPaul 9 ай бұрын

Thank you mate

@jamescrossley5016 11 ай бұрын

You explain things really well! Support and resistance zones are too subjective. Will definitely be learning supply and demand. Thank you for the video.

@TradeForexwithPaul 11 ай бұрын

I still use support resistance but not religiously like some

@louisfrancis-smith2809 2 ай бұрын

Quality video mate, thanks for sharing the knowledge!

@raffiki222 8 ай бұрын

This was truly genius. Yeah, anyone could make a good case for that random line being significant.

@TradeForexwithPaul 8 ай бұрын

Spot on mate

@samuils Жыл бұрын

In sports there are trick shots, in e-sports there are 360 shots, in trading we got a trick resistance lines.

@TradeForexwithPaul Жыл бұрын

Haha I like it

@vignessiva6011 2 жыл бұрын

Great level of detail to help with explaining the differences between the two

@TradeForexwithPaul 2 жыл бұрын

Thanks very much mate - really appreciate the comment and view!

@davideggleton5566 Жыл бұрын

I've been wondering about the difference for sometime myself. I always understood that the market is moving because of supply and demand, but hadn't separated that in my mind from what is taught about support and resistance (which is spoken about so widely - even in financial media). I assume there is likely some effect (at least on retail trade decisions) where any obvious indicators happen to converge with price and/or perceived support/resistance zones (eg. most commonly used MAs, pivots, fibs etc), which may in turn offer areas of opportunity for those big players. Your description of liquidity sweeps made PERFECT SENSE to me! Really nailed it for me, in fact … Thanks for that! This was the first of your videos I've come across so far - and it got my subscription. Looking forward to more.

@carlnevitt1 2 жыл бұрын

BTW please keep the content coming. Its quality stuff and the number of subscribers will surely increase exponentially.

@TradeForexwithPaul 2 жыл бұрын

Really appreciate that mate, very kind of you! Takes about 15-20 hours to create a decent backtesting video, but will create some 'filler' videos which explain detailed parts of the strategy, too

@MAG_FX 2 жыл бұрын

Thanks mate i really leant alot for this video and i do appreciate your efforts. 🙌

@TradeForexwithPaul 2 жыл бұрын

Legend - that's what I like to hear! Great to see how well you're doing!

@Rob2isking007 2 жыл бұрын

Been watching a lot of your vids. I like the way you explain it. I love learning more

@TradeForexwithPaul 2 жыл бұрын

Really love this! Thank you!

@t.b.3511 2 жыл бұрын

Dude, awsome job. Please keep it coming.

@TradeForexwithPaul 2 жыл бұрын

Thank you so much! Another on it's way this evening mate!

@pasteurbledroh2145 2 жыл бұрын

Very good job. Can you make a video where you will cover supply and demand in more details, with how to apply this concept in order blocks trading system ? You teach so well and I'm sure you are a blessing for many traders. You are opening our trading eyes.

@TradeForexwithPaul 2 жыл бұрын

That's so kind to say! I'll do my best - I try to keep the very detailed stuff for the guys going through training, but I think I can go into a little more detail on KZfaq too

@jana8363 8 ай бұрын

watched the inside bar video. I never understood the inside bar, or never saw the relevant of it. hmmm your theory is quite interesting. it would be nice if could repeat in a future video the inside bar thoughts what you see. just for education and recognization. I understood what you mean but I am not sure with my English if I am right. supply demand and S/R is always the question. SR is subjective. I started with this as a newbie. 4 years ago. no glue about nothing. thousand lines on the chart. SD is more clearer. and now I mark also the liquidity vertical on these vertical "consolidations".

@TradeForexwithPaul 8 ай бұрын

Yes. Will cover IB in more detail again the in future. 2 areas to use- in a POI or in a strong trend. Otherwise, ignore them. Your English is good - don't worry about it 🙌

@danielbrink9475 Жыл бұрын

Wow these are some interesting perspectives man.

@TradeForexwithPaul Жыл бұрын

Thank you - a lot of trendlines and S/R is completely made up

@lucimilena1 Жыл бұрын

very helpfull video again, thank you for that, what indicator marks your inside bars? greetings from Bulgaria

@TradeForexwithPaul Жыл бұрын

Weyhey! Love Bulgaria! Just standard inside bar indicator. I think it's called Inside Bar IND

@jkuntz67 Жыл бұрын

Nice and knowledge what are those random red candel on your chart Thanks to share your knowledge...

@TradeForexwithPaul Жыл бұрын

Likely inside bars mate

@jonathanlee5185 Жыл бұрын

But, Paul, isn't 'The Market' just the combination of people trading it, who will think in a similar way -- because we are all limited humans. They all care about your drawn line of resistance because they have drawn the same. Plus they set the algos to trigger at pre-determined points.

@TradeForexwithPaul Жыл бұрын

Sort of - its mostly bank transfers and business transactions that feed the market. Most retail traders won't have an account size decent enough to move the needle. Huge FX transactions by hedge funds need to scale in and out of positions so trend lines etc are of very small use

@SocialTech012 2 жыл бұрын

As you know I'm one of your admire and want you to keep making good videos and subscriber will eventually come I want you to share your live videos if you can that will help so many new bees and it will help to grow your audience

@TradeForexwithPaul 2 жыл бұрын

That's really nice of you to say - thank you! Will do my best to keep creating!

@joshuaferrara9125 5 ай бұрын

I've watched the whole video but still don't know what a supply and demand zone is and how it differs from support and resistance. If supply and demand is drawn by the chart and not the trader then surely you could demonstrate that? please, i'd really like to know. Also what percentage of the time do supply and demand zones work predicting price? support and resistance is about 50 - 60% and as you say it's completely subjective which I do agree with.

@Dominik-hm2cv 2 жыл бұрын

I like the clarification! However, for me, the main issue remains the same. Which level do I use? If I label it Support or resistance, Liquidity Zone, Supply & Demand, order blocks ... Independent of how they are created at the end of the day I have multiple lines/boxes in my chart and need to make a call which one is most likely the one giving me a nice R2R with a high probability of getting filled. In an objective, reproducible and consistent way. Maybe trading just from those highs and lows which have been the beginning of a sustainable move, breaking at least 2-3 levels of structure could be an option towards more objectivity? Instead of refining more and more sub swings in multiple timeframes, inside bars ... But unfortunately, trading is not that black and white, I guess. That's probably why it's a craft and art at the same time :)

@TradeForexwithPaul 2 жыл бұрын

Thank you mate. I think a LOT needs to be gathered with loads of data in spreadsheets and screenshots to get a closer definition. Using pullback depth (premium v discount) for example will help clear up a lot of these issues. What I find is typically if a High or Low is broken with a body, the pullback is to the nearest or 2nd nearest OB, whereas if it's a wick break, I wait until >50% pullback. Also, stick with just a few timeframes if you can, just for backtesting. e.g. 1 day, 4 hour, 15 mins, 5 mins

@madars88 Жыл бұрын

Amazing video!

@TradeForexwithPaul Жыл бұрын

Thank you MJ

@basitkhan9819 Жыл бұрын

Hey Paul. A question: Even though our SR lines are on our charts, but several other people also have 90% of the same lines on their charts. And when majority people react to those lines, they do create a wiehgty sentiment in the market making the market reacting to those lines. Isn't that the case ? Really appreciate your videos. Thanks

@TradeForexwithPaul Жыл бұрын

I believe you are right to an extent mate. Just don't forget that trading trend lines is very arduous. There are profitable strategies out there but its usually when its recognisable to the human eye when it jams people out of the market

@TheGandorX 2 жыл бұрын

And at 12:30 you gave me a heart attack. Not seriously, but I did go woah!

@TradeForexwithPaul 2 жыл бұрын

Hahaha sorry about that! 😃

@pauljohnson1173 2 жыл бұрын

just came across your channel, you have some great info here i'll now be spending hours studying. In this video you mentioned the indicator 'inside bar' i've not heard of that but found it in TV, do you cover how you use this in another video? Much appreciated.

@TradeForexwithPaul 2 жыл бұрын

Thanks so much Paul. I don't actually cover the Inside Bar in great detail on any KZfaq videos, but it's just very powerful in the right places (hence why I have them marked out). Really good for continuations. Actually, the video this evening will explain it really well with a good win example

@pauljohnson1173 2 жыл бұрын

@@TradeForexwithPaul thank you 🙏

@despatrick5602 9 ай бұрын

How did you highlight a section of drawing to delete them at once? I always have to delete individually using the rubber tool

@TradeForexwithPaul 9 ай бұрын

Hold down ctrl or shift and left click to drag

@JM-ek3dk Жыл бұрын

👍

@TradeForexwithPaul Жыл бұрын

@carlnevitt1 2 жыл бұрын

Great video. I have been backtesting your method for a few days. I still record many bad trades in my testing, but its getting better. On knowing which order block to trade, would you say its also about knowing the pair you are trading, and getting a feel for how it behaves, or would you say that there are main guidelines to follow, such as size of candle that follows OB, etc?

@jra1929 2 жыл бұрын

Watch some vids on premium and discount, and also knowing your trade range. Should clear some things up for you.

@TradeForexwithPaul 2 жыл бұрын

Thank you! Yeah, it's all about backtesting and gathering all the data in a spreadsheet. Like JR A mentioned, premium v discount is a great way to understand when is a good time to get involved in an order block or not. Also, how were the highs or lows broken? Body, or wick? And how did that affect the pullback? All sorts of things to go into with data gathering. Typically, some pairs operate differently, but I love GBPUSD, EURUSD and XAUUSD. Backups include JPY.

@carlnevitt1 2 жыл бұрын

@@TradeForexwithPaul Brilliant advice. I'll def start taking notice of whether its body or wick that breaks the structure.

@cbpuzzle 2 жыл бұрын

Needed to hear your rant and clarification on wicks, liquidity sweeps. Thank you. Query: When are you disciplined in waiting for a FVG entry near 50% equilibrium vs waiting patiently for a pullback to an extreme supply/ demand origin balance order block vs. Waiting for a liquidity sweep behind a high or low? Some discussion on logic, where and why would be great.

@TradeForexwithPaul 2 жыл бұрын

Thanks again for another great comment - I'll try to explain a little better in explainer videos mate. What's a FVG?

@vishalkadam6983 Жыл бұрын

Please request you please explain concepts 1)order flow, type of order flow 2) imbalance, type of imbalance 3) order block type of order block 4) liquidity type of liquidity And how where use it please explain it as new fraesh

@TradeForexwithPaul Жыл бұрын

I think I have a few videos of these on YT. If not, they're in discord. I think i explain them a lot in my YT videos throughout though

@vishalkadam6983 Жыл бұрын

@@TradeForexwithPaul please

@JoseCruz-ie4rt Жыл бұрын

LAMBO RAUL TRADES SUPPORT AND RESISTANCE FYMMM

@TradeForexwithPaul Жыл бұрын

😅

@jonathanfrank6753 2 жыл бұрын

how do i get into your discord group?

@TradeForexwithPaul 2 жыл бұрын

It'll be ready soon with part of the paid course. Thanks mate

@carlosbruce8415 2 жыл бұрын

Please how can I join your discord group?

@TradeForexwithPaul 2 жыл бұрын

When it's ready mate it'll be part of the paid course

@XULESCUBEBE Жыл бұрын

Big fan of your work but i would have to disagree. Support and resistance does work, there are multiple millionares tradijg with it, just because you using a different approaach and see the market differently than others it doesnt mewn is not relevant. It is relevant cause many people using it,just kike the smc and thr rest of thrm, they are rekevant cause many are using it and market reacts to them. Bare in mind there are people tjat are tradijng acordijg to how the moon is and you have indicators in tradingview because it works for them. As long as you are profitable and consistent, nothing is wrong. Support and resistance is same shite with supply and demand but explained by different traders.

@XULESCUBEBE Жыл бұрын

Sorry for the bad writing.

@TradeForexwithPaul Жыл бұрын

I agree with you. My opinion changed on S/R about 6 months ago after doing a lot of data gathering. Trend lines however... 😅

@XULESCUBEBE Жыл бұрын

@@TradeForexwithPaul i do agree trendlines are subjective. I do apreciate all the work you do man, i really do, i watch your videos like the game of thrones series. Amazing info bro. Keep up the good work.

@TradeForexwithPaul Жыл бұрын

Thanks dude