Angled Supply Demand Zone Trading Tutorial 1

Improve your supply demand trading for better and smarter profits

Written on 3 July 2019

Article Version: 1.0

Young Ho Seo

www.algotrading-investment.com

Keyword: Supply Demand Zone, Supply Demand Zone Indicator, Supply Demand Trading, Angled Supply Demand Zone, Gann’s Fann, Gann’s Angle, MetaTrader 4, MetaTrader 5

Note that the original concept of Angled Supply Demand Trading was created by Young Ho Seo (Copyright © 2019, Y H Seo). You are free to share this article and strategy.

Introduction to Angled Supply Demand Trading

If you are relying on trading income, good trading strategy is your workhorse for every day. Supply and demand zone concept is widely used among traders for several reasons. It is relatively simple to start with. In addition, it is effective in picking up the profitable moment. In fact, Supply and Demand zone is the extended concept from support and resistance at some points. Its zone concept adds different values to our trading.  For example, with zone concept, it is much easier to define our trading scenario and risk management plan than just simple price level from support and resistance. However, there is no perfect trading system in the world (i.e. being profitable and perfect is two different things). Of course, supply and demand zone concept has its own weakness too. For example, many traders still find it difficult to find good supply and demand zone to trade. Another difficulty found is that no books are available with through discussion of this methodology but just too many online articles. It is difficult to find which online article is genuine and profitable one.

In this respect, I am trying to share few unique views from rest about supply and demand trading. I am a trader as well as engineer. I do not like to leave anything vague. Hence, I will discuss some concrete trading strategy to improve your trading performance using supply and demand. I named the strategy as “Angled Supply Demand Trading” or you can also call it as  “Angled Supply Demand Breakout Trading”. You will see why the name is called this way from its operation. In addition, I have developed “Ace Supply Demand Trading indicator” for MetaTrader to improve the performance of supply demand trading logic since I could not find any supply and demand indicator to do what I want to do like this one.

Purpose of Angled Supply Demand Trading

The purpose of angled supply demand trading is to find high quality supply and demand zone as mechanically as possible. We will not hurt the original supply and demand zone trading concept but we will be reinforcing the original concept with some smart logic.

What is the difference between Angled Supply Demand Trading and original Supply Demand Trading?

In Angled Supply Demand trading, we use multiple of supply and demand zones in combination to make our final trading decision. Often supply demand zone trader do not concern about the expired supply and demand zone. In Angled Supply Demand Zone trading, we sometimes look for archived supply and demand zones as well as the current fresh or retouched supply and demand zones.

Bearish Reversal Recipe for Angled Supply Demand Trading

To trade on bearish reversal, we will typically target supply zone. Therefore, in our recipes, we need to have one supply zone + two demand zones. In the two demand zones, later demand zone will be higher low of the older demand zone. These two demand zones should not overlap to each other.  Hence, we can draw some angled line against the supply zone. We will be aiming to enter after the breakout of the angled line. One thing we need to remember is that our entry should not be deviated too far from typical entry of supply zone. Otherwise, we might have to alter our stop loss size. However, this is possible too if the entry is too good and clean after you have become proficient at this technique. Below screenshot shows how it works in details.

This is what happened after some time. We made an accurate sell entry through the bearish price movement. Our stop loss is the same as the typical stop loss at the top of supply zone. We will decide our take profit according to our preferred reward/Risk ratio.

Here are the main points for bearish reversal trading:

1. We need one supply zone to target
2. We need two demand zones to draw angled line against the targeted supply zone
3. Our entry must be near the supply zone.

Bullish Reversal Recipe for Angled Supply Demand Trading

Bullish Reversal Recipes are exactly opposite to the bearish reversal recipes. Firstly, we need to target one demand zone. Then we need to look for two supply zones. Later supply zone will be lower high of the older supply zone. These two supply zones should not overlap to each other.  Hence, we can draw some angled line against the demand zone. We will be aiming to enter after the breakout of the angled line. One thing we need to remember is that our entry should not be deviated too far from typical entry of demand zone. Otherwise, we might have to alter our stop loss size. However, this is possible too if the entry is too good and clean. Below screenshot shows how it works in details.

This is what happened after some time. We made an accurate buy entry through the bullish price movement. Our stop loss is the same as the typical stop loss at the top of demand zone. We will decide our take profit according to our preferred reward/Risk ratio.

Here are the main points for bullish reversal trading:

1. We need one demand zone to target.
2. We need two supply zones to draw angled line against the target demand zone.
3. Our entry must be near the demand zone.

Further Note about Angled Supply Demand Trading

The good news about angled supply demand trading is that it does not alter the original concept of supply demand trading. However, it helps you to find more accurate supply and demand zone to trade. You can take the breakout through the angled line as the double confirmation of the direction of your supply and demand trading. Therefore, any supply and demand zone trader can use Angled supply demand trading on top of their typical trading setup.

When you draw the angled line, you might take some direction from GANN’s FAN or GANN’s angle, but this is not compulsory. Practice as it was shown in this article and then build up your logic gradually.

About Ace Supply Demand Zone Indicator

Ace Supply Demand Zone indicator was built upon non-repainting and non-lagging principle. It is multi-purpose Supply Demand Zone indicator for any level of trader. We especially built this Ace Supply Demand Zone indicator to improve the accuracy of supply and demand zone trading. Products are available through several channels from below links.

https://www.mql5.com/en/market/product/40076

https://www.mql5.com/en/market/product/40075

https://algotrading-investment.com/portfolio-item/ace-supply-demand-zone/

Ace Supply Demand Zone Indicator New Version 2.1 Released

We have just released version 2.1 of Ace Supply Demand Zone Indicator.  In version 2.1, you can remove archived supply and demand zone by using short cut key Z. To show the archives supply and demand zone again, just click Show/Hide button again. In fact, this will redraw entire supply and demand zone. In addition, we have also set the minimum strength to 1 instead of 2. It is slightly adjustment in our algorithm.

Enjoy this powerful non repainting and non lagging supply and demand zone indicator. Make sure to download the latest version for the maximum performance.

Here is the link to Ace Supply Demand Zone Indicator.

https://www.mql5.com/en/market/product/40076

https://www.mql5.com/en/market/product/40075

https://algotrading-investment.com/portfolio-item/ace-supply-demand-zone/

Box  Breakout Trading with Supply and Demand Zone

Ace Supply Demand Zone comes with non repainting supply demand zone detection with many powerful advanced features. Non repainting supply and demand zone is handy for your trading because you  do not lose your signal.

One additional trading tactics with our non repainting supply demand zone is box trading for breakout. When the supply and demand zone are adjacent and paired to form a box. This is great opportunity for breakout.

The condition for box trading for breakout is that we need a pair of demand zone and supply zone in adjacent as shown in the screenshot.

How to trade with it ? It is very similar to Sideways market trading. You will take the entry when the price try to move outside the box.

https://www.mql5.com/en/market/product/40076

https://www.mql5.com/en/market/product/40075

https://algotrading-investment.com/portfolio-item/ace-supply-demand-zone/

When you perform this sort of box trading, it is much more convenient to use our Ace Supply Demand Zone indicator. With repainting supply demand zone, this type of box trading is probably more difficult.

New Version of Supply Demand Zone Indicator released

This is great news on many supply and demand zone trader. We have just released newer version of our Supply Demand Zone Indicator.

It is the version 2.2 of Ace Supply Demand Zone Indicator. In the new version, supply and demand zone detection algorithm are much more improved. Of course, this is non repainting supply and demand zone indicator. This indicator will help you to win in the market in many different ways.

Make sure that you download the latest version 2.2 for the maximum trading performance.

This indicator is really great tool for following traders.

• Supply and Demand Zone trader
• Support and resistance trader
• Price action trader
• Harmonic Pattern trader
• Elliott wave trader

Supply Demand Zone Indicator Basic

Supply and Demand zone is the extended version of support and resistance trading with more skills. We provide our own Supply and Demand Zone indicator, Ace Supply Demand Zone Indicator. This is non repainting supply and demand zone indicator.

Here is the basic guideline in using Ace Supply Demand Zone indicator. First of all, here is what the notation like H1 or S3 means in your chart when you applied this Supply Demand Zone indicator.

• H1 = Zone detected in H1 timeframe
• S3 = Zone Strength 3

You can also show or hide zones from your chart using button click. Check the screehshot for some more tips.

No problem.

Please check this article.

https://algotradinginvestment.wordpress.com/2018/01/25/mean-reversion-supply-demand-multiple-timeframe-analysis/

There are more articles about Mean Reversion Supply Demand here.

https://algotradinginvestment.wordpress.com/category/mean-reversion-supply-demand/

For Ace Supply Demand here.

https://algotradinginvestment.wordpress.com/category/ace-supply-demand-zone/

I am not sure if I understood correctly.

But you might try to use our Free Time box indicator.

https://www.mql5.com/en/market/product/14335

Kind regards.

You do not have to do this. I just wanted to ask if you want to do it.

( For the Crypto money market )

Could you please advise how many "bars to scan" is recommended for various TFs?   e.g. 7200 M1; 1200 M5; etc.

This information is necessary to improve calculation speed.

Great thanks!

Scan Supply Demand Zone Across All Timeframe

In Ace Supply Demand Zone indicator, you can scan the supply and demand zone across all timeframe for your Forex trading. This is a powerful feature included in Ace Supply Demand Zone indicator. Controlling the Multiple Timeframe scanning is similar to our other MetaTrader products like Harmonic Pattern Plus or X3 Chart Pattern Scanner. You can control them from the inputs under the Multiple Timeframe Scanning. With the inputs, you can enable or disable multiple timeframe scanning. You can also choose to switch on or off specific timeframe from your dashboard. In addition, you can also control how frequently the indicator should scan. The default value for update frequency is M5 timeframe. However, you can use M1 for update frequency if you need to scan them more frequently.

If you enabled email or push notification in the inputs under General Setting, then you can also receive the alert for the detected supply and demand zone as well as the touched supply and demand zone. The thing you need to understand about multiple timeframe scanning is that it requires multiple computation too per each timeframe. The computation can be heavier up to 7 times or more when you enabled M1 to D1 timeframes. Hence, due to data loading issues, the calculation might be stuck sometimes. In that case, just click Show button to refresh all the calculation. Of course, it is possible to switch off the multiple timeframe scanning if you only want to trade one timeframe.

Ace Supply Demand Zone in MetaTrader 4 and MetaTrader 5

In addition, we provide the YouTube video for Ace Supply Demand Zone Indicator. Hence, you can watch this YouTube Video to learn the basic operation with the supply demand zone indicator.

YouTube “Supply Demand Zone Indicator”: https://youtu.be/lr0dthrU9jo

Landing page for Ace Supply Demand Zone.

https://www.mql5.com/en/market/product/40076

https://www.mql5.com/en/market/product/40075

https://algotrading-investment.com/portfolio-item/ace-supply-demand-zone/

In version 5.0, we made some minor improvement on the Ace Supply Demand Zone indicator for the multiple timeframe scanning to detect supply and demand zone across all timeframe.

Enjoy this powerful update.

Technical Analysis in Forex and Stock Market Subtitle: Supply and Demand Analysis

This book is another effort for me to introduce the scientific trading for the trading community in Forex and Stock market. In my previous five books, I provided the details on how technical analysis can predict the market in conjunction with fractal wave. However, I felt that I could expand this on other technical analysis outside Support, Resistance, Triangle Pattern, Fibonacci Analysis, Harmonic Pattern, Elliott Wave, and X3 Chart Pattern. Hence, I chosen the supply and demand analysis to accomplish this goal. My goal was to provide you more practical trading examples. So that you can learn how to make use of the fractal wave in practice for your trading. The idea behind the supply and demand analysis starts with understanding the supply and demand curve in Economics. However, you do not need the deep understanding of the supply demand curve and Economics to use this technique. Hence, this technical analysis is accessible by anyone. In fact, the supply and demand analysis shares some common attributes with the volume spread analysis (VSA) devised by Richard Wyckoff. For example, the supply and demand analysis uses the price pattern based on the key area in the price analysis. The supply and demand analysis is the simple and straightforward price pattern analysis. In addition, trading with the supply and demand analysis is simple and straightforward too. Supply and demand trading does not require any complicated technical indicators or math skills. However, it purely focuses on the price itself. As it is the effective tool for your trading, I believe that many people will love to have this technical analysis on their toolbox. My latest book tends to be easier to read as I put a lot of effort to find the simplest explanation as possible. This book is easy to read too. In addition to the supply and demand analysis, this book covers other technical analysis in brief. This will help you to compare the supply and demand analysis with other technical analysis. However, this does not mean that this book is comprehensive to explain all the technical analysis in details. If you are looking to explore other technical analysis in details outside the supply and demand analysis, then I will recommend reading my previous books. In the list below, I put the easy to read book on top. Try to read the easy to read book first and try to read the harder book later to improve your trading and investment.

• Technical Analysis in Forex and Stock Market (Supply and Demand Analysis)
• Science Of Support, Resistance, Fibonacci Analysis, Harmonic Pattern, Elliott Wave and X3 Chart Pattern (In Forex and Stock Market Trading)
• Profitable Chart Patterns in Forex and Stock Market (Fibonacci Analysis, Harmonic Pattern, Elliott Wave, and X3 Chart Pattern)
• Guide to Precision Harmonic Pattern Trading (Mastering Turning Point Strategy for Financial Trading)
• Scientific Guide to Price Action and Pattern Trading (Wisdom of Trend, Cycle, and Fractal Wave)
• Predicting Forex and Stock Market with Fractal Pattern (Science of Price and Time)

https://algotrading-investment.com/portfolio-item/technical-analysis-in-forex-and-stock-market/

If you are using the old version of Ace Supply Demand Zone Indicator, then make sure to update to the latest version 5.2 of this Supply Demand Zone Indicator. 

Use the latest version for the best performance.

We have republished the article for "Angled Supply Demand Zone Trading" with another name "  Supply Demand Trading with Trendline".

This is one of the trading strategy you can perform with Ace Supply Demand Indicator or with our Optimum Chart.  

This trading strategy is very simple but really effective. This strategy can be one option for your choice of trading strategy with Ace Supply Demand Indicator. 

Please read this article for your own good. 

https://algotrading-investment.com/2019/07/04/angled-supply-demand-zone-trading-tutorial-1/