Next in this series, we will talk about the Demand Zone. As usual, there will be a detailed method for you to use in trading Forex and Fixed Time Trade.
Review the knowledge about the Demand zone
In case it is the 1st time you have come to the series, you can read this article again. How to trade with the Supply and Demand zones effectively in Olymp Trade.
In theory, there are 2 popular Demand patterns. They are (1) Reversal and (2) Continuation.
With each pattern, you will have a different way to trade.
(1) With the reversal Demand pattern
(2) With the continuation Demand pattern
When the market is in an uptrend, we will wait for the moment the price retests the Demand zone and place UP orders.
How to use the Demand zone trading strategy in Olymp Trade
Case 1: Forex trading
I use a real trading example with Brent Oil here.
Step 1: View the overall Oil market (4h chart). The price was in an Uptrend.
Step 2: Identify the nearest Demand zone.
Step 3: Wait for the price to return to the Demand zone and open a Forex order.
– Place Stop Loss (SL) just below the Demand zone.
– Place Take Profit (TP) at the old peak.
Case 2: Fixed Time Trade
Use a 5-minute chart and choose assets with Pay Out of 80% or more. The market must also be in an Uptrend.
I have another real trading example with Asia Composite Index.
Step 1: Identify the Demand zone in the Uptrend.
Step 2: Wait for the price to enter the Demand zone and place UP orders. The expiration time is from 10 minutes to 15 minutes.
Step 3: If the price bounces off the Demand zone, stop trading and leave the market.
This is a summary of my Fixed Time trading orders.
Our formula: Uptrend + Demand Zone + Signal = Place UP orders.
Some reversal candlestick patterns in Demand zones that you need to pay attention are Bullish Engulfing, Bullish pin Bar, Morning Star…
It is possible to trade both Forex and FTT at the same time with a test order. You can see details in the following link: https://olymptradeclub.com/trade-both-forex-and-fixed-time-with-test-order/
That’s all I want to show you in this article. The series of Supply and Demand zones end here. If you have any questions, please leave a comment below. I’ll reply to you as soon as possible.
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