Supply zone: How to enter DOWN orders with unfailing accuracy (Chapter 2)

Supply zone: How to enter DOWN orders with unfailing accuracy (Chapter 2)

Following the Supply and Demand series, in this article we will only talk about the Supply zone with DOWN orders.

Especially, I will guide on how to place a safe pending order with a high winning rate in Forex and Fixed Time Trade (FTT).

Ok! Let’s go into detail now.

Review the knowledge about Supply zone

Theory: There are 2 common patterns of Supply zone. They are (1) Reversal and (2) Continuation.

The method to set up an order would be:

(1) With the Reversal pattern.

Reversal pattern
Reversal pattern

(2) With the Continuation pattern.

Continuation pattern
Continuation pattern

How to use the Supply zone in real trading

Case 1: Place a safe DOWN pending order

Real trading with EUR/USD currency pair.

Step 1: The market must be in the Downtrend phase. The trend is always the first factor you consider and this is the full picture of EUR/USD.

EUR/USD is in a Downtrend
EUR/USD is in a Downtrend

Step 2: Identify the nearest Supply zone.

Identify the nearest Supply zone
Identify the nearest Supply zone

Step 3: Set up a DOWN pending order at this zone. The first order should be a Forex test order.

– Place Stop Loss (SL) above the Supply zone.

– Set Take Profit (TP) at the Demand zone below.

Set up a DOWN pending order
Set up a DOWN pending order

In my experience, you should take advantage of the Forex pending order. It’s both safe and effective. You also don’t have to concern about it a lot.

Wait for your Forex order to be profitable, then trade Fixed Time. When doing this way, everything will be smoother and simpler.

Case 2: Fixed Time trading

With Forex, I will use the 4h chart. But with FTT, we will do a quick short with the 5-minute chart. The expiration time is 15 minutes.

When your Forex order is profitable, it means that your prediction goes on the right track. You can be more confident with the DOWN Fixed Time Trade order.

Step 1: Identify the Supply zone on the 5-minute chart.

Fixed Time trading in the Supply zone
Fixed Time trading in the Supply zone

Step 2: Wait for the price to enter this zone and create a reversal signal. After that, place a DOWN order.

Note: Use the reversal candlestick pattern such as Bearish Engulfing, Bearish Pin Bar or Evening Star…

Reversal candlestick patterns
Reversal candlestick patterns

Conclusion

Our formula: Downtrend + Supply Zone => place DOWN orders.

After using the Forex test order, you will follow with a Fixed Time order. Of course, there must be a reasonable way to manage money to limit risks to a minimum.

For example, you can enter a $100 Forex order. When the Forex order is gaining $5 or more, you can start with $5 FTT orders. To trade this way, your mind will be more comfortable.

The article ends here. In the next one, we will come to the Uptrend and the Demand zone. Hope you will master how to trade Forex and FTT in Olymp Trade after this series.

Join the Olymp Trade Club Signal Group: https://t.me/olymptradeclub19

Supply zone: How to enter DOWN orders with unfailing accuracy (Chapter 2)
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