Today's three cards: Scalping Supply and Demand, Day Trading Supply and Demand, and the BPB Strategy Card. This is part one, more strategy cards are coming. Every setup is drawn out with its zone, entry, and stop, so keep it handy as a quick reference before you trade.
The four-step supply and demand setup at scalping speed: zones from the Daily down to the 5-minute, entries on the 15-second. Fast, more trades, tight reward at the zone. Here is each entry pattern at its zone.
A long lower wick into the demand zone. Wait for the close, then market buy at the candle high. Stop below the wick or the zone.
A long upper wick into the supply zone. Wait for the close, then market sell at the candle low. Stop above the wick or the zone.
A big bull candle whose body fully swallows the prior bear body at demand. Enter on its close, stop below its low or the zone.
A big bear candle whose body fully swallows the prior bull body at supply. Enter on its close, stop above its high or the zone.
Two candles share the same low at demand, the floor held twice. Enter after the second candle, stop below the shared low.
Two candles share the same high at supply, the ceiling held twice. Enter after the second candle, stop above the shared high.
Big bear, small pause, big bull at demand. Enter on the third candle's close, stop below the star's low.
Big bull, small pause, big bear at supply. Enter on the third candle's close, stop above the star's high.
The exact same setup, one speed slower: zones from the Daily down to the 15-minute, entries on the 1-minute. Same patterns and the same four steps, just wider targets and more patience.
A long lower wick into the demand zone. Wait for the close, then market buy at the candle high. Stop below the wick or the zone.
A long upper wick into the supply zone. Wait for the close, then market sell at the candle low. Stop above the wick or the zone.
A big bull candle whose body fully swallows the prior bear body at demand. Enter on its close, stop below its low or the zone.
A big bear candle whose body fully swallows the prior bull body at supply. Enter on its close, stop above its high or the zone.
Two candles share the same low at demand, the floor held twice. Enter after the second candle, stop below the shared low.
Two candles share the same high at supply, the ceiling held twice. Enter after the second candle, stop above the shared high.
Big bear, small pause, big bull at demand. Enter on the third candle's close, stop below the star's low.
Big bull, small pause, big bear at supply. Enter on the third candle's close, stop above the star's high.
Bias, Pause, Break. Trade with the EMA, wait for a 1 to 2 candle pause, enter on the break. Here it is on a buy and a sell.
Price above the EMA, one pullback candle, then it breaks back above the pause high. Buy the break, stop just past the pause.
Same read with a 2-candle pause. Still valid. Buy the break of the pause high, stop just past the pause.
Price below the EMA, one pullback candle up, then it breaks back below the pause low. Sell the break, stop just past the pause.
Same read with a 2-candle pause. Still valid. Sell the break of the pause low, stop just past the pause.
A 3rd counter-trend candle. The pause went too far and the setup is dead. Skip it, there is no clean BPB.
Two ways to place your stop. Pick the one you can execute.
Your stop sits just past the structure, the pause, the candle, or the zone. Because the structure is a different size every trade, your stop distance and dollar risk change each time. You have to estimate and manage your own risk, which makes this the more advanced choice.
Your stop is a set number of ticks every trade, no matter where the structure is (for example 100 ticks, which is 25 points on the Nasdaq). You decide that number up front and stick to it. Simple and consistent, and because the distance never changes you can size to a fixed dollar risk.