About this Video

• Video Title: Demand Supply Trading Strategy #2 Candle Types | Zone Components | Multiple Time Frame Analysis
• Channel: Surjeet Kakkar
• Speakers: Sujit Kakkar
• Duration: 00:17:38

Introduction

This video teaches a demand and supply trading strategy. It covers candle type identification (boring vs. exciting), zone formations (DBR, RBR, RBD, DBD), zone components, zoning rules, and multi-timeframe analysis for trading.

Key Takeaways

• Candle Types: Candles are categorized as "boring" (body range ≤ 50% of candle range) or "exciting" (body range > 50% of candle range). A custom indicator automatically identifies boring candles.
• Zone Formations: Four zone formations are explained: Demand-Based Rally (DBR), Rally-Based Rally (RBR), Rally-Based Drop (RBD), and Drop-Based Drop (DBD). These formations help identify potential turning points.
• Zone Components: Zones consist of three components: leg-in, basing (boring candles), and leg-out (exciting candles).
• Zoning Rules: Supply zones are above the current market price; demand zones are below. Proximal lines are closest to the current price; distal lines are furthest. Three methods exist for drawing proximal lines (Wick-to-Wick, Body-to-Wick, Body-to-Body), with Body-to-Wick preferred for its balance of risk and probability.
• Multiple Time Frame Analysis: Using multiple timeframes (Higher Time Frame - HTF, Intermediate Time Frame - ITF, Lower Time Frame - LTF) provides a comprehensive market view, crucial for effective trading decisions. The video also introduces different trading styles based on the timeframe (Monthly Income Trade, Weekly Income Trade, Daily Income Trade, Hourly Income Trade).

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basic","start_time_text":"0:32"},{"start_ms":"35320","end_ms":"36320","text":"part","start_time_text":"0:35"},{"start_ms":"36320","end_ms":"39719","text":"two in this session we will be covering","start_time_text":"0:36"},{"start_ms":"39719","end_ms":"42879","text":"candle types Zone formations Zone","start_time_text":"0:39"},{"start_ms":"42879","end_ms":"46079","text":"components zoning rules and multiple","start_time_text":"0:42"},{"start_ms":"46079","end_ms":"47760","text":"time frame","start_time_text":"0:46"},{"start_ms":"47760","end_ms":"51199","text":"analysis candle types not every candle","start_time_text":"0:47"},{"start_ms":"51199","end_ms":"53680","text":"is the same let's understand different","start_time_text":"0:51"},{"start_ms":"53680","end_ms":"54960","text":"kind of","start_time_text":"0:53"},{"start_ms":"54960","end_ms":"57320","text":"candles some candles represent","start_time_text":"0:54"},{"start_ms":"57320","end_ms":"60239","text":"accumulation or distribution of orders","start_time_text":"0:57"},{"start_ms":"60239","end_ms":"63480","text":"While others do not boring candles they","start_time_text":"1:00"},{"start_ms":"63480","end_ms":"65518","text":"imply that transactions are happening in","start_time_text":"1:03"},{"start_ms":"65519","end_ms":"68720","text":"the range thus demand and Supply is","start_time_text":"1:05"},{"start_ms":"68720","end_ms":"71000","text":"inbalance and orders are potentially","start_time_text":"1:08"},{"start_ms":"71000","end_ms":"73439","text":"being accumulated or distributed by the","start_time_text":"1:11"},{"start_ms":"73439","end_ms":"76400","text":"big boys this is what we also refer as","start_time_text":"1:13"},{"start_ms":"76400","end_ms":"79840","text":"the period of pause exciting candles","start_time_text":"1:16"},{"start_ms":"79840","end_ms":"82720","text":"they imply imbalance between demand and","start_time_text":"1:19"},{"start_ms":"82720","end_ms":"85520","text":"Supply thus price starts moving either","start_time_text":"1:22"},{"start_ms":"85520","end_ms":"88560","text":"up or down we will start identifying","start_time_text":"1:25"},{"start_ms":"88560","end_ms":"90520","text":"demand and Supply levels using boring","start_time_text":"1:28"},{"start_ms":"90520","end_ms":"92200","text":"and exciting","start_time_text":"1:30"},{"start_ms":"92200","end_ms":"95720","text":"candles to qualify a candle as boring or","start_time_text":"1:32"},{"start_ms":"95720","end_ms":"98320","text":"exciting we compare the candle body","start_time_text":"1:35"},{"start_ms":"98320","end_ms":"102159","text":"range open to close with 50% off candle","start_time_text":"1:38"},{"start_ms":"102159","end_ms":"105119","text":"range high to low in the first example","start_time_text":"1:42"},{"start_ms":"105119","end_ms":"107920","text":"you can see that the body range is from","start_time_text":"1:45"},{"start_ms":"107920","end_ms":"110960","text":"the open to the close and the candle","start_time_text":"1:47"},{"start_ms":"110960","end_ms":"114479","text":"range is from the high to the low now we","start_time_text":"1:50"},{"start_ms":"114479","end_ms":"117600","text":"compare the body range with 50% of","start_time_text":"1:54"},{"start_ms":"117600","end_ms":"120640","text":"candle range since we can see that the","start_time_text":"1:57"},{"start_ms":"120640","end_ms":"124119","text":"body range is more than 50% we call it","start_time_text":"2:00"},{"start_ms":"124119","end_ms":"126600","text":"as an exciting candle if you look at the","start_time_text":"2:04"},{"start_ms":"126600","end_ms":"129679","text":"next candle the body range is from the","start_time_text":"2:06"},{"start_ms":"129679","end_ms":"132840","text":"open to the close and the candle range","start_time_text":"2:09"},{"start_ms":"132840","end_ms":"135959","text":"is from the high to the low comparing","start_time_text":"2:12"},{"start_ms":"135959","end_ms":"139400","text":"the body range with 50% of candle range","start_time_text":"2:15"},{"start_ms":"139400","end_ms":"141840","text":"we can see that the body range is less","start_time_text":"2:19"},{"start_ms":"141840","end_ms":"145599","text":"than 50% therefore we will be calling it","start_time_text":"2:21"},{"start_ms":"145599","end_ms":"147480","text":"as a boring","start_time_text":"2:25"},{"start_ms":"147480","end_ms":"149840","text":"candle now let's look at some examp","start_time_text":"2:27"},{"start_ms":"149840","end_ms":"152400","text":"examples of boring and exciting candle","start_time_text":"2:29"},{"start_ms":"152400","end_ms":"154560","text":"in the first candle we will take the","start_time_text":"2:32"},{"start_ms":"154560","end_ms":"157800","text":"range of the body which is from the open","start_time_text":"2:34"},{"start_ms":"157800","end_ms":"160760","text":"to the close next we will take the range","start_time_text":"2:37"},{"start_ms":"160760","end_ms":"163560","text":"of the candle which is from the high to","start_time_text":"2:40"},{"start_ms":"163560","end_ms":"166640","text":"the low now we will take the 50% of the","start_time_text":"2:43"},{"start_ms":"166640","end_ms":"169360","text":"candle range and compare the body range","start_time_text":"2:46"},{"start_ms":"169360","end_ms":"172319","text":"with the 50% of the candle range since","start_time_text":"2:49"},{"start_ms":"172319","end_ms":"175440","text":"the body range is more than 50% we will","start_time_text":"2:52"},{"start_ms":"175440","end_ms":"178080","text":"call it as an exciting candle in the","start_time_text":"2:55"},{"start_ms":"178080","end_ms":"180480","text":"next example we will again and take the","start_time_text":"2:58"},{"start_ms":"180480","end_ms":"183440","text":"body range which is from the open to the","start_time_text":"3:00"},{"start_ms":"183440","end_ms":"186200","text":"close we will also take the range of the","start_time_text":"3:03"},{"start_ms":"186200","end_ms":"189400","text":"candle which is from the high to the low","start_time_text":"3:06"},{"start_ms":"189400","end_ms":"192760","text":"now we will take 50% of the candle range","start_time_text":"3:09"},{"start_ms":"192760","end_ms":"195560","text":"and compare the body range with 50% of","start_time_text":"3:12"},{"start_ms":"195560","end_ms":"198120","text":"candle range since the body range is","start_time_text":"3:15"},{"start_ms":"198120","end_ms":"201200","text":"less than 50% we will call it as a","start_time_text":"3:18"},{"start_ms":"201200","end_ms":"204879","text":"boring candle let's again take the body","start_time_text":"3:21"},{"start_ms":"204879","end_ms":"207319","text":"range of this candle which is from the","start_time_text":"3:24"},{"start_ms":"207319","end_ms":"210200","text":"open to the close and then we will be","start_time_text":"3:27"},{"start_ms":"210200","end_ms":"212640","text":"taking the range of the candle which is","start_time_text":"3:30"},{"start_ms":"212640","end_ms":"215519","text":"from the high to the low now we will","start_time_text":"3:32"},{"start_ms":"215519","end_ms":"219159","text":"take 50% of the candle range and compare","start_time_text":"3:35"},{"start_ms":"219159","end_ms":"222480","text":"the body range with 50% of candle range","start_time_text":"3:39"},{"start_ms":"222480","end_ms":"225319","text":"since it is more than 50% we will call","start_time_text":"3:42"},{"start_ms":"225319","end_ms":"228239","text":"it as an exciting candle in the next","start_time_text":"3:45"},{"start_ms":"228239","end_ms":"230560","text":"example we will again take the body","start_time_text":"3:48"},{"start_ms":"230560","end_ms":"233040","text":"range which is from the open to the","start_time_text":"3:50"},{"start_ms":"233040","end_ms":"235760","text":"close we will take the candle range","start_time_text":"3:53"},{"start_ms":"235760","end_ms":"238280","text":"which is from the high to the low we","start_time_text":"3:55"},{"start_ms":"238280","end_ms":"240920","text":"will take the 50% of the candle range","start_time_text":"3:58"},{"start_ms":"240920","end_ms":"243560","text":"and compare the body range with the 50%","start_time_text":"4:00"},{"start_ms":"243560","end_ms":"246079","text":"of candle range and since it is less","start_time_text":"4:03"},{"start_ms":"246079","end_ms":"249319","text":"than 50% we will call it as a boring","start_time_text":"4:06"},{"start_ms":"249319","end_ms":"252000","text":"candle in the last example we will again","start_time_text":"4:09"},{"start_ms":"252000","end_ms":"254079","text":"take the body range which is from the","start_time_text":"4:12"},{"start_ms":"254079","end_ms":"256560","text":"open to the close we will take the","start_time_text":"4:14"},{"start_ms":"256560","end_ms":"258799","text":"candle range which is from the high to","start_time_text":"4:16"},{"start_ms":"258799","end_ms":"261600","text":"the low we will take the 50% of the","start_time_text":"4:18"},{"start_ms":"261600","end_ms":"264440","text":"candle range and compare the body range","start_time_text":"4:21"},{"start_ms":"264440","end_ms":"267560","text":"with 50% of candle range since it is","start_time_text":"4:24"},{"start_ms":"267560","end_ms":"270360","text":"less than 50% we will call it as a","start_time_text":"4:27"},{"start_ms":"270360","end_ms":"271680","text":"boring","start_time_text":"4:30"},{"start_ms":"271680","end_ms":"275160","text":"candle here are few more examples in the","start_time_text":"4:31"},{"start_ms":"275160","end_ms":"277280","text":"first candle the body range is more than","start_time_text":"4:35"},{"start_ms":"277280","end_ms":"280479","text":"50% of the candle range therefore this","start_time_text":"4:37"},{"start_ms":"280479","end_ms":"283320","text":"would be called as an exciting candle in","start_time_text":"4:40"},{"start_ms":"283320","end_ms":"285360","text":"the second example the body range is","start_time_text":"4:43"},{"start_ms":"285360","end_ms":"288080","text":"less than 50% of the candle range","start_time_text":"4:45"},{"start_ms":"288080","end_ms":"290479","text":"therefore we will call it as a boring","start_time_text":"4:48"},{"start_ms":"290479","end_ms":"293080","text":"candle in the third example the body","start_time_text":"4:50"},{"start_ms":"293080","end_ms":"295280","text":"range is more than 50% of the candle","start_time_text":"4:53"},{"start_ms":"295280","end_ms":"297160","text":"range therefore we will call it as an","start_time_text":"4:55"},{"start_ms":"297160","end_ms":"299800","text":"exciting candle in the fourth example","start_time_text":"4:57"},{"start_ms":"299800","end_ms":"302400","text":"the body range is more than 50% of the","start_time_text":"4:59"},{"start_ms":"302400","end_ms":"304199","text":"candle range therefore we will call it","start_time_text":"5:02"},{"start_ms":"304199","end_ms":"306720","text":"as an exciting candle and in the last","start_time_text":"5:04"},{"start_ms":"306720","end_ms":"309639","text":"example the body range is less than 50%","start_time_text":"5:06"},{"start_ms":"309639","end_ms":"311560","text":"of the candle range therefore we will","start_time_text":"5:09"},{"start_ms":"311560","end_ms":"314479","text":"call it as a boring candle to make it","start_time_text":"5:11"},{"start_ms":"314479","end_ms":"317080","text":"easy for us I have created a custombuilt","start_time_text":"5:14"},{"start_ms":"317080","end_ms":"319280","text":"indicator which will automatically","start_time_text":"5:17"},{"start_ms":"319280","end_ms":"322199","text":"identify boring candles on the chart","start_time_text":"5:19"},{"start_ms":"322199","end_ms":"324160","text":"let's look at some examples of boring","start_time_text":"5:22"},{"start_ms":"324160","end_ms":"326319","text":"candles on charts using this boring","start_time_text":"5:24"},{"start_ms":"326319","end_ms":"327520","text":"candle","start_time_text":"5:26"},{"start_ms":"327520","end_ms":"330440","text":"indicator currently on the chart you can","start_time_text":"5:27"},{"start_ms":"330440","end_ms":"333919","text":"see that candles are either green or red","start_time_text":"5:30"},{"start_ms":"333919","end_ms":"335560","text":"after applying the boring candle","start_time_text":"5:33"},{"start_ms":"335560","end_ms":"338639","text":"indicator candles with body range less","start_time_text":"5:35"},{"start_ms":"338639","end_ms":"342000","text":"than or equal to 50% of the candle range","start_time_text":"5:38"},{"start_ms":"342000","end_ms":"344080","text":"have been converted into blue color","start_time_text":"5:42"},{"start_ms":"344080","end_ms":"346880","text":"candles therefore all the blue color","start_time_text":"5:44"},{"start_ms":"346880","end_ms":"349000","text":"candles which you see on the chart are","start_time_text":"5:46"},{"start_ms":"349000","end_ms":"350120","text":"boring","start_time_text":"5:49"},{"start_ms":"350120","end_ms":"354000","text":"candles Zone formations picture on chart","start_time_text":"5:50"},{"start_ms":"354000","end_ms":"356479","text":"that represents potential turning","start_time_text":"5:54"},{"start_ms":"356479","end_ms":"360000","text":"points two formations of demand drop","start_time_text":"5:56"},{"start_ms":"360000","end_ms":"363520","text":"based Rally or dbr on a price chart","start_time_text":"6:00"},{"start_ms":"363520","end_ms":"365639","text":"let's assume that the price are moving","start_time_text":"6:03"},{"start_ms":"365639","end_ms":"368240","text":"down the only logical reason for the","start_time_text":"6:05"},{"start_ms":"368240","end_ms":"370360","text":"prices to move down has to be more","start_time_text":"6:08"},{"start_ms":"370360","end_ms":"372960","text":"Supply this move to the downside is what","start_time_text":"6:10"},{"start_ms":"372960","end_ms":"376720","text":"we call as a drop if the supply was more","start_time_text":"6:12"},{"start_ms":"376720","end_ms":"378919","text":"the price should keep moving down but","start_time_text":"6:16"},{"start_ms":"378919","end_ms":"380840","text":"what happens next is that instead of","start_time_text":"6:18"},{"start_ms":"380840","end_ms":"383479","text":"moving further down price starts trading","start_time_text":"6:20"},{"start_ms":"383479","end_ms":"386120","text":"in a Range this tells us that now we","start_time_text":"6:23"},{"start_ms":"386120","end_ms":"388039","text":"have enough demand to counter that","start_time_text":"6:26"},{"start_ms":"388039","end_ms":"390520","text":"Supply due to which prices are now","start_time_text":"6:28"},{"start_ms":"390520","end_ms":"393520","text":"trading in a Range this period of pause","start_time_text":"6:30"},{"start_ms":"393520","end_ms":"397280","text":"is what we call as base after some time","start_time_text":"6:33"},{"start_ms":"397280","end_ms":"400160","text":"price starts moving up the only logical","start_time_text":"6:37"},{"start_ms":"400160","end_ms":"402440","text":"reason for prices to move up has to be","start_time_text":"6:40"},{"start_ms":"402440","end_ms":"405080","text":"more demand this move to the upside is","start_time_text":"6:42"},{"start_ms":"405080","end_ms":"408440","text":"what we call as a rally now we wrap the","start_time_text":"6:45"},{"start_ms":"408440","end_ms":"411360","text":"origin of imbalance the basing with two","start_time_text":"6:48"},{"start_ms":"411360","end_ms":"413440","text":"horizontal lines and call it as our","start_time_text":"6:51"},{"start_ms":"413440","end_ms":"416680","text":"demand Zone rally based Rally or","start_time_text":"6:53"},{"start_ms":"416680","end_ms":"419599","text":"rbr on a price chart let's assume ass","start_time_text":"6:56"},{"start_ms":"419599","end_ms":"422120","text":"that the prices are moving up the only","start_time_text":"6:59"},{"start_ms":"422120","end_ms":"424440","text":"logical reason for prices to move up has","start_time_text":"7:02"},{"start_ms":"424440","end_ms":"426800","text":"to be more demand this move to the","start_time_text":"7:04"},{"start_ms":"426800","end_ms":"430039","text":"upside is what we call as a rally if the","start_time_text":"7:06"},{"start_ms":"430039","end_ms":"432039","text":"demand was more the price should keep","start_time_text":"7:10"},{"start_ms":"432039","end_ms":"434800","text":"moving up but what happens next is that","start_time_text":"7:12"},{"start_ms":"434800","end_ms":"437120","text":"instead of moving further up price","start_time_text":"7:14"},{"start_ms":"437120","end_ms":"440000","text":"starts trading in a Range this tells us","start_time_text":"7:17"},{"start_ms":"440000","end_ms":"442199","text":"that now we have enough supply to cter","start_time_text":"7:20"},{"start_ms":"442199","end_ms":"444720","text":"the demand due to which prices are now","start_time_text":"7:22"},{"start_ms":"444720","end_ms":"447639","text":"trading in a Range this period of pause","start_time_text":"7:24"},{"start_ms":"447639","end_ms":"450199","text":"is what we call as base","start_time_text":"7:27"},{"start_ms":"450199","end_ms":"453319","text":"after some time price starts moving up","start_time_text":"7:30"},{"start_ms":"453319","end_ms":"455479","text":"the only logical reason for prices to","start_time_text":"7:33"},{"start_ms":"455479","end_ms":"458440","text":"move up has to be more demand this move","start_time_text":"7:35"},{"start_ms":"458440","end_ms":"461680","text":"to the upside is what we call as a rally","start_time_text":"7:38"},{"start_ms":"461680","end_ms":"464080","text":"now we wrap the origin of imbalance the","start_time_text":"7:41"},{"start_ms":"464080","end_ms":"466720","text":"basing with two horizontal lines and","start_time_text":"7:44"},{"start_ms":"466720","end_ms":"469599","text":"call it as our demand zone two","start_time_text":"7:46"},{"start_ms":"469599","end_ms":"474120","text":"formations of Supply rally based drop or","start_time_text":"7:49"},{"start_ms":"474120","end_ms":"477120","text":"RBD on a price chart let's assume that","start_time_text":"7:54"},{"start_ms":"477120","end_ms":"479680","text":"the prices are moving up the the only","start_time_text":"7:57"},{"start_ms":"479680","end_ms":"482199","text":"logical reason for the prices to move up","start_time_text":"7:59"},{"start_ms":"482199","end_ms":"484759","text":"has to be more demand this move to the","start_time_text":"8:02"},{"start_ms":"484759","end_ms":"488159","text":"upside is what we call as a rally if the","start_time_text":"8:04"},{"start_ms":"488159","end_ms":"490159","text":"demand was more the price should keep","start_time_text":"8:08"},{"start_ms":"490159","end_ms":"492800","text":"moving up but what happens next is that","start_time_text":"8:10"},{"start_ms":"492800","end_ms":"495000","text":"instead of moving further up price","start_time_text":"8:12"},{"start_ms":"495000","end_ms":"497759","text":"starts trading in a Range this tells us","start_time_text":"8:15"},{"start_ms":"497759","end_ms":"499560","text":"that now we have enough Supply to","start_time_text":"8:17"},{"start_ms":"499560","end_ms":"501840","text":"counter the demand due to which prices","start_time_text":"8:19"},{"start_ms":"501840","end_ms":"504440","text":"are now trading in a Range this period","start_time_text":"8:21"},{"start_ms":"504440","end_ms":"507840","text":"of pause is what