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Supply Demand Made Easy II

Mastering the 5/15 min timeframes.

By @bossman_fx

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Preface of the sorts.

So a few months ago I came up with my first pdf and the reception was great; great feedback from guys who
benefited me and guys sending me DMs of how it helped them in gaining consistency. Well the truth is, the
PDF was as simple as it could be put across and for one reason or the other, I won’t cover any of the
information covered in it in this new pdf. However, I will build up on making consistent profits on the 5/15 min
timeframes using the given strategy, only that this time I will put into consideration more rules in order for you
to maximize your win rate and incorporate risk management accordingly. This won’t be one of those long ass
pdfs too so don’t worry.
Before I get down to it……
This is expected of course lol….

Disclaimer.
Forex is a risky venture. With this in mind, don’t take my PDF as a holy grail to trading, rather I expect you to
use this knowledge to build up and tweak it to your understanding and to suit your trading style.

So with that out of the way, let’s get down to it.

Ohh and one more thing, it came to my knowledge that I lied to you guys in my other pdf and thus I’m here to
correct that; England is not in the tropics lol. Felt quite dumb for saying that it was a country in the tropics.

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Overview:

So this strategy is good for any timeframe really but if you focus on the lower timeframes, you’ll notice that you
can get just as much pips trading the LTF with tighter SL and risk to reward ratios of upwards of 1:2, and as a
bonus, you won’t have the fear of missing out because these kind of setups happen every single day and more
than once for that matter.

So to note:
1. Timeframe: 5 and 15 min
2. Strategy: supply and demand purely.
3. Key to succeeding: Patience (especially as you wait on candle closes.)
4. You also need to revisit your charts every now and then to crosscheck and confirm of any new zones
formed to keep up.

*The easiest way not to miss out on a trade would be setting up mobile alerts (Just as I do. I will have a link at
the references section at the end of the pdf.)*

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Introduction.

I had earlier on mentioned that I would not go back and review my previous pdf on the basics of drawing zones,
but anyway,
All you need to recall is:
1. Supply zones are drawn from the candle open to the top wick of the last bullish candle before a
reversal or continuation.
2. Demand zones are drawn from the candle open to the bottom wick of the last bearish candle before a
reversal or continuation.
3. Supply Demand structures are basically 4; reversal patterns i.e. RBD and DBR and continuation patterns
i.e. RBR and DBD
- In this PDF we shall focus on the reversal patterns. These patterns will be available on chart
examples later on.

Bossman can you quit beating around the bush and give us the godamn secret? Ha-ha okay so here we go.

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What criteria do I look for when I open the charts?

So all you first need to do is look for major imbalances in the market.

Imbalances: these are areas on the chart where there price has basically made a quick advancement out of a
potential zone. Okay that was bit too layman’s. But anyway, imagine these zones as areas on the chart where
price made a strong push away.
We therefore use these imbalance zones as the first criteria in drawing the zones.
Have a look at the following and you’ll understand what I mean. Remember that we are focusing on reversal
patterns.

*insert diagram here*

The easiest way to break down imbalances is basically taking it the way institutions place trades. If an
institution wants to take 100 orders, they won’t put them all at once, rather they will place say half the orders
first then once they take profit on the first positions, they push the price back to the price level of interest, or
wait for price to get back there since they have the remainder 50 orders there that will get filled.

Spotting imbalances:
1. Look for areas on a chart where price has made a strong continuation or reversal.
2. Imbalance zones are characterized by a long candle engulfing another of another type e.g. a strong
bullish candle engulfing a small bearish candle.

I believe that you now have an understanding of how these zones look like on the chart. I’d suggest that you
open your mt4 or mt5 real quick and plot 10-100 such zones on your own and see how fast that sinks in 
In order to use this strategy to make money, you need to have the knowhow as to how to pin point zones that
will work from those that won’t. Therefore, I have a set of rules that I check in order to verify a zone has higher
probability. The rules are as below:

1. The zone in question should be drawn the right way i.e. Bullish candle for Supply zone and Bearish
candle for Demand zone.

2. The next candle after the zone should be formed as an engulfing. This is to mean that if I’m to even
consider drawing a zone, the next candle should properly engulf it.

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3. The candle used to draw the zone should form the swing low or swing high for demand and supply zones
respectively. Meaning the look back candles before the “to be zone” should not have wicks higher or
lower than the zone’s wick.

4. The push away candles should not pierce through the zone as they push away from the zone. This is
basically because of the whole idea of institutions taking orders in portions, meaning the orders get filled
if it pushes away and touches the zone in the process.

5. The zone is only to be considered valid if the move away from the zone is more than 3 times the size of
the zone. (a:b should be greater than or equal to 1:3 as on the illustration below)

_________________________________________________________________________________________
DO NOTE THAT YOU SHOULD NOT CONSIDER A ZONE WHATSOEVER IF IT DOES NOT
MEET EITHER OF THE 5 ABOVE RULES, OR ELSE YOU’LL JUST BE PLAYING YOURSELF!
_________________________________________________________________________________________
Showing the following rules on a chart,
Rule 1.

Rule 2.

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Rule 3.

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Rule 4.

Rule 5.

Now that we have covered the chunk of whole strategy, we shall now hop onto entries. Therefore the next
subtopic will be about getting ready for entries as well as placing SL and TP accordingly.

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Entries.

As much as identifying high probability zones is loads of work, the trickiest part comes in knowing when to
make entries as well as how to make them as proper as possible.
Therefore, always put into consideration the following before making the desired buy or sell entries:

Candle confirmation.
This is basically how the candles close into the zone before giving the signal. Here, we have 3 types.
a. The candle close in and out the zone.

This by far gives the best signal in my view.

b. As a bonus to (a) above, the candle leaving the zone should form as an engulfing, engulfing the candle
that got into the zone.
(See the previous image that left the zone forming an engulfing and thus change in momentum.)

c. Wick rejection: I personally don’t fancy these type of setups as much, not that they give any worse
signals, just that they often don’t give you the good kind of Risk to Reward ratios. However just for a
brief explanation, the signal for buys or sells would be, for example in a supply zone shown below, the
candle would reject and after form a bearish candle to confirm bearish structure as shown;

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d. The candles getting back into the zone should be at least 2-3 candle moves, meaning that the last 2/3
candles before the zone is tapped should be the same type, say 3 bullish candles into a supply or 2-3 into
a demand zone. Of course it’s a bonus if all the candles getting to the zone are all of the same type.

The reason I say that is just to ensure that if you are aiming for the whole move, that no hindrances like
minor zones cause price to reject on you.

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Setting SL and TP.

Stop Loss.
There are either of 2 options here:
a. Placing the SL below/ above the zone for demand or supply zones respectively. This may be 1 to 3 pips.
Just ensure that it isn’t too tight that there’s a high possibility of being stopped out. It also shouldn’t be
too wide to let you into massive drawdown or reduce your Risk to Reward ratio to that below 1:1.

b. Another way to do so is to place the stop just below the wick of the candle that got into the zone. In
many instances, this will result in a very tight SL thus enabling you to place higher lots with just the
same risk but of course with a higher R:R.
This is actually a good way to place SL especially when the candle confirmation is a wick type as seen
in rule (c.) in the entries subtopic.

Take Profit:

a. This is as simple as I will say it. TP should be placed at the next zone.

b. In the event the target zone is broken, you can let one run to the next zone but for Christ’s sake don’t be
Greedy because that way you’ll lose those lovely pips made.

Sorry for not having illustrations for the TP here, you’ll however have a look at the various screenshots I have
right after the risk management topic and learn from them. Also, do check my Instagram for more charts.

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Risk Management.

This is just a side note:


I wouldn’t recommend looking for setups that give less than 1:1 Risk to Reward ratio because that way
you don’t want to lose more than you are aiming to gain.
Also, take note that you shouldn’t risk more than 5% of your account.

Let me rephrase that.

To be safe, don’t even think about risking more than 5% of your account.
Of course you can risk it all on one trade but if it’s in your trading plan then why not.
BUT IN ALL THIS, STAY SAFE WHILE YOU TRADE. Treat your account as an investment and
always remember that banks, or even the largest hedge funds only pull off 10-20% year or so, so if you
are making 5% per day you sure as hell got to take that as one hell of an investment and don’t think of
going for 100% per trade or per day because that is just dumb lol. But again if you doing it according to
your plan then be my guest 

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Chart illustrations.

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Conclusion.

I sincerely hope this has helped you understand in depth how to take trades off the 5/15 min. you’ll
notice the charts I used for this PDF were GBP/JPY. So go ahead to all your other charts, all other pairs
and plot the zones, back test, prepare your trading plan and trading checklist accordingly and get ready
for live baby.

References.

1. My first PDF: https://drive.google.com/file/d/1OpsjkAxGNH4iNWLcZz0ohyIgcPw-


R6L1/view?usp=sharing
2. My first video: https://youtu.be/IQedlTC3DAA
3. Setting mobile alerts on mt4: https://www.youtube.com/watch?v=8gKZt4Lt58A

Yours Sincerely,

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Bossman_fx

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