{"id":8500,"date":"2025-04-14T11:44:01","date_gmt":"2025-04-14T06:14:01","guid":{"rendered":"https:\/\/www.gettogetherfinance.com\/blog\/?p=8500"},"modified":"2026-03-24T13:33:55","modified_gmt":"2026-03-24T08:03:55","slug":"use-of-demand-and-supply-trading","status":"publish","type":"post","link":"https:\/\/www.gettogetherfinance.com\/blog\/use-of-demand-and-supply-trading\/","title":{"rendered":"How to Use Demand and Supply Trading: A Beginner\u2019s Guide"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"597\" src=\"https:\/\/www.gettogetherfinance.com\/blog\/wp-content\/uploads\/2025\/04\/Main-Image-4-1767771662-bkot-1024x597.webp\" alt=\"How to Use Demand and Supply Trading: A Beginner\u2019s Guide\" class=\"wp-image-11121\" srcset=\"https:\/\/www.gettogetherfinance.com\/blog\/wp-content\/uploads\/2025\/04\/Main-Image-4-1767771662-bkot-1024x597.webp 1024w, https:\/\/www.gettogetherfinance.com\/blog\/wp-content\/uploads\/2025\/04\/Main-Image-4-1767771662-bkot-300x175.webp 300w, https:\/\/www.gettogetherfinance.com\/blog\/wp-content\/uploads\/2025\/04\/Main-Image-4-1767771662-bkot-768x448.webp 768w, https:\/\/www.gettogetherfinance.com\/blog\/wp-content\/uploads\/2025\/04\/Main-Image-4-1767771662-bkot.webp 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_78 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/use-of-demand-and-supply-trading\/#Overview\" >Overview<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/use-of-demand-and-supply-trading\/#What_Is_Demand-Supply_Dynamics\" >What Is Demand-Supply Dynamics?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/use-of-demand-and-supply-trading\/#Key_Terminologies_of_Demand_and_Supply_Trading\" >Key Terminologies of Demand and Supply Trading<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/use-of-demand-and-supply-trading\/#How_To_Mark_A_Zone_%E2%80%93_Demand_Zone_Supply_Zone\" >How To Mark A Zone \u2013 Demand Zone &#038; Supply Zone<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/use-of-demand-and-supply-trading\/#How_to_Mark_a_Demand_Zone\" >How to Mark a Demand Zone:<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/use-of-demand-and-supply-trading\/#Body-to-Wick\" >Body-to-Wick<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/use-of-demand-and-supply-trading\/#Wick-to-Wick\" >Wick-to-Wick<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/use-of-demand-and-supply-trading\/#How_To_Mark_Supply_Zone\" >How To Mark Supply Zone:<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/use-of-demand-and-supply-trading\/#Body-to-Wick-2\" >Body-to-Wick<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/use-of-demand-and-supply-trading\/#Wick-to-Wick-2\" >Wick-to-Wick<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/use-of-demand-and-supply-trading\/#Demand_and_Supply_Trading_Setup\" >Demand and Supply Trading Setup<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/use-of-demand-and-supply-trading\/#Entry_Points\" >Entry Points<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/use-of-demand-and-supply-trading\/#For_Demand_Zone_Trades_Long_Position\" >For Demand Zone Trades (Long Position):<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/use-of-demand-and-supply-trading\/#For_Supply_Zone_Trades_Short_Position\" >For Supply Zone Trades (Short Position):<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/use-of-demand-and-supply-trading\/#Stop-Loss_Placement\" >Stop-Loss Placement<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/use-of-demand-and-supply-trading\/#For_Demand_Zone_Trades_Long_Position-2\" >For Demand Zone Trades (Long Position):<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/use-of-demand-and-supply-trading\/#For_Supply_Zone_Trades_Long_Position\" >For Supply Zone Trades (Long Position):<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/use-of-demand-and-supply-trading\/#Target_Setting\" >Target Setting<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/use-of-demand-and-supply-trading\/#Why_This_Setup_Works\" >Why This Setup Works<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/use-of-demand-and-supply-trading\/#Multiple_Time-Frame_Analysis_in_Demand-Supply_Trading_Setup\" >Multiple Time-Frame Analysis in Demand-Supply Trading Setup<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/use-of-demand-and-supply-trading\/#Why_Use_Multiple_Time-Frame_Analysis\" >Why Use Multiple Time-Frame Analysis?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/use-of-demand-and-supply-trading\/#How_to_Club_Multiple_Time-Frame_Analysis_With_Demand_and_Supply\" >How to Club Multiple Time-Frame Analysis With Demand and Supply<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/use-of-demand-and-supply-trading\/#Step_1_Analyze_the_Higher_Time_Frame_HTF\" >Step 1: Analyze the Higher Time Frame (HTF)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/use-of-demand-and-supply-trading\/#Step_2_Move_to_the_Intermediate_Time_Frame_ITF\" >Step 2: Move to the Intermediate Time Frame (ITF)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/use-of-demand-and-supply-trading\/#Step_3_Move_to_Lower_Time_Frames\" >Step 3: Move to Lower Time Frames<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/use-of-demand-and-supply-trading\/#Tips_For_Using_MTF_Analysis_with_Demand_and_Supply_Zones\" >Tips For Using MTF Analysis with Demand and Supply Zones<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/use-of-demand-and-supply-trading\/#Risk_Management_in_Demand_and_Supply_Trading\" >Risk Management in Demand and Supply Trading<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/use-of-demand-and-supply-trading\/#How_Much_to_Risk_Based_on_Experience_Level\" >How Much to Risk Based on Experience Level:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-29\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/use-of-demand-and-supply-trading\/#Step-by-Step_Example_of_Risk_Allocation\" >Step-by-Step Example of Risk Allocation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-30\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/use-of-demand-and-supply-trading\/#Position_Sizing\" >Position Sizing\u00a0<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-31\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/use-of-demand-and-supply-trading\/#Key_Takeaways_for_Risk_Management\" >Key Takeaways for Risk Management:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-32\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/use-of-demand-and-supply-trading\/#The_Golden_Rule_Is_Never_Risk_It_All\" >The Golden Rule Is: Never Risk It All<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-33\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/use-of-demand-and-supply-trading\/#Example_of_MTF_Risk_Management_with_Demand_and_Supply\" >Example of MTF, Risk Management with Demand and Supply<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-34\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/use-of-demand-and-supply-trading\/#In_A_Nutshell\" >In A Nutshell<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-35\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/use-of-demand-and-supply-trading\/#FAQs\" >FAQs<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-36\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/use-of-demand-and-supply-trading\/#How_do_supply_and_demand_zones_differ_from_support_and_resistance\" >How do supply and demand zones differ from support and resistance?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-37\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/use-of-demand-and-supply-trading\/#What_is_the_significance_of_historical_price_data_in_understanding_demand-supply_dynamics\" >What is the significance of historical price data in understanding demand-supply dynamics?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-38\" href=\"https:\/\/www.gettogetherfinance.com\/blog\/use-of-demand-and-supply-trading\/#What_is_the_Big_Bull_Approach\" >What is the Big Bull Approach?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Overview\"><\/span>Overview<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>It\u2019s easy to feel lost at first on how to use the many trading setups available. But among these, <strong>demand and supply trading<\/strong> stands out as a unique and powerful approach. Unlike traditional trading methods that exist, these trader techniques <strong>combine law of physics with market science<\/strong>.<\/p>\n\n\n\n<p>Though, what exactly does demand and supply trading signify, and how does one effectively trade in it in order to build wealth ?\u00a0<\/p>\n\n\n\n<p>In this blog, we are going to have a simple step by step understanding of demand and supply. Finally, we are going to put together simple and effective strategies to use them for trading. Getting started, let\u2019s find out.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_Is_Demand-Supply_Dynamics\"><\/span>What Is Demand-Supply Dynamics?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.gettogetherfinance.com\/blog\/wp-content\/uploads\/2025\/04\/2-1024x207.webp\" alt=\"Demand-Supply Dynamics\" class=\"wp-image-8524\"\/><\/figure>\n\n\n\n<p><a href=\"https:\/\/www.gettogetherfinance.com\/blog\/demand-and-supply-dynamics\/\" target=\"_blank\" data-type=\"URL\" data-id=\"https:\/\/www.gettogetherfinance.com\/blog\/demand-and-supply-dynamics\/\" rel=\"noreferrer noopener\">Demand-supply dynamics<\/a> are the universal forces that influence price changes in different markets such as stock. Simply put:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Demand is the willingness or desire of buyers to buy an asset at a particular price.<\/li>\n\n\n\n<li>Supply is the willingness or availability of sellers to sell an asset at that price.<\/li>\n<\/ul>\n\n\n\n<p>Prices tend to rise, leading to bullish momentum, when demand is greater than supply. Vice versa, prices fall when supply is greater than demand, which fosters bearish momentum.<\/p>\n\n\n\n<p>These shifts in prices allow us to identify sections on a chart that are<strong> highly likely to trigger a trend reversal or a trend continuation<\/strong>. These sections which traders use as reference points to enter or exit strategies with precision are usually termed as demand zones and supply zones.<\/p>\n\n\n\n<p>But before we introduce demand and supply trading setup, it\u2019s important to understand the fundamentals of demand and supply dynamics and structure of a candle. Let\u2019s take a quick look at them<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_Terminologies_of_Demand_and_Supply_Trading\"><\/span>Key Terminologies of Demand and Supply Trading<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.gettogetherfinance.com\/blog\/wp-content\/uploads\/2025\/04\/3-1024x206.webp\" alt=\"Key Terminologies of Demand and Supply Trading\" class=\"wp-image-8525\"\/><\/figure>\n\n\n\n<p><strong>Demand Zone: <\/strong>This is <em>where buyers step in<\/em>; they are the most influential players within this zone pushing prices to a higher level. A trader\u2019s demand zone usually follows periods of pending buy orders in the system.<\/p>\n\n\n\n<p>Try to picture a massive wedding bonanza themed buffet, where everyone is by the ice-cream table. Some price zones are like this buffet, a place where traders expect a lot of activity from buyers. Demand triggers when prices hit these levels, and prices recover back up like on a trampoline.<\/p>\n\n\n\n<p><strong>Supply Zone: <\/strong>A zone <em>where sellers are in the driving seat<\/em> and prices go lower.<\/p>\n\n\n\n<p>Now put yourself near the end of the season sale where sellers are losing all hope to sell anything. Many sellers cluster around those price zones and the price moves down because of the increased supply.<\/p>\n\n\n\n<p><strong>Pending orders: <\/strong>These are the orders, which are <em>still to be fulfilled, <\/em>acting as a guiding factor for the market, creating either demand or supply zones.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_To_Mark_A_Zone_%E2%80%93_Demand_Zone_Supply_Zone\"><\/span>How To Mark A Zone \u2013 Demand Zone &#038; Supply Zone<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.gettogetherfinance.com\/blog\/wp-content\/uploads\/2025\/04\/4-1024x206.webp\" alt=\"How To Mark A Zone - Demand Zone & Supply Zone\" class=\"wp-image-8526\"\/><\/figure>\n\n\n\n<p>To set up a trade using sheer demand and supply, first learn to identify a demand and supply zone.<\/p>\n\n\n\n<p>The first step we will elaborate on is:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_Mark_a_Demand_Zone\"><\/span>How to Mark a Demand Zone:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>To find a strong demand zone, follow these steps:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Add a horizontal line on the current market price<\/li>\n\n\n\n<li>Look over left and down for an explosive move (aka the very bullish (exciting) green candle)<\/li>\n\n\n\n<li>Now find all three components: LegIn, Base and Legout.<\/li>\n<\/ul>\n\n\n\n<p>To draw a zonal structure, there are <strong>two fundamental methods<\/strong> for outlining a demand zone:<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"Demand & Supply in the Stock Market | Demand & Supply Zone Marking | Trading in the Zone | Episode:3\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/HDGNBqyEMQs?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Body-to-Wick\"><\/span>Body-to-Wick<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>This is where you keep the proximal line on the highest wick of all base candles.<\/li>\n\n\n\n<li>Distal line is at the lowest wick of the base candles.<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Wick-to-Wick\"><\/span>Wick-to-Wick<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Add a horizontal proximal line at the highest wick of all the base bull candles.<\/li>\n\n\n\n<li>Keep the distal line at the lowest wick of the base candles.<\/li>\n<\/ul>\n\n\n\n<p>Steps to take when marking a supply zone that correspond with a demand zone:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_To_Mark_Supply_Zone\"><\/span>How To Mark Supply Zone:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>To find an exceptional supply zone, start with:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Place a horizontal line at the current market price.<\/li>\n\n\n\n<li>After that, Look at left and up for an explosive drop (a big, exciting red candle)<\/li>\n\n\n\n<li>Obtain all 3 components: LegIn, Base, Legout<\/li>\n<\/ul>\n\n\n\n<p>It is possible to mark out the areas of a supply zone in two simple ways:<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Body-to-Wick-2\"><\/span>Body-to-Wick<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Add a proximal on the lowest body of all base candles.<\/li>\n\n\n\n<li>Distal line will be on the highest wicks of all the bases.<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Wick-to-Wick-2\"><\/span>Wick-to-Wick<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Ensure to draw a horizontal line on the lowest base wick.\u00a0<\/li>\n\n\n\n<li>The distal line should be placed on the highest base wick.<\/li>\n<\/ul>\n\n\n\n<p>Now that we have familiarised ourselves with the basics of marking a zone, let\u2019s start developing a demand and supply trading strategy for you.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Demand_and_Supply_Trading_Setup\"><\/span>Demand and Supply Trading Setup<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.gettogetherfinance.com\/blog\/wp-content\/uploads\/2025\/04\/5-1024x207.webp\" alt=\"Demand and Supply Trading Setup\" class=\"wp-image-8527\"\/><\/figure>\n\n\n\n<p>After marking out the demand and supply zones, the next step is preparing your trade setup. This explains the effective structure of trades:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Entry_Points\"><\/span>Entry Points<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"For_Demand_Zone_Trades_Long_Position\"><\/span>For Demand Zone Trades (Long Position):<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>You should start your entry just above the proximal line of the demand zone. This represents that you are entering the trade as soon as buyers are ready to step in.<\/p>\n\n\n\n<p><strong>For Instance: <\/strong>When the proximal line of the demand zone is at \u20b9150, set your entry to \u20b9151.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"For_Supply_Zone_Trades_Short_Position\"><\/span>For Supply Zone Trades (Short Position):<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>You should set your entry slightly below the proximal line of the supply zone. This gives you the opportunity to take advantage of selling pressure just as the price drops.<\/p>\n\n\n\n<p><strong>For Instance:<\/strong> When the proximal line of the supply zone is at \u20b9300, set your entry to \u20b9299.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"Best way to mark Entry, Stoploss and Target | Trading in the Zone | Episode: 4\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/oBvyfw0vmGk?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Stop-Loss_Placement\"><\/span>Stop-Loss Placement<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Refer your marked distal lines as your stop-loss point as it should help you avoid the risky price movements:<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"For_Demand_Zone_Trades_Long_Position-2\"><\/span>For Demand Zone Trades (Long Position):<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>Your stop-loss should be set just below the distal line of the demand zone. Leave a little space for potential noise.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"For_Supply_Zone_Trades_Long_Position\"><\/span>For Supply Zone Trades (Long Position):<span class=\"ez-toc-section-end\"><\/span><\/h4>\n\n\n\n<p>For a supply zone trade short position, set your stop-loss just above the distal line to ensure safety in case of an unexpected price breakout.\u00a0<\/p>\n\n\n\n<p><strong>For example, <\/strong>if a distal line is set at Rs.320, the line can be secured at Rs.322. Similarly, if the distal line is set at Rs.140, the stop-loss can be placed at Rs.138, so that very minor fluctuations don\u2019t change the trading level.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Target_Setting\"><\/span>Target Setting<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Target price should always correlate with a <strong>reward to risk ratio of 2:1<\/strong>. Following this target price needs to rest two times higher than the entry point minus the stop-loss.<\/p>\n\n\n\n<p>If the stop-loss is placed at Rs.138, the entry point set at Rs.150, it gives you a Rs.12 margin, so the new target is flexible to Rs.174 after quickly adding the Rs.24 procurement cost.<\/p>\n\n\n\n<p><strong>Important Note: <\/strong>If a trade setup doesn\u2019t provide better reward ratio (minimum 2:1), there is no need to act on a trade which holds minimal returns and greater risks.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_This_Setup_Works\"><\/span>Why This Setup Works<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.gettogetherfinance.com\/blog\/wp-content\/uploads\/2025\/04\/6-1024x206.webp\" alt=\"Why This Setup Works\" class=\"wp-image-8528\"\/><\/figure>\n\n\n\n<p>This method is foolproof approach as it ensures:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>You put a loss limit with a SL on the distal line.<\/li>\n\n\n\n<li>Moreover, the approach grants the perfect means to disciplined trade since you are only trading when there is a reasonable amount of profit expected.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Multiple_Time-Frame_Analysis_in_Demand-Supply_Trading_Setup\"><\/span>Multiple Time-Frame Analysis in Demand-Supply Trading Setup<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.gettogetherfinance.com\/blog\/wp-content\/uploads\/2025\/04\/7-1024x207.webp\" alt=\"Multiple Time-Frame Analysis in Demand-Supply Trading Setup\" class=\"wp-image-8529\"\/><\/figure>\n\n\n\n<p>Trading is super interesting using supply-demand principles. But it becomes more powerful when clubbed with the <a href=\"https:\/\/www.gettogetherfinance.com\/blog\/multiple-time-frame-analysis\/\">Multiple Time-Frame (MTF) Analysis<\/a> into your strategy <strong>as suggested by GTF Instructors<\/strong>.\u00a0<\/p>\n\n\n\n<p>MTF analysis allows traders to see the same asset in a different light by viewing it in different time zones. This makes it easier to identify stronger areas and confirm trends while also avoiding strategies that might jeopardize the trade.<\/p>\n\n\n\n<p>Let\u2019s understand how to use this approach effectively:<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"Multiple Time Frame Analysis | Trading in the Zone | Episode: 7\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/bi92YyfKTgk?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_Use_Multiple_Time-Frame_Analysis\"><\/span>Why Use Multiple Time-Frame Analysis?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Identify Major Trends:<\/strong> A broader trend can easily be identified using Higher time frames which reduces the chances of trading against market momentum.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Confirm Demand-Supply Zones:<\/strong> Those zones that are present or aligned in multiple time frames tend to be stronger and more reliable.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Refine Entries and Exits<\/strong>: Lower time frames can really assist you in enhancing your entry and exit points.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_Club_Multiple_Time-Frame_Analysis_With_Demand_and_Supply\"><\/span>How to Club Multiple Time-Frame Analysis With Demand and Supply<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.gettogetherfinance.com\/blog\/wp-content\/uploads\/2025\/04\/8-1024x207.webp\" alt=\"How to Club Multiple Time-Frame Analysis With Demand and Supply\" class=\"wp-image-8530\"\/><\/figure>\n\n\n\n<p>Begin with using <a href=\"https:\/\/www.gettogetherfinance.com\/blog\/top-down-approach-in-investing\/\" data-type=\"link\" data-id=\"https:\/\/www.gettogetherfinance.com\/blog\/top-down-approach-in-investing\/\">Top down approach <\/a>of studying a chart for a broader to smaller view:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Step_1_Analyze_the_Higher_Time_Frame_HTF\"><\/span>Step 1: Analyze the Higher Time Frame (HTF)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>Purpose<\/strong>: Determine the macro trend and identify stronger demand or supply zones on HTF.<\/p>\n\n\n\n<p><strong>Example<\/strong>: A daily or weekly chart can be used to ascertain whether the price is in an uptrend or downtrend market or if it is consolidating.<\/p>\n\n\n\n<p><strong>Key<\/strong> <strong>Action:<\/strong> Mark predominant zones of demand and supply on this time frame.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Step_2_Move_to_the_Intermediate_Time_Frame_ITF\"><\/span>Step 2: Move to the Intermediate Time Frame (ITF)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>Purpose<\/strong>: Validate the zones identified in the higher time frame and mainly confirm your trend on the intermediate time frame.<\/p>\n\n\n\n<p><strong>Note<\/strong>: If the market is sideways, ignore to enter in trade and wait for the market to confirm the next trend.\u00a0<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Step_3_Move_to_Lower_Time_Frames\"><\/span>Step 3: Move to Lower Time Frames<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>Goal<\/strong>: An entry, stop loss, and target levels highly can be fixed here.<\/p>\n\n\n\n<p><strong>For<\/strong> <strong>instance<\/strong>: Find an exceptional demand or supply zone coinciding with the exceptional HTF zones. This will strengthen your trading set-up, making it max to impenetrable.<\/p>\n\n\n\n<p>You can use below format to create a strong trading setup of demand and supply with multiple time frame analysis:<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/lh7-rt.googleusercontent.com\/docsz\/AD_4nXd1x9hslAjEDaLo89R1RP5XE_cNA64z3tJWIKRG9rN0Vj1v_OegpwUu0sWoOkZK_J-7YsH6UDoABkjk4OII8A2WNu_NJ_WctF-f1-KptFbivJhAHw6tY-P_oIwWBhqQl3U4rhCaDQ?key=VTsDBXHKRsj12rSdlsa0zNls\" alt=\"Demand-supply trading setup with multi-timeframe analysis - GTF\"\/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Tips_For_Using_MTF_Analysis_with_Demand_and_Supply_Zones\"><\/span>Tips For Using MTF Analysis with Demand and Supply Zones<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.gettogetherfinance.com\/blog\/wp-content\/uploads\/2025\/04\/9-1024x206.webp\" alt=\"Tips For Using MTF Analysis with Demand and Supply Zones\" class=\"wp-image-8531\"\/><\/figure>\n\n\n\n<ul class=\"wp-block-list\">\n<li>If a zone can be seen in several time frames, that means they are more powerful and are likely to work well.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The trade is more likely to work if higher time frames are bullish and the price is retracing to a demand zone.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Don\u2019t trade against the trend in higher time frames.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Use the lower time frame to provide you an entry slightly above the proximal line of the demand zone, or below the proximal line of the supply zone.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Set the stop loss below or above the distal line as outlined above, keeping in mind proper risk management practices are in place.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Risk_Management_in_Demand_and_Supply_Trading\"><\/span>Risk Management in Demand and Supply Trading<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.gettogetherfinance.com\/blog\/wp-content\/uploads\/2025\/04\/10-1024x207.webp\" alt=\"Risk Management in Demand and Supply Trading\" class=\"wp-image-8532\"\/><\/figure>\n\n\n\n<p>Trading is built upon risk management. Without sufficient risk management, all the strategizing would go to waste as a large amount would still be lost while trading. In this section we are going to look at how trading risk can be handled to determine size and level of positions to safeguard one\u2019s capital.<\/p>\n\n\n\n<p><strong>Risk Per Trade Formula<\/strong><\/p>\n\n\n\n<p>The risk for each trade is the loss one is open to if the trade goes for the worse. To calculate the number of shares or quantity to trade, you can use the following formula:<\/p>\n\n\n\n<p><strong>Quantity = Risk Per Trade \u00f7 Entry Price (GP) \u2013 Stop Loss (SL)<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"Risk Management in Stock Market | Trading in the Zone | Episode: 10\" width=\"640\" height=\"360\" src=\"https:\/\/www.youtube.com\/embed\/z6BQzqe_BRg?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe>\n<\/div><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_Much_to_Risk_Based_on_Experience_Level\"><\/span>How Much to Risk Based on Experience Level:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Ideally, a trader should manage their risk by keeping their position size only 1% of the overall investment. Here GTF segregated risk level based on expertise in market:\u00a0<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Beginners<\/strong>: 1% total capital of allotted trading capital.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Intermediates<\/strong>: 1.5% of allocated capital<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Pro<\/strong> <strong>Traders<\/strong>: 2%<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Step-by-Step_Example_of_Risk_Allocation\"><\/span>Step-by-Step Example of Risk Allocation<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p><strong>Scenario<\/strong><\/p>\n\n\n\n<p><strong>Capital<\/strong>: \u20b91,00,000<\/p>\n\n\n\n<p><strong>Risk<\/strong> <strong>Level (Beginner)<\/strong>: 1% of \u20b91,00,000 = \u20b91,000<\/p>\n\n\n\n<p><strong>Entry<\/strong> <strong>Price<\/strong>: \u20b9150<\/p>\n\n\n\n<p><strong>Stop<\/strong> <strong>Loss<\/strong>: \u20b9140<\/p>\n\n\n\n<p><strong>Risk<\/strong> <strong>Per<\/strong> <strong>Share<\/strong>: \u20b9150 \u2013 \u20b9140 = \u20b910<\/p>\n\n\n\n<p><strong>Quantity<\/strong> <strong>to<\/strong> <strong>Trade<\/strong>:<\/p>\n\n\n\n<p><strong>Quantity<\/strong> = Rs 1000\/10 = 100 Shares<\/p>\n\n\n\n<p>This means 100 shares can be traded in this setup without risking more than Rs 1000 of trading capital.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Position_Sizing\"><\/span><strong>Position Sizing<\/strong>\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>It\u2019s basically a technique to manage your capital while trading. It helps you achieve the following:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Determining Trade Size: <\/strong>According to the risk proportion above. Do not invest more than 1% of your capital standardly in each trade.\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Adjusting for Market Conditions:<\/strong> In times where the market is very volatile, it is advisable to lower your position size. This helps to avoid exposing yourself too much.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_Takeaways_for_Risk_Management\"><\/span>Key Takeaways for Risk Management:<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.gettogetherfinance.com\/blog\/wp-content\/uploads\/2025\/04\/11-1024x207.webp\" alt=\"Key Takeaways for Risk Management:\" class=\"wp-image-8533\"\/><\/figure>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Stick to Your Risk Level: <\/strong>Make sure Never to risk more than the percentage of capital you resolved on.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Avoid Overtrading<\/strong>: By setting limitations on the number of trades you can make, you are able to preserve your capital longer.<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Follow the Stop-Loss:<\/strong> Always respect your stop-loss to ensure early losses are kept to a minimum.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"The_Golden_Rule_Is_Never_Risk_It_All\"><\/span>The Golden Rule Is: Never Risk It All<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.gettogetherfinance.com\/blog\/wp-content\/uploads\/2025\/04\/12-1024x206.webp\" alt=\"The Golden Rule Is: Never Risk It All\" class=\"wp-image-8534\"\/><\/figure>\n\n\n\n<p>Always keep in mind that discipline pays the most. With proper risk and position size management, you don\u2019t only have a fighting chance in the market, but also gain the potential for consistent profitability. After all, trading is a marathon and disciplined risk management makes sure you are always in the race.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Example_of_MTF_Risk_Management_with_Demand_and_Supply\"><\/span>Example of MTF, Risk Management with Demand and Supply<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/www.gettogetherfinance.com\/blog\/wp-content\/uploads\/2025\/04\/13-1024x206.webp\" alt=\"Example of MTF, Risk Management with Demand and Supply\" class=\"wp-image-8535\"\/><\/figure>\n\n\n\n<p>Let\u2019s say you are analyzing a stock:<\/p>\n\n\n\n<p><strong>Daily Chart (HTF)<\/strong>: Shows there is a demand zone around \u20b9500\u2013\u20b9520.<\/p>\n\n\n\n<p><strong>1-Hour Chart (ITF):<\/strong> A price retrace into the identified zone with a lot of selling momentum is confirmed.<\/p>\n\n\n\n<p><strong>15-Minute Chart (LTF): <\/strong>The price action shows a bullish engulfing pattern around the \u20b9515 level which is good for entry.<\/p>\n\n\n\n<p><strong>Trade Setup:<\/strong><\/p>\n\n\n\n<p><strong>Entry<\/strong>: \u20b9516 (just above the proximal line).<\/p>\n\n\n\n<p><strong>Stop<\/strong> <strong>Loss<\/strong>: \u20b9505 (below the distal line).<\/p>\n\n\n\n<p><strong>Risk<\/strong> <strong>Per<\/strong> <strong>Trade<\/strong>: \u20b91,000 (1% of \u20b91,00,000 capital).<\/p>\n\n\n\n<p><strong>Position<\/strong> <strong>Size<\/strong>:\u00a0<\/p>\n\n\n\n<p><strong>Quantity<\/strong> = \u20b91,000\/\u20b9516 \u2013 \u20b9505 = 90 shares<\/p>\n\n\n\n<p><strong>Target<\/strong>: 2:1 Risk-to-Reward Ratio = \u20b9 538<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"In_A_Nutshell\"><\/span>In A Nutshell<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Trading in demand and supply is one of the most effective and easy techniques that allow traders to trade in and out of a market. Determining the locations where buying and selling thrive ensures that you preemptively avoid losses that the majority of traders suffer.<\/p>\n\n\n\n<p>Using a broad range of tools like moving averages combined with multiple time-frame analysis, price-action analysis or even top-down approach, you can increase the effectiveness of your demand and supply trade setup. With enhanced understanding of market dynamics, these coupled with self disciplined risk management can lead to minimal losses and maximize gains regardless of if you are a novice, an intermediate or a professional trader.\u00a0<\/p>\n\n\n\n<p>But to learn more about the strategies above and how to use it practically, you can refer to the <strong>Trading in the Zone \u2013 Elementary<\/strong> Course available on <strong>Youtube<\/strong> for <strong>Free<\/strong>.\u00a0<\/p>\n\n\n\n<p><strong>GTF<\/strong> also provides <strong>Lifetime Mentorship support <\/strong>and <strong>GTF indicator<\/strong> (automatically detects zones and more) to its students in the <strong>Trading in the Zone \u2013 Technical Analysis<\/strong> course which can be beneficial <em>for someone looking for guidance while practicing.<\/em><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQs\"><\/span>FAQs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1744118473600\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"How_do_supply_and_demand_zones_differ_from_support_and_resistance\"><\/span><strong>How do supply and demand zones differ from support and resistance?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Support and resistance are horizontal price levels, while supply and demand zones are areas with higher buying or selling pressure, often forming larger zones.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1744118486614\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"What_is_the_significance_of_historical_price_data_in_understanding_demand-supply_dynamics\"><\/span><strong>What is the significance of historical price data in understanding demand-supply dynamics?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Historical data helps traders identify patterns and trends that can be used to spot high buying zones and inform future trading decisions based on past behavior at specific price levels.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1744118494111\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"What_is_the_Big_Bull_Approach\"><\/span><strong>What is the Big Bull Approach?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Introduced by GTF, the Big Bull Approach focuses on leveraging demand-supply dynamics to make informed trading decisions, particularly by identifying undervalued stocks.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Overview It\u2019s easy to feel lost at first on how to use the many trading setups available. But among these, demand and supply trading stands out as a unique and&#8230;<\/p>\n","protected":false},"author":11,"featured_media":9474,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[62,182],"tags":[],"class_list":["post-8500","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock-market","category-technical-analysis"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.gettogetherfinance.com\/blog\/wp-json\/wp\/v2\/posts\/8500","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.gettogetherfinance.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.gettogetherfinance.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.gettogetherfinance.com\/blog\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.gettogetherfinance.com\/blog\/wp-json\/wp\/v2\/comments?post=8500"}],"version-history":[{"count":9,"href":"https:\/\/www.gettogetherfinance.com\/blog\/wp-json\/wp\/v2\/posts\/8500\/revisions"}],"predecessor-version":[{"id":11492,"href":"https:\/\/www.gettogetherfinance.com\/blog\/wp-json\/wp\/v2\/posts\/8500\/revisions\/11492"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.gettogetherfinance.com\/blog\/wp-json\/wp\/v2\/media\/9474"}],"wp:attachment":[{"href":"https:\/\/www.gettogetherfinance.com\/blog\/wp-json\/wp\/v2\/media?parent=8500"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.gettogetherfinance.com\/blog\/wp-json\/wp\/v2\/categories?post=8500"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.gettogetherfinance.com\/blog\/wp-json\/wp\/v2\/tags?post=8500"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}