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FREE MBT S - D Book

This document provides an introduction to supply and demand trading methodology. It explains the basics, including the four key patterns (RBD, DBD, DBR, RBR), how to identify areas of supply and demand, and how to analyze multiple timeframes. It emphasizes the importance of only trading within supply and demand zones and waiting for confirmation of a zone on lower timeframes. The document also briefly touches on topics like trends, entries, exits, and the importance of journaling trades. The overall goal is to lay the foundation for understanding and properly applying the supply and demand strategy.

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erickmwaniki332
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100% found this document useful (1 vote)
3K views15 pages

FREE MBT S - D Book

This document provides an introduction to supply and demand trading methodology. It explains the basics, including the four key patterns (RBD, DBD, DBR, RBR), how to identify areas of supply and demand, and how to analyze multiple timeframes. It emphasizes the importance of only trading within supply and demand zones and waiting for confirmation of a zone on lower timeframes. The document also briefly touches on topics like trends, entries, exits, and the importance of journaling trades. The overall goal is to lay the foundation for understanding and properly applying the supply and demand strategy.

Uploaded by

erickmwaniki332
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 15

Hello and welcome, this methodology is simple but not easy.

Just like in any profession, a lot


of hours will be required to sharpen your skill level. So take your time, learn, put to practice,
make observations, go back to the drawing board, research, and then come back and apply.
Remember, you will not learn everything and know it all in a weekend.
What I can tell you is that it is definitely possible to make money consistently if the trader is
willing to put in the work.
My main goal here is to provide you as much value as I can so you can become a consistently
profitable trader.
I would not be happy with just providing you with knowledge of the supply & demand
methodology, so there will be information on not only the strategy, but also trading tips,
common problems I see with other traders and how to deal with them.
If you have any questions about trading don’t hesitate to reach out to me on my social media
“Moneyball Austin” facebook, twitter, Instagram, Youtube, or email.

Let’s get started!

Basics Of Supply/Demand:
First thing you need to understand is that there are many different trading strategies, supply
and demand, price action, elliot wave theory, level 2 order screen, support and resistances,
other technical analysis, fundamentals,etc.. etc…
Anyone who tells you “this is the best strategy” is lying to you.
Supply and demand is just 1 trading strategy, but when used correctly can become a very
powerful strategy.
The markets are dominated by Institutions.
Institutions are the ones creating these strong imbalances
The whole concept of supply and demand is to identify where the “big money” is buying and
selling. Over 95% of the liquidity in trading is from the BIG institutions. Us as retail traders are
only a drop of water in the ocean trying to identify where the big money is buying and selling
and trade with them.
So how can we identify where the “big money” is coming in?
Well, luckily for us the big money leaves footprints on the charts for us to identify where they
bought and sold at.
We can identify theses areas by looking for the 4 supply and demand patterns.
4 Supply And Demand Patterns:

Supply:
RBD (Rally Base Drop)
DBD (Drop Base Drop)

Demand:
DBR (Drop Base Rally)
RBR (Rally Base Rally)
A fundamental rule of thumb to remember is that we can ONLY ever buy inside demand, and
sell inside supply. We cannot buy inside supply or sell inside demand no matter the timeframe.

Notice how all these 4 patterns have “STRONG IMBALANCE CANDLES” as the leg out. If
there was no imbalance, then price would simple go sideways or slowly grind up or down.

Remember, we are “imbalance traders” NOT balance.


These 4 patterns are where the big money is buying and selling at the most. These
areas are where the big money previously saw value so they might see value in them
again when price returns.

As supply and demand traders we “NEED” to be trading at these zones.

Next, let’s quickly talk about how to drawt the supply-demand zones on a chart.

Distal lines: The furthest line at the level USUALLY consists of 50% candles at the base
of the zone where the meat of the orders is located. (Usually placed at the highest wick
in the base for supply zones and placed at the lowest wick in the base for the demand
zone).

Proximal lines: Closest line to the level USUALLY consist of 50% candles at the base of
the zone where the meat of the orders are located. (Usually placed at the lowest for
supply zones and placed at the highest for demand).
We will cover this in detail in the videos.
Trends, Newtons Law Of Motion, And Multiple Timeframe
Analysis:
There are many different trade setups with this methodology, set and forget, multiple
timeframe confirmation, the 1 timeframe sequence setup, 200MA setup, combination
mix of different strategies, and price action supply and demand.
Today we will talk about the “multiple timeframe confirmation setup”.
But first we need to talk about trends, Newtons law of motion, and multiple timeframe
analysis.
Trends is age-old discussion that divides most traders. as you probably know, traders
define trends a million and one ways. Various methods are used from, Moving
Averages, Dow theory of Higher highs and higher lows (uptrend) and lower highs and
lower lows (downtrend); to Elliot wave theory where impulses and corrections are used,
to those who use indicators, e.t.c. to define trend.

Because everyone trades a little different, I’m going to let you decide on how to
determine trends. Personally, I recommend picking an easy to follow approach so you
can consistently determine the trend. I would also direct you to watch my tips playlist on
how I personally determine trends.

Multiple Timeframe Analysis + Trends. This right here was my light-bulb moment as a
trader and probably one of the most important concepts a trader can understand when it
comes to trading supply and demand.

I will use Newton's laws of motion to explain trends and what happens to them. These
laws are easily found on Google.
Newton’s first law of motion:

Newton’s first law of motion adjusted to trading trends:


“An object at rest stays at rest and an object in motion stays in motion with the same speed and
in the same direction unless acted by an unbalanced force” (AKA Higher Timeframe Zone)

-------------------------------------------------------------------------------------------------------------------------------
A trend will continue in its current direction UNTIL “the bend at the end” comes when
this trend reaches an opposing LARGER timeframe zone, for example, a downtrend on
a weekly chart reaching a monthly demand zone or a daily uptrend reaching a weekly
supply zone.
It is for this reason that it is critical that we know where we are on the higher timeframe
before we go ahead to follow any trend and not just follow the trend blindly. (More on this
shortly).
We could go more into Newtons 1st, 2nd, and 3rd law of motion, but we will leave it
there as were just here to cover the basics.

Putting it all together.


When price reaches our HTF (higher timeframe) curve supply or demand zone, that is when we
want to start looking for buying and selling opportunities because that’s where we identified
where the banks and institutions are buying and selling.
Our next job is to use our LTF (lower timeframe) or our ITF (intermediate timeframe) and wait for
the price to turn inside out.
Remember Newton's law of motion and how we use trading supply and demand, the only thing
that can stop a 1hr uptrend is what? A HTF supply zone, so a 4hr or daily supply zone. This is
the same for downtrends, the only thing that can stop a 1hr downtrend is what? A HTF demand
zone, so a 4hr or daily demand zone.

This concept is used on all timeframe sequences depending on which type of trading
you are doing.
So once price enters our HTF supply zone we want to wait for price to show us
evidence that sellers are starting to take control.
What will we see start to happen?
1) Momentum lines being broken
2) Opposing pivot point zones being removed
3) Other criteria a trader must need based on a set criteria + odds
Price has to do all 3, If nothing happens then we cannot say buyers or sellers have
taken control.

Keep in mind that we DO NOT buy or sell at any supply or demand zone, but rather
have a score sheet to help us determine the quality of the zone which in return will help
us trade at high probability trade setups with a great reward: risk and a high win-loss%.
This is one of the main reasons traders FAIL with this system as they fail to identify
and trade at high quality trade setups.
Luckily for you I have it all laid out for you step-by-step easy to follow guide in the
private coaching program where you will get access to my exact top-down analysis to
identify and trade at high quality zones.
Take Profits, Entries, Stop Loss:
This is another very popular topic that divides most traders. No joke, I could write a
5,000-word essay, and a 1 hour long video breaking down each topic and still get
questions.
Let me know if this sounds familiar because a lot of traders reach out to me and say:
“I would be profitable, but price stops me out by 1-2 pips then reverses”.
“Price just misses my entry by 1-2 pips then takes off in my direction”.
“Price always misses my take profit by 1-2 pips then reverses and stops me out”.

My answer to this is:


“Then move your stop loss 1-2 pips further away”.
“Then move your entry 1pip closer to price”.
“Then move your take profit 1-2pips closer”

It’s common sense isn't it?

The truth is, it’s most likely NOT 1 of these 3 issues, but rather a problem with the
strategy, or the trader itself.
Typically, as supply and demand traders we will enter a trade at our proximal line with
our stop loss above or below the distal line, and have our take profit location
pre-determined based on each traders trading plan.
This will also be true for trade managment, but because everyone trades a little different
I’m going to let you decide on how to determine stop loss location, entries, and take
profits.
Personally, I recommend picking an easy to follow approach so you can consistently
have the same entry, stop loss, take profit, and trade managment for each trade.
No worries though, I have it all laid out for you step-by-step easy to follow guide in the
private coaching program.
Journaling your trades:

This is another topic that I see traders time and time again “NOT DOING”.

Guy’s, how do you expect to refine your trading strategy and get better if you do not
journal your trades. I’m going to send you more information on this later, but please start
journaling your trades with pictures of the top-down analysis.

If someone in my private coaching program reaches out to me and says, “Im not getting
results”, I usually reply “ok, send me the last 20x trades you’ve taken so I can review
them”.

If the trader never journaled the trades, then I cannot help identify where the trader is
going wrong. Maybe the trader is taking low quality trade setups, maybe the trader is
self sabotaging their trading by getting too emotional, or not following the trading plan.

Proper Risk + Trading Plan:

I’m going to go into more detail with this over the next couple days, but I had to include
this in the book.

Time and time again traders reach out to me and say “I’m up 600% this month”.

I usually reply, “Congratulations, keep up the great work, and let me know how you
perform over the next 2 weeks”.

Most of the time they never get back to me because they lost it all.

Why?

Because they have no trading plan, risking 25% per trade, they used max leverage, no
pre-determined entry, stop loss, or take profit.

Do NOT risk more than 3% per trade, and make sure you trade the plan.
Wrapping It Up + Final Notes We Need To Cover.

We have only scratched the surface talking about the supply and demand methodlogy +
trading tips I recommend. There is still so much we need to cover that I will talk about
over the next coming days so keep an eye on your email inbox.

Topics we still need to cover are;

- Demo Trading vs Live Trading


- Best Forex Brokers (how to find a good broker)
- Backtesting
- Trading Like A Casino By Thinking & Trading In Probabilities
- Trading Plans (how to build your own 3-step trading plan)
- How To Become A Funded Prop-Firm Trader
- How To Grow A Small Account
- What Separates The Profitable Traders vs Non-Profitable Traders
- 3 Steps To Become A Profitable Trader In 90-Days

And so much more!

I firmly believe that anyone who is willing to put in the work will get results and become
a consistently profitable trader.

This is a proven strategy that I’ve been trading for over 8-years and not only myself, but
other traders who have gone through the MBT coaching program are getting results.

Just look at the success these traders haven gotten since joining the Moneyball Trading
Program. (Feel free to scroll in)
The whole MBT Program is laid out for you step-by-step easy to follow guide.

If you would like to become a consistently profitable trader in 90-days or less where you
will be surrounded around other like-minded traders and coached by me then you need
to join the MBT program.

<<<<Yes, I Want To Become A Trader & Join The MBT Program>>>>

Remember, I will be sending you more information over the coming days covering
everything I mentioned before.

Next Steps to take:


- Complete the FREE-Masterclass training. Click Here.
- Go through the Free bonuses I sent you.
- Add me on Social Media: twitter, Instagram, facebook, Youtube, or email me.
- Keep an eye on your inbox.
Thank you,

–Austin

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