Page 11 - 5-Supply-And-Demand-Rules-You-Need-To-Know-Final (2)
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Apart from one, they all fail.
None of the zones result in successful reversals – major ones at least. On the other hand, all the
demand zones that formed after reversal did work and caused quite a few reversals you could have
used to make money from.
This is the big problem with trading with the overall trend.
The trend on the timeframe you trade-off and the overall trend are two different things. The overall
trend only matters for that timeframe (daily or weekly). It’s too long to be relevant for the
timeframe you trade-off, in this case, the 1 hour.
In the example, you were technically trading with the trend. However, at the same time, you were
trading against the trend on the time frame you trade-off, which is much more relevant because of
the shorter timescale.
The best way to ensure you trade with the timeframe you trade-off – or the current trend as I call it
– is to always trade in the direction of the most recent higher high or lower low.
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