Supply/Demand near a Trendline Setup
In this setup we take advantage of the supply/demand in the market while there is a trend – this way we enter in a high probability and low risk trade. How to trade with this setup:
1. No Major Demand/Demand signals on the last low. If there were, Major Supply/Supply signals should have appeared afterwards
2. Background is weak
3. Weak VSA signal near the down trendline
4. Enter when Dynamic Trend is red
There can’t be Major Demand/Demand signals at this price level. This is equally valid for the inverse (demand near an up trendline).
Stop-loss: Set the stop-loss at the red dot.
Take-profit: Set the take-profit at the green dot.
Move stop-loss: When price reaches the blue dot (the indicator will automatically alert you), the stop-loss should be moved to break-even to protect profits.
The charts below explain the concept visually. Trades with this setup can be seen on the Trendlines section in the blog.