A new approach to Supply/Demand zones on Renko Bars

Discussion in 'Trading' started by ninZa.co, Dec 15, 2023.

  1. ninZa.co

    ninZa.co Sponsor

    Supply and demand zones are crucial areas in the financial markets, offering traders valuable insights into potential reversal points.

    In this exploration, we delve into a new approach to Supply/Demand zones centered around Renko bars.

    A Supply/Demand zone is established when a reversal candle emerges, followed by the next two candles moving in the same direction, devoid of wicks. This absence of wicks signifies that the Open price equals the High price, and the Close price equals the Low price.

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    Furthermore, you can enhance your trading decisions by considering two types of signals within supply/demand zones when the price interacts with them.

    1. Pullback signals

    Following the formation of supply/demand zones, Pullback signals are triggered by a candle whose wick touches the zone. For a Supply zone, this candle is downward, while for a Demand zone, it's upward. Pullback signals are particularly relevant for scalpers seeking short-term opportunities.

    2. Return signals

    After a retracement, an upward Reversal candle touching its Demand zone or a downward Reversal candle contacting its Supply zone generates a Return signal, indicating a potential return to the prior trend and offering strategic entry points for traders.

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    To implement this new approach, consider utilizing the LOFI Supply/Demand indicator.





    If you're interested in exploring this strategy further or acquiring the LOFI Supply/Demand indicator at a 44% discount, additional details can be found here: https://renkokings.com/product/lofi-supply-demand