 Hi, my name is Leon Roe currency trader and trading coach at trading 180.com and welcome to this video on Trading complex pullbacks using supply and demand zones now What is a complex pullback of complex pullback is what the market does when it wants to? fool traders and capture traders into Taking certain trading pretty much gets them twice so you can probably see on the thumbnail What happens? I'm going to explain what the you know the ABC the eFG hi movement is all about now If you're a support and resistance trader, you normally will get caught out by what is known as the complex pullback and This is because support and resistance traders and support them resistance levels When you're trading them, it's simply just a pattern and really doesn't take into account Already takes into account people don't really think about Value right so what traders will look at is just a pattern so they will see you know a higher high take place and Then what they would do is they will trade and look for some price action when price comes down into what was You know previous What they call resistance, which is really is the supply zone that has been projected into the future Right and then take that as support right and their confluence is some sort of candlestick or you know indicator, right? So but what we know is Supply and demand traders is that and you can watch this on my introduction into supply and demand I'll put the link in the description box below Right is that Higher highs and higher lows or especially higher lows are where the cheapest area, right? Is where the strongest area of demand is because this is a cheap Zone is considered the first cheapest area, right from a move up and again If you want to know what I'm you know talking about the link is in the description box below or up on the top right-hand side of your screen, right so What happens is if we have if you turn this into you know turn that into an a and Then actually matter of fact, let's just go back a bit, right? So first of all we get our move up a Then we get a pullback B Then we get C, right? So remember B is what we would consider the best area, right? The best area for demand Right, and this would be What we would call supply now this if this is the cheapest area. This is cheap, right? EAP Right, this has to be an expensive area, right X EX Right and in between a cheap area and an expensive area is Fair value, right? So this would be considered fair value. So when traders tend to buy at areas of Support and resistance Between a high and the low what you're really doing is buying at fair value If you're buying at you know, Fibonacci retracement 38.2 You're buying above fair value And if you're buying at the 618 retracement, you're buying just below fair value, right? Supply I'm sorry support and resistance traders Like I said, don't just trading the pattern. They're not understanding the psychology as to why this move, you know Occurred right and what could potentially happen in the future in the psychology behind? You know demand and supply zones, right? So Again, I urge you to watch the introduction into supply and demand videos and you'll know exactly what I'm talking about So what happens is is you get this move ABC up, right? Then you get a move down D Now again, we know that this isn't the greatest area to buy, right? Even though prices could still continue to move higher Right and it could still keep going higher and break to new highs, etc Right, but that doesn't mean it was always the best place to buy, right? And what we're trying to do is avoid well, you know This complex pullback which tends to get and trick traders At least twice sometimes even three times into, you know losing you losing trade So as a support and resistance trader, you're looking at the past and you're seeing this is, you know a right predicted into the future and You want to be a buyer here you get some price action and then you put your stop below D, right? And what ends up happening is is that you get some bullish price action prices amount You know go out for a little bit and then what happens is you get stopped out, right? So you get ABCD and this becomes a right So E you're feeling a bit positive, but then what happens is prices stop you out and F Happens, right? You're F'd so But this was really be right or this demand zone was was really that the The best place to look for a trade is the cheapest area to look for a trade woman trading supply and demand, right? And what tends to happen is is that, you know, you might get a bounce here And you get a bounce here obviously with some price action and the supply and demand traders and demand traders in this Example we look for obviously some price action and then look to buy at the cheapest potential area, right now What happens with support and resistance traders is that they will then look at price action So they will look at CDE, right lose On D with their stop loss below here, right and then look to F and then what they would do again Just project that potential demand into the future, right? so broken Support now should become resistance, right prices come up to this area and Then they get some confirming price action, right? And you know what's gonna happen next in it, right? You get let's say this is G right Prices end up taking out their stop losses, right? H and then we end up Moving to I All right, and so traders who trade tend to trade them, you know support and resistance will end up losing you know twice and Which is the reason why is one of the reasons why Support and resistance traders find it very very hard to continually make profits because they don't you know for one You know, you're just looking at the technicals I personally look at fundamentals as my north star, right? So I know which way I should be trading, right? And if you're looking at technical patterns, you you don't really know where Value really lies, right when you're trading support and resistance It's obvious that this was a strong area of demand, right? And this is the cheapest area and simply because if you You know, you can see price Breaking to new highs if this wasn't a strong area of demand prices We probably get to somewhere around here and here and here and wouldn't move higher but obviously prices are broken higher because buyers still deem this as You know an area to buy right a cheap area because we're always concerned right with price Right, we should always be looking at Price and where price is so if we're looking at this area being the absolute bargain area This is where people were loading up, right? They were buying in there, you know hundreds thousands, whatever it is that they're buying, right? So much so that it pushed price past this expensive area what was considered an expensive area, right? So this has to be an absolute bargain providing that the fundamentals and whatever it is that you're buying, right? Is still, you know, fundamentally sound right? So which is the reason why you get this type of pattern, right and there's another reason, you know, obviously a stop hunts occur stop hunts do occur and I'll get into that in another video, right as to the reasons why stop hunts occur But this Really is how to really avoid What you would consider Complex pullbacks and really how we trade complex pullbacks as you know supply and demand traders Is really just think about where it is that you're trying to buy, right? You need an edge, right and support and resistance is not an edge because everybody that 99.9 percent of traders a trading Support and resistance. So how is that an edge? It's obvious for everybody to see, right? So what you need to do is really try to look at the chart from a yes from a technical perspective, but also from a psychological perspective, right and See exactly where the best places you should be buying if prices do go higher from here, right fine brilliant, right excellent and Good luck to those, you know support and resistance traders, but as a supply and demand trader I'm looking at below fair value as an area to buy so Let's get into a an example of this on a price chart So here we're on the daily chart of the dollar Swiss Frank now We have some supply and demand zones drawn out on the daily And if you want to subscribe to our email list the link is in the description box below and you get these These levels sent out to you every week, right and I also do my Sunday Trade opportunities where I go over levels of new levels of supply and demand, but let's get into the complex pullback So what we want to do is look for complex pullbacks in daily levels of Supply and demand on a lower time frame, right? So if we go down to let's say a four-hour chart and we can see one here, right and In real time by the way, this was What we saw so I'd marked this level out as a level of Demand because we had made a higher high, right? So higher Low and higher high, right? So what at the time, right? I had projected this Level as a level of demand. So this isn't based on, you know, some sort of a hindsight or anything like that this if you go back to That we can march, right and you can watch the videos in March March the 20th Right, you'll see that I Put this this level on here, but anyway getting back to the The level so let's go down into It was this area here wasn't it right so four-hour chart, right? There we go. So What support and resistance traders will look? To is probably this area right here. So you've got resistance resistance resistance And then you've got support, right? So What we had is a move up Right Move down Move up. There's our ABC We come down to D And again, if we if this is all we were looking at in real time, you would have seen a nice pinball candle another Candle right here. This is like a you know, a little swing area People are looking to the left and seeing that, you know, you know, there's some sort of confluence here prices were rejected there rejected there, etc. Right So in real time, this would have looked like a great area to buy but we know as Supplying demand traders at the best area to buy right the cheapest area the first cheapest area It's going to be within this daily demand zone, right? So you have Traders actually buying so this would be ABC deep right traders buying a deep and then what happens is you get move up. This is E right and then Traders get stopped out as they put their stop losses where in obvious places below Here traders are not going to put their, you know, use risk rewards You know and try and go anything below this swing here because look if even if they're trying to take profit at the top That's just an inverse risk reward So they're gonna retail traders tend to have as tight a stop as possible Right to try and get as much pips and the risk reward ratio, right? Make sense But once they're in their stop losses fair game and now they've lost, right? So now we end up E at F Right now before we come down here What you're starting to see is Lower highs and lower lows being made, right? Lower highs and lower lows being made. What does that say to a support and resistance trader, right? It says that, you know, potentially the end of a, you know The uptrend and now a downtrend is coming, right? Where do you think they're going to try and get short anywhere back into this? You know this this previously, you know Sort as support now into resistance. Where are we buying? We're buying at the best areas Which is here, which is the cheap area, right So this could have been our entry, right? Positive candle, right? Or if you trade them, you know, in one hour or whatever it is you're trading on, right? But so we're buying in this zone, right? Because we know this is the cheapest area This is probably fair value. Not necessarily the best area to buy even though again I just reiterate that prices can take off and go from here But it's really just understanding that when you're trading support and resistance zones, you're not necessarily always buying at the best areas, right? so What happens is Traders have got stopped out here and now thinking to themselves. All right now is my opportunity to try and get short So prices come back up into, you know areas where they want to get short Some traders would have got caught here putting their stop losses too tight And then you see, you know prices come up come up and then you see a nice Uh, you know negative pin bar brilliant, right? This is probably some, you know 618 retracement as well and they're looking at trying to get short Right, how many people in real time out there watching this video would have looked said that that looked like a good Trade to the downside a lot of people putting your stops above The highs right now soon if you've done that then you get stopped out again and prices go on there Mary way, right and again we can project into the future and this is a time when you know support and resistance Right did work right here Right, but if you're If you want to really trade high probability trades and really trade with an extra edge on your You know on your site, right? What you need to be looking at is supply and demand zones and not get caught up into every Support turns resistance resistance turns into support Because you know again if it was that easy if it really was that easy You could you know, you can learn support and resistance in in a day or two just getting you know Just getting practice. There's a reason why traders might there's a lot of reasons why traders You know are not successful at support and resistance trading When using technical analysis alone as well, right so Um, that's just uh, you know iterate a a point right and again as you matter fact we can see it right here Again, right we've got another one Where you have Higher lows and higher highs being made right new high Where are traders looking? To trade right They're looking to trade levels of support and resistance We know that this area here Right would have been the daily Uh, you know demand zone that we were looking for prices to come back into before we before we look for a trade, right? But supply and support and resistance traders would have been looking at areas, right of potential support Um, sorry, I'll talk about supply and demand. We're looking at and uh support resistance traders looking at areas of support And resistance to obviously get long, right? So they get end up prices end up breaking This area here and then where traders trying to get short, right right here Traders trying to get short right here Right now depending on where you've got in you could have made some profit But was this really the best trade to take? You know traders were definitely taking this short here, right? Because the more a level is touched as well, which we don't believe as Sub supply and demand traders support resistance traders believe that this jerry was touched once twice three times The stronger it becomes it's like some sort of triple top, etc. Right now We believe the opposite the more times the level is touched The uh the weaker it becomes, right? So there would have been a lot of stops around Here anywhere above here, right Stop losses stop losses. Sorry got the uh magnet tool on Right, but we only take one trade, right? This is the best area because this is the cheap This is where in the overall trend. This is where the cheapest area the first cheapest area is demand area Right, we're looking to take trades around here stop below our demand zones, right? Um opportunities here opportunities here, right and then we end up getting You know the move higher, right? So that's again just to illustrate the point And how to really trade complex pullbacks and really where you're Where you should be looking at trading, right again Fair value is fair value is not always the best area to trade Best areas to trade are at supply and demand zones because you have a psychological edge. This is where traders In the past thought that this was a bargain, right? And it's you know, there's there's a there's a strong Chance that again traders who bought here will be buying again Down here, right? um If prices do come down here and providing that the uh asset that they're buying You know in this case the dollars They're buying the dollar over the swiss is fundamentally sound as well. So I hope that has helped if you have any questions Um, just email me at info at trading 180.com. Don't forget to like and subscribe to the channel Again, if you want to sign up to the supply and demand daily levels, there's a link in the description box below Um, I hope you have a great trading week and take care So if you'd like to receive the best supply and demand forex levels Absolutely free. Click on the link in the description box below Entry email address and we'll send you the levels that we have just analyzed in this video You'll get all of the major for its currency pairs And you'll get regular updates and never miss a forex trading opportunity