0:00 if you trade supply and demand Concepts I guarantee you're making at least one of these five common mistakes that are absolutely wrecking your results and probably the confidence in your own strategy and your own trading ability when they can be completely avoidable so today I'm going to show you exactly what those are and how to overcome them so you can completely transform your results okay because what you'll likely see is a lot of them are kind of related to each other so as you start to fix one you'll start to fix the rest of them and it will make a huge difference to your trading my name is Matt Don Levy and I am the founder of photon trading and we help people get consistently profitable using the power of mechanical strategies alrighty let's dive into mistake number one which is trading from weak structure
0:45 now it's quite a common mistake but the good thing is it's a reasonably easy one to fix so on first glance if we look at this Supply Zone it looks pretty decent right it led to a break of structure which means that a fair amount of money must have come in right amount of Supply in order to achieve that a decent amount of momentum you know arguably there's a bit of a Mini double top there so we can say that it has potentially swept some you know a decent amount of liquidity there um so it looks pretty decent so why is that failing if you're looking to get short here and price is blasting straight up and that's because you need to zoom out and look at the bigger picture and realize that the overall trend swing trend is actually bullish you don't even need to be doing multi-time frame analysis or anything like that um to to see that right if we zoom out the bigger picture we can see that price
1:31 is making starting to make um higher highs and higher lows prices already pull back so now I'm uh price is coming up towards this high this is a weak high right because it's failed to take out the swing low so now you're trying to short against the trend so if I zoom out all right what you will see a lot of the times is people are continuously trading from weak structure right they'll be really zoomed in in this area thinking you know this looks like a pretty decent Supply Zone it led to a break of structure to that side a lot of momentum and they're looking to get short from here but what they do they get smashed why you're trading from weak structure right this is the swing pullback the pullback is now complete and now we're ready to do what to take out the weak swing high but you're trying to Short from here and getting smashed all right those of you who have watched some of our old videos you should be quite
2:17 familiar with these diagrams where how do markets move when they're bullish they pull back and then they target the weak high right Supply and highs we expect to fill right we pull back to demand and then once that pullback is complete and we're moving to the upside this is now a week high why is it weak it's failed to do its job it's failed to break the low this is a strong low because it's broken the high right so when price falls back into that strong low we expect the load to hold we expect the mod to hold and now when that pullback is complete and we're making that next swing leg to the upside this is a weak High we expect that Supply Zone to fail right and so on and so forth and then you know the reverse for Supply right the highs are strong because they break structure so when price pulls back up to them we expect them to hold but we want to Target those weak lows where suppliers okay so it's a simple concept you can get your head
3:03 around but obviously in the markets when you get more complex scenarios and you can be trying to trade the internal structure right after prices pulled back up here then you're trying to short here the objective is complete right you're shorting against that and price now what's the Target that weak structure so you know when you go back to the realities of the market the way price moves a lot of sort of you know basic mistakes that people get caught up in this again trying to Short from levels like this looks like a lot of momentum come in but it's a week high prices pull back and now we're ready to take that out take out the weak high and make the next movement to the upside um again and again and again and people just you wouldn't believe it how often they get caught in the wrong side trying to Short from these highs right trying to Short from these highs when I haven't broken any structure right we pull back these are now weak highs this High has failed to break the low it's weak price smashes through it and then eventually smashes through there so that's mistake
3:49 number one trading from weak structure quite a simple one to fix in my opinion you just need to not be too zoomed in and understand what the bigger picture is so mistake number two is trading against the objective and this actually follows on quite closely from mistake number one okay so if you remember mistake number one was trading from weak structure we don't want to do that we want to do the opposite so what's the opposite of course we want to trade from strong structure and Target weak structure okay so that's a simple rule we want to trade from strong structure but when does it make sense to not do that when should we avoid trading from strong structure and this is an example of when you know to do that and it's when you're trading against the objective that's when you want to avoid
4:35 trading from strong structure and I'll show you what I mean in a minute okay so imagine the overall largest swing trend is bearish right this strong swing High took out the low so now what do we expect do we expect that swimming pool back to occur but we expect the strong swing High to hold and then we expect that bearish swing Trend to continue and to Target that weak look okay now we can play the movements within that swim pullback right we can follow the internal structure so when that internal structure shifts bullish these internal lows become what they become strong because they broke the high so when price comes back in we can look to buy that why because we're trading from strong from strong structure and we are targeting weak structure right this is a weak High because it failed to take out the low so we can get in long hair and Target that high right and we can keep doing that
5:21 again buy from strong structure like this range we might not come over near the low we might mitigate something higher up in the leg but we're still following the same principle from strong too weak okay so that's fine and we can follow that okay and then we get another eye boss here this is a strong internal low because it broke the high so when price comes back just like before should we look for longs to continue that movement well this is where you have to ask yourself these two questions what is the current objective and what has been mitigated okay so if the swing trend is bearish but the internal trend is bullish then what is the objective at the moment of the internal structure the objective is to play the swing pullback up to premium Supply so at this point when we've mitigated premium Supply at the strong swing high
6:08 and we're coming back down the objective is already complete the reason why the internal structure shifted bullish is to facilitate that stone pullback so if we've already got to the area in which we expect the swing pullback to end where we expect that swing low high to form and we expect that next bearish leg to continue then it's very likely the objective is complete so what is likely to happen next to the internal structure it's now likely going to switch bearish right because the swim pullback is complete and now it's ready to start that next bearish ring leg to the downside okay so if you realize what the objective is I realize it's likely complete and then ask yourself what has now been misgated well the extreme Supply at the strong swing High has been mitigated now you can know that this is a good time to not buy from the strong internal low right
6:53 because now it's likely going to break because it's done its job this has been mitigated and now we're ready to go okay so the whole point of this mistake thing you need to look out for is yes we should always be looking to trade from strong structure and targeting wheat structure and in this scenario yes this is a strong internal load because what did they do it broke the high but you need to look at the bigger picture it's done its job the objective is complete right because we've had this been pulled back up to premium Supply what's being mitigated premium supplies been mitigated so it's likely now if that Bearer swing trend is going to continue this is the area which is going to do so so therefore that's when you can expect the internal structure to shift bearish right and that's when we want to go so if you take a look at a few examples on
7:38 the charts I'll show you what I mean okay so you can see here we zoom out a bit the larger swing structure here on the M15 here on your adult okay so these are the larger swings in price right you can see the lower lows and lower Highs but what do we have within that we have the internal structure okay so it's kind of loosely follow this here but you can see the larger swings from within here okay as it facilitates that pullback so at these moments right we can look to trade within here I'm not a bit zoomed out but you should still be able to get the picture right the objective we can buy these higher lows these internal lows but we're doing what we're trading the swing pullback so when the swing pullback has pulled up to the premium of the current range right if you're drawn from the high to the low I know it's a bit faint but hopefully
8:24 you can see that right it's above the EQ above that line we're now in premium we've mitigated that previous swing range here okay so we know there's a supply that's when the probabilities of the Swing pullback finishing are quite high and we expect that next bearish leg to the downside so yes initially when we're playing that swing pullback that's when it's higher probability to be looking to buy these internal high lows but once we've got up to the premium of the previous leg right yes this is a strong internal low it broke these Highs but you see now the objective is complete so now we expect that low to go right we expect the internal structures to shift bearish and this is where I see a lot of people taking losses from within here the two zoomed in seeing that go and thinking that's going to continue and of course it could continue you have to understand why the probabilities are now a lot lower okay and you know you'll see it a time and
9:11 time again where again we get another Break Of Swing structure so this is our swing high this is our swing low and we can do what we can look to follow and buy these internal high lows right trade from strong structure Target the weak height but eventually what happens we pull back up to the premium other leg right we draw on the premium discount we're up in the premium Now we've mitigated premium supply to the left you can see prices struggling to break the tires right we're sweeping all that liquidity Stepside you're starting to see that recent order flow switch bearish so technically that was the last I boss there so this is your strong internal low but if you try and buy it from here the probabilities are now a lot lower why because it's done its job right the internal structure has pulled up to premium supply near the near the Strong high near the strong swing high and now we expect it to fail so this is
9:57 why you don't want to be trading against the objective okay and you'll see it again and again just a few more quick examples right that's the swing High that's the swing low internal structure shifts bullish to facilitate it but all you do we pull back up to the premium of the leg we sweep the liquidity Behind These equal highs here to show you that there liquidity grabbed in the premium previous Supply Range has been mitigated okay this is the previous Supply Range here objective is now complete it's very likely this strong internal load is going to fail because it's done its job right the pullback has been complete again and again again same range here there's a high internal structure that's a strong internal load but we'll be done swept liquidity pull back up to premium Supply internal structure now it's just bearish and we go so this is a low probable level to be buying from okay so that's mistake
10:42 number two we want to avoid trading against the objective and that's when you can anticipate that strong structure is about to fail alrighty so that brings us on to mistake number three which is having the wrong expectations of price okay and I'm just going to quickly use the same diagram from the second mistake to help us explain that and very simply what this is is when price comes into a supplier demand Zone we can look to trade from it and we can trade the reaction but people have the right expectation of what how far that reaction is going to go how far price should move from that zone and what I mean by that is you know let's say we have this internal ratio to the upside there could be multiple Supply zones within this range right that might be a supply Zone sorry a demand Zone um down here but as you can see price
11:28 may not pull all the way down to this demand Zone initially right we might come up and reject from this one instead and continue okay and that's fine but now when the internal structure shifts bearish and all the flow is bearish okay what people do is they'll look for these Supply zones to the left that are mitigated fresh zones and I Look to buy from them and of course that's fine but you have to have the right expectation that when order flow is bearish all demand zones to the left are just reaction points for pullbacks okay so it's just to pull back to supply to then continue lower okay demand zones when order flow is bearish are just reaction points for pullbacks okay so you don't be getting along here and trying to expect that movement that's not going to happen it's just going to be a reaction to supply before we go lower okay so a few examples here on the four hour chart
12:14 right when the four-hour chart was bullish back here okay these demands are coming to the market and they're not mitigated they're breaking structure all the flow is bullish so we can look for price to pull back into them but it's not obviously not always going to do that so these are fresh demand zones that are left here now when the Train the nordaflow shifts bearish and we start coming down we can look to trade from all of these old demand zones to the left but what do they say when order flow is bearish what do we expect from old demand zones they're just reaction points for pullbacks as you can see when price is coming down you can look for Longs from within here right maybe in a lower time frame etc etc but you just have to understand it's just a pullback into supply all right again reaction point just a pullback reaction points just to pull back into Supply right supply supplies in control these Highs
13:01 are going to hold so you just have to understand that this is riskier and you're just playing quick pullbacks and then likewise back when we come over here and autofocus bullish right we get that shift in structure supply has now failed what do we expect of these Supply zones To the Left Right the just reaction points for pullbacks for quickly draw this on okay so when we get that shift in order firm we get that shift and structure we can short from these old Supply zones but we have to not expect what we're not expecting new lows because now the low is strong and we're just playing the reactions into demand demand is in control now okay so you can see the amount holding and then what do we do we don't want to be shorting from the weak high is doing mistake number one because we pull back and now we want to Target past that high all right again pull back into demand Target past that high old
13:48 levels of Supply or do they become when autoflow is bullish they're just reaction points for pullback to where back into demand because demand is in control right and then when we do Target the weak High then again old levels of supply to the left what are they when all the flow is bullish they're just reaction points for pullbacks so again you can look to Short from here but all the flow is bullish so you're just trading back into demand and then when we do we target the weak highs okay so these are things that you always want to be learning on day one they're sort of the basic way that the market moves but again when you're getting caught up and you too zoomed in you look at multiple multiple time frames um sometimes you can kind of lose uh lose grip of these these facts right so that's what I'm saying at the start if you kind of fix one of these mistakes and kind of get your head around the Frameworks that we use the mechanical
14:34 Frameworks they all kind of solve each other and a suddenly everything collects yeah how those are hard moments and it all becomes a lot easier alrighty that brings us on to mistake number four and that is trading from zones that have no inducement okay now liquidity is a massive topic I'm not going to go into it in super depth here but I'm going to try and kind of go over this very very high level and quickly to fit in with this video and hopefully this should help so very simply zones that have no inducement it's basically a fancy way of saying there's no available liquidity in front of the zone right so if you were to look at the Zone initially you might think right well you know it's just about led to a break of structure big amount of Supply muscle coming to the market there right tons of momentum it looks super clean so why is it failed right likewise again
15:19 here another clean Zone led to a big bullish push I'd definitely expect that to hold maybe why has it felt right and it's to do with the idea of inducement okay so give you a quick crash course so the easiest way to think about this is just imagine for a minute that you are a massive institution and you need to put huge orders through the market and you want to buy you want to get long what do you need you need people who are selling to you right because for every buyer there must be an equal uh you know an equal seller right for a trade to take place so imagine if this was the order book where you know you can see the amount of liquidity at each price level and let's just say you want to put seven hundred thousand dollars long right through the market well there's only 500 000 at this level then that would be a 600 000
16:05 filled it's a price would have to jump all the way up to here right to fill your order so when you're getting long you want to get long right you want to buy at the lowest price possible you don't want to get slipped when you're into the market and have to get your price filled all the way higher up right you want to get in as low as possible so if you are a big Market participant where are you going to want to transact you're going to want to transact if you're buying where there are tons of sellers right when there's that opposing liquidity okay so this whole idea is we want to find those areas in the market where there's going to be opposing liquidity where we think that those big players are going to be trading in the opposite direction and that is where the idea of inducement comes in okay and inducement is essentially inducing
16:51 encouraging Market participants to generate liquidity in a certain area Okay so anywhere where you see lows in a market so obviously equal lows or say like a low that actually broke some structure what is that going to do do it's going to induce sell size liquidity below those loads right for multiple reasons if you see obvious double bottoms or if you see a low that broker high right people are probably going to want to buy from that level right buy from the support level or buy from that low right when they see that Trend change they're going to buy that so if you've got long where the stop loss is going to be it's going to be below the lows right below that low that broke the high okay and that's gonna produce at Southside liquidity or some people will see right well that's a strong level so if we break below that I'm going to want to sell the breakout right so both scenarios for whatever
17:38 reason when you see either you know very obvious lows or a strong low that broke structure it's going to induce and generate cell cyclic Equity below those lows so again if you're a big guy and you want to buy and what do you need you need that opposing sell side liquidity buying below those lows where those opposite orders are is going to be an area in which you can get your orders filled without having minimal slippage without price having to shoot all the way up to upside to get yourself filled okay so if we come back here and if we think okay this is a supply Zone that we think big players stepped in to sell so when price returns there why did it fail well what do they need they need opposing liquidity they need their they need there to be uh buy side
18:23 liquidity below there for them to sell into but look there's a straight push there's no highs in that leg right there's no liquidity there's nothing here so if there's nothing here and if there's nothing built to the right right there's no strong acidity built here where is the available liquidity it's only behind the high itself and that's why we see it fell likewise here if the big guys are going to be buying from here what do they need they need is structural low in front of there and there's nothing built here to the right either so there's no liquidity bill so where's the available liquidity it's below the low itself and that's why you then see this Zone has a much higher probability hyperable chance of playing out okay now there are other factors at play right this Zone directly led to a break of structure it flipped this level of Supply this one is well priced but we have to combine all of these confluences together okay but you want to be looking
19:09 at zones that don't just have those straight pushes that have some available liquidity in front of them and just look for weather alerts okay because otherwise look at this supplies I'm right here straight push down no available liquidity there nothing here so where's Equity behind the height itself and that's when you start to see some selling pressure coming like I said straight push right nothing built here there's no structural loads there nothing built here price takes liquidity below where below these lows and then the long moves occurs right because there's enough South Side liquidity for the big guys to in theory buy against that's supposed to be a dollar sign but I'm clearly not an artist and then we see the real movements okay so that's what I'm saying that topic there is a ton more detail to dive into that um we have probably about 10 or 15 lessons in the course that we have hours
19:55 and hours we go into this in deep we have mechanical models for what to do in every single scenario mechanical ways of defining what is and isn't strong liquidity mechanical ways of knowing exactly whether that inducement is near enough to the zone or not um so if you're interested in that we'd love to work with you give us a shout at Photon trading and fix.com and that is the plug for today over so yeah that is mistake number four no available creatine the leg right no inducement and very often those owns will fail alrighty so the fifth and final mistake is trading continuations after a break of structure so if you've had the pleasure of watching any of my previous videos I think I talk about a lot is after a swing break of structure what do we expect we expect that swing
20:40 pullback okay so every time you know if you just look quickly look back we get a break of structure we get the pullback right break a structure we get the pullback break a structure eventually we get the pullback breaker structure we get the pullback I think you guys get the drill but what happens is when those highs go that's when people go oh we're bullish we're breaking highs and they kind of almost firm them into Longs or start trying to Target really far and we almost want to be doing the opposite we want to go okay that high is gone now I need to start thinking that at any moment that pullback can kick in now the kicker is sometimes this is a perfect example price won't pull back straight away right and it will go on for a fair amount of distance so I'm not saying you should never trade a continuation after a break of structure of course there is an edge there and you can do it it's just more often than not you'd be better
21:26 waiting in my opinion I feel like you should earn the right to know how to trade keep trading that direction after a break of structure right because again look we break the highs we retrace straight away like these zones start failing we pull back to Discount and then we go this is when you want to start looking for the Longs as soon as the height breaks you want to start thinking more about the pullback okay so when can you do it so there's a few things you can think about and it's here okay so the start of a hard time frame reversal so very often what you'll see is say we have a bearish trend for quite some time and then you get that initial Trend change where we switch bullish I have typically found that not always right there's obviously going to be exceptions to rule but more often momentum will be quite strong when that first happens and that's when I'm a
22:12 lot more willing to on a lower time frame keep trading those continuations until that lower time frame order flow shifts and then when it does okay now that swimming pool box likely going to continue right on on the higher time frame so at that start of that initial hard time frame reversal that's when I'm often willing to be a bit more aggressive with trading those continuations until you get that lower time frame order flow shift okay and also what I'm looking to do with that is the second point I want that to be clear internal structure so imagine this orange line was the four hour chart right and we get that that shift in the four hour Buddhist trend on a lower time frame then on the M15 I'm going to be looking for clear British ranges within there to trade okay if it's kind of just shooting up in the vertical line I'm not just going to throw them into it or like the M1 I'm going to need to see clear ranges clear demand zones on the M15 right and I'm
22:59 just gonna be looking to get in Target the high get in here Target the high quick little moves in and out and just follow that autoflow okay so ideally the start of the hard time for reversal clear then internal structure on a lower time frame um to work with then the next one no nearby key levels so ideally you know you don't be trading against a major Supply zone right something like that because of course you know we can expect a bit of a pullback to kick in from then so obviously try and do it where there's no nearby Supply zones to the left on mitigate Supply zones and like I said just have quick Targets in and out because at any moment that pullback can occur okay so this is quite tricky for some people to kind of I feel accept psychologically because you know you can understand that in theory um and then when you get the break at the high and you just see it going up and up and up and up you get fomo and
23:44 you start firming them into positions whereas if you just wait for the pullback like I spoke about earlier wait for price to pull back into the EQ of the leg into a high probability POI right this is the one I need to change my settings here but um you know that broke structure that flipped the level of Supply that has inducement that's what liquidity all of the concepts that you can use you can be patient but from here when we break out to here when we get tagged in that's three days and four hours for a lot of people that feels like an eternity and they start doing dumb things like forcing trades up here trying to buy the highest trying to keep thinking we're going to go up and up and up where like they're not realizing however extended we are if you look left we've come into a fresh Supply zone right that's what I mean the key by keep a key uh keep a nearby key level right and then we pull back it's just be patient then we're gonna get in here now
24:30 be aggressive with your lungs right on a lower time frame stop following that M15 bullish internal structure Target the weak High all right that's what we do so they're the five key mistakes so let's wrap this up and summarize those five key mistakes you should avoid and that is trading from weak structure right we want to be trading from strong structure targeting those weak highs all right you can see again and again all of these weak Highs are failing why because the overall trend is bullish and after those pullbacks have been completed well that's when we want to Target those highs pullback's complete Target those weak highs easy easy mistake for you guys to avoid okay buy from strong structure Target weak structure mistake number two is trading against the objective and this is where you think you've done the right thing you've bought from strong structure right that
25:16 broke the high there but why are you buying from here why does it end up failing and it's because the objective is complete what has been mitigated we've mitigated premium Supply we're expecting the swimming pool back to now be over so what do we expect we expect that strong load to fail are we expect the internal structure to shift bearish okay and we went through tons of examples here you can see once we get those swing pullbacks up to the premium levels of Supply in the premium Supply Range that is when the internal structure shifts bearish all right we break those lows and we go again and again again I'm not going to go through all those examples the third one is having the wrong expectations from zones okay so this is a perfect example once order flow shifts bearish right old demand zones to the left where they become they just become reaction points for pullbacks right
26:02 we're not expecting new highs from here they're just quick pullback plays which is what we see here with all of these pink slash red zones right order flow now shifts bearish so all of these old zones they're just what reaction points for pullbacks watch autoflow shifts British here Supply is what reaction points to demand reaction points to demand okay so manage your expectations depending on the current Trend and Order flow fourth mistake was training from zones that have no inducement right so there's no available liquidity in front of the zone so try and avoid these ones with straight pushes and no liquidity has been built to the right then the only available liquidity is behind the high or low itself likewise here straight push so that's what gets taken the liquidity is used below below those lows and then we get the rule movement
26:48 right straight push here where's the liquidity it's behind it then we get the real move okay and then last but not least try and avoid training continuations after the bricks of structure you can do it I'm not saying you shouldn't but it's kind of one of those ones I think you can avoid until you're consistently profitable waiting for those pullbacks and then getting involved for the most part you're probably going to get burnt buying after the highs um can do it of course there are breakout strategies that work very very well um but you just need to make sure that it's well within your Edge okay so the things that has helped me with that is the start of the hard time reversal clear lower time frame internal structuring to work with no nearby key levels that you're trying to trade against right now trying to buy against all levels of supply and you just have those quick targets right you're not trying to Target miles and miles away just in and out Target the nearest weak piece of structure and you will do well
27:35 so if you want to level up your game and start taking this really serious we have an amazing library with our full end-to-end course that takes you through everything from A to Z even if you have absolutely zero knowledge we cover everything psychology risk management Etc we go in tons of depth in our course here right there's tons of more lessons Behind These levels here especially liquidity in those slightly keen on that we have a load of lessons in here really going in depth we have full back testing walkthroughs we've got tons of back testing stuff within here um you know we also have this where we upload daily Market content we've got meetups back tests every single day after another session I do a full breakdown recapping any trades and the price action um you know a lot of our members have thanked this for being a massive Improvement in in you know how they've been able to apply the concepts to their
28:22 daily training so if you're ready to level up click the link below in the link of description and I look forward to you so see you next video guys and enjoy
