Trade the Market’s Story with Supply & Demand

1. Direction = the bias (zone to zone on higher TF)
2. Storyline = the internal structure (lower TF reactions that confirm or kill the bias)

Many times traders get trapped because they only trade the “direction” and ignore the “storyline”. But it’s the storyline that reveals whether price truly has the strength to follow through.

1. You have a Daily zone → price reacts → H4 makes an engulfing (EG).
2. That H4 EG is the one timeframe confirmation to say “okay, Daily to Daily will complete.”

But through testing, I found it doesn’t really work that way consistently. Here’s what actually happens:
One timeframe confirmation doesn’t guarantee Daily-to-Daily.

1. Example: Daily zone + H4 EG sell → yes, it’s confirmation, but it doesn’t mean we go straight to the next Daily zone.
2. What it really means is: we trade it back to the next H4 zone, not directly to the Daily.

Why?
Because when H4 gives an EG sell, H1 usually forms an engulfing fail at the same time. That tells us H1 has turned bearish. So naturally, the next H4 zone is the higher-probability target.
Targets
My targets are always the next clear EG zone (buy or sell), not just the engulfing failed. Engulfing failed (the “roadblocks”) are important, but they’re not my main target — they’re areas to watch for reaction.
So in short:

1. One timeframe confirmation = step-by-step progression, not a straight shot.
2. It shows alignment, but only to the next immediate TF zone.
3. The real confirmation that storyline has changed comes when we see an engulfing failed break.

Attached Image (click to enlarge)

Attached Image (click to enlarge)

1. Example: If H4 makes an EG sell, that means H1 has likely created an EF buy.
2. That EF shows H1 has turned bearish — so H4 EG sell is valid.

EF is the key link between timeframes.

1. It’s what makes the lower TF “give up” and align with the higher TF engulfing.
2. Without EF on the smaller chart, the higher TF EG doesn’t carry much weight.

Think of it this way:

1. EG = declaration of intent on a timeframe.
2. EF = the smaller TF confirming that intent by failing in the opposite direction.

EG EF Example Across Timeframes ( Daily Scenario )

1. Price taps into a Daily supply zone.
2. According to standard SOP, we wait for H4 confirmation.

Step 2 – H4 Engulfing

1. On H4, we see an Engulfing Sell (EG) form.
2. This is our one-timeframe confirmation — but remember, it only means: “price will likely move to the next H4 demand,” not instantly to the next Daily demand.

Step 3 – H1 Engulfing Failed

1. At the same time that H4 makes EG sell, H1 usually shows an Engulfing Failed (EF) buy.
2. That EF tells us: “H1 has turned bearish, aligning with the H4 EG.”

Step 4 – Targeting

1. From here, the logical target is the next H4 demand zone.
2. If that breaks and storyline continues, only then we start looking at the bigger Daily move completing.

So the structure looks like this:

1. Daily zone hit
2. H4 EG sell → valid until next H4 demand
3. If H4 EG field breaks → Daily-to-Daily completion OR Daily storyline change