Trade the Market’s Story with Supply & Demand

GOAL OF THIS concept
How to correctly mark and interpret the zigzag formation based on each candle’s OHLC/OLHC.

COVERING:
Market structure
Direction
Storyline
Roadblocks
Targets

Objective:
Use this information to read the market with more clarity and structure.

While marking the zigzag formation, it must be done accurately, exactly as shown in the example below especially for two consecutive bullish or bearish candles and for reversal candles.

By simply marking your zigzag (OHLC/OLHC) formation, the first key information you extract from the chart is the major swing points and overall market structure. From there, you determine the current phase of the market — whether it’s trending bullish, trending bearish, or moving sideways.

The next key insight comes from the minor legs or cycles. They provide strong clues about what price is likely to do—without needing to drop to a lower timeframe.
For example, marking the zigzag formation on the daily chart can give you context on what H4 is most likely doing. You can base your trading decisions on that higher-timeframe structure instead of getting trapped in lower-timeframe noise.
Since price is fractal, the same logic can be applied across higher and lower timeframes to achieve your objective.

The Core Idea
All my execution is built on 3 entry models.
These are not random strategies.
They are structural behaviors of price:

1. Retracement
2. Pre-break positioning
3. Post-break confirmation

Every one of my 15+ scenarios comes from these 3 models.

Entry Model 1 — Retracement to Roadblock
Concept
You have higher timeframe context (example: Daily sell zone).
Price is currently moving against that direction (short-term bullish).
You enter against the current move, targeting the nearest roadblock.
What You’re Actually Doing

1. Selling while price is still going up
2. Expecting a pullback to the nearest opposing structure

This is not continuation by default — it’s a retracement trade
Example Logic

1. Daily = Sell zone
2. H4 = pushing up into zone
3. Current leg = bullish
4. You sell → target = nearest H4 demand (roadblock)

Advantages
1. Sharp entries

1. You enter near extremes
2. Tight stop-loss

2. Optimal pricing

1. Even if price retraces after breakout, you stay protected

3. High RR potential

1. If roadblock breaks → trade expands massively

4. Can evolve

1. Scalp → intraday → swing

Disadvantages
1. Counter-trend by nature

1. You’re trading against current momentum

2. Continuation not guaranteed

1. Roadblock often holds → price resumes original move

3. Lower win rate (if misused)

1. Especially without HTF alignment

4. Range dependency

1. Needs clean structure
2. Choppy markets = avoid

5. Timing sensitive

1. Late entry = poor RR or instant loss

Critical Insight (Most People Miss This)
This model is not always counter-trend
If higher timeframe supports your direction:

1. What looks like a “retracement trade”
   → is actually a continuation setup

Example:

1. HTF bearish
2. You sell into a bullish H4 leg
3. That “roadblock” is likely to break

So:
Same model → different expectation depending on context

When to Use Model 1
Only when:

1. Strong higher timeframe zone exists
2. Market is not in aggressive expansion
3. Momentum is slowing (exhaustion visible)
4. Clean trading range exists

Trade Management Rule
Do NOT assume full reversal.
First target = roadblock.
After that:

1. If structure breaks → hold
2. If rejection → partials or exit

Entry Model 2 — Inside the Roadblock (Pre-Break Entry)
Concept
You enter inside the roadblock before it breaks
You are betting on:
“This level will break”
What You’re Actually Doing

1. No confirmation
2. Pure expectation + market reading

Advantages
1. Best possible entry price

1. You’re early

2. Minimal drawdown

1. Tight SL placement

3. Capture full breakout move

1. You ride momentum from the start

Disadvantages (Serious)
1. High uncertainty

1. Break is not confirmed

2. Multiple stop-outs likely

1. Fake moves inside zone

3. Requires strong market reading

1. Not beginner-friendly

Critical Problem (Most Important)
Even if breakout happens:
Price often:

1. Breaks the level
2. Then retraces deep
3. Then continues

Result:
Your trade → break-even or stopped out
→ then moves in your direction

Long Limit 4701.8 SL 4698 TP 4742

Entry Model 3 — Post-Break Confirmation
Concept
You wait for:

1. Roadblock to break
2. Market to confirm direction
3. Then enter on pullback

What You’re Doing
Trading confirmed structure, not prediction

Advantages
1. Highest probability

1. Direction already confirmed

2. Easier to manage

1. Less noise

3. Scalable

1. Suitable for higher risk allocation

Disadvantages
1. Worse entry price

1. Move already started

2. Missed trades

1. No pullback = no entry

3. RR can shrink

1. Especially if move is partially completed