Looking for fresh orders

Our goal as traders is to look for 2 things:

1 - where price is going to turn
2 - where price is going to go

These are the 2 most important things in trading. That is what it comes down to. Do you need to know much else? I'd argue no.

Using technical analysis, and spending thousands of hours on the charts, you can become an expert at understanding these 2 things a lot better. You'd set yourself up to be on an extremely good, and wealthy path.

Let's not forget that technical analysis is an odds enhancer, it's not a sure thing, but we can significantly reduce our risk and increase our reward potential by looking at the right things.

One of these important odds enhancers is fresh orders/levels.

Supply and demand zones always turn price on some scale thanks to the unfilled orders at that level. Where we have an area of unfilled orders, we can expect a reaction, but where the level has been tested several times, we can expect price to move through it rather quickly and easily.

Here are some ultra professional images to represent what I'm talking about:

fresh orders.png

Now, let's look at the scenario as if price wants to retest the zone.

unfresh zone.png

This is especially important to note because I see a lot of people marking zones on their charts that have been tested several times, or that have already been broken through.

Here's not what we should be looking for:

Sure, the original level looks nice, but it's been tested too much.

Sometimes, price will retest the level a few times at different places within the zone (you can use support and resistance to hone in to where is most likely) and it will appear as if the level can hold. However, if all the supply or demand has been used up, then the level is nothing.

This is why supply and demand zones on higher timeframes are more significant. There is more accumulation on higher timeframes and this is shown in the size of the level, and we can therefore expect a bigger move from them compared to say a 1H timeframe zone.

This is why I usually like to keep my S/D levels at H4 as a minimum. The higher the better.

Some real life S/D levels where there are fresh orders: