There are many ways to trade supply & demand zones and it depends what type of trading style suits you.
1) High probability setups: Taking only fresh supply and demand zones at swing highs and lows and ignoring small S&D zones established in between those major zones. For long trade you have to identify a high, low, higher high and enter at demand zone which would be higher low. But these types of trades are not too frequent and one need patience & discipline to wait for ideal setup and execute it to perfection. Lot of times price come very close to our entry order and go in the direction of our take profit without our order being triggered causing frustration.
2) Medium or low probability setups: Taking fresh supply and demand zones but both at swing highs and lows and small S&D zones established in between those major zones. These type of zones occur very frequently and offer more trading opportunities but with much lower win/loss ratio, but average winner could be around 1.5 to 2R so it compensate for low win rate.
I have tried and tested both ways and opted for 2 mainly because it suits my personality, as I like to get in and out of trades quick and taking profit at first line of resistance or support.
1) High probability setups: Taking only fresh supply and demand zones at swing highs and lows and ignoring small S&D zones established in between those major zones. For long trade you have to identify a high, low, higher high and enter at demand zone which would be higher low. But these types of trades are not too frequent and one need patience & discipline to wait for ideal setup and execute it to perfection. Lot of times price come very close to our entry order and go in the direction of our take profit without our order being triggered causing frustration.
2) Medium or low probability setups: Taking fresh supply and demand zones but both at swing highs and lows and small S&D zones established in between those major zones. These type of zones occur very frequently and offer more trading opportunities but with much lower win/loss ratio, but average winner could be around 1.5 to 2R so it compensate for low win rate.
I have tried and tested both ways and opted for 2 mainly because it suits my personality, as I like to get in and out of trades quick and taking profit at first line of resistance or support.