The TBA Stocks DZ Cheat Sheet outlines a Demand Zone (DZ) Breakout and DZ Retest strategy based on supply and demand trading principles. The approach focuses on identifying directional market moves and executing trades when a breakout or retest occurs within a demand zone.
Key Points:
Strategy: Trade breakouts or retests after an imbalance in the market.
Indicators Used: 5-minute chart, Daily VWAP, 9-period EMA, and 20-period EMA.
Trade Rules:
Go long on a breakout from the demand zone.
Retests of the demand zone can also be traded.
Base candles should not retrace more than 50% of the rally bar.
Avoid trading more than three consecutive base bars.
Trade Management:
Entry beyond base candles.
Stop-loss set beyond the demand zone low.
Target set at a 0.5 or 1:1 risk multiple.
The cheat sheet emphasizes bullish setups only and warns of the risks involved in trading. It is meant purely for educational purposes, not as investment advice.