Notes

Supply and demand are a interesting topic because as usual people created many myths that people seem to just accept correct.
The most important thing you must always remember is that these zones are created by the retail traders not market makers. This makes drawing them harder as everyone has their own opinion on the correct way of drawing zones.
Knowing how to find areas of supply and demand is just a case of practicing what you learn and it'll come with time. This topic is very important because people are usually taught how to plot them the typical way, all books and courses teach you.
Once you’re able to spot them you will realize how easy price goes from supply to demand, and with time you should hopefully be able to follow them.
Everyone draws their zones in differently however I will show you my method of drawing zones. I developed what I developed using many concepts, combining and testing them.
First, I start on the monthly timeframe and I assess the market structure you may noticed I said assess, we don't draw zones on this timeframe; it’s simply used to establish a bias by evaluating market structure.
Once you have your bias you can write this down on paper and this bias is the direction you should be trading in the lower timeframes.
We open the weekly timeframe and now we look for our zones. If your bias you established was long then you would only look for zones that you can go long from. You must not start looking for sell zones if your bias on the monthly is bullish.
Now to drawing these zones on the weekly timeframe.
So for me I established that supply and demand zones are sometimes very vague and we can be more precise if we know little detail about what the candlesticks are doing on the weekly timeframe.

If our bias is bullish on the monthly timeframe, we would look for zones to go long from. A demand zones.
Usually people draw their zones for support and resistance by looking to the left and drawing the zone out all the way. This method is literally based off the fact that just because price bounced off an area and went up before it is also going to do that this time. This kind of analysis has no reasoning and makes no sense but is taught by "courses" so people just learn it, but it has no capability of creating consistency.
The right way of drawing your zones is by using the most recent price action. This is because you are basing your trades on what has just happened and you can analyze the fundamental side of a currency to make a higher probability trade.
When plotting your demand zone you are saying you want price to come back into demand pick up orders and carry on going higher for your analysis to be correct and profit.
This demand zone is any zone where institutions have orders for buys waiting. You can use S/D combined with candle stick readings to give you the best probability of placing the correct S/D.
These zones are at phycological price levels like 1.30/1.40 for example as they are round numbers.
These zones are also usually to the right of areas where we saw bigger candles.
So for our example where we are bullish and looking for demand levels then we would pick the last bearish candle that caused the bullish significant move.
That bearish candle is the candle we assume banks were placing their buy orders in. Why? Because institutions always try to hide orders otherwise everyone would win.
Its not always exactly the bearish candle before the bullish move that is the significant candle because sometimes candles end up closing like this.

Candles which close like that are still considered bearish as they closed bearish but you wouldn't assume orders where placed here as a candle which has a lot of orders is full and looks like this

usually.

Once you plot these levels on the weekly timeframe. Then you can go into the lower timeframes and make sure that your bias is still the same. If your bias changes when you go onto the lower timeframes, then you cannot swing trade this pair as the best swing trades with the highest probabilities are those where all timeframes have the same bias.
Yeah, some may say well it'll take so much longer to wait for a set up like that, and this is true but why can’t you be patient. What stopping you from being patient? Would you not rather wait and wait and have a higher probability set up, or would you rather just take anything you see with a lower probability. This is one of many things that distinguishes winning and losing people. It’s the small things.
To end off this section it’s probably best to repeat that not every set up will be correct and not every trade will win whether you were right or wrong. But don't let this be something of significance as its only as bad as you make it. If you can predict with high probability how the market will react and if you can control your risk by using a stop loss, then your risk to reward will always be high and usually 1:6.