DislikedHi Alfonso, I don't remember in which one of your videos you explain how many pips stoploss we should had to give some room if an area is broken? What is the amount for monthly, weekly, daily and 4H?Ignored
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QuoteDislikedI also have a question about the use of the sequence. If for example the monthly trend is up and the weekly trend is down. The weekly is thus out of sequence and we have to wait for a pullback to a monthly demand area to be allowed to trade long again.
Exactly.. MN is up, WK out of sequence --> Set and forget longs at WK/D1 areas nested within MN demand. Those are the realignment and sequence rules playing out, core cures of the strategy.
QuoteDislikedIf we consider now the weekly trend which is down. It is likely to go further down until it reaches a higher timeframe (for example monthly) demand area. I don't know if that's right to generalize, but we could say that a trend on a given timeframe is likely to be reversed by an opposing S/D area on the higher timeframe.
QuoteDislikedIn addition to that, we say that in an up trend, demand zones are respected and supply zones are broken (on the same timeframe) and opposite is true in a down trend. So my question is: couldn't we take into account only the supply zones of a higher timeframe in an up trend, and only the demand zones of a higher timeframe in a down trend? This means that we should not be scared by any opposite S/D zones on the same timeframe and we could avoid to draw them (we would use them only to confirm that the new zones created in the direction of the trend...
Your reasoning looks good, there is only one issue. What is your entry TF. You want to know where the biggest timeframe's zones are located because if you are in an uptrend and you reach let's say a WK supply zone but MN and WK are up, those WK supply zones normally are those that will cause price to drop into our long entries, but if a WK supply zone is hit, no more buying unless we have a WK demand and WK is up. D1 demand against WK/MN supply is not a good thing to do. A bigger timeframe has higher odds of holding against a lower time. David (Daily) has beaten Goliath (Weekly or Monthly) once in the past, that doesn't mean that he's going to beat him every time. The odds is that Goliath will most likely beat David most of the times.
Makes sense?
Have a great weekend!
Alfonso
Set and Forget supply and demand trading community