Disliked{quote} Hi all, First thanks for sharing that. I am a newbie and i was looking for a more realistic professionnal view of what the forex is. You opened my eyes : this is supply / demand ! I must learn all that ideas. I feel the supply/demand zones can be described with some graph tree (nodes, arcs, forest), with probably connected forests between currency pairs. Most common example : The price is falling, making a bounce at support one, the second "wave" is falling again (with lower high than previous one) at the support zone then the support...Ignored
Hi IFxRobot..
With all due respect you are making this way to complicated.Yes there are those who will create algo's for purposes of trading.. and that's fine. They have chosen to walk a different path. SD, on the other hand, is a visual representation of what the Smart Money is doing, not a mathematical structure in its cleanest form. The math comes in play when determining position size, stops, profit target...otherwise it remains a pattern observation. As mentioned previously, seeing the pattern, how and why it develops is the foundation for trading SD. I think?? what you mean by " the equilibrium point " is a Supply/Demand Level...you are essentially correct. It either makes the bounce or it does not. There are ways of determining higher probabilities ( confluence ) but in the end, no absolutes. In the end it is a pattern that consistently repeats itself. Our job is to recognize and capitalize upon this repeating pattern. As long as you are able to see this pattern you will be able to take advantage of it. Why??? because you know what is behind the move. What has created this pattern. You will also discover that when price returns to these levels ( use the odds enhancers - this will help you greatly ) you have opportunity. Managing the trade is the most difficult. Why?? We can get in anywhere, we can get out anywhere. It is what we do in the middle that defines whether we are profitable or not. No so much science as it is an art form. Seeing the players/traders visually represented on a chart. How price is moving between Supply and Demand. Spend enough time with SD and you will see how price moves in all time frames that same way. You will also discover that you are able to trade effectively in both trending ad ranging markets. Very few methods allow you to do this.
TSD