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-   -   ReadtheMarket - Supply and Demand with Price Action (https://www.forexfactory.com/showthread.php?t=420159)

Ifmyante Apr 7, 2013 10:27am | Post# 1

Edit: 20/02/2014: We are now way beyond simple Supply and Demand. It's only part of the story, and is used by the market movers against SD traders in the long run. You'll learn SD with us for sure, but you'll also learn when to expect it to fail!

Also, please don't use this thread for tech support. Rather use the contact forms in RTM or RTM Academy


Hi
Lots of you know of me already. In fact, I've met many of my dearest friends using this online persona.

I started learning to read the markets in 2010. I have all my life loved to solve puzzles of every description, and as soon as I saw my first chart, I knew it was my next calling in life to solve its mysteries.

It actually became rather simple after quite a while of seeming very complicated indeed. Once I knew that the big institutions were moving the market, and learned to read in the charts the secret signals they were sending each other, and began to see the algorithms they use to fill their orders bit by bit, it all became really really easy to know where price was going to turn and where it was going to go to next

As I began to better understand the movement of price, I started to post here in FF all the revelations that came to me. Even in preparing charts to explain these phenomena, I'd find anomalies to what I was trying to explain, and had to work these out before I could post. It was an excellent learning tool for me!

I'd've happily stayed here in FF for life had I been able to edit and organise all the information as I saw fit, but the limitations on doing this meant I had to make my own site. You'll find it here

All that I've ever taught (and soon, all that I've ever learned) is there in one place. I highly recommend reading our Markepedia section, and watching our videos

All the information you'll ever need to learn how the market works is in there, and it's all free.
There's a lovely, peaceful community growing in our forum, where absolute beginners can find ALL the info they need, and ONLY the info they need to become great traders, and where already great traders can find likeminded friends to work with.

Now, when I say we trade Supply & Demand and Price Action, I don't mean that we do it in the "gambling with an edge" fashion that other SD or PA traders do it. With Supply and Demand, we don't simply enter a trade at every zone, relying on the hope that more often than not it will retrace to the next zone. We read the story of price, we like to "know", with almost complete certainty, that we're getting into a winning trade every time.
For this to happen, we use Price Action. And no, we don't look for pinbars and engulfing candles, etc. We read price. We read, as I said above, the signals that the institutions are sending each other, we read the algo's they're running. We get into the minds of the guys who move the markets, and know what they will do next.

Is it easy to learn to do this?
Well, learning it all alone can certainly take an awful long time, and one may never get it all worked out.
But we have students who, within six months of being made aware of what forex even is, are reading the market and trading it better than most of the professionals out there.
These students don't get handed everything on a silver platter - they have to put in lots of hard work, sweat and tears in order to make the knowledge we give them their own.

So yes, while the closest common terms for what we do are, indeed, Supply & Demand and Price Action, what we do, in reality, is read the market!


I'll be posting relevant charts and exercises here as and when I have time.
Everybody's welcome to join in

Ifmyante Apr 8, 2013 10:08am | Post# 2

I'm just drawing up a read on what happened to EU over the last few hours
I'll have it ready soon

gilben Apr 8, 2013 10:39am | Post# 3

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While I am waiting for your reading, this is what happen to me today on EU
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Ifmyante Apr 8, 2013 10:44am | Post# 4

Sterling work, as ever Gil

Ifmyante Apr 8, 2013 11:12am | Post# 5

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Here are the first two charts to mull over


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Ifmyante Apr 8, 2013 11:21am | Post# 6

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Next is the fakeout. A momentous run up to scare the bejaysus out of the sellers, and excite the buyers into action.
Why? to fill bucketloads of short orders
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Ifmyante Apr 8, 2013 11:28am | Post# 7

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Next, the cap, engulf and retest
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Ifmyante Apr 8, 2013 11:35am | Post# 8

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Next installment -
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Ifmyante Apr 8, 2013 11:41am | Post# 9

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And then on to the target

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Forex Lion Apr 8, 2013 12:31pm | Post# 10

Hi ifmyante,

nice post , as I am a beginner I will follow it an hope to learn a lot of PA S/D.

Could you please explain what is the abbreviation for:

- FTR
- tg

Many thanks and best regards to your thread,

Forex Lion

Ifmyante Apr 8, 2013 12:36pm | Post# 11

Hi FXL

A newcomer - I'm very glad you found us! We may save you from stumbling down the indi and system road

FTR is Failure to Return. In essence it's the beginning of a new trend (Ugh! Hate that word!)
TG is target

Here's a list of other forex abbreviations we use

Best

If

Ifmyante Apr 8, 2013 12:57pm | Post# 12

OOP!
I just noticed I omitted a chart about the origin. I've just edited it into post 5

fwloop Apr 8, 2013 2:04pm | Post# 13

Hi,

Excellent thread, also pleased that I found it in it's infancy

I've been reading up on the SD / SR aspects and like the simplicity and non-indi style (or minimal!!)

Are you just trading the M1 as per your charts or do you or any of your associates trade the higher TF? Or is this all on the RTM Forum?

Many thanks

whiteout Apr 8, 2013 2:09pm | Post# 14

Hi, Excellent thread, also pleased that I found it in it's infancy I've been reading up on the SD / SR aspects and like the simplicity and non-indi style (or minimal!!) Are you just trading the M1 as per your charts or do you or any of your associates trade the higher TF? Or is this all on the RTM Forum? Many thanks
Hi fwloop, we trade any pair, any timeframe, from the tick charts to the monthly, S/D works everything...of course M1 is a very fast charts, so...you need a very powerful education to trade that timeframe.

fwloop Apr 8, 2013 2:20pm | Post# 15

Hi fwloop, we trade any pair, any timeframe, from the tick charts to the monthly, S/D works everything...of course M1 is a very fast charts, so...you need a very powerful education to trade that timeframe.
Thanks whiteout, I understand that it can be traded on any TF and any Instrument, I was keen to understand if the majority of people were on lower TF's or if the ratio's were fairly even of LTF vs HTF! Presume one should start on the higher TF and hone skills and then work down to lower TF's.

Many thanks

Ifmyante Apr 8, 2013 2:24pm | Post# 16

Some of our greatest traders will only trade the HTFs - It gives them loads more time to enjoy their lives

Some of us love to trade the LTF's - an hour or two's fun in the market can make some big % changes to the account.

Everybody tends to find the style which suits their temperament and lifestyle

@mel Apr 8, 2013 3:15pm | Post# 17

If, very nice charts as always!
Your teaching is unvaluable!

Bless ya

Ifmyante Apr 8, 2013 3:17pm | Post# 18

Aw thanks Mel - I'd be lost without you

Miky Apr 8, 2013 3:22pm | Post# 19

Respectful, kind and helpful community.
In depth price understanding, amazing precision and risk management.

I bet IF's dish that one benefits only from reading a single article from RTM site. ^^


AERO

Ifmyante Apr 8, 2013 3:30pm | Post# 20

Aw thanks alot Miky

You're a star Buddy

Miky Apr 8, 2013 3:47pm | Post# 21

Where is the THANK YOU button when you need it ?
haha

DrSwing Apr 8, 2013 7:05pm | Post# 22

My only regret is that http://www.readthemarket.com was not around 5 yrs ago!! Man!! I would be able to golf full time by now!!

Winston Reed Apr 9, 2013 9:13am | Post# 23

Your read of m1 charts is and has always been masterfully masterful. I have given up on LTF trading as it fits poorly with my lifestyle and time zone. Therefore my trading is moving towards HTF (daily and weekly). Would like to see your read of daily/weekly chart with entry/exit using only those time frames (is that possible?).

Ifmyante Apr 9, 2013 9:15am | Post# 24

I'm sure you won't be surprised when I tell you that my read of the monthly is exactly the same as M1

There is absolutely no difference at all

Winston Reed Apr 9, 2013 1:23pm | Post# 25

3 Attachment(s)
Weekly chart showing strong reaction to demand. Bullish outside englufing.
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Daily showing detail of flags and engulfings Having engulfed nicely north out of demand I imagine an entry on price returning to the flag would be ideal.
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And now to the H4 chart which is the lowest time frame I would like to venture down to. This looks like a QM. Currently price seems to have CP'd down to a flag and has been rejected. I want to confirm price action so I don't want to trade touches so for me waiting for the close of the H4 candles is important. The candle that didn't quite touch the flag closed bullishly so I noted a paper trade at the break of that candle. Good or bad not sure. Now waiting to see what will happen but I know that price could come back further to the new demand created coming out of demand below.

Anyway, thoughts critique welcome.
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Ifmyante Apr 9, 2013 1:42pm | Post# 26

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I love a deep retrace!

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Winston Reed Apr 9, 2013 2:33pm | Post# 27

Thanks IF. I know the LTF charts provide beautiful detail and pinpoint entry and you have mastered the art and science of this type of trading. Having tried "scalping" or just LTF trading numerous times I realize it is not for me. Interestingly it is not because of losing cash but rather losing hours and hours to a computer screen. When pointed out to me it is very clear. If I spend hours poring over the charts I can usually get pretty close but I no longer have this time. I am willing to forgo the pinpoint entry and accept some reasonable draw down to be able to find entry points on HTF charts of no lower than H4 but to be honest the daily/weekly has my attention. I am looking to enter, place stops and targets and walk away for the day.

Ifmyante Apr 9, 2013 2:35pm | Post# 28

Oh sure, but it only takes a few extra moments to find the exact FTRs for a pinpoint entry.

Winston Reed Apr 9, 2013 2:37pm | Post# 29

Maybe another way to put it: What if there was no such thing as a chart with time frame lower than H4 or even daily. How would this be traded? Before the internet traders trade off of "tapes" with only daily bars and were successful. So....

Ifmyante Apr 9, 2013 4:19pm | Post# 30

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Simply look at any TF chart as I view the M1

I've marked a few things on this one - see what else you can add to it for other opportunitiesClick to Enlarge

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Winston Reed Apr 9, 2013 7:27pm | Post# 31

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Thanks IF. Here's my take from a daily view. My developing strategy hinges on the engulfs. First when price enters a supply or demand area wait for the engulf that reveals big money intention.

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Ifmyante Apr 9, 2013 7:34pm | Post# 32

One thing I hope you won't do is look to candles themselves for clues
This can take your eye off price itself - watch the zones themselves, and for engulfs thereof

Winston Reed Apr 9, 2013 8:33pm | Post# 33

One thing I hope you won't do is look to candles themselves for clues This can take your eye off price itself - watch the zones themselves, and for engulfs thereof
Absolutely IF. I think you will notice that the engulfs do engulf consolidations or retraces. Will post more of the AUDUSD shortly.

Winston Reed Apr 9, 2013 8:43pm | Post# 34

1 Attachment(s)
Continuation of the AUDUSD from daily view. Supply dominating and definitely causes a bias to form. Sells are on my mind and price must prove otherwise. Engulfs of consolidations and retracements may occur with one or more candles. Single candles ala J16 are not the priority. However looking for a bearish signal candle during the retrace into supply in this case is important. This is because I am not looking at lower time frames for pinpoint entries.
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Winston Reed Apr 9, 2013 8:59pm | Post# 35

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Ifmyante Apr 9, 2013 9:06pm | Post# 36

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You're looking at candles again instead of zones Click to Enlarge

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euro_dude Apr 9, 2013 9:24pm | Post# 37

Hi If:

Great thread!

However; like Winston, I no longer trade short TFs.

I hope to see more 4 hr. and daily setups.

Regards,
JS

Winston Reed Apr 9, 2013 9:25pm | Post# 38

1 Attachment(s)
This concludes the AUDUSD daily analysis. I didn't get the last week or so. After two glasses of vino I was feeling....well... you know
Hindsight is 20:20 and it always seems easy to historically analyze PA. But I am serious about trading from daily and weekly time frame using supply and demand.
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Winston Reed Apr 9, 2013 9:27pm | Post# 39

It must be late....or very early in your part of the world IF but I still see your name. Get some rest my friend. Thanks for your help. Your inspiration drives me forward!

Ifmyante Apr 9, 2013 9:27pm | Post# 40

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Hi Dude

What TF is this chart?Click to Enlarge

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