Extracted Thread (per thread starter's request)

Look, if you see the zone on H4, for example, you should go down to M15-30 or even M10 to pick up the entry. I watched Sam's videos- he trades like that. Rocky forgot about us, but we will here his corrections very soon .

Thanks for commenting, vitall. I watched all Sam's videos long time ago, and I'm quite expert at it; but if you use all the possible s/d zones (what I did to start with), you end up tossing a coin; this thread shows invaluable informations about how to select good zones, so here I am, back on Sam's method, hoping that Rocky's suggestions will help me to make a good selection. In two days, I read all this thread, and also the main chapters of VSA book by Tom Williams "Master the markets" (not really impressed by his explanation, I like Rocky's much more).

My questions to Rocky (or whoever else is expert in the techniques used in this thread) are:
1- General Method: I found a supply zone on the daily chart of GBP futures; I found one Fib retracement on the bottom of the zone, and two extensions in the middle of it. A weekly TL was not much above the zone as well. Didn't plot any pitchfork (not there yet, but anyway, neither Rocky did until page 50 of this thread). The supply zone was around 60 ticks wide, and looking at the 4 hours chart, I couldn't find a narrower zone, looks like that day all the movement was in just one 4H bar. Scaling down the timeframe, no other supply zones could be found, because GBP was up for months. So what I did was to use the daily zone, scaling down and trying to make Volume Spread analysis to find a good entry point. I found volume declining on the 4 hour chart while approaching the zone, and then, as soon as the price was inside the daily supply zone, went down to 10 minutes chart, where I found (see my posts) the volume explosion followed by low volume. Is this correct?
2-VSA significance: I entered my trade around 17:30 CET (11:30 EST), and probably, looking back now, I might have entered around one hour later at the same price, on very low volume; at this time, volume is always declining, because London is closed and NY is approaching lunch time, so my question is if this decline is significant or not.


I also have AUD futures on my radar, price entered a daily supply zone today, and this zone contains two narrower 4 hours supply zones. Won't stay up to watch Asian session, which is significant for AUD, but if tomorrow the conditions are still there, I will post shots and maybe take another trade.

Here's the Aussie 4 hours chart: we have a wide daily supply zone (in blue) which contains two 4 hours supply zones. We have two FIB extensions and one FIB retracement inside the daily zone (all these FIBs have been taken on the daily chart). If nothing happens during (my) night, I will be hunting for trades tomorrow, either in the first or the second 4 hours zone.
http://i47.tinypic.com/33f5kl4.jpg

I was lucky with my trade. With price stalling, I decided to place a limit order at 1.6066 (lowest price I had seen before futures close), and it was filled at open. During the night, I see GBP never went below 1.6064.
Probably I was trading too late in the day.

http://i47.tinypic.com/r7stjd.jpg

Now hunting for more trades.
Another thing: I think someone said that Ninja Trader has to be on to fill in the orders; this is true for demo accounts, my trade was not closed in Ninja Trader because the PC was off.

Here is a daily demand zone. As you can see, it came rapidly down into the zone, and has left with some speed as well. Upon leaving the zone, It's a good entry., with lot's of possible long term gain. As long as news does'nt stop the move.

Vital.

Thanks for directing me to this thread. Looks great to me so far. I will contribute if I can. Although, I am still semi-new to the forex game. I've taken one account down 70%. Got out, got some education, amd I'm back now.

If we all bounce ideas off of one another, it will better everyones odds.

Thanks again.

I'll make bad decisions, I'm sure of that, as we all do. I can say this for sure, do NOT chase trades under any circumstances. There WILL be another to take. I am guilty of this myself. I did it this morning.

Good luckl to you all.

Been watching this one form the 4 hr double top at the supply level, sold short as it was leaving the supply zone. Stop loss adjuste to just better than B.E., which I like to do. M.M. is one of the most important rules.

Anybody seen Rocky..Did he take a vaction?

TSD

If it closes above the 618% extension it should make it up to the 987% Fib ext which converges with the Supply Zone..
9:57 P.M. Stop loss now at B/E plus 6.

Stop loss now brought up to B/E for a risk free trade, Rocky...

B/E Plus 16, Rocky...

Stopped out at B/E plus 1.
Stop loss move to B/E Plus 1.
Stop loss now at B/E, Rocky...
Stop loss brought down to a 10 pip risk...

Was just telling GF sure miss MrBalboa,and poof there he is, nice to see.

Hi Rocky,

This chart. The high volume bars were on down bars when price was moving down ( especially last two bars) . That made you go long and hold on after that especially since all upmove volume is very low , aka, no buying interest. Id have thought you' d rather short at the supply level above .

regards

Simr, The long that I took was based on Institutional Buying. This was clearly visible when the Background going into the Demand zone made on 09/11/12 showed this signal. Now knowing this I waited for a VSA "No Supply" retrace. That's were I took my 'Long", knowing that there was a high likelyhood that PA was headed up toward the Supply Zone.

If you look on the first chart, were the supply zone is, I wrote in yellow that I would take a "short" if I saw the proper setup. Unfortunately I was sleeping when PA entered the Supply Zone. Hopefully this helps, Rocky...

Good to see you back.

TSD