Supply and demand in a nutshell by Alfonso Moreno | Page 26 | Forex Factory

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Supply and demand in a nutshell by Alfonso Moreno

  • #501
  • Jul 16, 2013 2:02pm Jul 16, 2013 2:02pm
Quoting panoramia
Planning a short trade on EURAUD H4 supply zone. Price hit Monthly supply zone (red line), nice H4 supply zone. H4 Trendline uptrend broken with room to a non greedy TP. Price action absorbed previous H4 demand, permission to go short. {image} {image}
looks good, short because trend is now down and demand level has been absorbed
your supply level is fresh and original, if i am right...

GL and see you tomorrow in the webinar
  • #502
  • Jul 16, 2013 2:16pm Jul 16, 2013 2:16pm
Yes, exactly for that reason. H4 has been up respecting demand and absorbing supply, but we are now high in the curve, monthly sfresh supply has been hit, produced 2 quality H4 supply areas, the lower absorbed demand, so it gives me permission to sell. If price keeps on dropping and creates new zones, that area will not be valid because market dynamics might have changed.

My order is drilled down since H4 zone width + wiggle room + spread is >50 pips, too much risk.

See you tomt the webinar, right at NY open. Those who didnt send me email to join the webniar, can still do it


Quoting Forex Lion
{quote} looks good, short because trend is now down and demand level has been absorbed your supply level is fresh and original, if i am right... GL and see you tomorrow in the webinar
Set and Forget supply and demand trading community
  • #503
  • Jul 16, 2013 5:56pm Jul 16, 2013 5:56pm
Hi,
I planned this trade
AUDCAD D1 & AUDCAD H4
What do you think?
Attached Image(s) (click to enlarge)
Click to Enlarge Name: AUDCAD_D1_2013-07-16_2247.png Size: 37 KB
Click to Enlarge Name: AUDCAD_H4_2013-07-16_2253.png Size: 37 KB
  • #504
  • Jul 16, 2013 6:26pm Jul 16, 2013 6:26pm
Hello Astronaud,

I have no experience with too many SD indicators. I use a modified version of II SupDem indicator by insanities industries sometimes. I draw my levels manually and then compare it sometimes with the automatic indicator to see if it can see other levels I don't see. I can't tell you about the other one you mentioned. My recommendation is that you learn by yourself what a SD level is and how it should look like, using the automatic indicator ONLY when you are really good at locating SD levels, not before.


Alfonso

Quoting astronaud
Could you please tell me,which indicator you find in practice to be the most accurate (relaible) for drawing SD zones? SupDem,or II_SubDemMOD_DarkBG_SolidFill?
Set and Forget supply and demand trading community
  • #505
  • Jul 16, 2013 9:36pm Jul 16, 2013 9:36pm
hello alfonso,

please tell me whats wrong with my rectangle reader? hes not painting the 4hr lines ??

kind regards
Attached Image (click to enlarge)
Click to Enlarge Name: 2013-07-17 rr.png Size: 83 KB
  • #506
  • Jul 17, 2013 1:35am Jul 17, 2013 1:35am
Hello Thomas!
I don't know what the problem could be The H4 lines are painted IF the H4 trendline settings are set to true and TL set to 1 at least. The ACTIVE input has to be true as well, but I see the D1 TL are painted as well so ACTIVE should be true.

This is the first time that I see this problem, I've tested and used it for months without this issue, not only me but other people. Did it ever pain the H4 TL before?

Alfonso

Quoting astock
hello alfonso, please tell me whats wrong with my rectangle reader? hes not painting the 4hr lines ?? kind regards {image}
Set and Forget supply and demand trading community
  • #507
  • Jul 17, 2013 2:22am Jul 17, 2013 2:22am
Quoting panoramia
Hello Thomas! I don't know what the problem could be The H4 lines are painted IF the H4 trendline settings are set to true and TL set to 1 at least. The ACTIVE input has to be true as well, but I see the D1 TL are painted as well so ACTIVE should be true. This is the first time that I see this problem, I've tested and used it for months without this issue, not only me but other people. Did it ever pain the H4 TL before? Alfonso {quote}
Hi Alfonso,

I do have the same problem, H4 ist not showing trendlines on lower timeframes

edit: it is funny, some will be shown and some not..??
  • #508
  • Jul 17, 2013 2:25am Jul 17, 2013 2:25am
Just a reminder to everybody that today at NY Open the second supply and demand webinar will be held. It will last approximately.

Those who sent me email for the first webinar and today's second don't need to send it again.

- Have your questions and possible setups ready, not only entry price but reason why you are selling or buying at that SD level

I will cover how to score a level and go through the Q&A and then we'll try to find some setups!

Alfonso
Set and Forget supply and demand trading community
  • #509
  • Jul 17, 2013 2:31am Jul 17, 2013 2:31am
This is the indicator I'm using, it's been working since the very beginning. I just don't know what it could be going on. I have it running on several brokers on my desktop, as well as my VPS, and others some friends I know have no problem at all. I just don't know what the problem can be.

There is no secret to how settings work. ACTIVE input should be set to True though. Please try to attached indicator and the settings seen in the screenshot. I've just tested on a clean MT installation with no other extra indicator other, just this one, and it works.

Forex Lion: what do you mean with "it is funny, some will be shown and some not..??"
H4_lines_number = 1 by default will locate 1 H4 level above and 1 H4 level below current price. No more trendlines will be painted on other H4 levels, unless you change it to 2, 3 or more. If price is within a demand level, then the upper supply level will not be painted because it will consider lower demand level and previous level and current h4 level as the supply level. It's difficult to fix that, but trendlines are being painted based on those parameters.

Alfonso

Quoting Forex Lion
{quote} Hi Alfonso, I do have the same problem, H4 ist not showing trendlines on lower timeframes edit: it is funny, some will be shown and some not..??
Attached Images
Attached File(s)
File Type: ex4 RectangleReader.ex4   21 KB | 761 downloads
Set and Forget supply and demand trading community
  • #510
  • Jul 17, 2013 2:56am Jul 17, 2013 2:56am
I have 3 limit orders on AUDJPY. 2 x short orders within the D1 supply area. Both levels are drilled down because by risk tolerance is not that high. Both supply levels have a strong imbalance and are within a higher timeframe supply area.

A long order at a H4 demand level, which will be valid unless D1 supply is hit, it will be cancelled if that happens or the H4 Trendline is broken solidly with a full H4 OCHL candle (that would mean that price is taking a lot of time reaching it).

Attached Image (click to enlarge)
Click to Enlarge Name: audjpy_h4.png Size: 149 KB


I also have a limit buy order much lower at the WK demand area extreme. It's a D1 demand level at the WK distal line.
The D1 speedbump demand right above it, could work again but it would be the 3rd touch, I won't set & forget in such a level, however if price reacts strongly from it creating brand new H1 demand levels, I will give it a try.

Attached Image (click to enlarge)
Click to Enlarge Name: audjpy_d1.png Size: 142 KB
Set and Forget supply and demand trading community
  • #511
  • Jul 17, 2013 4:27am Jul 17, 2013 4:27am
Hi Alfonso and all of the members.
Any thoughts on this 4H demand level on USDCHF. It is right on top of daily demand and it is fresh and original. Also not to wide.

Attached Image (click to enlarge)
Click to Enlarge Name: ScreenHunter_08 Jul. 17 11.21.jpg Size: 128 KB


Thanks and looking forward todays webinar.
Every accomplisment starts with decision to try.
  • #512
  • Jul 17, 2013 5:12am Jul 17, 2013 5:12am
Hello Jasmina!

Thanks for your chart. I do have myself a limit buy order on a H4 demand level, but one higher than yours.
There is a first D1 zone we found on the way down, a speedbump demand. My H4 long order is within the first D1 demand area.

There is a second D1 demand speedbump right below but departure was not that good. There is a nice H4 demand level there which is the one Larra mentioned.

Price is at 50% on the weekly chart now, diddle in the middle. It could go either way, but I want to try that H4 demand level at the D1 demand speedbump. Price is too low in the D1 curve to sell, I wouldn't sell against a D1 demand speedbump, too late now.

Quoting larra
Hi Alfonso and all of the members. Any thoughts on this 4H demand level on USDCHF. It is right on top of daily demand and it is fresh and original. Also not to wide. {image} Thanks and looking forward todays webinar.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: usdchf_h4.png Size: 146 KB
Click to Enlarge Name: usdchf_d1.png Size: 131 KB
Set and Forget supply and demand trading community
  • #513
  • Jul 17, 2013 5:27am Jul 17, 2013 5:27am
Hi everybody,

I'm glad I can share with you my 100% first positive trade. It was on the USD/JPY H4 supply level, selling after trendline was broken . The higher time frames looked well because this supply area were over proximal line of D1 supply level.

I post the chart with the areas marked. My exit was when price get to the 3:1 R/R level. I hesitate about if I should leave price running but I thought it was better in this case close it. Price was arriving to support level, maybe demand area as well...

Thanks for yor support Alfonso!

http://content.screencast.com/users/...07-17_1207.png
  • #514
  • Jul 17, 2013 5:38am Jul 17, 2013 5:38am
Quoting forexdaist
Hi everybody, I'm glad I can share with you my 100% first positive trade. It was on the USD/JPY H4 supply level, selling after trendline was broken . The higher time frames looked well because this supply area were over proximal line of D1 supply level. I post the chart with the areas marked. My exit was when price get to the 3:1 R/R level. I hesitate about if I should leave price running but I thought it was better in this case close it. Price was arriving to support level, maybe demand area as well... Thanks for yor support Alfonso! {image}
Great, nice trade!!!
  • #515
  • Jul 17, 2013 6:00am Jul 17, 2013 6:00am
Hi Alfonso,
Regarding USDCHF,the trend is clearly down and on H1 TF we can see one supply area.So is it good to take a short trade from that supply area ?

Attached Image (click to enlarge)
Click to Enlarge Name: 1.png Size: 33 KB
  • #516
  • Jul 17, 2013 6:05am Jul 17, 2013 6:05am
Hi George,

That H1 could work, of course.

Trading Supply and Demand is all about buying low near or at higher timeframe demand, and selling high near or at higher timeframe supply.

Now take a look at the D1 chart. Are we high or low in the D1 curve? Are we closer to D1 demand or to D1 supply?

We're at D1 demand, too low, no short trade for me then. Those are my rules. There will be many times that those levels work, but they are not higher odds.
Remember that this is just the way I look at it, strictly taking into account SD methodology.

Where does a trend tend to finnish? Where do we expect turning points?
At higher timeframe supply and demand areas, price has higher odds of being a turning point

Hope that helps!
Alfonso



Quoting negi_29
Hi Alfonso, Regarding USDCHF,the trend is clearly down and on H1 TF we can see one supply area.So is it good to take a short trade from that supply area ? {image}
Set and Forget supply and demand trading community
  • #517
  • Jul 17, 2013 6:15am Jul 17, 2013 6:15am
Quoting panoramia
Hi George, That H1 could work, of course. Trading Supply and Demand is all about buying low near or at higher timeframe demand, and selling high near or at higher timeframe supply. Now take a look at the D1 chart. Are we high or low in the D1 curve? Are we closer to D1 demand or to D1 supply? We're at D1 demand, too low, no short trade for me then. Those are my rules. There will be many times that those levels work, but they are not higher odds. Remember that this is just the way I look at it, strictly taking into account SD methodology. Where does...
Thanks Alfonso,need to clear some more...will shoot those things during webinar....
  • #518
  • Jul 17, 2013 7:06am Jul 17, 2013 7:06am
This is my audchf 4hour chart , i found a good fresh demand label . oh! i am trying to upload my chart but i cant upload. when i click attach files , its refer me to forex factory home page.
  • #519
  • Jul 17, 2013 7:34am Jul 17, 2013 7:34am
sorry,
i closed the mt4 and opened it again. suddenly all the lines were painted.


Quoting Forex Lion
{quote} Hi Alfonso, I do have the same problem, H4 ist not showing trendlines on lower timeframes edit: it is funny, some will be shown and some not..??
  • #520
  • Edited 8:58am Jul 17, 2013 8:12am | Edited 8:58am
Hi Alfonso,
Today, i entered the webinar at 13H00 GMT and i find you started at 12H00 GMT.
The same thing has happened to me for the first Webinar.
I always miss you by 1 hour. Fortunately, the webinar is recorded.
Am I wrong with these stuff or what?
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