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Attachments: Supply and demand in a nutshell by Alfonso Moreno
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Supply and demand in a nutshell by Alfonso Moreno

Quoting Bernhard
{quote} you are a strong teacher but a good one. I am teacher too but music. I need see charts pictures, that's the kind I learn and understand. You posted in post one this pic. Is the entry on first level or must I wait h4 break its h4 trendline or h4 zone, and entry is at second level? So entry 1 or entry 2? (as entry 2 is not anymore in D1 zone) thank you for your patient answers! {image}
Entry 2 was valid because it took out opposing H4 demand. Entry 1 would have been valid on Daily if daily and weekly were in a downtrend, entry would have been the full D1 supply.

Hope it makes sense.
Cheers,
Alfonso
Set and Forget supply and demand trading community
Quoting panoramia
{quote} Entry 2 was valid because it took out opposing H4 demand. Entry 1 would have been valid on Daily if daily and weekly were in a downtrend, entry would have been the full D1 supply. Hope it makes sense. Cheers, Alfonso
OK thank you for answer!, understood. To make it clear, you say if daily and weekly were in a downtrend but does that mean not automatically the D1 zone is fresh?
So does it make sense to use entry 1 instead of a valid set and forget if I like to be more sure (less experience) or missed the trade or if the zone is very big?
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Quoting panoramia
{quote} Correct trendline is always the last one, the one that created the latest 2 valleys or peaks. The descending one is the valid one then. Cheers, Alfonso

why descending is the latest one, doesnt its the ascending one is latest?
Quoting Solomon1a
{quote} why descending is the latest one, doesnt its the ascending one is latest?
What happened first? The drop or the rally?
Cheers,
Alfonso
Set and Forget supply and demand trading community
Quoting Bernhard
{quote} OK thank you for answer!, understood. To make it clear, you say if daily and weekly were in a downtrend but does that mean not automatically the D1 zone is fresh? So does it make sense to use entry 1 instead of a valid set and forget if I like to be more sure (less experience) or missed the trade or if the zone is very big?
The valid entry in a WK/D1 dowtrend supply/demand scenario would be shorting the Daily supply imbalance or nested H4 supply zones within that Daily supply zone. Else brand new H4 supply zone as in the chart.

Clearer now Bernhard?
Cheers,
Alfonso
Set and Forget supply and demand trading community
Quoting panoramia
{quote} Correct trendline is always the last one, the one that created the latest 2 valleys or peaks. The descending one is the valid one then. Cheers, Alfonso
Thanks for that reply Alfonso. Thats of great help to me!
Hi Alfonso & the team

I need clarity/comments/feedback on the levels I have drawn. I only drawn them on daily chart( and excluded weekly and monthly levels for now), I want to see if I have understood the rules very well.

Red arrow: The area is a compression and I didnt know how to draw the levels correctly, so I included all basing areas( maximum of 5 basing cadles ). The area didnt remove any supply zone, so used the area so that I can draw an ascending trend line.

Yellow arrow: I drew the demand area to indicate that price removed the highest area price ( on the left) and I drew an ascending trendline.
Now price went down and finally broke the ascending trendline( marked with Magenta circle) with full candle and I drew the supply zone. Am I correct to say the blue trend line should not be there( drawn) as rules for two descending obvious peaks was not met?

Am I correct to say price is ranging in this time frame( neither up or down)?

Kind Regards

Abzozo
Attached Image (click to enlarge)
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Quoting Abzozo1
Hi Alfonso & the team I need clarity/comments/feedback on the levels I have drawn. I only drawn them on daily chart( and excluded weekly and monthly levels for now), I want to see if I have understood the rules very well. Red arrow: The area is a compression and I didnt know how to draw the levels correctly, so I included all basing areas( maximum of 5 basing cadles ). The area didnt remove any supply zone, so used the area so that I can draw an ascending trend line. Yellow arrow: I drew the demand area to indicate that price removed the highest...
Price is ranging now on that timeframe. Neither of those 2 trendlines are valid my friend. There is a new one that connect latest 2 valleys, you didn't draw that one
Cheers,
Alfonso
Set and Forget supply and demand trading community
Ahh, thanks maestro!!
Quoting panoramia
{quote} What happened first? The drop or the rally? Cheers, Alfonso
first was drop and recent is also drop
What do you think of this Alfonso. Marks are on the chart.
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Hi Alfonso,

I don't always understand the interaction of the different timeframes. What has to happen on the higher timeframe and where should we be to find trade opportunities on the lower timeframe? For example, if a demand zone has broken an opposing zone on the higher timeframe, price could start a downtrend on the lower timeframe; or sometime it will continue to go higher on lower tf and we can take all demand zones.

I often see that some of the best trades would have occured after the trendline was actually broken. But I can hardly find a setup before the trendline is broken. I must be doing something wrong.

In the first post, you have written that a trendline is no more valid when price has reached an higher timeframe zone. In one of your video, you show an example where a descending trendline is broken and then price reaches a higher timeframe supply zone. So a nested zone in that supply zone is tradable, because the trendline is invalidated.

I never understood it like that :-) I thought that if we have a descending trendline and price is reaching a higher timeframe demand, the trendline is no more valid. Is this also the case?

Cheers,
Daniel
Quoting Stockguy
What do you think of this Alfonso. Marks are on the chart. {image} {image} {image} {image}
the higher D1 demand: what supply it has taken out?
Scan all 28 Forex pairs with ONE chart... Currency Strength28 Indicators
Hi Alfonso,

If the daily is consolidating and the weekly is up, and I want to trade on H4 timeframe. What should I wait for? Can I take both shorts and longs? Do we have to wait for confirmation for both shorts and longs?

I don't know what to do on GBPJPY.

The monthly trend is up, and we are in the middle of the curve.

Attached Image (click to enlarge)
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The weekly trend is up and we are at a weekly demand zone.

Attached Image (click to enlarge)
Click to Enlarge Name: GBPJPYWeekly.png Size: 42 KB


On the daily, I don't know how to analyse the price action. Are we in an up trend, because of the two higher highs?
Price has closed below a daily demand zone, but now price is above that broken demand zone.

Can we go long on the H4 timeframe?

Attached Image (click to enlarge)
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At this demand zone we cannot go long, because the trendline has been broken and that demand zone is not nested in a daily demand zone. So we should at least wait for the demand zone below, which is nested in the daily demand.

Attached Image (click to enlarge)
Click to Enlarge Name: GBPJPYDaily.png Size: 49 KB




Cheers,
Daniel
Quoting Bernhard
{quote} the higher D1 demand: what supply it has taken out?
Hey Burnhard. You ask a good question as this is one I have asked myself before. Although there is no supply on the left where you are probably looking. Price did take out that high I have marked. I have seen Alfonso use this same type of analysis so I am assuming its correct. I guess we should wait and see what he says.

Stockguy
Attached Image (click to enlarge)
Click to Enlarge Name: Burnhard.png Size: 142 KB
Quoting Bernhard
{quote} OK thank you for answer!, understood. To make it clear, you say if daily and weekly were in a downtrend but does that mean not automatically the D1 zone is fresh? So does it make sense to use entry 1 instead of a valid set and forget if I like to be more sure (less experience) or missed the trade or if the zone is very big?
Freshness of a zones DOES NOT depend on the trend of the timeframe where the imbalance has been detected or the trend of other timeframes. That is not part of the rules at all. Freshness is a property of a zone, trend is a property of a timeframe, nothing to do with each other. There are rules for all that.

Cheers,
Alfonso
Set and Forget supply and demand trading community
Quoting Stockguy
{quote} Hey Burnhard. You ask a good question as this is one I have asked myself before. Although there is no supply on the left where you are probably looking. Price did take out that high I have marked. I have seen Alfonso use this same type of analysis so I am assuming its correct. I guess we should wait and see what he says. Stockguy {image}
Quoting dvarrin
Hi Alfonso, If the daily is consolidating and the weekly is up, and I want to trade on H4 timeframe. What should I wait for? Can I take both shorts and longs? Do we have to wait for confirmation for both shorts and longs? I don't know what to do on GBPJPY. The monthly trend is up, and we are in the middle of the curve. {image} The weekly trend is up and we are at a weekly demand zone. {image} On the daily, I don't know how to analyse the price action. Are we in an up trend, because of the two higher highs? Price has closed below a daily demand zone, but now price is above that broken demand zone. Can we go long on the H4 timeframe? {image} At this demand zone we cannot go long, because the trendline has been broken and that demand zone is not nested in a daily demand zone. So we should at least wait for the demand zone below, which is nested in the daily demand. {image} Cheers, Daniel
D1 demand zone on GBPJPY invalid. Weekly supply is in control, shorts bias! Take a look at your weekly chart and you will see what I mean. A bigger timeframe normally wins over a smaller timeframe.

Cheers,
Alfonso
Set and Forget supply and demand trading community
Quoting Solomon1a
{quote} why descending is the latest one, doesnt its the ascending one is latest?
Price action doesn't say that my friend. Latest rally did nothing, last drop respected trendline. Last valid trendline is down, not up.

Cheers,
Alfonso
Set and Forget supply and demand trading community
Quoting dvarrin
Hi Alfonso, I don't always understand the interaction of the different timeframes. What has to happen on the higher timeframe and where should we be to find trade opportunities on the lower timeframe? For example, if a demand zone has broken an opposing zone on the higher timeframe, price could start a downtrend on the lower timeframe; or sometime it will continue to go higher on lower tf and we can take all demand zones. I often see that some of the best trades would have occured after the trendline was actually broken. But I can hardly find a...
You must apply the realignment rules, watch the latest webinars to learn more about it. If one trendline is broken that means you can't trade in the direction of that trendline on that timeframe, you need to wait for a bigger timeframe to continue trading in the direction of the bigger picture trend. Every time there is a trendline break there is an imbalance, as per the rules. Apply all that and you may find out why you are missing trades.

Cheers,
Alfonso
Set and Forget supply and demand trading community
Quoting panoramia
{quote} {quote} D1 demand zone on GBPJPY invalid. Weekly supply is in control, shorts bias! Take a look at your weekly chart and you will see what I mean. A bigger timeframe normally wins over a smaller timeframe. Cheers, Alfonso
You are right that the weekly supply will likely take out that daily demand. If I would take a long it would only be up to that weekly level. This of course would be higher risk and high on the weekly curve. BUT, with that aside. Are you saying that this daily demand level is invalid on its own? Or is it invalid because of the weekly level? In other words put the weekly chart aside. By its self is the daily zone valid? I ask as I get a little lost on the supply/demand in control theory. Was the rest of my analysis correct?

Thanks,
Stockguy
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