Menu
Sister Sites

Options

Bookmark Thread

First Page First Unread Last Page Last Post

Print Thread

Similar Threads

Supply and Demand Zones 48 replies

Price movement as a function of Supply and Demand 43 replies

Supply and demand zones and EW principles 1 reply

How Markets Work, in a Nutshell! 32 replies

Demand and Supply 1 reply

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

Supply and demand in a nutshell by Alfonso Moreno

Quoting Axlz
Alfonso, What do you think of my limit order on AUDNZD 1H? Daily supply is in control. Departure wasn't very good, but it is still valid going by our rules. {image}
In my opinion, that supply is compressed, not a good area to short, too much trading in the zone. If you analyze the level with the 6 odds enhancers, you won't get a nice score. AUDNZD is not on my list of pairs since I trade audjpy and audcad, but I loaded the charts and saw that it's MUCH better to trade higher at the D1 supply area, there are 2 nice H4 supply areas there. The H1 chart is too compressed and no real imbalance.

Just look at the H4 chart and you will see what I mean. Those 2 H4 supply areas have MUCH higher odds of working than the H1 area you have yours.

Hope that makes sense to you Axlz!
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot1.png Size: 108 KB
Set and Forget supply and demand trading community
Quoting panoramia
{quote} In my opinion, that supply is compressed, not a good area to short, too much trading in the zone. If you analyze the level with the 6 odds enhancers, you won't get a nice score. AUDNZD is not on my list of pairs since I trade audjpy and audcad, but I loaded the charts and saw that it's MUCH better to trade higher at the D1 supply area, there are 2 nice H4 supply areas there. The H1 chart is too compressed and no real imbalance. Just look at the H4 chart and you will see what I mean. Those 2 H4 supply areas have MUCGH higher odds of working...
Will do. Thanks again Alfonso!



I owe you one. You saved me and I deleted the limit order as price spiked 27 pips towards my limit order.
Quoting Axlz
{quote} Will do. Thanks again Alfonso! I owe you one. You saved me and I deleted the limit order as price spiked 27 pips towards my limit order.
One cuban Mojito will be enough for that one
Set and Forget supply and demand trading community
Quoting sebkor6
{quote} I took NASDAQ emini according to h4 supply. I can't say if the daily supply was original or not, because i couldn't look that far in the past. {image} {image}
NASDAQ as we expected.
Now, where we should place our TP order...
Attached Image (click to enlarge)
Click to Enlarge Name: #enqu3daily.png Size: 39 KB
Quoting sebkor6
{quote} NASDAQ as we expected. Now, where we should place our TP order... {image}
Congratulations on that Nasdaq e-mini short Sebastian, I am sad I am not riding it with you. My EA didn't trigger that trade, as well as the Russell 2000 index, but well, those things happen! On to next ones!

Where to place the TP? I would do one thing. I would lock in some pips, that is, move the SL above last week high (blue beads) 3126.60 and expect price to drop further to the opposing D1 demand level where I would have my TP a few points above.

Alfonso
Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot2.png Size: 114 KB
Set and Forget supply and demand trading community
Quoting Axlz
Looks like we have GBPUSD moving down again. Time to look for shorts if I see demand being taken out. Also looking for shorts on GBPCHF.
GBP is going south true the first demand zone :-)
Quoting Stefaan
{quote} GBP is going south true the first demand zone :-)
Yup. We have to be careful though. We are close to a daily demand zone.
Quoting panoramia
{quote} Congratulations on that Nasdaq e-mini short Sebastian, I am sad I am not riding it with you. My EA didn't trigger that trade, as well as the Russell 2000 index, but well, those things happen! On to next ones! Where to place the TP? I would do one thing. I would lock in some pips, that is, move the SL above last week high (blue beads) 3126.60 and expect price to drop further to the opposing D1 demand level where I would have my TP a few points above. Alfonso {image}
Thank you for answer.

On picture the right demand area.
I have noticed a big imperfection of automatic sup dem. It's a lot better to draw them manually (especially on higher timeframes).
Sometimes, because of the automatic sup dem, i am a litle bit confused.
I need a lot of practice...nothing else...
Attached Image (click to enlarge)
Click to Enlarge Name: #enqu3daily.png Size: 38 KB
Quoting Axlz
{quote} Yup. We have to be careful though. We are close to a daily demand zone.
Yep but im in the trade sins 1.57064. so i have past break even.

Now my short on USDCAD H4 is triggerd on 1.05372
Quoting sebkor6
{quote} Thank you for answer. On picture the right demand area. I have noticed a big imperfection of automatic sup dem. It's a lot better to draw them manually (especially on higher timeframes). Sometimes, because of the automatic sup dem, i am a litle bit confused. I need a lot of practice...nothing else... {image}
The automatic SD indicator can "help" you many times, but I always draw my higher timeframes and H4 supply areas manually. What I do is that sometimes I activate the auto SD indi to see what it does, but since speedbumps are not drawn by the auto SD indi and sometimes levels are not that well painted, I do that manually most of the times.

We have to know what the picture of a good SD area is, and that should be all. The auto SD indi helps, but nothing like knowing what the auto SD indi should be doing or if it's not doing it the way you expect according to your experience seeing price react to SD levels.


Alfonso
Set and Forget supply and demand trading community
Quoting panoramia
{quote} The automatic SD indicator can "help" you many times, but I always draw my higher timeframes and H4 supply areas manually. What I do is that sometimes I activate the auto SD indi to see what it does, but since speedbumps are not drawn by the auto SD indi and sometimes levels are not that well painted, I do that manually most of the times. We have to know what the picture of a good SD area is, and that should be all. The auto SD indi helps, but nothing like knowing what the auto SD indi should be doing or if it's not doing it the way you...
Hi Alfonso,

I do it the other way around for my training. I paint all zones manually and then i look wat the indicator has to show for.

Thx 4 everything Alfonso
Quoting Stefaan
{quote} Hi Alfonso, I do it the other way around for my training. I paint all zones manually and then i look wat the indicator has to show for. Thx 4 everything Alfonso
Yes, that's what I said as well Stefaan I always draw my H4 and higher timeframe SD areas manually and then I see what the auto SD has to say sometimes. There is nothing like understanding what a SD level is, the odds enhancers can help a lot.

Thank you for contributing to the thread and sharing your setups!
Alfonso
Set and Forget supply and demand trading community
This is my next trade that is triggerd on USDCAD H4

Attached Image (click to enlarge)
Click to Enlarge Name: 2013-08-27_SWA_USDCAD_H4.png Size: 43 KB
Quoting Stefaan
This is my next trade that is triggerd on USDCAD H4 {image}
looking for this too, but my level is a bitt higher, at 1.0547
Attached Image (click to enlarge)
Click to Enlarge Name: usdcadh4.png Size: 45 KB
Quoting sebkor6
{quote} looking for this too, but my level is a bitt higher, at 1.0547 {image}
That is where my level is, too.

But I'm not sure I want to go short on USDCAD at the moment. It doesn't seem to have any clear direction and is consolidating.
Quoting sebkor6
{quote} looking for this too, but my level is a bitt higher, at 1.0547 {image}
Yes i painted my zone bigger. because i always mis the tyrigger level. I think its something with my broker i dont now yet. And then my wiggle room. Your zone is correct.
Quoting Axlz
{quote} That is where my level is, too. But I'm not sure I want to go short on USDCAD at the moment. It doesn't seem to have any clear direction and is consolidating.
Yes you can be wright. My entrys are always to soon :-)
Most of the time i am caught in the consolidations. Thats because a have not enough experience.
Im working on it :-)
Quoting Stefaan
{quote} Yes you can be wright. My entrys are always to soon :-) Most of the time i am caught in the consolidations. Thats because a have not enough experience. Im working on it :-)
Don't worry my friend. I am a newbie too!

We will all learn from each other.
Quoting panoramia
{quote} Hi Ash! I've been working very hard lately doing lots of forward testing and backtesting, and yes it's better not to move stop loss to breakeven too soon when you are in higher timeframe areas and you expect a nice bounce or reversal, 4-5 to 1 would be ideal or when an important opposing area has been taken out. Price needs breathing room. The only thing that stops most of us from doing it is the false feeling that we're safer with a breakeven and the fear to losing the trade... but then see what happens. In September I will be adding some...

Hi Alphonso,

I had given up on demand supply, but listening to you , I feel has given me hope this can work. I agree , follow your plan, get stopped out several times, only have a win rate of 40-50%, and make sure we will ATLEAST 3:1 . Leave your ego on the backburner!!

On average what are your stop sizes?

When you say on gold you will only take confirmation trade, does that mean you will wait on the 4 hour for a lower low to form and then a pull back into the 1hour level. Just a little confused.

You really have this thread very active, its amazing how you manage to reply to everyone, Respect to you, Muchos Gracias(not good at espaniol)
Hi Guys and dolls,

I have put in an othter pending order long on NZDUSD H4

Its closing in

Grtz Stefaan

Attached Image (click to enlarge)
Click to Enlarge Name: 2013-08-27_SWA_NZDUSD_H4.png Size: 46 KB
1 trader viewing now