QuoteDislikedKeep your ego & emotions aside and then analyze charts and you will see it from different perspective. It doesn't matter whether you missed a trade or you win or lose. Observe price action, make your notes and prepare yourself for the next opportunity. Study every day with the aim of being better today than you were yesterday.
I have created this thread to post my Supply & Demand Charts in order to keep separate record of all my strategies, which are mentioned in my Trading Journal http://www.forexfactory.com/showthread.php?t=215394. As such separate thread will be created in future for all strategies.
The purpose of this thread is to post chart examples from past as well as upcoming setup, without giving emphasis on the outcome of a trade. The main objective is to keep practicing.
All strategies I use are analyzed on all time frames, such as from 1 Minute to Monthly. As such charts will be posted for all time frames and pairs, as time permits.
I analyze each setup based on risk to reward ratio and give no emphasis to pips earned etc. For example if I take a 1 Minute time frame setup with 5 pips stop loss and 10 pips take profit than my profit would be +2R and loss would be -1R.
Another setup taken on Daily time frame with 100 pips stop loss and 200 take profit would eventually give same outcome and profitability.
My S&D Strategy
I really don't go into all this terminology and try to keep it simple. All I look for in S&D zones are whether price left the zone with momentum and in doing so broke any support level, or price made a new lower low for sell and higher high for buy. How price is approaching the zone and whether there is enough space for a better risk to reward ratio.
After watching charts for so many years and losing hundreds of trades and trying different system, I came to realize that no matter how good our technical analysis or fundamental analysis are there are only going to be three outcome of any given trade, 1) winner 2) loser 3) breakeven and it's not about how many pips we make or what your success rate is, it's all about risk to reward ratio. When I take a trade, I know that the maximum I could lose on a trade is 1R (based on my risk) and as the trade goes in my favor I minimize my risk, while my average reward remain about 2R, so in the long run chances are I will come out ahead. That is the reason, I don't try to by extra picky on trades, some days I take 10 to 15 trades and some days none, depend on the price action and volatility. It's all about developing a system which suits you best and above all makes you money.
The purpose of knowledge is action, not knowledge