Alifari's - Supply & Demand Thread

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.

H1 CHARTS - SD Zones to look for trade opportunities

1) Some SD Charts from past.....

2) Some SD Charts from past.....

3) Some SD Charts from past.....

4) Some SD Charts from past.....

GBPUSD H1 & M15 CHARTS - This is where watching multiple time frames help. We are retail traders and our own boss. We don't necessarily have to follow orders. We have to be flexible in our analysis and use common sense.

H1 chart show a wide supply zone, dropping down to M15 show us clearly where the imbalance actually occurred, so in this case I would be using M15 supply zone for my entry and stop loss.

Trade Expectancy

Trade expectancy is one of the most important aspect of trading and I firmly believe that in order to succeed in this business one should have numerous strategies under your arsenal, so that you have ample trading opportunities day in day out regardless of market condition.

Moreover, as a trader you have to master strategies which could be traded on multiple time frames, hence providing more trading opportunities.

For example, you trade 3 different strategies which provide an average 10 trades on one particular time frame. Now if you trade same strategies from M5 to Daily time frame, imagine how many trading opportunities you will have in a week.

Sure you don't have to take each and every trade and could be selective and only trade good setups and where you have better risk to reward ratio etc.


This is a post I posted in my Trading Journal in 2014. Reason for reposting is to emphasize on importance of Risk to Reward Ratio and Trade Frequency.

Supply & Demand works in every time frame. If you know what to look for, so don't get bothered what other people say that only higher time frames are profitable and there is no point in trading lower time frames. Do some back testing and decide for yourself what works best for you.

Both trades made similar R viz. about 2.5R. Minute 1 trade took around 8 minutes to do so. Weekly took around 2 weeks. As traders we give importance to risk, reward, win ratio, but one of the most important thing as a trader we tend to ignore is trade expectancies. This applies specially to us (retail traders) with limited or low capital. Think about making $50 profit after waiting for 2 weeks, how are we going to increase our capital or make a living trading that way.

EURUSD MINUTE 1 CHART

USDCAD WEEKLY CHART

I watch your thread with great interest. Some very useful information out there. Thanks for visiting my thread..........

H1 SD CHARTS - Trade opportunities

DAILY SD CHARTS

H4 SD CHARTS

DAILY SD CHARTS

Eurjpy daily & h4 charts

S&D ZONES - 11/06/2017

s&d zones - 11/06/2017 (2)

S&D Zones hit this week and reaction thereafter