Supply and demand in a nutshell by Alfonso Moreno | Page 434 | Forex Factory

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Supply and demand in a nutshell by Alfonso Moreno

  • #8,661
  • Jul 31, 2017 10:18am Jul 31, 2017 10:18am
Forex cross pair EURMXN hit monthly demand imbalance and created a brand new weekly demand zone that price reacted to and is now rallying. In an uptrend supply is removed and demand is respected.

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Supply and demand trading analysis and strategy
Set and Forget supply and demand trading community
  • #8,662
  • Aug 1, 2017 2:36am Aug 1, 2017 2:36am
FOXF breaking higher, longs at weekly demand and monthly demand zones around 33 and 27.50 price areas. Clear bullish bias with new demand imbalances and levels being created. There is no reason to go short in clear bullish bias, we must go long at new areas of demand since in an uptrend levels of demand are respected, bullish imbalances are created on the way up.

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Supply and demand trading analysis and strategy
Set and Forget supply and demand trading community
  • #8,663
  • Aug 5, 2017 11:53am Aug 5, 2017 11:53am
I've watched quite a few of your videos and I've read the PDF on your site. I'm now practicing and rewatching a few of your videos.

This is my attempt to do a top-down analysis (monthly-weekly-daily) on a stock. I've used different Demand/Supply colors for the different timeframes.

Monthly

  1. All time highs and demand is in control
  2. Only 1 CP pattern so far, so the trendline is still using the last 2 demand valleys

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Weekly

  1. 3 CP patterns and the trendline made from them still hasn't been broken
  2. Demand still in control

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Daily

  1. The trendline has been broken
  2. Supply zone has been created, since previous demand level has been broken
  3. Price has reached nested demand levels (weekly and daily)
  4. Since monthly/weekly are uptrend and there are no supply zones for W/M, and the last daily candlestick has reached a daily/weekly demand area it triggered a long trade

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What do you think? Thanks!
  • #8,664
  • Aug 5, 2017 12:16pm Aug 5, 2017 12:16pm
Another analysis attempt for TTWO:

Monthly

  1. Demand in control
  2. Uptrend: 3 CP, so trendline will be based on those
  3. Warning: looks very overextended

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Weekly

  1. Demand in control
  2. Uptrend

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Daily

  1. Demand in control and no supply zones have been broken
  2. Uptrend
  3. If green demand zone is broken, around 72 might be good to re-enter (there's a confluence of monthly, weekly and daily demand zones

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  • #8,665
  • Aug 5, 2017 1:10pm Aug 5, 2017 1:10pm
If it's ok to ask, I'd like to know what you think about the following chart:

  1. The first identified supply invalidades a demand created by a CP pattern
  2. The second supply in the picture invalidades the opening price demand
  3. But, there aren't any demand zones in the monthly, correct? If this is the case, then you consider that the monthly trend is down?

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However, as for the weekly, there's a demand that has been used multiple times already and it's approaching a weekly supply:

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Thanks once again!
  • #8,666
  • Aug 5, 2017 8:56pm Aug 5, 2017 8:56pm
GBPAUD Supply
This pair made a decent sized moved last week from a H4 supply zone. The zone lined up well with Support and Resistance on the Daily chart.

Daily
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H4
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  • #8,667
  • Aug 5, 2017 9:09pm Aug 5, 2017 9:09pm
EURJPY Weekly resistance + H1 supply
It was difficult to find a clear cut opportunity to buy on EURJPY. Once price reached an area of interest on the Weekly (131.15) the formation of new supply appeared evident on H1.

H1
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  • #8,668
  • Aug 6, 2017 6:44am Aug 6, 2017 6:44am
Quoting Causation
EURJPY Weekly resistance + H1 supply It was difficult to find a clear cut opportunity to buy on EURJPY. Once price reached an area of interest on the Weekly (131.15) the formation of new supply appeared evident on H1. H1 {image}
Hello there, timeframes lower than the h4 are not allowed in this thread. Can you please delete your H1 post?

Regards,
Alfonso
Set and Forget supply and demand trading community
  • #8,669
  • Aug 6, 2017 6:46am Aug 6, 2017 6:46am
Quoting tracer
If it's ok to ask, I'd like to know what you think about the following chart: The first identified supply invalidades a demand created by a CP pattern The second supply in the picture invalidades the opening price demand But, there aren't any demand zones in the monthly, correct? If this is the case, then you consider that the monthly trend is down? {image} However, as for the weekly, there's a demand that has been used multiple times already and it's approaching a weekly supply: {image} Thanks once again!
There is valid monthly demand imbalance created down there and already tested and playing out.

Cheers,
Alfonso
Set and Forget supply and demand trading community
  • #8,670
  • Aug 6, 2017 12:48pm Aug 6, 2017 12:48pm
Quoting panoramia
{quote} There is valid monthly demand imbalance created down there and already tested and playing out. Cheers, Alfonso
Gracias por su respuesta, Alfonso!

But, why is there a monthly demand in the bottom? Is it due to the following candlestick?
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If it's considered a CP pattern, I can see how it got taken out and the new demand was created.
However, in your initial post you refer that CP patterns should have at least 1 candle that is of the opposite direction/color of the trend.

Thanks once again
  • #8,671
  • Aug 7, 2017 1:59am Aug 7, 2017 1:59am
Hello my friends
This is my first time here and really great effort.. GO ON.

If one can help me i was testing on Forex tester 2 and suddenly happen that is this lack of historical data or what??
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  • #8,672
  • Aug 7, 2017 2:39am Aug 7, 2017 2:39am
Quoting vague.star
Hello my friends This is my first time here and really great effort.. GO ON. If one can help me i was testing on Forex tester 2 and suddenly happen that is this lack of historical data or what?? {image}
You should contact Forex Tester support, they will tell you what the problem could be. Never seen that on my side.
Cheers,
Alfonso
Set and Forget supply and demand trading community
  • #8,673
  • Aug 7, 2017 2:40am Aug 7, 2017 2:40am
Quoting tracer
{quote} Gracias por su respuesta, Alfonso! But, why is there a monthly demand in the bottom? Is it due to the following candlestick? {image} If it's considered a CP pattern, I can see how it got taken out and the new demand was created. However, in your initial post you refer that CP patterns should have at least 1 candle that is of the opposite direction/color of the trend. Thanks once again
De nada, un placer There is monthly demand because the last bearish trendline connecting last two peaks has been broken, new demand level has been created because of that. The candle you are pointing at is just nothing. You must read the basic rules set again, trendlines are part of the rules and you need to update them every two impulses.

Cheers,
Alfonso
Set and Forget supply and demand trading community
  • #8,674
  • Aug 7, 2017 2:44am Aug 7, 2017 2:44am
Forex cross pair GBPJPY is consolidating with supply above and demand below for potential longs and shorts. In an uptrend supply is removed and demand is respected, in a downtrend supply is respected and demand is removed.

Longs at Monthly demand, shorts at monthly supply since monthly is consolidating. In the meantime using lower timeframes to trade is the way to go, this is the big picture supply and demand analysis for monthly timeframe.

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Supply and demand trading analysis and strategy
Set and Forget supply and demand trading community
  • #8,675
  • Aug 8, 2017 1:51am Aug 8, 2017 1:51am
Forex cross pair gbpcad dropped into monthly demand and could potentially created new levels of demand and remove opposing supply on the lower timeframes. In an uptrend supply levels and are removed and demand levels and imbalances are respected. Long bias!

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Supply and demand trading analysis and strategy
Set and Forget supply and demand trading community
  • #8,676
  • Aug 8, 2017 9:34am Aug 8, 2017 9:34am
Hi Alfonso,

First of all, thanks a lot for your invaluable sharing on demand and supply trading strategy. I am a newbie in trading and thought the best way to learn would be to do home works after reading through the materials given. Here's my analysis and thought on XAUUSD:
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  • #8,677
  • Aug 8, 2017 1:40pm Aug 8, 2017 1:40pm
Quoting panoramia
{quote} De nada, un placer There is monthly demand because the last bearish trendline connecting last two peaks has been broken, new demand level has been created because of that. The candle you are pointing at is just nothing. You must read the basic rules set again, trendlines are part of the rules and you need to update them every two impulses. Cheers, Alfonso
Thank you very much for the explanation, once again! I'll review your documentation and the videos again!

Have a great day!
  • #8,678
  • Aug 8, 2017 8:14pm Aug 8, 2017 8:14pm
Hi.

I'm a bit confuse. If I want to put pending order limit for short. Which supply should be the correct one. 1 or 2.
And why.

I really need an explanation.
Thanks in advance.

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  • #8,679
  • Aug 9, 2017 2:16am Aug 9, 2017 2:16am
Quoting Remax
Hi. I'm a bit confuse. If I want to put pending order limit for short. Which supply should be the correct one. 1 or 2. And why. I really need an explanation. Thanks in advance. {image}
You've broken the rules, timeframes lower than H4 are not allowed, sorry!
Regards,
Alfonso
Set and Forget supply and demand trading community
  • #8,680
  • Aug 9, 2017 2:47am Aug 9, 2017 2:47am
Forex cross pair euraud rallied on the weekly and created new demand zones and imbalances. Potential longs could happen lower at these levels if new lower time frames zones and levels are created with equally big imbalances. In an uptrend supply is removed and demand is respected. Long bias on euraud.

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Supply and demand trading analysis and strategy
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