The Equilibrium, a key to success!

Hello Techanalyst,

I am very pleased that this blog brings you a lot of information and benefits, that is exactly why it was launched.

I find your idea very charming, but I should discuss these videos in English. The language is the foundation, the words that you place between the lines are decisive. Rhetoric, modulation, gestures and body language are important bases of a lecture. I was a coach for many years in financial services management, but in my mother tongue. It takes some time to do these videos as I would in my native language. Since my sister lives in Canada, that is very helpful for me. Until then, you can gladly post your progress with pictures, I'll help you where I can.

I wish you a great day and look forward to hearing from you.

best regards

Meaningful chart images in FF post



Hello dear traders,

So that you are well prepared in the future and can post individual pictures here at Forex Factory, I would like to give you a few tips for fast image creation. I use Power Point for it, because for me it's one of the best programs for presentations. There are also free competing products, but you get Office for just $ 15 for a computer. Just have a look on the internet or on ebay.
If you do that with a high-quality graphics program, that's better of course.
If you have little experience so far, these tips might help.

Attached Image (click to enlarge)

First, you need to take a picture of the picture you want to edit in Power Point on your computer. You do not need a cell phone, just take a screenshot on the computer. The keyboard shortcut for your computer can be found on the Internet



Open Powerpoint and use Ctrl + V to paste screenprint into Power Point. I then set the slide size to (16: 9) widescreen because it is easier to read at Forex Factory.



Now you have to crop the image, there is an extra tool in Power Point. Be careful not to see your personal information, such as broker number or account information. I think this personal information is only yours.



After dragging the image to the edges, you can now add all sorts of symbols, text or lines to your personal chart to your heart's content.



When you're done, you still have to save your pictures. First, save a file as a PowerPoint presentation, then you can always change your pictures again.
To save the file as images go to "Save as" and save the file under PNG. Although there are synonymous jpg, but the file is synonymous of the resolution too low, since it is heavily compressed. The bmp file is very high on the resolution but also in storage. The best memory performance ratio for me has the PNG file, it is high in resolution and requires less memory than the. Bmp file. However, the opinions differ here, so try what you get along the best. Watch where you save the file so you can find it later.



So the picture is ready now and you can upload it to Forex Factory with your explanation. However, I made an extra mistake here, if you enlarge the picture, do you see that I have badly cut 3 edges, so look at the pictures again, before you publish them.

This image should be considered as an example only, so it needs no explanation here.

I hope I was able to help you just a little bit.

Good luck
best regards

Demand outweighed the offer?


Hello dear traders,





If we look at the chart of the EURUSD in the hourly chart, we have to ask ourselves, at what time the demand outweighed the supply?
Here we find two areas where demand has dominated the supply. These areas can raise the price slightly. The lower green price line is clearer for a price up, let's see how far the price comes back. For this you have to switch back to a smaller time window to analyze the more accurate.

I wish you much success today

An example of the tricks of high frequency traders



Hello dear traders,



Yesterday you received a report about the tricks of the high-frequency traders. A high impact member Nicholishen, an outstanding and creative programmer from Florida (I can only recommend the Breakers Palm Beach) has posted a great video about it.

There you can see at the beginning how the big players are leading you astray. In the USDCAD the price suddenly goes down by 20 pip and then upwards by 100 pip as if by magic. All who were hoping for a trend upwards and did not take into account at least a 25 pip stop were kicked out.





If you want to work with this indicator, please note that this works only with ECN brokers with very active tick data feeds such as IG Markets and some others.

Information about it you get on the side of Nicholishen.

Many thanks to Nicholishen for this impressive example

Good luck to you.

best regards

Hello skillandfx,

Welcome to our blog. I would be very happy if all participants can contribute to your success here. In addition, you also get a lot of information about resistance and support in the subscriber I linked.

I wish you great success

best regards

Hello dear traders,


Here are some comments on the EURUSD.



Here is one possible scenario. Of course I can not look to the future, but only orientate myself on the price chart.



The question arises, when the demand outweighs the supply. In circle 1, 2 and 3 you can see very nicely that the demand has dominated the supply.

Let's look at and zone 3. If the price penetrates into the upper price zone at 1.254 and accepts this zone as resistance, strong bullish momentum could be expected thereafter. This Zone 3 has now been launched for the first time and we have to wait and see how strong this momentum is going to be. When the course is heavily rejected on the way up, I see the next Zone 2 as the target. This is a strong zone where demand has clearly dominated supply.

From Zone 1, total momentum was from 1.194 to 1.254. From here at the latest, the price could make it back up to 1.254 and through big buy limit orders, which are up there higher heights.

That's pure theory and I do not recommend you to trade it. This is a rough sketch that now needs to be watched in smaller timeframes. For sure everything will be different.

It is important to first create a possible plan and then to improve it within the course. I do not know where in the future the POC arise, so it is only roughly possible to sketch such a view.

But who does not know where he wants, will never arrive there.

Look at where supply dominates demand and where demand dominates supply. That gives a little overview.

In this sense

Good luck with trading
best regards

Hello Nicholishen,

Thanks a lot for the help, exactly this video I meant.

Greetings Michael

When will long-term demand dominate supply in EURUSD again?


Dear Traders,


How to identify key resistance and support zones from past courses is, in principle, quite simple. Two questions should be asked. When does demand dominate the supply = price rises and when does supply dominate demand = price falls. In between is the equilibrium or the POC.



In the monthly chart from 1971 to 2017 you can see the dominance of supply and demand very nicely. On closer inspection, you will notice that this dominance often takes place at recurring price levels.



Between 1979 and 1990 there was a strong dominance of supply and demand twice. There I drew a brown line.



Also from 1996 to 2007, where demand dominated supply more strongly. (green line)



In the same period I have drawn a blue line, you can see very well in the weekly chart the POC.

Attached Image (click to enlarge)

From 1998 to 2008 you can also see very well the Equilibrium with subsequent sale and then with a stronger price increase. The lines drawn in the past have already reacted to the price entry several times. There I have drawn a red line.




The last line I derived from the years 2004 to 2014. Again, the already drawn lines respond well. I marked this spot with a purple line.



The lines drawn so far set the framework for the last 4 years. It looks very nice, only when the price in December 2016 has entered the line, demand dominated the supply. That's why the course did not go well beyond the blue line.

Now the strong resistance of 1.25 has pushed the price down. We have marked the possible turning point with the red line. We now have to refine this line and look at the price within the yellow box.



In the 15 minute chart you can see two decisive gap. I have marked this zone and refined it with the blue lines.



This is the picture in the 4 H. Here you can see very well in the right circle which strong momentum prevails at this price level after a POC.
This zone is set for me. Since I expect a bullish annual candle this year, for me the price between 1.207 and 1.990 is the lowest point reached this year. I expect the price enter the zone in February or March, though that could happen later. When the price of this zone exceeds 1.25, the bulls will take the helm.

This is my own opinion and as you know, man is wrong every day. However, looking closer, there seems to be a lot on the POC. The most important thing is to see if supply or demand dominates. For this I have to work in smaller timeframes and watch how the course responds in or on my zone. This increases the probability of profit. And that is exactly what is important. The chance to improve in my favor.

I wish you a great successful Friday.

best regards

Lovely work Bionics,thank you.I hope people appreciate your efforts.

Hello mallee,

thank you for the kind words, I am very pleased that you appreciate this work. Most of all I would be glad if you can draw a profitable trade from it. Many traders have already signaled to me that they can implement this information very well for themselves. There may be some traders who can not help it, but that's fine. They have their own system and that may be more successful than the way I trade. There are many very good traders here, the goal is to find your own trading style. Once you get it right: the fewer traders that implement my trading style, the more likely I will reach my target. Because if everyone knows that it goes up, many will drop out earlier and that provides a faster for falling courses.

I wish you a successful day

Kind regards

hello bionik, thank you very much for this very informative article.
question: could it be that an equilibrium arises in this area?
I'm learning and still unsure

I would say it is here.

Hello skipper,

I'll try to answer your question in more detail.



As you have correctly recognized, an equilibrium has been formed in the last 44 hours. In Equilibrium I would not trade as a long-term trader. As a scalper, this is a paradise, as the fluctuations are up to 70 pip. If you look at the left side of the picture, you will also see a pronounced equilibrium there. This means that the market is uncertain here. There is a strong resistance line above the newly formed POC. Bold buyers must be found. Even if it should go up, supply is dominating and not demand. As I already wrote I expect that the course will turn back upwards at the latest between 1.207 and 1.199. Until then, the offer dominates. The course failed in the 1.25 range. Let's take another look at the 4H chart.



The course has tried several times to break the 1.254 and failed. From the first purple box dominated the offer. Although the course came up again, then it went into the basement. That's why I think it could be like that in the next few weeks. But that remains to be seen. If the price goes down, the yellow circle would be a strong resistance.



Here we see on 25.01. how the course first entered the 1.254 zone. He was dismissed and tried again. Here already dominated the offer and you could great take the move down.



Now an equilibrium is being created. Now you can wait in which direction the course turns, look for a POC and then trade the countertrend.

For the momentum indicator, I recommend the following settings for the Pipvalue
1M = 2, 5M = 4, 15M = 7, 30M = 9, 1H = 15, 4H = 28, D = 87, W1 = 140 and MN = 220.

Until the price decides one direction you should wait or trade a more interesting currency pair, there are some.
The CADJPY is currently facing an important resistance, and the AUDUSD as it could soon go up.
The nice thing is the POC works in all areas, except for stocks there are other values crucial.

I hope I could help something.

best regards

hello bionik,
I think I'm starting to understand

Hello Skipper13,

I thought that many years ago when I started. If you took a big step in the beginning, that's worth a lot. I like that. Now you have to work and train very intensively. There will be many setbacks, you will place a limit order and will not be picked up or your stop will be triggered because you missed something. That's why I want a separate screen for all timeframes, so I recognize the POC faster. But before you come to such thoughts, you must act proftabel. I keep my fingers crossed for you.

best regards

Took this trade in the EURUSD yesterday. the entry was on the black line and my risk was the red area and my profit was green.
One question bionik, what settings does your Momentum Indi has? I cant get mine to look like yours. The colored candles are behind the grey ones somehow.

Great post by the way. Been dealing with SUP/DEM a while now but im still a little unsure.

okay never mind, managed to get the candles correct. Had to put the chart in the background.

Hello macblack91, thank you for your nice words and welcome to our blog.

So I colored the candles dark gray and set the size of the candles in the indicator to 2 or 3. The information given in my previous post about the settings of the Pipvalue you have to change from time to time, since the momentum is sometimes stronger or weaker. I think every trader is always a bit uncertain, because no one can predict the market. And after all, it's always about your own money. I'll write a post on key help indicators this weekend, I think that can help.

Bye for now

best regards