Supply and demand in a nutshell by Alfonso Moreno | Page 465 | Forex Factory

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Supply and demand in a nutshell by Alfonso Moreno

  • #9,281
  • Jun 16, 2018 12:23pm Jun 16, 2018 12:23pm
Quoting Diddyy
{quote} But i thought where i drew the trendlines looked like the latest 2 valleys, almost similar to the chart you posted on june 11 2018,(where the trendline was connected to a demand zone that made a valley) but i guess am wrong i would appreciate it if you could show me on a chart..
Rules are clear about trendlines, connect latest two valleys or peaks. Do that and you should be right. Cheers, Alfonso
Set and Forget supply and demand trading community
  • #9,282
  • Jun 16, 2018 12:24pm Jun 16, 2018 12:24pm
Quoting SweetPapaya
Hello, Alfonso! Hope all is well. I was wondering if the candle marked in red in screen shot below is considered a monthly zone? Could you please give me your input. Cheers! Rihards {image}
It's not a demand zone. Cheers
Set and Forget supply and demand trading community
  • #9,283
  • Jun 16, 2018 2:04pm Jun 16, 2018 2:04pm
EURCAD forex cross pair has a clear monthly uptrend with new monthly demand levels being created and respected. Current monthly demand zone around 1.52 is in control, new daily demand levels in control. There is a clear long bias, longs at new daily and weekly demand zones on EURCAD, no reason to go short.

Watch a short supply and demand technical analyis of EURCAD

Attached Image (click to enlarge)
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Set and Forget supply and demand trading community
  • #9,284
  • Jun 19, 2018 7:48am Jun 19, 2018 7:48am
Hello bro, Thanks for such an informative thread. It has helped me a lot in my trading. However I would like to ask a question regarding the trend

Here is the monthly chart of NIFTY Index (INDIA). While analysing, the up trend line has not been broken yet, however it seems that supply has broken the latest demand low. So in such a case, what will you say that NIFTY is in downtrend or uptrend?

Only if I have to go by monthly only, should I long or short NIFTY?
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  • #9,285
  • Jun 19, 2018 8:11am Jun 19, 2018 8:11am
In the EURCAD, you posted shouldn't the trendline be drawn like this ?

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  • #9,286
  • Jun 20, 2018 4:33am Jun 20, 2018 4:33am
Quoting Tanmayagrawa
In the EURCAD, you posted shouldn't the trendline be drawn like this ? {image}
No, because your 2nd valley did not make a higher high
  • #9,287
  • Jun 20, 2018 4:36am Jun 20, 2018 4:36am
1 or 2 zone break demand zone
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  • #9,288
  • Jun 20, 2018 8:00am Jun 20, 2018 8:00am
Forex exotic EURHUFf is rallying strongly on the monthly and creating new demand with a great imbalance for potential longs. We need the month to finish to see how well this departure forms. In an uptrend demand zones are respected and supply levels are removed. Long bias right now on eurhuf as new demand is created.

Forex supply and demand trading analysis
Attached Image (click to enlarge)
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Set and Forget supply and demand trading community
  • #9,289
  • Jun 20, 2018 8:01am Jun 20, 2018 8:01am
Forex exotic EURHUF is rallying strongly on the monthly and creating new demand with a great imbalance for potential longs. We need the month to finish to see how well this departure forms. In an uptrend demand zones are respected and supply levels are removed. Long bias right now on eurhuf as new demand is created.

Forex supply and demand trading analysis
Attached Image (click to enlarge)
Click to Enlarge Name: eurhuf_demand_longs_forex-1-1024x644.png Size: 250 KB
Set and Forget supply and demand trading community
  • #9,290
  • Jun 20, 2018 8:41am Jun 20, 2018 8:41am
Quoting Tanmayagrawa
In the EURCAD, you posted shouldn't the trendline be drawn like this ? {image}
No
Live life king size !
  • #9,291
  • Jun 21, 2018 2:38am Jun 21, 2018 2:38am
We broke the ascending trendline on audjpy and created a new monthly supply imbalance above current price that could provide some nice shorting opportunities if price decides to retrace. In a downtrend supply levels are respected and demand zones are removed. If price keeps breaking ascending trendlines and removing demand zones then we clearly have a short bias on audjpy.
Attached Image (click to enlarge)
Click to Enlarge Name: audjpy_short_supply_forex-1280x1000.png Size: 419 KB
Set and Forget supply and demand trading community
  • #9,292
  • Jun 21, 2018 2:46am Jun 21, 2018 2:46am
Alfonso, why can't we draw the level from the small candle, as this is where price heavily dropped n' thats where the trendline passes ?
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  • #9,293
  • Jun 21, 2018 3:54am Jun 21, 2018 3:54am
Quoting panoramia
We broke the ascending trendline on audjpy and created a new monthly supply imbalance above current price that could provide some nice shorting opportunities if price decides to retrace. In a downtrend supply levels are respected and demand zones are removed. If price keeps breaking ascending trendlines and removing demand zones then we clearly have a short bias on audjpy. {image}
In case new supply area is created on monthly (apart from above that you marked), then we should not sell it since we have monthly demand below from 80 to 72 levels. Is my thought process correct ? Please let me know sir
  • #9,294
  • Jun 21, 2018 9:28am Jun 21, 2018 9:28am
Monthly chart is up
Weekly chart is up
Therefore on daily, I entered on the 2 demand zones formed. Both times it resulted in loss. Please help me out with this.

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  • #9,295
  • Jun 21, 2018 9:15pm Jun 21, 2018 9:15pm
Quoting Tanmayagrawa
Monthly chart is up Weekly chart is up Therefore on daily, I entered on the 2 demand zones formed. Both times it resulted in loss. Please help me out with this. {image}{image}{image}
Those are not demand zones, you are not following the rules. Besides that chart's price action is very poor, look at the huge pin candle on the left, I would never trade such an instrument. Cheers, Alfonso
Set and Forget supply and demand trading community
  • #9,296
  • Jun 21, 2018 9:19pm Jun 21, 2018 9:19pm
my try on USDJPY.
advices and guidance please

Weekly
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Daily
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H4
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Additional
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sorry if did some mistakes applying the rules.

Thank you,
Ivan
Ask, and it is given. Every single time, no exceptions.
  • #9,297
  • Jun 22, 2018 12:17am Jun 22, 2018 12:17am
Sorry that I did not follow the rules, but by reading the pdf and other info, I thought they would be the demand zones.

Please let me know why they are not demand zones and also how does it matter if i am getting a spinning top on the left side on my daily chart when later green solid candles have broken the previous high.

Thanks for the help sir
  • #9,298
  • Jun 23, 2018 6:32am Jun 23, 2018 6:32am
Hello guys...

long time no post S&D analysis, now I am going to post my analysis on EURUSD

Attached Image (click to enlarge)
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as we see the daily chart, priced broke the trendline and pullback on demand area. Actually I am late with this moment.

Attached Image (click to enlarge)
Click to Enlarge Name: EURUSDH4.png Size: 54 KB

Plan for next week, if price touch down on the H4 demand area I am going to take LONG with the target on Daily Supply on 1.20760

I want to hear from you guys...

Regards,
sonigl
  • #9,299
  • Jun 24, 2018 11:00pm Jun 24, 2018 11:00pm
Quoting Tanmayagrawa
Sorry that I did not follow the rules, but by reading the pdf and other info, I thought they would be the demand zones. Please let me know why they are not demand zones and also how does it matter if i am getting a spinning top on the left side on my daily chart when later green solid candles have broken the previous high. Thanks for the help sir
Hey T,
Other things you need to resolve before diving in are location and strength of the move. Buying into an objective SZ high on the curve is low odd.

Cheers!
  • #9,300
  • Jun 24, 2018 11:45pm Jun 24, 2018 11:45pm
Quoting jamaa
{quote} Hey T, Other things you need to resolve before diving in are location and strength of the move. Buying into an objective SZ high on the curve is low odd. Cheers!

As per my understanding where monthly, weekly and daily is up, we buy on daily demand zones. This should be a high prob setup. But in these setups, we would surely be buying on high of curve which has what happened in above trade. Don't you think so ? If not, please explain it a bit

Thanks Jamaa for your reply
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