The Equilibrium, a key to success!

Hallo all,

I really dont understand retail traders have tendency to make trading complicated. Please be aware that retail traders dont have any significant effect.
Please simplify your mind in trading. We just take a very little bit bit bit money from the market.
But take it consistantly.

Thanks and Regards,

Hello dear subscribers,


On October 26, 2018, I described a possible scenario in EURUSD.



The upwards trend from December 2016 from 1.03 to 1.255 took place in different trend sequences and strengths. The strongest trend sequence between 1.03-1.20 can be seen at point 1. Within the blue square I have drawn two resistance lines. It is very nice to see how the course at point A reacted to the upper resistance line. However, this has only brought the course to point B. Thus, the red strong zone could not be broken again. The course was strongly dismissed and ran to the point C.
The zone in which the square was drawn is a very strong demand zone. The zone 1,118 would be for me the deepest zone in which the course could run. As we are still in an uptrend, this drawn zone for me is the end of the pullback of 1.255.

Should the price move strongly down from my defined zone 1.133736 -1.13641, two more zones could be considered.

1. The course goes slightly below the zone A from then upwards (arrow Y)
2. The course runs slightly into zone D then upwards (arrow Z)

The price has now entered the second zone D and was pushed slightly upwards, but I could imagine that the price is still in the downtrend and the low of 1.12146 breaks again.



Once the price is in an uptrend, the two resistance zones A and B are crucial. Only if the course has overcome the resistance zone A, and this zone accepted as a resistance on the return would be clear for me the way to possibly overcome the 1.255.

I wish you a successful trading day

A possible trading scenario

Hello dear subscribers,

a subscriber privately asked me how to plan and execute my trades. Since I find this topic very crucial, I would like to post it here in the forum, so that all traders can benefit from it.



Here is a possible example:

At Post # 799, at 16:00 CET, I identified a resistance zone in H1 between 1.12879 and 1.12941. In the M5, I have identified the zone 1,12920, which I have given up as a sell limit order. My stop was 4.8 pip higher at 1.12968. At 1.12915 I came to the market. My guess was that the price could run to 1.12522, because there was a strong resistance zone in the M5. However, I wanted to get out a little earlier, so I took the preceding resistance zone 1,12572 as TP. At 1.12570 the TP has been triggered. 34.5 pip were reached against a risk of 5.3 pip including spread. The risk-to-reward ratio of 1: 6.5 was okay.

At 17:25 CET my sell limit order was triggered. Initially, the price went 2.5 pip down and then 13.5 pip down. After that, the price went up within the next 12 minutes and my trade was 3 pip down. Then it went first 20 Pip down. There was a pullback of 5 pip. 40 minutes later, my TP was triggered. After equilibrium, the course went down another 5 pip before continuing up the course.

If I had set my TP of 1.12522, I would not have been picked up and would have had to close the trade manually. I would have been about 5 pip worse off. Therefore one should never be too greedy and prefer to get out of a resistance zone before.

Usually, I often pull my stop in the profit when the price has gone down sharply. In this case, I did not do that because the price went up in a weak but sustainable uptrend. Therefore, there may still be some buyers who were not satisfied yet. The course had to penetrate even deeper into the resistance zone to satisfy the remaining buyers. Luckily it was the same.

Of course, the course could have run into the stop, the risk of 5.3 pip was manageable. If you only look for trades that have at least a risk-profit ratio of 1: 5 you are on the safe side. You could lose 4 out of 5 trades and still have not lost any money. If you had a success rate of only 50%, the bill would look like this.
3 x 5.3 pip loss and 3 x 34.5 pip profit = 87.6 pip gain. Provided you trade the same number of contracts. Usually I work with stops of a maximum of 4 pip, but if there is a stronger resistance zone, I'll increase the risk, but the risk-reward ratio must be right. Since I sometimes trade with higher lots, it is important for me to refine the resistance zones in the M5. This reduces the size of my stop, increasing the risk-reward ratio.
In that case, I traded the pullback within an uptrend, a downtrend within a strong uptrend. Why do I do this? Now the pullbacks often have a habit of going through relatively quickly and are easier to calculate for me.



My trade ran 137 minutes to get 34.5 pip. The uptrend before lasted 364 minutes, earning 71.7 pip. Uptrend = 0.19 pip / min, downtrend = 0.25 pip / min.
If I had traded 137 minutes in the uptrend, the average yield would have been 26 pip. That would have been 25% less revenue in the same time and a risk-profit ratio of 1: 5. The longer I am in the market, the higher the risk of being stopped out by an unpredictable breakout. Had I traded the uptrend, the risk would have been significantly larger in relation to the gain. That's why I prefer the pullbacks rather than the uptrend. Decisive, however, are the resistance zones that are determined. A strong resistance zone also brings with it a stronger pullback, so you can get a good risk-reward ratio.

The Bionic Trend Indicator gives incredibly good information on how strong the price has been in the past, which is often not visible to the naked eye through the candles. A single candle is not a clear statement, a complete trend against it. Please look the bionic strength indicator, you will discover very interesting things. If you trade the EURUSD for many years you will discover that basically the same things happen again and again. This can not be discovered with candle formations or indicators, because the course is always completely different. When a big player enters the trade, it's just about fooling the other traders, which in fact will not happen. So if you act according to what you believe you will inevitably lose.
The Bionic Trend Indicator is not an indicator to trade with and it is only an aid. But it shows you exactly what can happen next, because it shows exactly where in the market the strength and the weakness lies. And exactly this information I need to get an overview of which resistance zones can be crucial. I deliberately say "can be decisive" because there is no security in this market. And that's a good thing, because otherwise the chances of winning a lot would be much smaller. Why can a lotto person become a millionaire? Because many people lose their bets at the same time. That's the game we play. Read my post no. 699

https://www.forexfactory.com/showthr...2#post11542672

You will see that Goldman Sachs wins in 89.4% of all cases. So we know with which opponents we have to deal. And believe me Goldman Sachs does not bet on his luck, but on fooling us into something that will never happen in reality. And in that they are absolutely world champions. So, if we want to cut some of the profits out of the forex market, we have to think like the big players and then get carried away by them.
This has nothing to do with complicated trading, but one should not make that too easy. Why are over 90% of traders losing their hard earned money?
Now some are working with the standard indicators that follow the course and give information when it is already too late and others rely on their luck. A crucial point is the respective market situation, which occurs so differently that a single indicator can not help. The more indicators you use, the more information is watered down. That is why I also regularly warn against entering into trade on the basis of indicators.
If you shoot clay pigeons and are a good shooter, explain to a beginner how to shoot properly. This does not work because many factors are crucial. Weight of the clay pigeon, the speed with which the clay pigeon is shot down, weather conditions, wind conditions, light conditions, gun barrel, cartridge, respiration, and much more. A good shooter has to adapt to the situation and make his decision within milliseconds and there are no textbooks or templates, but only the experience in practice. In the forex market, we have significantly more uncertainty factors. We never know what the ultimate dealer, who is currently moving the market strongly, really wants.

That's why every seasoned trader has his own approach and strategy, and if he succeeds, he's right on. I would never question that strategy. However, it took years to build this strategy and you can not put this experience into practice right away. That means there are a lot of traders here at FF who are trading successfully. The decisive factor is that the type of trade must suit you. Once you have found your trade, you must stick to it and do not be dissuaded.

Many years ago, life insurance was a good pension plan. Many people eventually have a life insurance policy until retirement age. After 10 years, a representative found that one of these people had the worst life insurance policy. The representative gave the advice to change the insurance. Ten years later there was again an insurance that promised much more return and the person changed his insurance again. At retirement age, this person had to realize that she would have stayed better off with the worst insurances rather than always getting into the best. The costs were the deciding factor here.

And that is exactly the key point in the forex market. You will eventually have to make a decision about which trading strategy to implement. And then they have to stick with it and optimize and refine their strategy.

Then look for allies who work with you to bring this strategy forward. At some point, the envious, know-it-alls or busybodies tell you, that you are on the wrong track and have no idea. Do not let these people distract you. Maybe you are not yet the professional trader, but you are a personality and you know best what is good for you or not. Listen to your gut feeling, you done it all your lives, and if that went well, please keep it up. In this market you are the most important person and therefore you only listen to yourself. This does not mean that you should not be open to ideas, but only if it suits your personal trading style. I sincerely wish you that you always make the right decision.

I wish you a successful trading day

best regards

Bionics

Thanks for this. The only part of your approach that is still not clear to me are the "specific rules" for drawing the support/resistance lines/zones, within areas of supply/demand. Could you please enlighten us on that? Cheers

Possibilities to determine resistance zones


Hello dear Subscriber, hello dear pakeha,


Thank you for this very important and decisive question.



This blog has already introduced a number of different ways to identify resistance zones. For example:


1. Zones can be determined from an equilibrium.

2. Zones can be identified from the supply market and the demand market.

3. Zones can be determined from the overview within a chart.

4. Strong price movements up or down break through strong resistance zones.

5. Certain price levels keep coming up as resistance.

6. The Bionic Strength Indicator shows the strength of price trajectories, from which resistance zones can be derived.

7. The Bionic Chart helps identify strong zones.

8. Continuous and strong trend sequences can be used to determine resistance zones.


Here are just a few examples I've already posted in over 500 posts. I know that it is very hard to analyze all the different methods and to apply them in practice.
I have all these different methods of resistance identification in my head and often use the right method at the right time in the trade through my experience. Because the market behaves differently every time, there is no specific method that works. Therefore I try with my very elaborate projects to limit this resistance identification to the essentials.

You have to imagine this as follows. If you want to disassemble the engine of a Mercedes you need different tools for it. This is not possible with a single screwdriver and often requires special tools. Of course, the forex market is much more complicated, so you need different approaches here as well. With the 8 examples I have mentioned for the identification of resistance zones one is able to detect over 90% of the essential zones in retrospect. The problem is to recognize the zones beforehand.

Although there is a working concept that allows you to trade profitably on the Forex market, that is in my head and I do not know how it works.

Since, from my experience, I often make the right decisions as to which zone will next initiate a turnaround, I wanted to derive a function from it. To correctly calculate the derivative of a function, one must know the derivation rules. And in our case, exactly these derivation rules must first be created. A single person would take many years, so I have published this blog. When 100 subscribers look for a solution together as a single person, you get 100 times faster to your destination. It makes a difference if you need 50 years for a project or just half a year. Many subscribers who trade on this blog have already reported their successes, showing that this is a rewarding and interesting project. But we are still at the beginning and there are still a few million calculations and some 100,000 trend sequences to be analyzed to get a good step forward.

It is clear that I can not do this alone, so I ask all subscribers to get involved. This does not mean that you are involved in this project and will take advantage of it in a few years' time. The Equilibrium project, a key to success, already exists and it works. The point is to determine the future resistance zones even more precisely. And with that trend reversals can be traded right from the beginning. This blog does not contain a ready-made system where you can download an indicator or EA to become a millionaire. Take a look at all the blogs in FF, there is not a single blog offering them the holy grail.

Do you think if I had a completely finished system that I would have posted so easily? What would I have had? I'm not interested in money on the sale of systems because I earn my money with trading. The only reason I have published this blog is to get better together. I give my knowledge and they give their knowledge within our project. That saves me a lot of time and that's why I was motivated to publish this very lucrative system. Quit pro quo. One hand washes the other. That's why I hope to work together to get a little better every day. We will never reach 100%, but if you are only 10% better, thats in the forex market are worlds.

For this I once did a simple and very superficial calculation.

Your stop inclusive Spead is 5 Pip your TP is 15 Pip. If you are working with this risk-reward ratio of 1: 3 and 45% of your trades are successful, the bill looks like this for 100 trades.

55 trades loss = -275 pip
45 trades profit = 675 pip
Profit 400 pip

10% improvement

50 trades loss = -250 pip
50 trades profit = 750 pip
Profit 500 pip

Although they only improved the identification of the resistance zones by 10%, their profit has increased by 25% at the same time. This exponential increase can therefore improve your return very quickly. Concentrate on the essentials with the intention to get a little better every day. I look forward to continuing constructive cooperation with you and I am proud that you are on board.

I wish you a nice weekend

best regards

The risk reward is the challenge for us. Find the correct point for to open the trades using small stop loss not is easy.

.

Hello palpite,

I absolutely agree with you. At the beginning of my trading career I traded big stops and smaller lots. By supply and demand I was able to reduce my stops to an average of 3-4 pip in the M5. This allowed me to increase the lot size significantly. The advantage: I am only very short on the market, do not have to manage the trades for a long time and can reach my goal very quickly. However, if you want to achieve a risk-reward ratio of at least 1: 5, you do not have that much trades to choose from. My preparation for the right trades often takes longer than the trade itself. Interesting is the time from 07:00 - 11:00 CET. I often reached my goal after 2 hours. If I miss my goal, I have plenty of time to enter into other interesting trades around 13:30 CET. You should first train with minilots to keep the losses small.

best regards

When i use small stop loss, the volatility is hitting my stop loss. I'll test this tiime between 7:00 - 11:00. Thank you.

Hello palpite,

Volatility is much lower in European trading hours. Choose only strong resistance zones and work exclusively with a limit order. Place this limit order in the last third of this resistance zone with a stop of 4-5 pip. The stop should be outside this resistance zone. It may happen that your limit order is not triggered, but then you have no loss. Look at the trend reversals in the chart. In principle, you need to be able to explain each of these reversals and see where this resistance zone is coming from. This can be exercised very easily, without having to enter into a trade. If you are fit in this area you can go into trading.

I wish you a very nice weekend

Best regards

Hi bionic, how do u use 5sec chart?

Decisive Help: Bionic trend strength indicator


Hello dear subscriber, hello Jesse292,

First of all many thanks for the important question, for the 5 second chart I would like to give a detailed answer today. Basically, I act according to the principle of supply and demand. The problem I had in the past was that I often did not know how strong these supply zones or demand zones were. However, this is precisely the key point for future price development. The result was the bionic trend strength indicator, which captures precisely these crucial supply zones or demand zones with the right attitude.



Here you can see a current H1 chart in EURUSD. Now, if you try to draw the four strongest moves that have arisen within the chart, that could be the four blue arrows. But appearance is deceptive.



So the zones should have been drawn correctly, but most of us could have drawn these zones only after the course has completed its course. With the help of the Bionic trend strength indicator I was able to draw the two green zones at point A and at point B I could draw the two red zones.




Here are the two strongest moves that have taken place within this chart. I have marked the beginning and the end of the demand market at point A and marked the beginning and the end of the supply market at point B. We have now drawn four zones and now look for yourself how the course has behaved after these zones.
Of course, there are more zones, in this case they were just the two strongest zones. In the pure chart, one could not have known that. I think that's a nice example to show how the candles can deceive us. Without the information from the Bionic trend strength indicator, our resistance levels can be very inaccurate and we may lose a lot of money. For me, that was the background with the Bionic Chart and the Bionic Trend Strength Indicator to look behind the candles to identify possible reversals even easier.
The H1 chart represents the medium term trend for me, but I usually act in the M5 to trade with as small as possible stops. The smaller the stop the greater the potential risk profit ratio. Another point is crucial. The shorter the period, the more exactly I can determine possible price developments. The shorter I am in the market, the less risk I have of being stopped out by unforeseen breakouts. For this I will bring in the next few days a detailed example.

Let's get to the 5 second chart. Of course, I have already work with it, because I can reduce my stop down to 2 Pip, but I strongly advise against it. First and foremost, the 5 second chart with the Bionic trend strength indicator gives me more detailed information that I can match in the M1. Let's look at an example.



Here you can see an M1 chart. With the setting 12/6/3 I receive in about two and a half hours a total of eight information about the respective trend strength. But this information is not enough for me.



If I now reduce the setting to 4/2/1, I get 21 information about the respective trend strength in the same period. You can see in the chart that there are often the same trend strengths. This is simply because within 1 minute only one candle forms. To illustrate this trend strength, let's take a look at the 5 second chart.



Here you see the same price development only in the 5 second chart. To show the strength of the same peaks, I set the setting to 48/24/12. The indicator has been adjusted. Do not bother with the number, the trend with a larger number is stronger than a trend with a smaller number.



Now I have once compared the respective trend strength in the 5 sec chart with the trend strength in the M1.
At point A you can see four trend strengths which are displayed in the M1 at 0.8. The numbers displayed in the 5 second chart I wrote in white color about it. You can clearly see that we have different strengths here, which can not be exactly displayed in the M1 due to the coarse candle images. Similarly, we have at point B four ads in the M1 are reported with 1.0. Compare also the other values. Same values were shown with the same colors. In the 5 second chart we already have clear differences, as you can see. And those differences are sometimes crucial. For that, I like to use the 5 second chart.



Here you can see the trend strength in the 5 second chart with the setting of 24/12/6. Of course, I can increase the zoom and thus reduce the setting to 8/4/2, but suffer from the accuracy of the trend strength, as too much information must be processed.
In principle, the 5 second chart helps me to refine the Bionic trend strength information from the M1 to draw conclusions about my supply zones or demand zones. In addition, I get up to ten times more trend strength information than in the M1. And exactly this trend strength information helps me in the determination of strong supply zones or demand zones.

In my 10 minutes video (Post 791) and my 30 minutes video (Post 794), I was able to show how important this information is to draw in the right supply zones or demand zones. What at first looks like witchcraft is actually just the translation and proper interpretation of trend strength. However, even within a few seconds, you get a lot of information that you have to process and implement relatively quickly. But like everything in life, that's just a training thing.

All information that you have received so far in this blog you have to see as a kind of buffet or offer. Not all things will help you, so you have to choose exactly the things that take you further. It's all about making more concrete decisions in the shortest possible time. I am convinced that once you have found the right help, you will greatly improve your quotas. Unfortunately, I can not tell you which of my aids are best for you, but you can easily find out for yourself.

In the beginning a trader career, a trader is looking for his right system. Once you have found your system, it's about optimizing this system. My main system is supply and demand. Crucial for me was how strong or weak the supply or the demand is. This makes it easier for me to derive future price developments.

I hope that I have been able to give you more important information and I wish you a very successful trading day

best regards

Update the strongest trends

Hello dear traders,



enclosed an update of the chart of yesterday (Post 811) With a smaller setting 3/2/1 I could make another resistance, which was also started today and was dismissed by 42 pip. It is still interesting that the course is still within the zones for 4 weeks. These zones were created on 29.0ct and 7.Nov.



Let's take a look at the daily chart on the 26th and 27th of October 2017. There we find the strongest supply market since the last 3 years. I once marked this zone in red. I have drawn the beginning of this strong zone with a white line. Now look at how the course responds 7 months later. This trend is not the longest downtrend, but the strongest. The Bionic trend strength indicator helps here very effectively.



Exactly according to this principle, I have now picked out the strongest trends within the last year and drawn. This view can now be viewed in the smaller time units and optimally refine with the Bionic Trend indicator.

I wish you a nice evening.
best regards

New profile for download

Hello dear traders,

Supply zones and demand zones are not always easy to determine at the beginning of a trader career. I would like to give an example today.



On the chart you can see the EURUSD in D1 from April 2017 to today. With the aid of the Bionic starch indicator I have drawn the six strongest supply zones and in the lower section the two strongest demand zones. Now let's take a look at the four supply zones and a demand zone in the blue box.



I think that the result is very interesting. Of course, this is just a rough representation after all, we are working in the daily chart.



Here we are in the H1 chart from October 28, 2018. The lines were drawn and supplemented with the help of the bionic trend strength indicator in H1. At point A you can very well see the higher-level offer zone and at point B you can see the higher-level demand zone. Next, you can now go to the subordinate time units to determine there further resistance zones.

Slide 4

For this I have put together an individual profile consisting of four auxiliary indicators.

A This is the already known indicator that shows the individual trend strength of the course.
B This indicator is similar to the line chart only in this case it runs exclusively from high to high.
C The same indicator that only runs from low to low.
D The Bionic Chart has been inserted here.
E The Bionic Oscillator is used exclusively to quickly identify the strongest trends in the chart. After identifying the trends, you can delete it.

Slide 5

This is how the chart looks like. In the download "Bionic High Low" is the folder indicator. Please download the four indicators into your MT4. In the Profiles folder is the folder: Bionics High Low Chart. Please place this complete folder in your MT 4 Folder Profiles. Then restart your MT4 and call up the profile: Bionics High Low Chart. After that, everything would have to work.

Depending on the time unit you should vary the three ZigZag settings in the indicator.
Here are some suggestions with which I have had the best experience.

24/12/6
12/6/3
8/4/2
4/2/1
3/2/1

Please note that you should change the oscillator settings at the same time. This kind of chart presentation is very interesting because you can see the beginning of the supply or demand zones very quickly. Try it out for yourself and see if you can work with this kind of presentation.

I wish you a successful week and a nice weekend

best regards

Project No. 4 is at the start

Hello dear subscribers,

Within the current price development supply zones and demand zones are created. This will develop into a supply market or a demand market. The first challenge was to show the strength of these supply zones or demand zones with the Bionic strength Indicator. Project # 4 is about graphically displaying these zones to provide an even faster and more accurate overview. Is the trend a pullback, or is it a sustainable trend that can continue in the longer term? These questions will now be easier to answer. This new auxiliary indicator now creates completely new candles in which the supply zones and demand zones are clearly displayed. These candles are independent of time and of course vary in width.

From this it is possible to draw very interesting conclusions about future price developments.

I have already shown some graphic examples in some posts that could previously only be created manually. Now the zones are created automatically and give a very interesting picture. So that you can get a first impression, I have created an example in the 5 sec chart. However, only to show the function within a few minutes. The right mission will take place in the normal time units and bring us all a good way forward. The programmer who helped here spent a lot of hours on this project and once again thanks a lot. Take a look at the video now.



I will continue to prepare the project this week and hope to upload everything by the end of the week.

I wish you a nice evening

best regards

Hello, Bionics. Looked your thread, signed up. Very interesting topic. A non-standard approach to market research is wonderful. I suggest adding one more value to the bionic indicator. This is the change in volume from candle to candle. As a result, we will see how this value changes - increases or decreases at peaks for clarity, I calculated and drew and got this picture.
P.S.Hello, Dear Bionics. I want to offer another version . It is also an addition to the indicator. Maybe it will be interesting. Enter an additional value in the smZigZag - Bionics indicator. Calculation formula-volume / (open-close). I'll draw a screenshot later.

P.S. In and the second screenshot. Sincerely, Sergey.

[quote=DonSergion;11741811]Hello, Bionics. Looked your thread, signed up. Very interesting topic.


Hello DonSergion,

First of all, welcome to our blog and I am glad that this topic appeals to you and helps you in trading. Your idea to add a volume change to the Bionic indicator is a really great idea of you and I thank you for your creativity.

However, there is a small problem. Futures are traded on the stock market; the moment a buyer and a seller trade a certain stake, a certain volume is created. There I get worldwide correct stock market data about the price and the volume. CFD are contracts for difference traded over the counter. If you trade CFD, you trade only with the broker and not directly on the stock market. We get from the broker off-exchange data about the price. The volume we receive is the tick volume calculated by the broker. This tick volume differs significantly from the volume determined by the real stock market data. This means that we would trade with incorrect volume data. That was the reason why I have never considered the volume profile before. This is another story for futures. Of course, the prices are different, but the deviations here are not quite as extreme as the volume. Of course this depends on the respective broker.

However, the idea is very good and I will like to deal with it once, we just have to keep in mind that the volume data are partly calculated from the prices and therefore provide many false signals. The Bionic Starch Indicator is generated exclusively from the price.

Project 4, which is now in preparation, gives us important information about the key supply zones and demand zones. Although these zones are calculated from the prices, but the individual candles play often only a minor role here. If we have completed this project, I will be happy to deal with your proposal. Thank you again for this great idea, I am very glad that you have thought about how to optimize the secret of successful action for all. And that's what motivated me the most.

best wishes

It works as intended

Hello dear traders,

A few weeks ago I started to draw in the H1 zones with the help of the Bionic strength indicator. I published the chart a few days ago. A zone I had overlooked had to be adjusted later. I marked this yellow.



What motivates me here is that the Bionic strength indicator delivers very good signals that actually occur. Of course, in H1 this is only a rough representation that can be refined in the smaller time units. With the soon following project no. 4 it will be even more interesting, because I can use it to refine and optimize the zones.

I wish you a successful trading day.

Greetings

Project 4, first test passed!


Hello dear traders,

my post this morning has gone exactly as I had suspected. I got support from the Bionic stength Indicator and our new Project 4.



You see the H1 in EURUSD. At point A the course has gone down with a strength of 40.7. At point B, the price reached my line with a strength of 17.0. That was already much less than the 40.7. The price went up again and down again at 15:30 CET. The strength was now 8.6. I was not sure if the zone stops, but now it was a clear signal for me to buy. In the 5 minute chart, I waited with a buy limit order that was on my upper red resistance zone. The course came back and I ran 3 pip into the downside. Then it went up quickly. I have previously located my TP. I looked where the course that came from the top had the greatest strength. This moment I found at the point D. Here, the course had a strength of 21.6. Precisely on this resistance zone, the course has already run in from below with a strength of 21.1. That was the perfect exit zone for me. 6 pip stop and 90 pip yield in one hour was a great trade and gave me the confirmation that our project 4 works. Of course, the price went up to the next high after dropping 45 pip, but my maxim is to be as short on the market as possible.



I have checked this trade with the new indicator (Project No. 4). At the blue arrow you see an upward trend. Within this upward trend, I have now searched for the most sustainable supply zone. At points A and B you can see two zones that are about equally strong in sustainability. Point C was the confirmation later. When calculating the TP you can see at point D how the supply market comes from above and was slowed down by a sustainable demand market. That was another confirmation for me.

And now we are at exactly this point, which I see as the key to success. It's not that I got 90 pip profit, it's about having 90 pip profit from the information of my new support indicators. My basic approach is supply and demand. But so far it has been very difficult to visualize these zones. But that is exactly what we have achieved and I am pleased to introduce you to this auxiliary indicator in the next 10 days. This sub-indicator is not an entry-level trade indicator, but it gives us information that is worth the gold. Not only can we plot the supply zones and demand zones, but we can also determine their strength.

In the future this means even better trading with very small stops. And we can now concretely choose the trades that are interesting for us and that match the risk-reward ratio to us.

I will prepare some information for the next few days. Since this auxiliary indicator has only been available for a few days, it still needs to be tested and the corresponding explanations have to be created. I ask for your patience, but we now know that waiting is definitely worth it.

I wish you a nice evening.

best regards

Concrete zone determination


Hello dear subscriber,

Attached Image (click to enlarge)

attached here again an update of the zones created a few weeks ago. The course has now returned and is now in a strong supply zone. The demand zone is still a bit in the supply zone, but is not quite as strong.

It is interesting to see how exactly and how long these zones are active. The zones were determined using the Bionic strength Indicator. The concrete zones must then be refined in the smaller time units. This allows the zones to be determined more precisely.

The challenge is to determine exactly which zone is active and when.

For this I will provide an accurate explanation until today at noon with very interesting results.

best regards

Project 4 the key zones in EURUSD

Hello dear subscribers,

As I have been successfully dealing with Equilibrium for many years, my greatest desire was to make the crucial supply zones and demand zones clearly visible in the chart. The first step was the Bionic Chart, which eliminated the wicks and made the course clearer. The second step was to show the strength of the supply zones and demand zones. In the third step, I have published several auxiliary indicators in different dashboards that provide important information in the area of currency strength. The fourth step with Project 4 is now to show the supply zones and demand zones with different colors and time-independent in the chart.

The basis for this was the ZigZag indicator, which is actually completely unsuitable for deriving possible trading decisions. But he has a decisive advantage, he shows the concrete HH, HL, LL and LH of the respective course. From this one can, depending on the right attitude, make the supply zones and demand zones graphically visible. With the ZigZag indicator, only the penultimate top is up-to-date, as the price can still change. In our case, that does not matter, because I use this indicator to identify the key supply zones or demand zones. From this I can derive a possible trend reversal in the future. Thus, it is completely irrelevant whether the ZigZag indicator provides current data or not. It is crucial that the data from the penultimate top are current and thus unchangeable. The actual trading decision is made solely through the identified zones. In addition, I get from my dashboards then the specific information, if my zone is relevant.



This example clearly shows that the supply zones and demand zones are completely time-independent. Within these zones there are different trends. The numbers above or below are crucial. The smaller a number, the weaker, but more sustainable the trend. The larger the number, the stronger the trend, but less sustainable.
The strength of a trend is determined by how high a trend is within a short time. Strong and short-term trends often indicate a pullback. These strong trends are often required to break strong resistance zones. The sustainability of a trend is determined by the extent to which a trend runs over a longer period of time. If a trend goes down over a longer period of time, it means buyers have not objected within that time. And it also means that there were no major resistance zones, otherwise the course could not give way over that long time. This sustainability is a very decisive factor for me

In the Post 789 I have delivered a concrete explanation.

https://www.forexfactory.com/showthr...7#post11677547

Basically, it is crucial that the indicator does not provide trade decisions, but only the crucial zones that can then lead to a trade decision.



Here you can see a line chart in W1 from 1971 to 2018. I would now like to use three examples to identify points A, B and C using the supply and demand indicator. In order to identify a particular zone, I need a reference value for this. At point A, B and C, there is a reference value since the price has already been in this price range. The points D, E and F can also be determined, but this is much harder because there is no reference value. This slide should serve as an overview so that you always know where we are at the moment. Why is the overarching trend important when trading only in the M15 or M5? The overarching trend sets the long-term direction of the trend, and of course there may be a multi-year pullback in a long-term uptrend, but this information is crucial in identifying medium-term and short-term supply or demand zones. So it's a kind of navigation system that helps you get there faster. Let's take a look at how the supply and demand indicator helps us to identify the critical zones. Of course, this indicator is also able to identify medium-term and short-term supply zones or demand zones, but we start with just these three decisive zones, A, B and C.



We are here in 1971 in H4. An uptrend is starting and we are looking for a strongest and most sustainable zone that has taken place within this uptrend. The information from Post 789 is crucial for this. At point 1 we find what we are looking for and draw a blue zone into the future. Since this zone is 420 pip thick, we need to downsize the zone. At point A and B you can see two more uptrends entering our zone. These are resistors, which allows me to reduce the blue zone by my green lines to 230 pip. Since the course has come from above a distance of 5,700 pip, the 230 pip correspond to just 4%. Of course you can reduce the zone significantly in the smaller time units, but unfortunately my H1 is just enough for the year 2008. If you expand your history database you can spend 2 months in the M1, 1 year in the M5, 2.5 years in the M15, 5 years in the M30, 10 years in the H1 and from the H4 to 1971 go back. To determine the current zones that should be enough. We have now reduced our zone to 230 pip and now look at what happens as soon as the course from above enters our zone.



We are now in the years 1983 to 1986. The course comes from above and penetrates into our zone at point A. They recognize what happens. The price is turned up sharply and goes up 8,980 pip. Joke: Even with a stop of 230 pip that would have been a good risk-reward ratio, but that would have taken ten years. The fact is that we had already identified the possible turnaround 48 months earlier with the indicator. What does that mean in concrete terms? If there is a possible big turnaround at this zone, it means the course would have to go down by then. And that's just crucial information. How many times have we wondered if we can get on a trade before the big turnaround begins? Of course, a pullback can always occur within a trend, but we will receive this information in the future with project 4.



In 1985, we are back on the upswing and three years later, we are looking for the strongest and most sustainable zone that has taken place within this uptrend.
At point 2 we find what we are looking for and draw a blue zone into the future again. Since this zone is 520 pip thick, we need to downsize the zone. At point A and B you can see two more uptrends entering our zone. With these resistors, I can downsize the blue zone by my green lines to 220 pip. We will talk in detail about the specific localization of these zones, as the course always behaves differently. Therefore, you always have to create this identification manually and can not build an EA from it. This time the price has gone up 7,800 pip. The fact is that with the indicator we would have already identified the possible turnaround 60 months earlier. From this information we could have derived very interesting bearish trades.



In May 2000, the course at point 0 entered our blue zone for the first time. Since we have reduced our zone with the two green lines, we can assume that after a short pullback the price will continue to run downwards. After pullback, a very strong supply zone emerged at point A. I once drew this strong supply zone red. In October 2000, the course entered our zone for the first time. (Point 1). As you can see, the price was strongly but not sustainably rejected. A strong rejection always speaks first of all that the course comes back again. In fact, the course came back again and then went up strong and sustainable. It was precisely from this sustainable and strong zone that a green demand zone was drawn at point C. The next step was to watch what happens when the price enters our offer zone. Since this zone is very strong, the course would have to make a strong move upwards to get out of this zone. At point 2 that did not happen and the course went down again.

The background was that at that time the sellers were still not satisfied and pushed the price down again. The course was now up to point 3 and came once again in our zone. After that the course ran to the point 4 and on the way formed at point D a strong and sustainable upward zone. That was a good sign that the cops have slowly taken the helm. One recognizes that the offer zone was only briefly overcome at point 4 and the course went down again. The course was now heading towards point 5, returning to the strong green demand zone. Between point 4 and point E it is clear that the supply zones were significantly stronger than the demand zones. From the point B and F the demand zones were clearly in the advantage. Finally, you could see at point G, how strong the uptrend from the offer zone has come out. That was clearly the breakthrough to the uptrend. In the normal chart you would have had difficulty drawing in the green and red zones.



On the chart, it looks like the price is only rising very slowly, but that's wrong because I wanted to show as many zones as possible. As of February 2002, we were on the upswing again, and once again we are looking for the strongest and most sustainable zone that has taken place within this uptrend. At point 3 we find what we are looking for and draw a blue zone into the future again. This blue zone is only 270 pip strong this time. At points A and B, we see two more uptrends entering our blue zone. This allowed me to reduce the green resistance zone to 42 pip in H4.



In March 2015, the course entered our blue line at point A for the first time. However, he has not yet reached our identified green line. It can also be seen that after the strong downtrend a strong and sustainable green zone is formed. At point B, the course is not even in our blue zone, for us a crucial indication that the uptrend is not yet active. Finally, at the end of December 2016, the price will be in our crucial zone at point D and will be turned up. Since the strongest supply zone at point A was taken out of it and there were no other strong supply zones, we could now assume a further uptrend.



Basically, there was the problem that we had a very strong supply zone from 1.3990 - 1.0460 in the W1. This strong offer zone was taken out with the price development until 1.03 only once. After that, there was a very strong uptrend that went to 1.255. There was a very strong resistance zone that pushed the course down to 1.12140. Within the uptrend from 1.03 to 1.255 we are now looking for the strongest and most sustainable zone in H4. At point 4 we find what we are looking for and again we draw a blue zone into the future. Since this zone is 320 pip strong, we need to shrink the zone. Due to the equilibrium that developed at point A, this identification is a bit more difficult. Based on the price history and the resulting resistance, I was able to limit this zone to 30 pip. As you can see, the course has touched the zone at least briefly and has been strongly and sustainably rejected. However, the course then came back again. In any case, I strongly believe that within this blue zone the price will continue its upward trend. Maybe December could be the decisive month.



Let's go to the D1 again. The zone I've calculated for a trend reversal is between 1,11300 and 1,11600. There are several reasons for that. At point E, we see a strong but less sustainable downtrend with a magnitude of 71.7. This downtrend is not settled for me yet and the price would have to drop below the 1.12140 to see this downtrend. In Equilibrium at point D, the greatest strength in the downtrend was 35.4. This means that the strength of the downtrend has increased in this zone so far. At point A we see a very strong pullback with a strength of 516.5 that has passed through my zone. However, the decisive clue is point B. First, there was a sustained downtrend before, then a pullback up and from point B, the price went down sharply. That's exactly the lower resistance zone for me. If the price broke through this zone, a further downtrend would be expected. Another and additional point is the psychological aspect. Christmas and the New Year are just around the corner, giving you the chance to look positively into the New Year. Maybe this positive mood could affect a trend change.

Addendum in own thing:

This indicator was developed to identify supply zones and demand zones and determine their strength. This auxiliary indicator is completely new, was invented by me and developed by Georg, and I would like to thank him once again. Unfortunately, there are not many years of experience here, so here are all the information purely speculative. But those who have dealt with supply zones and demand zones recognize the advantages of this indicator. We will need this weekend to fix minor bugs and I hope to release this indicator next week. Then you can definitely take the Christmas business with you.

Of course, if you do not want to wait until next week, you can even use the Bionic Strength Indicator to draw these zones manually. This may be a bit of a hassle, but you can draw some conclusions from that.

The experiences I have made so far with this indicator are absolutely positive and I was able to optimize my zone determination. If you read through the last posts from me you will agree with me. I am convinced that the new Project 4 will be another milestone for success.

I wish you a successful trading day and I look forward to your feedback.

best regards