As one of the rules of my strategy, partial is initial for me. As important as entry & exit rules, and also supply & demand.
- #62
- Dec 13, 2018 4:39pm Dec 13, 2018 4:39pm
Flip as we commonly known in technical trading as a shift from having more long positions to having more short positions, or vice versa. An interesting point/area where the price likely heading. Its more as a target but not really advise as an entry although sometimes it looks good for an entry.
[quote=genghistar;11730345]
Although classified instinctive I thought the charts were fully rule based as they all followed (apart from 3 which was suspect and hence failed) visual rules obviously learnt from experience, in this case instinctive implies fluency nice trading LuckyMind happy pips 
Pho
I tried to find most obvious examples. Also S/D zones in this cases i draw instinctively {image} {image} {image} {image} {image} {image} {image} {image} {image} {image}[/quote Accordingly to my knowledge SD or RS cannot be drawn instinctively. Those levels MUST be defined precisely on how and where they are. Anything else means that the trading methodology is still not robust enough for one to beat the market with consistent success and profitability. My first and final post in this thread and Happy trading.....
Pho
- #67
- Dec 16, 2018 12:18pm Dec 16, 2018 12:18pm
- Joined Aug 2009 | Status: Reading the TAPE | 2,389 Posts
S/D (I call it S/R, assuming we are talking the same thing) for me are price levels where price direction has turned on more than one occasion, i.e. where the balance of buyers to sellers has changed according to the price record. I don't code but once you have a clear definition such as this, I'd imagine coding it wouldn't be an impossibility.......
Supply/Demand is not the same as Support/Resistance. Supply/Demand Zones represent areas where there is an overwhelming amount of unfilled orders. Long orders in the case of a Demand Zone, and short orders in the case of a Supply Zone. In a Demand Zone, for example, price moves down into the zone and the amount of resting long orders swamp any sell orders and price turns. BUT not all the resting long order where filled. Accordingly, the next time price enters this area (zone) the remaining longs should swamp the shorts again Note the true definition of a Supply/Demand Zone necessarily means the zone can't "flip". Unlike S/R where reversing polarity happens often.
Supply/Demand Zones are not merely created at Swing highs and lows either. They are the manifestation of an imbalance in the orders present at certain price levels.
I prefer to use Supply/Demand Delta Zones, which is a misnomer based on the above definition. Although they are based on key changes in the supply/demand dynamics in the market, they are not necessarily representations of areas of unfilled orders. Rather areas of likely big boy participation (as they were previously active in that area). A better name would be "Entry Signal Zones".
Of course, while the definitions are different, the areas (or zones) of interest can, and often, will be the same. Take a look at the picture below.
compared to
https://www.forexfactory.com/showthr...7#post11799577
Without VSA, you're playing checkers while the Smart Money plays chess.