Example GBPUSD today. I took a sell on the H1 supply zone as price was in a Daily supply zone
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- #8,924
- Edited 9:54am Oct 7, 2020 8:41am | Edited 9:54am
Just missed a GBPUSD sell. Was waiting for the tap of the close of the green highlighted candle in H1 supply zone
GBPUSD is in a Daily Supply zone and is retesting H1 Supply zones (two in a row). Also a newly formed demand zone showed a bounce at bottom, but I was looking for sells only because of Daily Supply zone location.
This new demand zone was penetrated in a quick spike due to some news released - looked like a liquidity grab low. About a 30 pip bounce up.
Interesting AUDUSD - Left chart Monthly - The monthly timeframe could possibly be forming a supply zone.....certainly a little bearish now.
Right chart - Looking at the daily zones using H4 timeframe, I see daily supply zones being respected and the next zone being retested now. An H4 trendline is broken and a couple of H4 demand zones are invalidated.
This seems likely a move down to the daily demand zone may be coming????
Jaapi,
I have audcad marked similiar to you. Only difference is I feel the top zones are more in the weekly than daily. Remember I am not an expert. Just because our charts are different doesn't mean one is correct and the other is not. Opinions only. I am trying to learn too, so this is only my interpretations
I have audcad marked similiar to you. Only difference is I feel the top zones are more in the weekly than daily. Remember I am not an expert. Just because our charts are different doesn't mean one is correct and the other is not. Opinions only. I am trying to learn too, so this is only my interpretations
{quote} Hi Skf, good to know that. Do you think it is a valid entry? Or should the entry be closer to the m15 demand zone would be better?
Hi youngzen - if you look back at my post #8928 I took an entry there. My opinion= it was a great spot and I think your chart is perfectly marked.
When you ask if the entry should be closer, the exact entry price depends on your personal rules/strategy and risk tolerance.
For me, I usually wait for some kind of reactions at the level instead of trying to "catch the knife". In my own experiences, this works better for me and at least I'm following a market reaction. I use a larger stop and smaller lot size.
When I entered the buy, I waited for some momentum and a retest as shown below, because I had zones marked below it, I wanted the market to react before I entered. This of course is personal preference and there really is no universal right/wrong answer, except what you test and see for yourself.
- #8,939
- Oct 10, 2020 12:34am Oct 10, 2020 12:34am
- | Commercial User | Joined Jan 2016 | 2,682 Posts
Hi, Hopefully everybody is doing well. I have been practising for a while and I think I start to understand the method better and better. The hardest part for me is to recognize/determine if a zone really is a usefull zone. Could you guys help me out with the following: Is the yellow daily supply zone really a zone we consider to use and why (not)? Is the purple daily demand zone really a zone we consider to use and why (not)? Are all of the blue ellipses useful zones? If yes, How should I draw them since some of them are larger then the move away....
Welcome to T.I.O.F
Thanks for sharing your chart on the AUDCAD
If i may, i think the reason you may be having challenges identifying any good quality zones is because of the current state this chart is in.
I have attached some comments on the charts below.
The summary of it is that AUDCAD is currently in a state of balance, where the pressure of supply is equalling the effort of demand.
Zones will be much clearer in markets where these two forces are in a state of imbalance, where one side is outdoing the other.
best wishes
Be careful what you think because your thoughts run your life..Solomon