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Price Will Tell - Supply/Demand Price Action Trading 1,854 replies

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(binned per thread starter’s request) Supply and Demand, Price

Thought this looked like a nice sell, although maybe that swap zone might be troubling later.. will update how this goes. Any opinions welcome.
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Quoting kCBHk
Thought this looked like a nice sell, although maybe that swap zone might be troubling later.. will update how this goes. Any opinions welcome. {image}
Kinda worked out, see below.
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Quoting Winston Reed
{image}
Hi Winston,

Good call - looks like it hit TP if you managed to get in. Wanted to know if the demand area at the bottom you identified is the same one as the one I have marked out here?

Seems like you used candle 2 (I was looking at looking around candle 1 for demand). Any particular reason why you used 2 instead of the bigger WRB at 1, which was also the origin of the move?
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Quoting kCBHk
{quote} Hi Winston, Good call - looks like it hit TP if you managed to get in. Wanted to know if the demand area at the bottom you identified is the same one as the one I have marked out here? Seems like you used candle 2 (I was looking at looking around candle 1 for demand). Any particular reason why you used 2 instead of the bigger WRB at 1, which was also the origin of the move? {image}
I didn't get filled.

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Quoting Winston Reed
{image}
I have a couple of questions:
1.why you had a buy limit in that exact place? If you wanted to have confirmation from the zone we already had a demand bar that price tested so the current bar on your chart would be an entry (2. why not to enter on that?)
3.was there a confirmation reason you were looking for so as not to enter right away from the zone?
4. why not to draw it as a swap, from the previous wrb down bar (see my chart, the arrow pointed)? the up bars were not so significant...
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The more you learn the more you earn
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Quoting freemind
{quote} I have a couple of questions: 1.why you had a buy limit in that exact place? If you wanted to have confirmation from the zone we already had a demand bar that price tested so the current bar on your chart would be an entry (2. why not to enter on that?) 3.was there a confirmation reason you were looking for so as not to enter right away from the zone? 4. why not to draw it as a swap, from the previous wrb down bar (see my chart, the arrow pointed)? the up bars were not so significant... {image}
The blue arrow points to a WRB that took out somewhat of a shelf to the left. The shelf essentially is an area where in this case sellers seem to be defending. The WRB cleared this area and closed well above it and to me constitutes a swap if only on a bar level. This to me was potential confirmation. Any PA prior to this did not impress me. That doesn't mean that there wasn't PA that some found valuable as an entry signal. Price moved away a bit then returned to the area. My limit order was a little lower at the base of the WRB. The supply zone above provided an easy 3:1 target.
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I need to say something here about supply and demand zones. These zones can be very subjective and because of that I believe that one should be very careful about placing all their faith in them. I use WRBs as a somewhat objective indication of supply and demand and really if I could I wouldn't even call them zones. The WRBs potentially identify interesting areas where buyers or sellers showed themselves. The rectangles or boxes to me just highlight the area and I do not look at them as a "trigger zone". Trades may occur below or above them when PA is favorable. Also there must be some sort of target that is obvious and based on structure.

Perhaps another video is in order at some point. I'm trying to get away from YouTube to upload videos so when I find such a platform I'll do so.
With regard to GBPJPY this is my working chart. Yep, that's it.
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Quoting Winston Reed
{quote} The blue arrow points to a WRB that took out somewhat of a shelf to the left. The shelf essentially is an area where in this case sellers seem to be defending. The WRB cleared this area and closed well above it and to me constitutes a swap if only on a bar level. This to me was potential confirmation. Any PA prior to this did not impress me. That doesn't mean that there wasn't PA that some found valuable as an entry signal. Price moved away a bit then returned to the area. My limit order was a little lower at the base of the WRB. The supply...
yes, there is a lot of subjectivity that's why i tried to get some rules out of you a couple of times. In the previous posts you have mentioned you draw 1/3 of the WRB as the zone and if that would be in this case like that, your trade would have been triggered. furthermore, we saw a reaction from WRB swap and the demand wrb was additional confirmation. ...thats why the confusion...
The more you learn the more you earn
ZONE:

noun

1. An area or stretch of land [or chart] having a particular characteristic, purpose, or use, or subject to particular restrictions.
"a Supply/Demand Delta Zone" "An Entry Signal Zone"

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Quoting Winston Reed
I need to say something here about supply and demand zones. These zones can be very subjective and because of that I believe that one should be very careful about placing all their faith in them.
I must ardently disagree. I do so not to create a fraction in this wonderful thread, but rather because it must be recognized that more than one form of WRB Analysis exists here. I use Wide Range Body (or Bar) (WRB) Analysis as it was originally presented by WRBtrader (also known as Nihabashi). That's not to say I haven't made a few personal tweaks, but I have stayed true to the original work for the most part.

In WRB Analysis as it is originally presented (hereinafter Original WRB Analysis), there is no subjectivity with respect to Zone identification. While there are many types of Zones, all Zones are required a specific rule-based set of qualifications in order to be called a Zone. It is this lack of subjectivity that leads the trader to the ability to place faith in them.

In Orginal WRB Analysis, the concept of a "touch" trade does not exist. A trader looks for a valid trade signal (long or short) this is in or touching the boundaries of the Zone. This means a trader is not placing his faith blindly on a Zone. Admittedly, there is some circular logic involved: a valid trade signal serves to further validate the Zone and a valid Zone serves to further validate a trade signal. Nevertheless, faith is justified because of subjectivity not the lack of subjectivity.

Quoting Winston Reed
I use WRBs as a somewhat objective indication of supply and demand and really if I could I wouldn't even call them zones. The WRBs potentially identify interesting areas where buyers or sellers showed themselves.
Orginal WRB Analysis makes a distinction between a WRB and a WRB HiddenGAP. All WRBs represent an increase in volatilty and Supply or Demand. However, only WRB HiddenGAPs (potentially) represent key changes in the Supply/Demand Dynamic in the Market. This key change doesn't necessarily happen at a single price point. It can happen over many price points clustered around one another. Which is another way of saying "an area having a particular characteristic".......see above definition.

Quoting Winston Reed
The rectangles or boxes to me just highlight the area and I do not look at them as a "trigger zone". Trades may occur below or above them when PA is favorable.
If Zones do nothing else, they keep a trader disciplined. One reason a Zone is identified is to set up boundaries where a trade signal should be taken. If you're going to take trades outside of the Zone, why identify the Zone in the first place? Moreover, an "Entry Signal Zone" represents the best place to take a trade. Accordingly, by definition, when a trade is taken outside that Zone, it is not the best place to take it. Does that mean a trade taken above or below a Zone will never work? Of course not. But if a trader is not willing to restrict their trades to only those signals that share at least one tick/pip with the Zone, what is the purpose of identifying them?
Wyckoff VSA: (1) Supply vs Demand (2) Effort vs Result (3) Cause vs Effect
hi i really like ur idea of drawing these areas of S/R with WRB and in 15 TF we have a lot of opportunities and this can be distracting and so hard to take the entry decision...
NJ i think it's nice short signal ...
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This is the first sentence in this thread:

"Welcome supply and demand traders! Here I'm going to post my take on how to trade with supply and demand but your strategies are also welcome. "

While presenting "my take" on supply and demand I have also invited others to present theirs. By doing so, discussion and interaction occurs about not just my method but others. Taking it a bit further my intent in this thread is not to identify the "best way" or the "only way" to trade supply and demand but rather for myself and others to provide an array of concepts, methods and strategies. Doing so allows others to test and really in the end, develop their own method/strategy to trade.
WRBs and price action (as I have documented and will continue to document) are two major concepts I have defined and presented according to how I see them.

WRBs
I have clearly defined my view of WRBs as those which are larger than the previous 3 bars. I have also stated that each WRB has and element of supply for bearish WRBs and and an element of demand for bullish WRBs. In addition the appearance of a WRB may signal an area of demand or supply and so I use them as one objective indication of s/d. A WRB often emanates from a coil or tight range thus the coil/range is also important and so I take it into account. Beyond what I have described here I do not necessarily subscribe to but nor do I necessarily disagree with others view, definition or otherwise concerning WRBs. I see them as alternatives that I can potentially test if I choose to do so.

Supply/Demand Zones
Many here insist on strict rules for drawing zones. I do not subscribe to this idea but neither do I criticize those who do. If you want you may develop your own set of strict rules for identifying s/d zones. I encourage you to do so and then present them here because other may find it valuable. My trades often occur outside such zones but almost always there is a WRB I am using in one way or another.

Price Action
This is a bit more complex subject. I've presented several PA examples but one of the most important I consider is that of effort reversal. Please go back and review the thread and you'll find some that I have highlighted. I will continue to show more as they occur.

I hope I've cleared things up a bit. I'm looking forward to your charts and ideas.
Quoting HiddenGap
If you're going to take trades outside of the Zone, why identify the Zone in the first place? Moreover, an "Entry Signal Zone" represents the best place to take a trade. Accordingly, by definition, when a trade is taken outside that Zone, it is not the best place to take it. Does that mean a trade taken above or below a Zone will never work? Of course not. But if a trader is not willing to restrict their trades to only those signals that share at least one tick/pip with the Zone, what is the purpose of identifying them?
great post, you presented it very good what i was thinking.
i have watched 6h+ videos from one of the Winstons mentors (he mentioned it in one pdf, dont know if he wants to mention him again), but after so many hours spent on listening to his views, i get it... ..from where comes the idea, not to treat the zone as a zone from which to trade. Nevertheless, i think it should be identified as a place of interest from where we want to take the position, other thing is how we will identify whether treat it as a buy zone or sell zone or swap, etc.
the GJ setup to where Winston's trade was not triggered should have been triggered based on the concepts he has presented before (as far as my understanding goes). As the price went to the 1/3 of WRB from where we had a zone (unless the % for the zone is changing on depending how big the WRB is, is it?).
The more you learn the more you earn
Quoting Winston Reed
{image}
Target filled.

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Quoting freemind
{quote} great post, you presented it very good what i was thinking. i have watched 6h+ videos from one of the Winstons mentors (he mentioned it in one pdf, dont know if he wants to mention him again), but after so many hours spent on listening to his views, i get it... ..from where comes the idea, not to treat the zone as a zone from which to trade. Nevertheless, i think it should be identified as a place of interest from where we want to take the position, other thing is how we will identify whether treat it as a buy zone or sell zone or swap,...
Shane Blankenship is the only trader/educator I endorse.
Quoting freemind
{quote} great post, you presented it very good what i was thinking. i have watched 6h+ videos from one of the Winstons mentors (he mentioned it in one pdf, dont know if he wants to mention him again), but after so many hours spent on listening to his views, i get it... ..from where comes the idea, not to treat the zone as a zone from which to trade. Nevertheless, i think it should be identified as a place of interest from where we want to take the position, other thing is how we will identify whether treat it as a buy zone or sell zone or swap,...
Again the insistence on a strict definition is limiting. I think such rigidity can be an issue. Sometimes the "essence" is all that is needed. I know this is difficult for some but it is what it is.
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Few would argue price is in a an area of supply or a "supply zone" if you wish. I don't know the exact area of supply but I know we are in it. Given the amount of time that has passed since this "zone" developed I will observe PA. PA may occur in the zone or in the area of the WRB to the left or it may not. To me it is somewhat irrelevant as what I want to see is convincing bearish PA in this general area. So we'll see.
Quoting Winston Reed
{quote} Target filled. {image}
Hi Winston

Thanks for sharing the set up.

Clear and easy to comprehend.

I took the trade & already closed it.


Keep up the good work

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