Cable Update (GBPUSD)

Still GBPUSD was trading in the zone

It may move up to 1.38413 to 1.38466

couple of long positions.... looking for retracement scalps... tp set. 1.38330 ... today or tomorrow....

Resistance level for continuation.

It's a good question.

Price will often come back to revisit untested levels.
So, these are levels that price is most likely to reach on its way up or down, & where it is most likely to turn around.

As for untested demand zone (same as Support zone) price hasn't revisited the levels since it last left them,

If look to the left (from price's current location) and up to find the next supply level, and down for the next demand level.

We know the market moves between supply and demand, and this knowledge can help us in terms of where to enter and exit a trade.
In other words, if an entry at demand has provided a long opportunity, I'd be looking to close at an opposing supply level or an area where I anticipated supply would form.

Once (if) that happens, I'd consider the "cycle" complete.
If price goes the other way, I'd have to take either B/E or a loss depending on how I'd managed the trade.

Using this method I've marked is the major demand from the Daily.
To make it really useful next we switched to a H4 and marked again (different colour) the major H4 levels.
I think this will be an easy-to-maintain H4 analysis, with the purpose of keeping we aware of the next levels.
The reason we want to be aware of these "next levels" is so we don't go short into a demand level or long into a supply level, and also to provide us with a bias.

You can never know how much demand is still left but it is recommends only taking the first and second times. Fresh is best.
As for Untested supply and demand zone is an Area where buying or selling will become overwhelming that causes a shift in the thinking in buyers or sellers.
As you can see from the chart I've posted previously, the untested demand level lines up perfectly with a daily support zone..

The main distinction for me lies in whether or not the market has tested the zone.
The test will often manifest as pins into demand (or supply).
If this occurs we would consider the demand zone to at least now be support (a kind of weakened demand if you will), that will potentially hold price up again but may give way altogether.
If that pattern occurs as price generally moves up, I would consider it "compression".

Most of all remember, context is important too, i.e. is the PA a retrace after prior Demand has been broken. A good trader must attention to this in context of overall TA

The other things for you to look is at Poles/Flags etc are basic principles and another market behaviour for the Supply & Demand trader to consider.
Freshness. How many time the price have touched the level? If none, it means the level is fresh. (untested)
I would encourage you to factor these principles into your studies and invest the time and effort understanding how they manifest.
Most importantly, learn how to identify them because they all feed into the notion of "direction".

Supply zones can be found where many dollars that were otherwise sitting on the sidelines enter the market with the belief that the market is undervaluing a security.
Demand zones can be found where many dollars that were otherwise sitting on the sidelines enter the market with the belief that the market is overvaluing a security.

As you can see, I marked the untested (fresh) demand zone in daily TF. However if the zone is created on a M15, M5 or M1 timeframe and can not be found on a larger timeframe such as, H1 or H4, Daily then to me that zone is not as strong but still valid.
If you have the time to be around the levels when price approaches, that is a huge advantage.

The reason for this is that market sentiment will change and high reward for the trade will go down.
This might be a determining factor for me to not take the trade because the price action and momentum could be more valid than the zone on the OLD short timeframe.

And always ask yourself when price approach untested (fresh) Demand Supply zone.
Why is the type of the level important?
Why does freshness of the candle matter?
How would you know and confirm that the level is an important level and trade it, before having the price leave the level and come back to it (for untested/fresh S&D levels)

Whichever all you need to do then is see what the herd is doing and run with it until it runs out of steam. ( into untested Supply or Demand zone).
The key thing to remember is that every time you want to Buy something, someone has to Sell it to you.
At some point in the future they will want their money back, if not from you they'll take it from someone else. (fresh zone)

If you need any further clarification, please, do ask. I may not be able to answer all, but someone in this thread with advance experience may be able to help you.

Warm Regards

PAT

No trading today, I don't like river warfare (a nice opportunity from the north bank but missed it)

When an invading force crosses a river in its onward march, do not advance to meet it in mid-stream. It will be best to let half the army get across, and then deliver your attack.

Li Ch`uan alludes to the great victory won by Han Hsin over Lung Chu at the Wei River. Turning to the CH`IEN HAN SHU, ch. 34, fol. 6 verso, we find the battle described as follows: "The two armies were drawn up on opposite sides of the river. In the night, Han Hsin ordered his men to take some ten thousand sacks filled with sand and construct a dam higher up. Then, leading half his army across, he attacked Lung Chu; but after a time, pretending to have failed in his attempt, he hastily withdrew to the other bank. Lung Chu was much elated by this unlooked-for success, and exclaiming: "I felt sure that Han Hsin was really a coward!" he pursued him and began crossing the river in his turn. Han Hsin now sent a party to cut open the sandbags, thus releasing a great volume of water, which swept down and prevented the greater portion of Lung Chu's army from getting across. He then turned upon the force which had been cut off, and annihilated it, Lung Chu himself being amongst the slain. The rest of the army, on the further bank, also scattered and fled in all directions.

I updated my stop loss to last top. If it hit my stoploss it will be reduced loss

Hoping for a 10-20 pips up move in asian session till 1.38360 a smaller resistance.......

Looking for a 500% guarantee for 13950
seriously tomorrow should be last chance saloon for anything near 139. If 139 is breached then it’s 13910 before which would be a another resistance area as it’s rejected that area before.

this is real GOLD.

blessed are those who understands it.

thanks for sharing as always, abam

crystal clear, simple GU range trading, 3800 - 3900 anyone losing trades last 2 or 3 days really need to consider a new job :-)

todays open in play 1 2823 see how 3835 plays out, potential for bull failure, below bears in control still for another attack on 1 3800 above bulls in charge for continuation of range.
pa now 1 3825 I will sit tight until direction clearer
dix swiss and cad resistance in play, didnt they do well last night :-)resistance - cad 1 2600 psych swiss 9200 psych eu support 1 1800 psych
most interested in Uj Gj for today, uj has fallen down through daily rising channel and retested yesterdays low 109 70 then last thursdays low 109 52 bulls line in sand failure could see nice dump, yen appreciation, USdollar flat to weak would do it, gj weekly daily range high 156 00+ psych in play potential H&S in progress daily is rounding top pattern, high time frames = longer time to progress
gold hrly possible H&S in progress right shoulder,
not really in any hurry to put anything more on the table:-)

Intense last thursday. Manage to get good blue chip. Today plan still same. Side on short.
Awaiting level to watch 1.38500 for tested and get down once more to BO
Friday is a good BO day

Not going to give any recommendation but current cable pattern is just like one of the photo here. That would give you a guide.

When you see the graph drastically spike/dive for no reason, then correction occured (when the price returning back to the original spot before that spike/dive; that non sense changed direction is the direction of the graph head to in the next couple days or week after (if you look at bigger, H4 & D1). It's not always true but good to have it in your mind in case you tend to open position that against to that nonsense change, keep TP shorter.

But on other hand, the graph keep dancing at resistant 3890. Mind you, the more time she dancing on that line, the more weaker that resistant would be.

As expected all tp hit..... out now.... will see in US session

G/M, (early here.) Bearish candle yesterday. Support found after the drop into the 4hr/dly part of the prev 1hr/4hr/minor dly prev sw lo zone that extends down to 3800/3799...2 attempts to get south of this zone now since it formed both repelled by demand. Similarly 3 (or 4) attempts to get north of the prev 1hr/4hr/minor dly prev sw hi zone that extends to 3910 - all repelled by supply. So, 3910-3800 is the immediate range, and so far this week this has contained price. Will we see a b/o of this immediate 3910-3800 range on the last trading day of week today?

1hr, then 4hr below.

ive sell in asian session @1.38300 area , my plan trade is break of 1.38000 area to 1.37150 area tonight , and next week retest of 1.39600 (mon-wed) area then dump again (thursday-friday)

just a trade plan ( but if move away and back to 1.3900 this is invalid )

buy first until 1.39000 and than find bearish confirmation below 1.4

First trade, today
Short, SL 1.8360, TP 1.8060 : 20Pips

??

like moty ugliest chart ever, trades drowning, hoping praying market will comply, keep adding to losing trades, muppet