DislikedEURUSD nearing a monthly demand level. trying to find one on $index monthly but the only one i see has already been tested and we breaking above it. i would be careful going short this low. just a heads up. What do you think good people? {image}Ignored
Trading Institutional Order Flow
- #9,802
- Jul 8, 2022 1:30pm Jul 8, 2022 1:30pm
{quote} looking at it from an 8h/daily perspective, it looks good for more down. so I would say yes minus all the short-term pullbacks.
Also, I would like to know your opinion. If I am executing trading Short in 1hr time frame then looking at a 4hr chart for trend and 12hr chart for curve/big SZ is fine? Or do I have to look for weekly too? Thank you.
- #9,805
- Edited Jul 11, 2022 6:29am Jul 10, 2022 2:45pm | Edited Jul 11, 2022 6:29am
{quote} Hi Joe, Thank you for your comment
I trade on shorter term then you, for example 5min, 15min, 1h, 4h. I do a top down approach rather then a bottom up. meaning i look at Higher time frame first and go down. I take into account chart candles which show you the psychology of what the market wants to do, like engulfing candles, doji, hammer candles etc at turning points that tend to be close to supply and demand levels. it helps me pin point when price wants to change direction, but that's another discussion.
daily, 8h, 4h, 1h charts all together, i hope you can see them all clearly. i dont have 12h chart.
first chart i look at is the daily chart (bottom right chart) which shows me impulsive candles which tell me that price wants to continue down. what i want to do then is go down a time frame such as 8h chart (bottom left chart) to find where price might likely go back up to test a supply before continuing lower. 8H chart shows this particular supply between 0.8530-0.8550
just because you have a supply on 8h chart does not mean price will go up to that level, its just an indication that there is strong sellers at that particular level.
when you go down another time frame such as 4h (top right chart) you have the same supply which is fine (still 0.8530-0.8550) , but you also have a small demand cap which signals price might want to go up from here.
when you look at the 1h chart (top left chart) you have a new supply that was created, but this time lower then the 8h & 4h supply. this time the supply comes in at between 0.8490-0.8510.
the point im trying to make with all this talk, is just because you have a supply, does not mean its THE supply. you need to go down into lower time frames to see the lower supply which is the most likely target for price to go down from.
I showed you this pair as i doubled down on this pair and have two shorts currently. when you go down onto an even lower time frame such as 15min chart (chart above) you get to see other supply's. the reason why i went short where i did, was not because of the 8h-4h supply shown on a higher time frame (that i just explained above), and not even the 1h supply which was lower then the 4h supply. it was because of the supply on the 15min time frame which was even lower then the 1h supply.
all trading is, is price going back to the ''source of the move''. it happens sometimes at the top of the move, or in the middle of the move. so either a cap or flag, bullish or bearish. that's all that price does continuously, over and over. you need to find the source. and you find the source by looking at different time frames.
i hope that gave you an answer, and yes i would look at weekly. the more charts you look at, the more data you see. and the more data you see the more of an informed decision you can make.
till next time and take care.
Indicators only Indicate, Price action dictates.
- #9,806
- Jul 10, 2022 3:43pm Jul 10, 2022 3:43pm
{quote} hey maz, i can tell you how I personally have my trading station set up. I trade on shorter term then you, for example 5min, 15min, 1h, 4h. I do a top down approach rather then a bottom up. meaning i look at Higher time frame first and go down. I take into account chart candles which show you the psychology of what the market wants to do, like engulfing candles, doji, hammer candles etc at turning points that tend to be close to supply and demand levels. it helps me pin point when price wants to change direction, but that's another discussion....
Thank you so much Joe! I appreciate you! You gave me a fully detailed explanation. Especially that 4hr chart example
which has created a small demand zone and indicates the price might go up for a retrace! This will definitely help in future trade analysis! Thank you!
- #9,808
- Edited 7:01am Jul 11, 2022 6:48am | Edited 7:01am
{quote} anyone go short gold, was nice set up. and reacted nicely.
4h chart: there are strong sellers with engulfing candles, meaning this drop base drop wont likely be hit before price going lower.
15min chart: you see another drop base drop but this time lower. this supply price will react too it first. not the 4h one.
this is todays profits. still not closed out.
Indicators only Indicate, Price action dictates.
- #9,809
- Jul 11, 2022 7:21am Jul 11, 2022 7:21am
{quote} same thing here, we have a drop base drop on 4h time frame, but the reason why price reacted is because of the supply on the 15min chart, not the 4h base. I went short but a little lower then planned. my order that i placed was not triggered. 4h chart: there are strong sellers with engulfing candles, meaning this drop base drop wont likely be hit before price going lower. {image} 15min chart: you see another drop base drop but this time lower. this supply price will react too it first. not the 4h one. {image} this is todays profits. still...
- #9,811
- Edited 11:17am Jul 11, 2022 10:45am | Edited 11:17am
{quote} hey maz, i can tell you how I personally have my trading station set up. I trade on shorter term then you, for example 5min, 15min, 1h, 4h. I do a top down approach rather then a bottom up. meaning i look at Higher time frame first and go down. I take into account chart candles which show you the psychology of what the market wants to do, like engulfing candles, doji, hammer candles etc at turning points that tend to be close to supply and demand levels. it helps me pin point when price wants to change direction, but that's another discussion....
4h chart:
but i went short again by the 15min supply. might be a little complicated to take in all this data but yeah. already closed out half of my new trade.
5min chart:
Indicators only Indicate, Price action dictates.
- #9,820
- Edited 9:29am Jul 12, 2022 9:04am | Edited 9:29am
SHORT: EURGBP 30mins {image}
on a chart when you get sideways price action, the most likely place for price to head is not a lower supply level, but a higher supply level as there is more sellers waiting to take price lower at that level, like in the pyramid. you dont want to trade where price is moving sideways, you want to trade above it. thats where sellers will come back in.
price reacted to these levels, but the problem is price created new demand zones on a 15min level that i marked out in small if you can see it. personally i bought it at that level that you marked out rather then selling it for a scalp. closed all my positions yesterday afternoon
Indicators only Indicate, Price action dictates.