Indicators only Indicate, Price action dictates.
Trading Institutional Order Flow
- #9,928
- Aug 5, 2022 11:46am Aug 5, 2022 11:46am
{quote} yeah sure, this is just an example of one chart which happens to be now in NZDUSD. you have your supply level in red, in red is a flag in price, its a drop base drop, its that small blue candle next to all the red candles going down. that blue candle is what you consider shorting. now as price returns to that level, it creates an engulfing candle to the down side, that's your entry to get in to a short. same thing when price enters it a second time this time creates a hammer candle and doji candle at that supply level. thats it really. so...
Thank you Joe! I got the first part that you can enter short trade once we see engulfing candle reversal pattern in the SZ.
I didn't get the second part. The second time when the price came into that zone it had broken the Supply Zone. So how one can consider to re-enter in that zone when the original SZ had already broken?
Thank you
- #9,929
- Aug 5, 2022 11:59am Aug 5, 2022 11:59am
{quote} Thank you Joe! I got the first part that you can enter short trade once we see engulfing candle reversal pattern in the SZ. I didn't get the second part. The second time when the price came into that zone it had broken the Supply Zone. So how one can consider to re-enter in that zone when the original SZ had already broken? Thank you
I hope we are looking at the same thing lol?
Indicators only Indicate, Price action dictates.
- #9,930
- Aug 5, 2022 12:08pm Aug 5, 2022 12:08pm
{quote} Thank you Joe! I got the first part that you can enter short trade once we see engulfing candle reversal pattern in the SZ. I didn't get the second part. The second time when the price came into that zone it had broken the Supply Zone. So how one can consider to re-enter in that zone when the original SZ had already broken? Thank you
Indicators only Indicate, Price action dictates.
- #9,932
- Aug 5, 2022 1:03pm Aug 5, 2022 1:03pm
{quote} price didnt close above it, and in my view that supply is definitely still intact.
yes, we are looking at the same chart, Joe! Okay, so I didn't know if the price closes in the sz zone even though the high of the candle goes outside the SL line it's still intact. This is something new I learned today from you. Thank you. I studied at Online Trading Academy I remember there once a senior trader told me about this but I didn't pay attention to it because it was not in the syllabus so now I remember It. Sorry, another question. So in this second scenario where you will keep your stop-loss line?
- #9,933
- Aug 5, 2022 1:05pm Aug 5, 2022 1:05pm
another example then im off for the day. this is USD busket. if you look at the 2h chart there was a rallly base rally on that time frame, so you go into a lower time frame, pick the demand higher up and trade it from there. those yellow little candles is the confirmation to enter long, and thats clearly where price went up from. that confirmation are both inverted hammers as a signal to enter long. {image}
Excellent example! I understand it now! Thank you, Joe, this was a good discussion. I enjoyed it.
Have a great weekend!
- #9,935
- Aug 6, 2022 11:18am Aug 6, 2022 11:18am
{quote}
With my method, Normally if you find the correct levels, your stops should be either below or on top of a flag or cap in price. Normally quite tight. If you want to play it safe you would put it above or below the most recent high or low.
Indicators only Indicate, Price action dictates.
- #9,937
- Aug 6, 2022 2:17pm Aug 6, 2022 2:17pm
{quote} Hi Joe, I was backtesting this 'confirmation trade' style. so I came across this example. You had shared this 4hr DZ of USDCAD which did work. So I went to look into smaller time frame of 1hr to see if there is any confirmation sign. So I saw two engulfing patterns and I marked it.. could you please see if am doing it correctly? {image}
the idea is to pretty much find reversal candles on different time frames. you dont really need to go into lower time frames if you have a reversal candle on the same time frame you looking at with the S&D.
you go into lower time frames when looking for supply and demand levels.
thats correct though
Indicators only Indicate, Price action dictates.
