Trading Supply & Demand Zones | Page 4 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Sam Seiden's Supply/Demand zones 106 replies

Supply and Demand Zones 57 replies

Supply and Demand zones NOT in retrospect 57 replies

Trends Start & End in Supply/Demand Zones 0 replies

Supply & Demand zones - how do you trade them 8 replies

Attachments: Trading Supply & Demand Zones
Exit Attachments

Trading Supply & Demand Zones

  • #61
  • Sep 14, 2010 8:59pm Sep 14, 2010 8:59pm
Subscribed also. There's a wealth of great resources here.
  • #62
  • Edited 2:39am Sep 15, 2010 1:43am | Edited 2:39am
Im short GU H1 from 1.5560 Insidebar break to the downside

Took 1/2 profit recently @ 1.5460, maybe too early, i got serious trade management issues :/
Attached Image (click to enlarge)
Click to Enlarge Name: guh1.jpg Size: 126 KB
Never whishing, always trading.
  • #63
  • Sep 15, 2010 1:50am Sep 15, 2010 1:50am
Quoting Hova
Im short GU from 1.5560 Insidebar break to the downside

Took 1/2 profit recently @ 1.5460, maybe too early, i got serious trade management issues :/
Dennis looks like you took half at very sensible position
  • #64
  • Edited 2:24am Sep 15, 2010 2:09am | Edited 2:24am
Many traders would have taken the GBPUSD 4hr pin this morning - just because "it was a pin". That pin failed and cost a lot of people a large stop loss worth of money.

If you look left, there was no previously defined demand zone off which to base a long trade.

On the 5 min chart below, we can zone in and get visibility of a previous supply & demand battle where demand wins, and thereby establishes a level where there is an imbalance of demand over supply.

Coupled with price action and some 'comfort' from the oversold sentiment of Bollinger Bands or even Stochs, we have a low risk, high odds opportunity to buy.

The trade might work out and it might not, but the risk is low - which is key. And we have based our trade on the principle fundamentals of all markets ... "supply & demand".

Rob
Attached Image (click to enlarge)
Click to Enlarge Name: GBPUSD 5 min -15 Sept 2010.jpg Size: 155 KB
Attached Image
  • #65
  • Sep 15, 2010 2:19am Sep 15, 2010 2:19am
Quoting TheRoper
Hey Rob,
Strong work my friend. I hope every trader realizes the knowledge base you are providing here.
I have subscribed and will be a regular visitor to soak up as much as I can.
Kurt
Quoting capitalist88
Subscribed also. There's a wealth of great resources here.
Quoting fxprocessor
Thanks for starting the thread Rob.
I will contribute as and when setups come around.
Cheers
Nick

Kurt, Capitalist, Nick & Co,

Thanks guys ...for your kind words. It's great to see you here.

All I want to do here is share the resources that I have learned as being key to being profitable. A lot of it comes from great educators like Sam Seiden and there is much that the likes of Sho and Red have have taught me too.

The thread is not about getting trades right or wrong. It's just about learning the basics which aren't so easy to find amongst all the hocus pocus.

Have a great day!

Rob
  • #66
  • Sep 15, 2010 2:33am Sep 15, 2010 2:33am
Quoting Hova
Im short GU from 1.5560 Insidebar break to the downside

Took 1/2 profit recently @ 1.5460, maybe too early, i got serious trade management issues :/
Hey Dennis,
That was a great short opportunity last night. Well one!
I could have stayed in longer too, but it doesn't matter. We made money and there's more being put on offer all the time so no worries.

Don't beat yourself up ...instead pat yourself on the back.

Rob
  • #67
  • Sep 15, 2010 2:40am Sep 15, 2010 2:40am
Quoting priceaction
Hey Dennis,
That was a great short opportunity last night. Well one!
I could have stayed in longer too, but it doesn't matter. We made money and there's more being put on offer all the time so no worries.

Don't beat yourself up ...instead pat yourself on the back.

Rob
So you turned your short to a long position ? im still in...if H1 shows an IB and break to the upside, im out.

SL is @ 1.5535, we'll see.
Never whishing, always trading.
  • #68
  • Sep 15, 2010 2:49am Sep 15, 2010 2:49am
Quoting Hova
So you turned your short to a long position ? im still in...if H1 shows an IB and break to the upside, im out.

SL is @ 1.5535, we'll see.
The market moves up and down and we need to be nimble to move with it.
Yes Dennis; the overnight short has done its job for me. I'm now long as per the chart in my earlier post. Look at the momentum seen on the 15 min chart.

And in the words of Sho ..."momentum exceeds everything".

Rob
  • #69
  • Sep 15, 2010 3:14am Sep 15, 2010 3:14am
well, much to learn for me tho

i'm out @ 5530 with the second half.
Never whishing, always trading.
  • #70
  • Sep 15, 2010 3:22am Sep 15, 2010 3:22am
Investopdia: Supply and demand is perhaps one of the most fundamental concepts of economics and it is the backbone of a market economy.

Demand refers to how much (quantity) of a product or service is desired by buyers. The quantity demanded is the amount of a product people are willing to buy at a certain price; the relationship between price and quantity demanded is known as the demand relationship.

Supply represents how much the market can offer. The quantity supplied refers to the amount of a certain good producers are willing to supply when receiving a certain price.

The correlation between price and how much of a good or service is supplied to the market is known as the supply relationship. Price, therefore, is a reflection of supply and demand.

The relationship between demand and supply underlie the forces behind the allocation of resources. In market economy theories, demand and supply theory will allocate resources in the most efficient way possible. How?

Let us take a closer look at the law of demand and the law of supply >>> more
  • #71
  • Sep 15, 2010 3:33am Sep 15, 2010 3:33am
Thanks for new thread Rob and sharing your thouths with us.

Good luck with your trading.

FX
  • #72
  • Sep 15, 2010 3:39am Sep 15, 2010 3:39am
lol GU dropping...i was a bit early closing out all shorts

...as always
Never whishing, always trading.
  • #73
  • Sep 15, 2010 3:47am Sep 15, 2010 3:47am
Quoting priceaction
Yesterday's CADJPY short is moving well but look at the weekly chart.
This might offer a very good long opportunity at some stage.

Rob
Look at what happened after this
  • #74
  • Sep 15, 2010 3:52am Sep 15, 2010 3:52am
Please only post useful charts, analysis and discussion on supply, demand and Bollinger bands here.

I don't want the thread to get filled with "I went short, I'm in, I'm out, it went up and down, I made 50 pips" etc. There are lots of places to do that on FF.

Thanks,
Rob
  • #75
  • Sep 15, 2010 3:58am Sep 15, 2010 3:58am
Quoting priceaction
Many traders would have taken the GBPUSD 4hr pin this morning - just because "it was a pin". That pin failed and cost a lot of people a large stop loss worth of money.
....
hello Sir Rob,
nice thread! many thanks for the links!

imho, that pin did not fail. the pinbar broke upward, hit a former (upper) demand zone (1.5520 zone) which flipped to become a supply zone (can i say it that way?; in other words, Support turned resistance; a PPZ or Price pivot zone in J16 parlance).
your 2 charts clearly show this (1.5520/25 zone getting hit).
also, M5 Bollinger bands showed price is 'overbought' when it moved up & reached that 1.5520 zone.
  • #76
  • Sep 15, 2010 4:05am Sep 15, 2010 4:05am
Quoting supremeChaos
hello Sir Rob,
nice thread! many thanks for the links!

imho, that pin did not fail. the pinbar broke upward, hit a former (upper) demand zone (1.5520 zone) which flipped to become a supply zone (can i say it that way?; in other words, Support turned resistance).
your 2 charts clearly show this (1.5520/25 zone getting hit).
also, M5 Bollinger bands showed price is 'overbought' when it moved up & reached that 1.5520 zone.
I understand what you're saying.
It will have worked for anyone that had their target set at the area you mentioned.
But not for those (and there would have been many - and this was what I was referring to) who were not considering supply and demand and looking for big long move off a 4hr pin. That was the point I was trying to get across.

Rob
  • #77
  • Sep 15, 2010 5:08am Sep 15, 2010 5:08am
I'ma try a short on EJ H1 inside Bar, if it breaks down, i'm in.

Pic is H4 analysis. 61 fib is in place too, but i love the 113.50 lvl more, lets see.
Attached Image (click to enlarge)
Click to Enlarge Name: ejh4.jpg Size: 170 KB
Never whishing, always trading.
  • #78
  • Sep 15, 2010 6:53am Sep 15, 2010 6:53am
We have a previous supply zone approaching but as Sho teaches; "Momentum exceeds everything" and look at momentum on the 15 min chart below. Let's see if it breaks up.

In the big picture, if price breaks above yesterday's high, I am looking at the supply zone in the region of 1.5670 - but only time will tell.

Rob
Attached Image (click to enlarge)
Click to Enlarge Name: GBPUSD - 15 Min a - 15 Sept 2010.jpg Size: 106 KB
Attached Image
  • #79
  • Edited 2:11pm Sep 15, 2010 9:55am | Edited 2:11pm
Quoting Hova
I'ma try a short on EJ H1 inside Bar, if it breaks down, i'm in.

Pic is H4 analysis. 61 fib is in place too, but i love the 113.50 lvl more, lets see.
Just be wary that the BoJ have intervened and will continue to do so -
http://www.marketwatch.com/story/yen...ket-2010-09-14

I'm filling my boots on EU and GU today trading of the lower timeframes... GU has broken yesterday's high but EU is being stubborn with a uTL on d1. But hey trendlines are there to be broken...

After yesterday's moves, I am bullish on EU, GU and AU. I am certainly not looking at any swing trades on the Yen pairs, but I will trend trade and get in on pullbacks after last night's intervention.
  • #80
  • Sep 15, 2010 10:20am Sep 15, 2010 10:20am
Well guys, some sensational moves out there today. After all that range trading through August until this week.

The chart below shows what I have in my sights for GBPUSD today. If it reaches the target, I'll be looking to close the long and consider short opportunities that might present themselves at previous supply.

But we can't always hit the bullseye

Rob
Attached Image (click to enlarge)
Click to Enlarge Name: GBPUSD 4hr c - 15 Sept 2010.jpg Size: 238 KB
0 traders viewing now