Trading Supply & Demand Zones | Page 6 | 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

  • #101
  • Sep 20, 2010 1:26pm Sep 20, 2010 1:26pm
I have added more resources to the bottom of post #1
including a link to the odds enhancers which Porkpie referred to earlier.

Rob
  • #102
  • Sep 20, 2010 2:29pm Sep 20, 2010 2:29pm
Quoting priceaction
Below was the 2nd opportunity (that I saw) to go long off a previous demand zone, with the added comfort of a pierced lower Bollinger Band on the 1hr chart.

Rob
I have taken this baby again! Last time we visited this place it moved in and out like a rocket after the GBP retail sales news release and it was 'On Sale'!

Confluence factors:
200ma on h1
Possible bull flag on h1/h4
Piercing of the bollinger bands on h4

Odds enhancers:
Uptrend recently engaged on higher timeframes
Previously visited demand zone and it didn't stay there long

Going against it:
No fast movement into the demand zone
Time... Just before NY close

Let's see what happens!
  • #103
  • Sep 20, 2010 2:38pm Sep 20, 2010 2:38pm
Quoting bbakker
I have taken this baby again! Last time we visited this place it moved in and out like a rocket after the GBP retail sales news release and it was 'On Sale'!

Confluence factors:
200ma on h1
Possible bull flag on h1/h4
Piercing of the bollinger bands on h4

Odds enhancers:
Uptrend recently engaged on higher timeframes
Previously visited demand zone and it didn't stay there long

Going against it:
No fast movement into the demand zone
Time... Just before NY close

Let's see what happens!
I like your analysis Brian.
A bit of divergence on 30 min stochs too.

Rob
  • #104
  • Sep 20, 2010 3:42pm Sep 20, 2010 3:42pm
Quoting priceaction
I have added more resources to the bottom of post #1
including a link to the odds enhancers which Porkpie referred to earlier.

Rob

The 3 other odds enhancers are:

Retracements: First retracement to level is highest probability (I see you have mentioned this already elsewhere).

Time at level: In line with the strength odds enhancer. When price is most out of balance the price will spend the least amount of time there, so the fewer candles the better.

Arrival: We want to see a strong move into the level i.e no consolidation just before a level. Strong arrival = strong departure. This is where the pros might be pushing price into a level to get the amateurs sucked in so that there is more liquidity for the pro's to take price in the opposite direction. Similar to climatic bars on high volume (for those that study VSA), or high churn bars on low volume (amateur buying or selling after a strong move in price).

But the biggies for me when I am scanning the charts are to look for that strong move and then the risk:reward (at least 1:2 for me). Then based on the odds enhancers I measure the strength of the level which helps determine whether I can set the trade up with a limit order (set and forget), or whether I need to set it up with a confirmation market order (wait for price to show its hand before entering the market eg. dip into the zone and breakout of it - enter on the breakout).
  • #105
  • Sep 20, 2010 4:13pm Sep 20, 2010 4:13pm
Quoting Porkpie
The 3 other odds enhancers are:

Retracements: First retracement to level is highest probability (I see you have mentioned this already elsewhere).

Time at level: In line with the strength odds enhancer. When price is most out of balance the price will spend the least amount of time there, so the fewer candles the better.

Arrival: We want to see a strong move into the level i.e no consolidation just before a level. Strong arrival = strong departure. This is where the pros might be pushing price into a level to get the amateurs sucked...
Thanks very much for explaining. It helps a lot.
I've scanned your posts and see you've been trading this way for some time so your experience and insight is very welcome here.

Rob
  • #106
  • Sep 20, 2010 5:10pm Sep 20, 2010 5:10pm
Quoting Porkpie
The 3 other odds enhancers are:

Retracements: First retracement to level is highest probability (I see you have mentioned this already elsewhere).

Time at level: In line with the strength odds enhancer. When price is most out of balance the price will spend the least amount of time there, so the fewer candles the better.

Arrival: We want to see a strong move into the level i.e no consolidation just before a level. Strong arrival = strong departure. This is where the pros might be pushing price into a level to get the amateurs sucked in so...
Thanks for that.
  • #107
  • Sep 20, 2010 5:16pm Sep 20, 2010 5:16pm
Quoting calderone
Hey, great thread! Wish I had found it sooner.
Hope to see you around here calderone.

Rob
  • #108
  • Sep 20, 2010 5:38pm Sep 20, 2010 5:38pm
Quoting priceaction
Hope to see you around here calderone.

Rob
Rob,
This is a great thread and I am studying it. I'm not caught up yet but I soon will be!

Mike
  • #109
  • Edited Sep 21, 2010 2:18am Sep 20, 2010 11:10pm | Edited Sep 21, 2010 2:18am
Hi Porkpie,

Tks for the great share on 6 odds enhancers, really help

Cheers
Eric


Quoting Porkpie
The 3 other odds enhancers are:

Retracements: First retracement to level is highest probability (I see you have mentioned this already elsewhere).

Time at level: In line with the strength odds enhancer. When price is most out of balance the price will spend the least amount of time there, so the fewer candles the better.

Arrival: We want to see a strong move into the level i.e no consolidation just before a level. Strong arrival = strong departure. This is where the pros might be pushing price into a level to get the amateurs sucked in so...
  • #110
  • Sep 21, 2010 1:44am Sep 21, 2010 1:44am
Thanks guys. Glad to be of help.

Attached is a basic cheat sheet for the 3 most important odds enhancers. The scoring works with the other 6 to determine whether a limit or market order should be used.
Attached File(s)
File Type: pdf Trade Cheat Sheet.pdf   79 KB | 4,253 downloads
  • #111
  • Sep 21, 2010 2:56am Sep 21, 2010 2:56am
Below are the zones that I am looking at. We have just seen price break down through a previous demand zone after visiting it for a 3rd time. The more visits it has, the weaker it can become.

I am evaluating the following for each zone:

 

  1. Strength of Move
  2. Profit Margin
  3. Big Picture
  4. Retracement
  5. Time at level
  6. Return to level

Feel free to add your analysis.

Rob

Attached Image (click to enlarge)
Click to Enlarge Name: GBPUSD 1 hr 21 Sept 2010.jpg Size: 283 KB
  • #112
  • Sep 21, 2010 3:01am Sep 21, 2010 3:01am
Quoting priceaction
Below are the zones that I am looking at. We have just seen price break down through a previous demand zone after visiting it for a 3rd time. The more visits it has, the weaker it can become.

I am evaluating the following for each zone:

 

  1. Strength of Move
  2. Profit Margin
  3. Big Picture
  4. Retracement
  5. Time at level
  6. Return to level

Feel free to add your analysis.

Rob


hi rob

the demand zone has alot of hits to the left of it,which could mean a strong level

john
  • #113
  • Sep 21, 2010 3:11am Sep 21, 2010 3:11am
Quoting desperate
hi rob

the demand zone has alot of hits to the left of it,which could mean a strong level

john
Hi John,

There are 4 Demand zones marked on the chart - which one are you referring to?

Can you explain more about "a lot of hits making a level stronger"?
My understanding (from Sam Seiden and others) is that the more times a zone is revisited, the weaker it becomes. Look at the cheat sheet that Porkpie posted here.

Rob
  • #114
  • Sep 21, 2010 3:21am Sep 21, 2010 3:21am
Quoting priceaction
Hi John,

There are 4 Demand zones marked on the chart - which one are you referring to?

Can you explain more about "a lot of hits making a level stronger"?
My understanding (from Sam Seiden and others) is that the more times a zone is revisited, the weaker it becomes. Look at the cheat sheet that Porkpie posted here.

Rob

sorry d1

prices coming up and hitting thesupply zone,which now is demand
  • #115
  • Edited 4:20am Sep 21, 2010 3:46am | Edited 4:20am
Quoting desperate
hi rob

the demand zone has alot of hits to the left of it,which could mean a strong level

john
There is no such thing as a strong or weak zone. All zones on the same timeframe are equal but you differentiate them using the odds enhancers as posted by Porkpie. Confluences further enhance the zones. Think about it... the more often price revisits a zone or the longer it stays in the zone, the weaker it becomes... chop, chop! If you are going to talk about strong zones, the extreme zones on the higher timeframes tend to be the strongest, but then again it is just another demand and supply zone
  • #116
  • Sep 21, 2010 4:17am Sep 21, 2010 4:17am
Quoting bbakker
There is no such thing as a stong or weak zone. All zones on the same timeframe are equal but you differentiate them using the odds enhancers as posted by Porkpie. Confluences further enhance the zones. Think about it... the more often price revisits a zone or the longer it stays in the zone, the weaker it becomes... chop, chop! If you are going to talk about strong zones, the extreme zones on the higher timeframes tend to be the strongest, but then again it is just another demand and supply zone
Great post Brian.

On the subject of the swing lows, and just to add a little more to my earlier analysis, in relation to the chart I posted:

 

  1. D1 = swing low on 4hr
  2. D2 = swing low on 4hr & daily
  3. D3 = swing low on 4hr, daily & weekly

Rob

  • #117
  • Edited 4:26pm Sep 21, 2010 4:04pm | Edited 4:26pm
We are about to enter the EU twilight zone.... I mean supply zone! Fast entry into the zone on h4 and look at that drop when we were there last time. This one ticks my boxes!

Attached Image (click to enlarge)
Click to Enlarge Name: 100921_eu_h4.jpg Size: 130 KB
  • #118
  • Sep 21, 2010 7:06pm Sep 21, 2010 7:06pm
Quoting bbakker
We are about to enter the EU twilight zone.... I mean supply zone! Fast entry into the zone on h4 and look at that drop when we were there last time. This one ticks my boxes!

Attachment


Shhhhhhhhh

Be bery bery quiet.....We are in the zone....hunting pips
Attached Image (click to enlarge)
Click to Enlarge Name: elmerfudd-wallpaper1.jpg Size: 152 KB
Illegitimi non carborundum - Noli pati a scelestis opprimi.
  • #119
  • Sep 22, 2010 2:00am Sep 22, 2010 2:00am
I really wonder if with the FOMC meeting today a lot of the supply was lifted?

We are just about through it and have seen hardly any reaction...Don"t get me wrong I love S/D areas.

Rufus
Attached Image (click to enlarge)
Click to Enlarge Name: 9.21eusupply.jpg Size: 117 KB
Illegitimi non carborundum - Noli pati a scelestis opprimi.
  • #120
  • Sep 22, 2010 2:57am Sep 22, 2010 2:57am
Quoting priceaction
Below are the zones that I am looking at.
Yesterday's chart below. Let's see whether the reaction at S2 results in a true reversal or not.

Rob
Attached Image (click to enlarge)
Click to Enlarge Name: supply.jpg Size: 283 KB
0 traders viewing now