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Romancing the Price

  • #101
  • Apr 18, 2011 5:15pm Apr 18, 2011 5:15pm
for today..

Inserted Video
  • #102
  • Apr 18, 2011 6:18pm Apr 18, 2011 6:18pm
i can't remember where i got this 3 page pdf but all credit goes to original creator..
Attached File(s)
File Type: pdf mt4_qick_tips_and_tricks.pdf   88 KB | 6,894 downloads
  • #103
  • Apr 19, 2011 3:57am Apr 19, 2011 3:57am
Hi Kenny,

I have several question based on your chart attached :

1. how you find the horizontal line ? it is from zemafor indicator on higher time frame ?
2. do you enter after its near to the horizontal line and show a zemafor dot ?

sorry for newbie question..


Thanks n Regards,

Quoting KennyZ
finally..
  • #104
  • Edited 7:58am Apr 19, 2011 7:16am | Edited 7:58am
i use semafor to identify highs and lows quickly.. they are there for info not for taking a trade or not. trade decision taken on the basis of identifying supply and demand zones - you need to find where the sellers and buyers on the chart.. see yellow circles on the chart below..

think as in daily life situations.. if you want to earn some money by buying and selling something, what would you do? you'd look to find a cheapest possible wholesaler to buy and sell at best possible higher price to maximize your profits... buying and selling in capital markets not much different to this simple analogy... just add to this mix maximum possible speculation and you have rough blueprint of how capital markets operates in respect of buying and selling.. explaining what's speculation is beyond the scope of this post.. you can easily search and investigate.. thanks to wonderful internet.

most traders draw rectangles around the zones. i generally use lines in various thickness as i find managing lines much easier on MT4 platform..

as to entering a trade... i myself wait for some form of confirmation, such as engulfing candle stick pattern or a rejection wick/s.. some traders enters on price hitting the zone (without confirmation) but those traders are seasoned traders with tonnes of experience and a lot of screen time. they have pretty good idea to determine which is high or low probability s&d zone..

if you keep in mind the price is the heart and brains of trading and find out at what price levels big buyers and sellers lined up then you are almost there..

you may ask how do i identify supply and demand zones.. well there is no black and white answer or definition.. in capital markets supply and demand constantly changes.. as you move from higher time frames to lower ones you'll find many of them..

so again, download and study the pdf document on the first page of this thread and practice and practice until you build an understanding of pa trading...

good luck..

ken.

Quoting pipfirst
Hi Kenny,

I have several question based on your chart attached :

1. how you find the horizontal line ? it is from zemafor indicator on higher time frame ?
2. do you enter after its near to the horizontal line and show a zemafor dot ?

sorry for newbie question..


Thanks n Regards,
Attached Image (click to enlarge)
Click to Enlarge Name: tut_chart_001.gif Size: 49 KB
  • #105
  • Apr 19, 2011 9:20am Apr 19, 2011 9:20am
here is an example of bad trade i took..

i was watching crude yesterday to come down the demand zone at around 106.15 to 106.02

when i bring my crude chart i saw that i missed the perfect opportunity..

however, i still bought it at spare of the moment by looking at the strength of the momentum candle..

as i'm typing this it's moving my direction.. i'll make it free trade by moving sl just above be
Attached Image (click to enlarge)
Click to Enlarge Name: oil06.gif Size: 26 KB
  • #106
  • Apr 19, 2011 9:30am Apr 19, 2011 9:30am
demand zone on hourly chart..

as u can see i alredy moved my sl @be+1

priority is not making profit but avoiding a loss where we can..

give back nothing to markets and take whatever you can..


Quoting KennyZ
here is an example of bad trade i took..

i was watching crude yesterday to come down the demand zone at around 106.15 to 106.02

when i bring my crude chart i saw that i missed the perfect opportunity..

however, i still bought it at spare of the moment by looking at the strength of the momentum candle..

as i'm typing this it's moving my direction.. i'll make it free trade by moving sl just above be
Attached Image (click to enlarge)
Click to Enlarge Name: oil07.gif Size: 27 KB
  • #107
  • Apr 19, 2011 9:35am Apr 19, 2011 9:35am
closed half @+50

i'll wait and see how the remain half will perform..


Quoting KennyZ
demand zone on hourly chart..

as u can see i alredy moved my sl @be+1

priority is not making profit but avoiding a loss where we can..

give back nothing to markets and take whatever you can..
Attached Image (click to enlarge)
Click to Enlarge Name: oil08.gif Size: 22 KB
  • #108
  • Apr 19, 2011 10:00am Apr 19, 2011 10:00am
chart below shows first important supply zone, where the attempted move to north was capped after a big drop.. see how the current price is rejected at that zone..

another aspect.. it's always a good idea to set target just below a noticeably strong supply zone.. another mistake on my part. i set the tg1 @ top of the supply zone..

edit: just after posting this remaining half stopped @be+1

Quoting KennyZ
closed half @+50

i'll wait and see how the remain half will perform..
Attached Image (click to enlarge)
Click to Enlarge Name: oil09.gif Size: 23 KB
  • #109
  • Apr 19, 2011 10:24am Apr 19, 2011 10:24am
this trade offers few lessons for me - even when it worked in this case ok:

negatives

1. try not to chase a trade.. instead look/wait for the next opportunity... i must engrave this into my under-performing brain if i can manage to pass through my thick skull

2. Do not try to do many things at same time

3. Pay proper attention to sellers and buyers zone not only for entries but for targets too.

positives

1. made it free trade by moving sl @be+1 at first opportunity

2. closed half when price was getting close to tg1

i put the above stuff for myself, for improvement purposes.. i'm not trying to teach anybody whatsoever.. i'm not an expert to teach..

so please don't take it as if i'm talking down to you.. in fact i'm talking down to myself..

have a good one...
ken.

Quoting KennyZ
chart below shows first important supply zone, where the attempted move to north was capped after a big drop.. see how the current price is rejected at that zone..

another aspect.. it's always a good idea to set target just below a noticeably strong supply zone.. another mistake on my part. i set the tg1 @ top of the supply zone..

edit: just after posting this remaining half stopped @be+1
  • #110
  • Apr 19, 2011 10:51am Apr 19, 2011 10:51am
now check this out.. original target well and truly hit..

second ken says - if you didn't move sl @be+1 you'd have got your target..

first ken says - yes, it's true but it does not fit with my risk management rule. my priority is to avoid losses, while doing this if i can make few pips here and there, then it's fine by me.. so far i'm happy with this strategy and will stick to it.

for both kens, here is an old saying:

horses for courses
Attached Image (click to enlarge)
Click to Enlarge Name: oil10.gif Size: 21 KB
  • #111
  • Apr 19, 2011 6:26pm Apr 19, 2011 6:26pm
Hi Ken,

Thanks for your answer n explanation.

Enclosed my chart for EU. It is correct if I said EU near supply zone ?

so we only need to identified supply n demand in each timeframe and trade it ?


Thanks n Regards,
Attached Image (click to enlarge)
Click to Enlarge Name: eu h1 supply zone.gif Size: 27 KB
  • #112
  • Apr 19, 2011 7:27pm Apr 19, 2011 7:27pm
yes but remember the confirmation part...

keep in mind each trader's importance of sellers and buyers zone may differ..

you'll only get references, not definitive answer.. because it doesn't exist in my humble view.

now go out there and practice and practice and practice more until you get consistent results...


Quoting pipfirst
Hi Ken,

Thanks for your answer n explanation.

Enclosed my chart for EU. It is correct if I said EU near supply zone ?

so we only need to identified supply n demand in each timeframe and trade it ?


Thanks n Regards,
  • #113
  • Apr 20, 2011 7:30am Apr 20, 2011 7:30am
Hey Kenny,
Wasn't aware you had done this excellent compilation on PA trading (I was going through Red's thread too but you'll save me so much more time).
Thanks for putting your time in this and sharing it with us - It's great work!



Quoting KennyZ
What can I say, since I discovered supply and demand PA trading I fall in love with it, hence the title of this thread. I'm still learning it.

To save me some typing I'll paste the kind of intro I have written for the supply & demand PA PDF here.

I was doing some odd posts in EU thread as I was waiting for trades set-ups. Red himself pointed out his Price Action thread. I’m extremely grateful he did. What I discovered there was pure Gold in terms of trading.

I’ve started to read from the page 1 and was saving the charts and words, I thought...
  • #114
  • Apr 20, 2011 7:50am Apr 20, 2011 7:50am
you are welcome BrunargarFx..

traders helping traders........

Quoting BrunargarFx
Hey Kenny,
Wasn't aware you had done this excellent compilation on PA trading (I was going through Red's thread too but you'll save me so much more time).
Thanks for putting your time in this and sharing it with us - It's great work!
  • #115
  • Apr 20, 2011 8:28am Apr 20, 2011 8:28am
I'm going throught it now, taking some time off - couldn't wait.
It's excellent!

Quoting KennyZ
you are welcome BrunargarFx..

traders helping traders........
  • #116
  • Edited 5:58pm Apr 21, 2011 5:44pm | Edited 5:58pm
i come a cross this vid on some asian looking site indirectly.. i myself enjoyed it

market wizard from 1987 - documentary

i wonder what those guys would be doing if they had the technology we have today..

click here to watch while it's available


edit: Wikipedia page about Paul Tudor Jones
Attached Image
  • #117
  • Apr 21, 2011 6:09pm Apr 21, 2011 6:09pm
check this vid store out.. right on Forex Factory..

interesting and enlightening thread....

http://www.forexfactory.com/showthread.php?t=153569
  • #118
  • Apr 21, 2011 7:01pm Apr 21, 2011 7:01pm
all you have to do is pick up a copy of "The Economist" magazine ?????

this guy has the answer in his video

i don't know others but this one funniest vid i've seen lately...
  • #119
  • Apr 23, 2011 3:04pm Apr 23, 2011 3:04pm
Speaking of comedy, this chart always cracks me up
Attached Image (click to enlarge)
Click to Enlarge Name: topix.jpg Size: 65 KB
  • #120
  • Apr 24, 2011 7:16am Apr 24, 2011 7:16am
KennyZ,

Again, I must say you are sharing some very valuable trading information & it would be wise for the new traders entering the forex arena to learn what you are willing to share before they blowout their account following the many indicators floating around.

By now I would have expected this thread to be many pages longer, but what you are sharing is a simple & concise way to trade that really does not need any of the colorful indicators & that is what many are looking for when they are new to trading. Anyway I am following along & do appreciate your willingness to share. Also thanks to the others that are sharing as well.
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