Romancing the Price

Hi guys, I've been following this thread the last months, and your thoughts and analysis made me want to participate in the forum.
Here's my view for the AUD/USD. I'm waiting for a clear break of 1,05 to go short, or a break of 1,0760 to go long, in a daily/weekly basis, in the meanwhile, I play the range, even if I favor a break down (<1,05).

https://mail.google.com/mail/?ui=2&i...f_gozt4agg0&zw

There seems to still be some confusion around as to what are

PB
BEB
BUB
DBHLC
DBLHC
IB

I've just found a clear explanation, so here it is

This trade starts to look good. Maybe a little shake-out in US session, and with data release, but the demand zone should absorb a movement down.

https://mail.google.com/mail/?ui=2&i...f_gp0zmdit0&zw

I found an indi to detect pa bars, watching multiple TFs at once. It even spots bars as they're forming.

I have it set on H4 and up. Any lower and I'd have too many alerts.
I enabled all bars except IB4s, but that's just my preference

I have also set colours to background colour, to keep the screen clear.

Enjoy

Just something to be aware of

Interesting...

what you meant was high % of reactions to D2S/S2D?

Yes, but not in the typical sense of the term.
Typically, you'd expect a RT to and flip at point B. But the RT didn't happen, so the next time price came back, C, there was an high probability of a flip.

I get it. So if price couldn't check the level B we can deduce there was alot of supply, but we can also deduce that this happened in time of crazy sellers...

That's basically it

How did you remove data from the right?

I think we're experiencing time bumps!


No. Cut it in Paint

http://gyazo.com/cfc3e9bf5ff3332eb293aefa286dca2c.png


OK.

I can go along with that!


http://gyazo.com/a3a2685aed47966a49c6e5fc8c581489.png

My Logic for Entering Trades with Supply & Demand Zones
Briefly:

 

1. Switch to Weekly and Mark off Supply/Demand Zones
2. Switch to Daily, what is the slope of the 50 SMA, determines whether you will be a buyer or seller. You can use whatever indicator you feel gives you a good feel for current trend. Don't over complicate this one.
3. Switch to your entry time-frame of choice, I use M30 and H1 normally.
4. If you are going long on your chosen Entry Time-frame into a weekly supply zone then that is a no trade.
5. If you are going short on your chosen Entry Time-frame into a weekly demand zone then that is a no trade.
6. If you are clear and nothing is in the way then enter a limit order on your chosen Entry Time-frame for the zone.
7. Make sure you have at least 3:1 reward:risk ratio available.
8. Target 2/3 of the move between the next supply or demand level from you entry.

My Supply Demand Zone Chart
Inventory:

 

1. 50 SMA
   1. Only used for a visual indication of current trend on daily.
   2. I look at current trend.

2. 200 SMA
   1. Only used for visual indication of current state of the market and to give a sense of when price will revert to the mean.
   2. If flat, then ranging.
   3. If overextended above or below, the more supply or demand drive prices back towards the direction of the mean. Mean reversion.
   4. When price rallies and becomes overextended, supply comes in and buyers wait until prices come down generally below the mean.
   5. When price declines and becomes overextended, demand comes in and sellers wait until prices come up generally above the mean.

3. Supply Demand Indicator
   1. I am not the author and it is free. It can be found here.
   2. Use this only for identifying possible zones where logically buyers or sellers will be waiting.
   3. Although it will mark the levels, you still need to go through the logic process to qualify a trade but it does help point areas out that you may not have considered.

My Thoughts On Lower Time-frames
Note 1:

 

1. My entry time-frames of choice are M30 & H1.
2. To filter out false trades, don't chase the boxes on the lower time-frames.
3. If going below M30/H1, then view it as a way to get a more precision entry.
4. Set your limit order and move back to M30/H1 for setting targets.
5. Most importantly stay in M30/H1 while waiting for the trade to keep psychologically in context of the logic that was used to validate the trade.
6. Keep context of the daily trend and where you are in reference to the weekly supply and demand zones.

As time and opportunity allow, I will place my thoughts here.

Trade with logic.

thanks for the concise explanation. i like the whole concept. do you think it would be a good idea to force the supdem indicator to stay on weekly?...vince

I personally do not force specific time-frames onto my charts since the process is simple.

 

1. I prefer to manually switch to higher time frames: weekly & daily.
2. Visually confirm the logic for the trade.
3. Drop down to your chosen entry time-frame and find a fresh zone for limit entry.

great post Verb.. first class..

keep 'm coming...

2000 + pips per day worth thank you for sharing and helping...

Thanks for sharing the indicator,one of the few indis i have addded to my charts.Its very useful especially with alerts.

Nice one verb. Pretty much what I do but I don't use 50sma as it lags. Instead I identify daily supply/demand and trade in the direction of the bounce. Daily bounces with the weekly bounce is trend confirming, daily bounces against the weekly trend is counter trend where I will limit my risk off hourly levels. I never trade within daily levels until I have confirmation of a reaction out of the level and then I trade the next hourly level out of that daily. Counter trend moves often fail at strong hourly or daily levels back in the direction of the trend.

Pardon my ignorance... I am trying to get the indi. but having trouble accessing the website to get it. Or to register...

Anyway what did you put here....I don't have my own website