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Romancing the Price

  • #521
  • Aug 3, 2011 4:21am Aug 3, 2011 4:21am
Quoting emene
Because you're a chicken ?
They're fighting words where I came from




But I moved
  • #522
  • Edited 5:37am Aug 3, 2011 5:02am | Edited 5:37am
Quoting HiddenGap
Let me first say, I love the name of this thread. I don't know why, but it always makes me smile.

Whilst I do not use Supply and Demand zones per se, I had to post this. I hope you don't mind.

Supply/Demand Delta Zones created via WRB Analysis are different than the simple supply and demand zones. They are different both in construction and use. The construction part is obvious. The use part simply means that a S/D Zone can be used to take trade signals either longs or short depending on a trader's entry signal method. Okay, enough on that....
Hey its the Legendary HG. Welcome buddy, your insight is always very interesting . Will be interesting to take the concept further. My argument would be that the delta zones would work great in strong trending markets, but that supply/demand zones work better in more volatile markets (on an intraday basis).
  • #523
  • Aug 3, 2011 11:37am Aug 3, 2011 11:37am
while the market is quiet....I'm wondering what entry methods can be used on for example a 1 hour level.

Do some of you enter on the touch if the level is particularly good? (as per odds enhancers)

Or, can a m5 candle be used? I have heard some people say m5 candles are not reliable enough for levels like this and m15 should be used....thoughts?
  • #524
  • Aug 3, 2011 4:16pm Aug 3, 2011 4:16pm
Quoting Ultimatus
while the market is quiet....I'm wondering what entry methods can be used on for example a 1 hour level.

Do some of you enter on the touch if the level is particularly good? (as per odds enhancers)

Or, can a m5 candle be used? I have heard some people say m5 candles are not reliable enough for levels like this and m15 should be used....thoughts?
Entirely up to you. Why don't you look back on your charts for the pairs you want to trade and jot down where the 5min levels within the hour zone were successful and why for others it was best to enter at the hourly level. I think you'll find that the more compressed the distance between levels the better it is to zoom into the hour level and reduce risk to 5 or 15min. There isn't a general rule but think about it logically and what best suits your risk appetite. See what the hourly levels look like when zoomed into, where price reacted fast out of consolidation etc.
  • #525
  • Edited 11:00pm Aug 3, 2011 8:25pm | Edited 11:00pm
So I understand that you place a buy order then close your order and make the spread of profit, but the sell order is a bit more ambiguous to understand, because if you place a sell order then it seems you essentially own that share, but what is happening if you are making money on the spread of price declining? So are there always buyers in the market buying what you are selling, and If there are no buyers does price just stay where it is at, or does it lose value and somehow you make money on the spread by loss of value with no buyers? I know this may sound like an idiot question, but it has always puzzled me and I can't seem to find any info on it, so I thought maybe one of you would know.:/

BTW: I have been reading "Master the Markets" by Tom Williams. Great read! He goes into a lot of the concepts Red talks about, and explains volume really well.
Shapeshift greed and catch em' off guard
  • #526
  • Aug 4, 2011 11:30am Aug 4, 2011 11:30am
I swear to god... Equity markets are being fucked savagely
  • #527
  • Aug 4, 2011 12:00pm Aug 4, 2011 12:00pm
Quoting Orbital
I swear to god... Equity markets are being fucked savagely
It was on the cards. QE2 finished which underpinned the rise in equities and ES showed topping signs after hitting major supply. I see a drop back to 1000 on ES unless Ben comes in with QE3 before we get there!
  • #528
  • Aug 4, 2011 12:15pm Aug 4, 2011 12:15pm
Quoting bbakker
It was on the cards. QE2 finished which underpinned the rise in equities and ES showed topping signs after hitting major supply. I see a drop back to 1000 on ES unless Ben comes in with QE3 before we get there!
How are they planning to afford QE3?
  • #529
  • Aug 4, 2011 12:26pm Aug 4, 2011 12:26pm
Quoting Orbital
How are they planning to afford QE3?
It's a central bank so they make money out if thin air to the detriment of the people and their savings as well as the people who own the country's debt, but they don't care as long as it artificially inflates the economy and creates jobs, like QE1 and 2 did

They are like monkeys with razor blades in their hands!
  • #530
  • Aug 4, 2011 9:05pm Aug 4, 2011 9:05pm
i have updated PDF file on first page/top of the first post of this thread.. not as a PDF but as web pages.. anyways, details on the start as mentioned the above..

today has been a roller coaster day.. i hope u all got something out of it.. my day was ok.. i attached few of trades i executed today.. on average i usually take 100+ trades.. mostly scalping...
Attached Image(s) (click to enlarge)
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  • #531
  • Aug 5, 2011 3:03am Aug 5, 2011 3:03am
Need a helpfull idea from experienced guys .

I took a euro demand zone in h1 and m15 time frame .

Then i went to m5 time frame to see which time frame was clear and good and i see m5 was good and clear to me . So i waited for a engulfing candle . And It provided a neat engulfing candle .

But now my take profit should be at m5 zone right ?

I see my sl is bigger than my tp in m5 timeframe ...But what can i do here ..any usefull idea? So i placed my h1 tp now .

thanks

Please see attachment for more information regarding entry sl
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Trading is all about probability, low risk/high reward ,buy low/sell high
  • #532
  • Aug 5, 2011 3:25am Aug 5, 2011 3:25am
Quoting mangalesh
Need a helpfull idea from experienced guys .

I took a euro demand zone in h1 and m15 time frame .

Then i went to m5 time frame to see which time frame was clear and good and i see m5 was good and clear to me . So i waited for a engulfing candle . And It provided a neat engulfing candle .

But now my take profit should be at m5 zone right ?

I see my sl is bigger than my tp in m5 timeframe ...But what can i do here ..any usefull idea? So i placed my h1 tp now .

thanks

Please see attachment for more information regarding entry sl...
You mean supply right?

If you begin with looking for levels on an H1 time frame, you identify the level and then you look for the profit zone on H1. When you drill down to a lower time frame you are merely squeezing that H1 level to see if you can tighten your stop loss, but you are still trading off the H1 level, so target the opposing H1 level for profit. BUT, with that trade I would be careful -you may want to tighten stops as we are at a small Daily demand on Euro and $Index has hit Daily supply. Don't forget your higher time frame levels. Taking profits around 4120 area shouldn't be a problem though at H1 demand but be careful..
  • #533
  • Aug 5, 2011 3:37am Aug 5, 2011 3:37am
thanks for the clue .

I got ur point . So we use smaller tf for early enteries and we have to place targets on the zone of higher time frames right ?


hmm thats a good idea having small stop loss to make bigger tp ..Risk shd more than reward ..


yes i see daily demand in euro but its far 137 pips from here ..

I dono to see USD index ..Is there any pair to see that alone .

thanks



Quoting Porkpie
You mean supply right?

If you begin with looking for levels on an H1 time frame, you identify the level and then you look for the profit zone on H1. When you drill down to a lower time frame you are merely squeezing that H1 level to see if you can tighten your stop loss, but you are still trading off the H1 level, so target the opposing H1 level for profit. BUT, with that trade I would be careful -you may want to tighten stops as we are at a small Daily demand on Euro and $Index has hit Daily supply. Don't forget your higher time frame levels....
Trading is all about probability, low risk/high reward ,buy low/sell high
  • #534
  • Aug 5, 2011 4:05am Aug 5, 2011 4:05am
Daily demand is at 4135 (Euro time zone). It might be less significant than the lower one at 4050 but it is there and I wouldn't ignore it if taking H1 trades if I were you. I'd be looking for entries higher up the higher time frame supply curve. (Just realised price has bounced up from 4050. 4135 Daily demand level is an overlap of 4050 level), both significant but the lower more so imo.

Lower time frames simply reduce the risk off the higher time frame levels, its not about getting in early. Think about it logically.

Ignore dollar index when trading the euro at your peril.
  • #535
  • Aug 5, 2011 4:10am Aug 5, 2011 4:10am
oh ok fine ..But the zone 4135 which u mentioned has been spiked and went up so the demand should be already consumed from that zone is what my opinion is . Thats why i have a daily zone which is good below that ..but seems now euro is gonna hit my sl dono whats the reason..grrr



Quoting Porkpie
Daily demand is at 4135 (Euro time zone). It might be less significant than the lower one at 4050 but it is there and I wouldn't ignore it if taking H1 trades if I were you. I'd be looking for entries higher up the higher time frame supply curve.

Lower time frames simply reduce the risk off the higher time frame levels, its not about getting in early. Think about it logically.

Ignore dollar index when trading the euro at your peril.
Trading is all about probability, low risk/high reward ,buy low/sell high
  • #536
  • Aug 5, 2011 4:14am Aug 5, 2011 4:14am
Quoting mangalesh
oh ok fine ..But the zone 4135 which u mentioned has been spiked and went up so the demand should be already consumed from that zone is what my opinion is . Thats why i have a daily zone which is good below that ..but seems now euro is gonna hit my sl dono whats the reason..grrr
Reason: more buyers than sellers

Don't forget the higher time frame levels are the stronger levels so of course H1 levels will be wiped out if entered too close to higher time frame levels, hence your stop loss being hit.
  • #537
  • Aug 5, 2011 4:17am Aug 5, 2011 4:17am
so even a spiked zone is valid at daily ? wanna get all my doubts clear ...



Quoting Porkpie
Don't forget the higher time frame levels are the stronger levels so of course H1 levels will be wiped out if entered too close to higher time frame levels, hence your stop loss being hit.
Trading is all about probability, low risk/high reward ,buy low/sell high
  • #538
  • Aug 5, 2011 4:29am Aug 5, 2011 4:29am
It is still a contender. The fact that the level spiked out of the lower level tells me that there were a lot of buyers there at that spike making the level.

If I were trading higher time frame levels then I probably wouldn't think too much about that level but the fact you are trading intraday you need to take notice of daily spikes. If you are unsure of the daily candle zoom into it on the 4 hour and see what it is telling you. The 4 hour tells me that is a reasonable level to take notice of. Price has already retraced into the level but it was not a deep retrace at all so a second touch will provide you with some more buying.

Staying with the 4hour, now look above and below current price and which has the smoother cleaner path up or down? Upwards has the smoother path until 4300. I am not saying price will get all the way up there but you need to look at it from the perspective of what has least resistance when you are unsure about a level.
  • #539
  • Aug 5, 2011 4:34am Aug 5, 2011 4:34am
ok got you ..and btw do u need candle paterns like engulf etc to finish outside the zones or inside the zones is ok ?


Thanks


Quoting Porkpie
It is still a contender. The fact that the level spiked out of the lower level tells me that there were a lot of buyers there at that spike making the level.

If I were trading higher time frame levels then I probably wouldn't think too much about that level but the fact you are trading intraday you need to take notice of daily spikes. If you are unsure of the daily candle zoom into it on the 4 hour and see what it is telling you. The 4 hour tells me that is a reasonable level to take notice of. Price has already retraced into the level but it...
Trading is all about probability, low risk/high reward ,buy low/sell high
  • #540
  • Aug 5, 2011 4:37am Aug 5, 2011 4:37am
I am not saying my bias isn't down, I am just saying that I would'nt necessarily take that level so close to higher time frame demand on an H1 time frame. Maybe a quick scalp off the 5min - which brings us back to your original question. Answer: Take quicker profits near higher time frame opposing levels but take H1 targets as profit areas if further from higher time frame levels.

I don't trade the engulfing bar pattern but I imagine that an engulfing bar within or very near the level should be fine as long as your risk:reward is still intact on entry.
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