Price is everything | Page 1012 | Forex Factory

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Price is everything

  • #20,221
  • Sep 8, 2011 8:02am Sep 8, 2011 8:02am
Quoting Winston Reed
Hello MozarTT
The area you went long is an area where there was demand on 2 or 3 previous occasions so I think demand may be exhausted in that area. But the driving force on e/u right now is supply. Just look at the overall trend by pulling back to a 4 hour chart or daily chart. Your long was counter trend overall. It is probably better to look for shorts in areas of supply (with the trend) rather than longs in areas of demand (against the trend). IMHO. This is how we learn so keep banging away at it. I have been trading for 3 years now...
Thank you very much Winston. I undestood that i opened against the trend, but the logic of it was to open like others on this thread, for example Miky some posts above opened from demand level against the trend. I can't understand how do you determine the point of source of price decline/rise. For example, which of this zones is correct and which will be a source of rising and in future correction?
Attached Image (click to enlarge)
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  • #20,222
  • Sep 8, 2011 8:18am Sep 8, 2011 8:18am
Quoting MozarTT
Hello guys! I'm new to supply/demand trading, so this was my first trade on buy. Loss. Please, tell me what was wrong? Green line - entry, red - SL, magenta - TP at the low level of supply zone if i identified it right. And please wright how from many supply/demand zones you identify zone that is a source of drop or rise of price? This is the main question for me. Thanks
Just an important note on your trade.
It was a success. It went where it was meant to go, just not as far as you had hoped

Best

If
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  • #20,223
  • Sep 8, 2011 8:32am Sep 8, 2011 8:32am
Quoting Ifmyante
Just an important note on your trade.
It was a success. It went where it was meant to go, just not as far as you had hoped

Best

If
Thanks. I just don't think that it was zone, because i'm only studying how and where to determine them. Do you have the rule how to identify zones? And when certain zone exhaust?
  • #20,224
  • Sep 8, 2011 8:35am Sep 8, 2011 8:35am
Quoting MozarTT
Thanks. I just don't think that it was zone, because i'm only studying how and where to determine them. Do you have the rule how to identify zones? And when certain zone exhaust?
If there's an area of indecision, it manifests itself as a flag.

The limits of this flag then become the new zones.

If you need a chart for it, just ask, and I'll get to it over the weekend
  • #20,225
  • Sep 8, 2011 8:45am Sep 8, 2011 8:45am
Quoting Ifmyante
If there's an area of indecision, it manifests itself as a flag.

The limits of this flag then become the new zones.

If you need a chart for it, just ask, and I'll get to it over the weekend
Yes, i need a chart.If you can it be very cool!

Could you explain me the next: during some move we may have a few flags as on my screenshot of gbpusd. Which of this zones is correct and to which zone we have to wait correction and bounce?
  • #20,226
  • Sep 8, 2011 8:51am Sep 8, 2011 8:51am
First red arrow pointing down shows a strong bearish candle exiting an area of congestion. This identified this as an area of supply. You look for strong moves out of an area of congestion to identify areas of supply and demand. The second arrow down is where price entered the supply zone and reacted by moving down. The first red arrow pointing up is where price reacted to the demand zone.
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  • #20,227
  • Sep 8, 2011 8:53am Sep 8, 2011 8:53am
Sorry wrong chart. This is right chart for above post.
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  • #20,228
  • Sep 8, 2011 9:15am Sep 8, 2011 9:15am
Quoting Winston Reed
Would like comments on g/u. In demand zone from what I can see but this pair seems to want to fall. What do you all think?
nice area identification buddy...
have you enter long there?

http://img695.imageshack.us/img695/7...lmosthittp.png

Uploaded with ImageShack.us

mine is almost hit the TP... but may be I set the TP too high...
TRADING IS SIMPLE BUT NOT EAZY
  • #20,229
  • Sep 8, 2011 9:26am Sep 8, 2011 9:26am
Hey green trader. I took a short for 40 pips at that supply zone and now long.
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  • #20,230
  • Sep 8, 2011 10:01am Sep 8, 2011 10:01am
Quoting Winston Reed
Hey green trader. I took a short for 40 pips at that supply zone and now long.
A few notes on the charts

I closed my trades, as Ben may make a mess out of them
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  • #20,231
  • Sep 8, 2011 10:12am Sep 8, 2011 10:12am
Quoting Winston Reed
Hey green trader. I took a short for 40 pips at that supply zone and now long.
really brilliant... nice trade dud...
I'll take a trade tomorrow,,, I'm off for today...
hehehe
TRADING IS SIMPLE BUT NOT EAZY
  • #20,232
  • Sep 8, 2011 10:13am Sep 8, 2011 10:13am
Quoting Ifmyante
A few notes on the charts

I closed my trades, as Ben may make a mess out of them
hi there if, so you mean if an area has already been spiked one time, it will not valid again as an supp/demand area right?
would you expalin please...
TRADING IS SIMPLE BUT NOT EAZY
  • #20,233
  • Sep 8, 2011 11:14am Sep 8, 2011 11:14am
Ifmyante, Winston Reed many thanks. Will try. And one more question: where and how do you open the trade? For example, supply zone: do you enter on low level or on high level or maybe in the middle of zone? And how do you enter: by price action patterns or by buy/sell limits?
  • #20,234
  • Sep 8, 2011 11:29am Sep 8, 2011 11:29am
Quoting green_trader
hi there if, so you mean if an area has already been spiked one time, it will not valid again as an supp/demand area right?
would you expalin please...
I feel disinclined to post this chart, as this has been explained a million times back through the thread.

But I suppose RTP could do with an explanation of spikes, so here goes
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  • #20,235
  • Sep 8, 2011 11:30am Sep 8, 2011 11:30am
Getting into the trade is a matter of personal preference. I know some who use limit orders as soon as price enters the zone. I like to wait for price to enter the zone then watch price action as it exits the zone. I tend to enter when price shows a candle close out of the zone on the particular time frame I see the zone the best.
  • #20,236
  • Sep 8, 2011 11:34am Sep 8, 2011 11:34am
Quoting MozarTT
Ifmyante, Winston Reed many thanks. Will try. And one more question: where and how do you open the trade? For example, supply zone: do you enter on low level or on high level or maybe in the middle of zone? And how do you enter: by price action patterns or by buy/sell limits?
If you can find the perfect point of decision, it can be well worth an expert's while touch trading that price.

But it's best to start by waiting for PA to tell you who's doing what in the market.

With practice, you'll see, before price arrives, what is the most likely outcome of price arrival.
  • #20,237
  • Sep 8, 2011 11:34am Sep 8, 2011 11:34am
Green trader,
The first time price revisits a zone is the best time to take the trade. It doesn't mean you can't take another trade on the 2nd and 3rd revisit of that zone. But every time it does revisit, supply or demand is being used up. Eventually it will break through that zone. Also the deeper into the zone price visits is a sign that zone is getting used up. Anyway just the way I see it for now.
  • #20,238
  • Sep 8, 2011 11:50am Sep 8, 2011 11:50am
We have 2 supply zones while price going south. To what zone we must wait to bounce and why?
Attached Image (click to enlarge)
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  • #20,239
  • Sep 8, 2011 12:51pm Sep 8, 2011 12:51pm
Quoting MozarTT
We have 2 supply zones while price going south. To what zone we must wait to bounce and why?
We must look at these zones in context of the overall picture. The bigger trend is to the downside so overall supply has been consistently overwhelming demand. Those areas of "supply" you have highlighted as price has been falling are just continuation or price setting areas. In the future if price returns to one of these areas there is likely to be a reaction. I like to look at supply and demand areas at the extremes of whatever time frame I'm in. If it doesn't look good I move down or up to another time frame to find the best supply and demand area. Since g/u is moving down overall I'm favoring shots in areas where price returns to a nice looking supple area. Hope this helps.
  • #20,240
  • Sep 8, 2011 1:12pm Sep 8, 2011 1:12pm
Quoting Winston Reed
We must look at these zones in context of the overall picture. The bigger trend is to the downside so overall supply has been consistently overwhelming demand. Those areas of "supply" you have highlighted as price has been falling are just continuation or price setting areas. In the future if price returns to one of these areas there is likely to be a reaction. I like to look at supply and demand areas at the extremes of whatever time frame I'm in. If it doesn't look good I move down or up to another time frame to find the best supply and...
English is not my native language. If i understand you correctly my zones are not supply zones?
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