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Supply and Demand trading with Fibs

  • #521
  • Oct 23, 2011 1:14pm Oct 23, 2011 1:14pm
I am usually not available to take part in the webinars.... so I was not aware of the 88 .

So buyers and sellers must be using the 88 line otherwise it would not work. Now I am even more curious as to how that came about.

Of course if it works, use it.

I am going to adjust my fib fan.
  • #522
  • Oct 23, 2011 1:19pm Oct 23, 2011 1:19pm
Quoting Lou
I am usually not available to take part in the webinars.... so I was not aware of the 88 .

So buyers and sellers must be using the 88 line otherwise it would not work. Now I am even more curious as to how that came about.

Of course if it works, use it.

I am going to adjust my fib fan.
its not how many buyers and sellers its the size of the order, if Barclays sell something at 1.32 with one order of 20million and 1million retail traders are buying at 1.32 with a combined total of orders being 16million which way is it going to go, down, so we have one winner and 1million losers

its so simply when you just think about how simple it really is!
  • #523
  • Oct 23, 2011 1:43pm Oct 23, 2011 1:43pm
[quote=deankenny21;5064587]its not how many buyers and sellers its the size of the order, if Barclays sell something at 1.32 with one order of 20million and 1million retail traders are buying at 1.32 with a combined total of orders being 16million which way is it going to go, down, so we have one winner and 1million losers

I agree with everything you have said. Still wondering how the 88 has come to be a significant number. That is simply curious. I can see how the million traders AND Barclays would trade off of a 61.8 retracement price. Curious as to why the reaction is to 88. Glad you have discovered it.
  • #524
  • Oct 23, 2011 2:35pm Oct 23, 2011 2:35pm
Quoting deankenny21
its been shown in my webinar many times, people cannot believe how much price uses it to bounce, people have already been calling it "THE MAGIC LINE"

also 38.2 and all them is what ALL of the normal retail traders get, remember 95% retail traders fail, put 2 and 2 together here and you will realise where im going with this.

I wish I could be up during london to see this in action. May need to take an afternoon and evening nap just to see it. The 88 is the fourth root of the .618. (Its actually off by just a little but thats OK. I think its an early signal)

http://www.forex-fx-4x.com/fibonacci-basic-tutorial/
  • #525
  • Oct 23, 2011 2:37pm Oct 23, 2011 2:37pm
Quoting ^eagle^
I wish I could be up during london to see this in action. May need to take an afternoon and evening nap just to see it. The 88 is the fourth root of the 68. (Its actually off by just a little but thats OK. I think its an early signal)

http://www.forex-fx-4x.com/fibonacci-basic-tutorial/
yes as close as, in what you posted the setting is 0.886 in my setting i have 0.881 good enough for me
  • #526
  • Oct 23, 2011 2:49pm Oct 23, 2011 2:49pm
Just a crazy thought........

If computers see in zeroes and ones and humans see in fractals by halving quartering etc. Could these forth root zones be the confluence of the two? Just a thought.
  • #527
  • Oct 23, 2011 3:51pm Oct 23, 2011 3:51pm
Evening all, stumbled upon this thread and also apply supply/demand to trading. Currently testing swing and scalp strategies.

Short EUR USD @ fresh 60 minute supply from Friday afternoon and left it over the weekend (aware of the risk associated but like the supply zone).

Chart attached with T1 (near the low from last Friday's sell off) and T2 (rally, base rally location followed by strong buying) the targets.

Happy Trading.
Attached File(s)
File Type: doc EUR USD 23.10.doc   73 KB | 324 downloads
  • #528
  • Oct 23, 2011 7:16pm Oct 23, 2011 7:16pm
Hello. I only stumbled in this thread today. Thanks to Dean for sharing. I looked at SD zones in the past after watching several videos by Sam Seiden and could never make up my mind about the right zones. Dean's strategy looks much easier (hopefully) and I mean to hang around to learn more. Before going to bed I tried to challenge my understanding by spotting this supply area on EJ with double confluence on Fib lines and fans at 61.8 level. The price went through the area and then back down , generating a profit of at least 5 pips, before going up again. But a 15 pips stop would have needed to hold the spike up. Would this be counted as a loser? And above all, was that supply area correct?
Attached Image (click to enlarge)
Click to Enlarge Name: 2011-10-24_0109.png Size: 55 KB
  • #529
  • Oct 23, 2011 7:52pm Oct 23, 2011 7:52pm
Quoting alright
Hello. I only stumbled in this thread today. Thanks to Dean for sharing. I looked at SD zones in the past after watching several videos by Sam Seiden and could never make up my mind about the right zones. Dean's strategy looks much easier (hopefully) and I mean to hang around to learn more. Before going to bed I tried to challenge my understanding by spotting this supply area on EJ with double confluence on Fib lines and fans at 61.8 level. The price went through the area and then back down , generating a profit of at least 5 pips, before going...
would not trade that, market only just opened and u can see the gap there, people like to trade the gap at market open hence the market trying hard to fill it so early, i would at least wait till tomorrow morning for valid trades and zones.
  • #530
  • Oct 24, 2011 1:20am Oct 24, 2011 1:20am
Quoting deankenny21
would not trade that, market only just opened and u can see the gap there, people like to trade the gap at market open hence the market trying hard to fill it so early, i would at least wait till tomorrow morning for valid trades and zones.
I wouldn't either of course. Was just checking my understanding about zones... Will look for more, hoping I get access soon to the skype room
  • #531
  • Oct 24, 2011 1:41am Oct 24, 2011 1:41am
I'd strongly advise anyone wanting to give the fib fan a try to use the values that Dean has provided. I've watched him use them live on his webinar and I've back-tested them across a lot of pairs and time-frames. They work - simple as that. I don't know HOW they work, but they do work and provide a significant edge, and that's good enough for me.

PB


Quoting Lou
I am usually not available to take part in the webinars.... so I was not aware of the 88 .

So buyers and sellers must be using the 88 line otherwise it would not work. Now I am even more curious as to how that came about.

Of course if it works, use it.

I am going to adjust my fib fan.
  • #532
  • Oct 25, 2011 11:48am Oct 25, 2011 11:48am
Greeting everyone.

Have not had much time to trade past 2 days. was busy with work. But managed to get few trades.

As you can see the new addition to my analysis is the PnF Charts. These charts help your confirm exactly where the "actual" or real supply demand levels are.
fine example is the usdcad as posted.

gbpaud was best with 75 pips.

please analyse them...

give your comments..

update : on my previous post of eurusd and audcad trades. They have gone bad , but they are still on. I let them run for experimental reasons with PnF charts. Still learning
Attached Image(s) (click to enlarge)
Click to Enlarge Name: audcad_loss.gif Size: 35 KB
Click to Enlarge Name: usdcad_loss.gif Size: 39 KB
Click to Enlarge Name: gpbaud_75pips.gif Size: 38 KB
  • #533
  • Oct 25, 2011 11:52am Oct 25, 2011 11:52am
Explain more ;-)

Quoting zamfir
Greeting everyone.

Have not had much time to trade past 2 days. was busy with work. But managed to get few trades.

As you can see the new addition to my analysis is the PnF Charts. These charts help your confirm exactly where the "actual" or real supply demand levels are.
fine example is the usdcad as posted.

gbpaud was best with 75 pips.

please analyse them...

give your comments..

update : on my previous post of eurusd and audcad trades. They have gone bad , but they are still on. I let them run for experimental...
  • #534
  • Oct 25, 2011 12:11pm Oct 25, 2011 12:11pm
Well the PnF(Point and Figure) charts were used in the 19th century. They are no secret in trading.but this method was lost for a long time. It was much before forex trading. It was mostly used in the analysis of stocks. But these days its picking up in forex big time , why ?

because guess what it is used for ? that's right - supply and demand levels.

The PnF charts do not have time in the picture. all noise of time is removed and you are left with only price. take any charts put the PnF charts and mark your supply demands on both time charts and price charts , if they match you have a solid entry. as can be seen from my above posts.

i m still experimenting with them. But i guess you get the point now.

plenty of PnF technical analysis out there. mt4 indicators too. attached is one of them i use.
Attached File(s)
File Type: mq4 FXI_Point&Figure-Adv.mq4   39 KB | 1,231 downloads
  • #535
  • Oct 25, 2011 12:17pm Oct 25, 2011 12:17pm
Quoting zamfir
Greeting everyone.

Have not had much time to trade past 2 days. was busy with work. But managed to get few trades.

As you can see the new addition to my analysis is the PnF Charts. These charts help your confirm exactly where the "actual" or real supply demand levels are.
fine example is the usdcad as posted.

gbpaud was best with 75 pips.

please analyse them...

give your comments..

update : on my previous post of eurusd and audcad trades. They have gone bad , but they are still on. I let them run for experimental reasons with...
Thats intersting, zamfir. Can you explain better how PnF help to identify SD areas? Similar to normal bars? Thanks
  • #536
  • Oct 25, 2011 12:21pm Oct 25, 2011 12:21pm
Thanks Zamfir - I've never look at PnF before, but they look like they could be a useful addition to this method. I assume the trade plays out as usual, but you use the PnF chart to jump in quick with a market order when you see demand overtake supply or vice versa on the PnF? Obviously the price on the time chart would have to be in a demand or supply zone.

PB

Quoting zamfir
Well the PnF(Point and Figure) charts were used in the 19th century. They are no secret in trading.but this method was lost for a long time. It was much before forex trading. It was mostly used in the analysis of stocks. But these days its picking up in forex big time , why ?

because guess what it is used for ? that's right - supply and demand levels.

The PnF charts do not have time in the picture. all noise of time is removed and you are left with only price. take any charts put the PnF charts and mark your supply demands on both time charts...
  • #537
  • Oct 25, 2011 12:25pm Oct 25, 2011 12:25pm
Quoting alright
Thats intersting, zamfir. Can you explain better how PnF help to identify SD areas? Similar to normal bars? Thanks
Quite simple actually....apply the same principles that you use to identify the supply demand on a normal candlestick chart.

When you apply it on a PnF chart you get more accurate picture, since we are looking ONLY at price.

We need to look at both charts because on the PnF charts the bars are created only when the price moves by x amount of pips. Hence we need to look at both candlestick charts and see where the supply demand levels are, then look up the PnF charts to confirm that we are actually in a good supply/demand level.

This sort of analysis , has helped me avoid taking low probability trades for a while now. But i m still experimenting..
  • #538
  • Oct 25, 2011 12:28pm Oct 25, 2011 12:28pm
Quoting pixelboy
Thanks Zamfir - I've never look at PnF before, but they look like they could be a useful addition to this method. I assume the trade plays out as usual, but you use the PnF chart to jump in quick with a market order when you see demand overtake supply or vice versa on the PnF? Obviously the price on the time chart would have to be in a demand or supply zone.

PB
Not quite PB, you can now actually be more accurate in "set and forget" method of supply demand, because now you can see the exact price where the resistance or bounce is on the PnF charts.
  • #539
  • Oct 25, 2011 12:33pm Oct 25, 2011 12:33pm
Recent trade on NZDJPY 1H.

As it can be seen on both time and price charts , the price has gone into demand levels on both charts. Trade is now taken ..lets see how it goes..
Attached Image (click to enlarge)
Click to Enlarge Name: nzdjpy_1h.gif Size: 38 KB
  • #540
  • Oct 25, 2011 12:33pm Oct 25, 2011 12:33pm
I'm not sure I can see how they give a more accurate picture than just zooming into the normal chart. Can you show an example?

PB


Quoting zamfir
Not quite PB, you can now actually be more accurate in "set and forget" method of supply demand, because now you can see the exact price where the resistance or bounce is on the PnF charts.
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