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Supply and Demand trading with Fibs

  • #701
  • Apr 22, 2012 6:47am Apr 22, 2012 6:47am
dean, nice work. since i learned and used supdem i haven't used fibs. i can see it is rather good for confluence tool to measure the strength of a zone.

i will spend some time today to back-test this.

here is of my first back-searches i did using a fib and an extension..

(btw, i had edited the image to look like real time.. makes it clearer to see the process.)

..
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  • #702
  • Apr 22, 2012 9:48am Apr 22, 2012 9:48am
Quoting phi1ipp
Then please could someone experienced help newbies with their questions?
Hi phi1ipp,
I don't know if i can call myself experienced but i'll share the levels i'm watching on audusd with you guys.
I'm not a short term trader, my trading chart is on H4, sometime i go down to H1 to find levels so i can reduce my risk.

Red line is sup and dem on D1
Dotted red line is where i'll take my entri (from H4)
Orange is sup and dem on H4
Dotted orange line is where i'll take my entri (from H1)

Here's the link to chart http://screencast.com/t/NpFkxIirX
  • #703
  • Apr 22, 2012 1:14pm Apr 22, 2012 1:14pm
Quoting alvin2434
Hi phi1ipp,
I don't know if i can call myself experienced but i'll share the levels i'm watching on audusd with you guys.
I'm not a short term trader, my trading chart is on H4, sometime i go down to H1 to find levels so i can reduce my risk.

Red line is sup and dem on D1
Dotted red line is where i'll take my entri (from H4)
Orange is sup and dem on H4
Dotted orange line is where i'll take my entri (from H1)

Here's the link to chart http://screencast.com/t/NpFkxIirX
Hi Alvin,

thank you for the reply. May I ask you a question how do you plan your TP level?
  • #704
  • Edited 10:06am Apr 23, 2012 9:53am | Edited 10:06am
Picture perfect trade, textbook!

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Dean (or anyone) how important is it to you that price retraces back to our supply/demand level in a strong fashion? I notice Sam Seiden doesn't talk about this much, I also know he doesn't give everything away. Im sure I heard somewhere you took his paid course.

Will you only take trades which leave in a strong fashion and return to zone in a strong fashion?, Also notice how the trade diddn't 'mature' for awhile....and also if may look like that zone has had previous touches, but if you look back I wouldn't of called it a zone at previous touches, because price diddnt surge away strongly enough, I'd love to hear your take on the trade (or anyone with experience) and any planned future wedinars? Thanks
  • #705
  • Apr 23, 2012 11:24am Apr 23, 2012 11:24am
Quoting phi1ipp
Hi Alvin,

thank you for the reply. May I ask you a question how do you plan your TP level?
Hi phi1ipp,

sorry for the late reply, i got some problem on my desktop.
my TP depends on the situation, but usually when i gain 1:1 (example if level is 30 pips wide and price has move away from level 30 pips) i'll close 1/3 or 1/2 of my position and move stop to BE then close the rest of position on support/resistance or opposing level.

my english is not good, here's the link to my chart on audusd trade http://screencast.com/t/sZPBJ0W6NDD6
1 is where i'll close 1/2 of my position and move stop to BE
2 and 3 is where i'll might close the rest

hope it help, happy trading
  • #706
  • Apr 23, 2012 1:04pm Apr 23, 2012 1:04pm
Could someone also explain why after I spotted a supply level (top two horizontal lines) another supply formed a bit further down. Why would I of not taken the second supply level down as a proper 'level'?. This is where I seem to go wrong, I'll mark out a good supply level and whilst waiting for the reversal to come back to it, I'll spot another level and draw it in and try and trade from that.

I havent gone down timeframes to tidy the level up, just wanted to show as an example. Is it to do with not doing fib studies on them? or am I missing something else. I'd be grateful to anyone who can explain it, especially dean!

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You could even argue there was a demand level forming under the second supply level I drew out, as price started to take off again. So 2 losers right there, as first zone wasnt hit. Been watching some of your vids too...still seeking the answer to this question though . Thx

PS. Just done a fib study on it, and 23.6 fib level was right by the second 'supply' area...whats up?!
  • #707
  • Apr 23, 2012 1:53pm Apr 23, 2012 1:53pm
Just another example of a losing trade.

My question is how wide the supply zone should be in terms of SL placement?
1) Is my zone defined correctly?
2) Where the SL should be? Above the upper supply?

Alvin, thank you for your answers! I'm watching Dean's video but they're bloody huge 14 hrs!
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  • #708
  • Apr 23, 2012 3:53pm Apr 23, 2012 3:53pm
Not that I'm the most experienced with it but your zone seems correct, but you put your sl a few pips higher than top end of zone, which you would still be in the trade as it stands. Just brought same chart up and it did indeed turn into a loser. It was also nearer to an m15 supply level and a 1hour supply. You also had fibs lining up. So maybe it was just a loser, not sure if dean posts here anymore seemed like a good thread too. I'd like to see an answer
  • #709
  • Apr 24, 2012 12:50am Apr 24, 2012 12:50am
Quoting phi1ipp
Just another example of a losing trade.

My question is how wide the supply zone should be in terms of SL placement?
1) Is my zone defined correctly?
2) Where the SL should be? Above the upper supply?

Alvin, thank you for your answers! I'm watching Dean's video but they're bloody huge 14 hrs!
Yeah, i got losing trade too on audusd, i didn't watch it move 1:1 cause i went to sleep, should've take some and move stop to BE, but lost is a lost, there's always another trade around

I'll try to answer your question according to my opinion
1. On low timeframe it's best to trade rally base drop and drop base rally. Drop base drop on low timeframe is less reliable then high timeframe.
2. On majors usually i use 5 to 10 pips above supply level.

And yes, Dean's videos are huge, lol
Here's the same M5 chart, don't know if i drew the zone correctly
http://screencast.com/t/eJ6R9QY6J
  • #710
  • Apr 24, 2012 1:07am Apr 24, 2012 1:07am
Quoting deankenny21
hi, many may already know me here from posting in James16 thread, and Rockys Trading made simple with no lagging indicators thread.

Ive had some nice success mixing these 2 techniques together, and have now created a free to join room on Skype to discuss trading ideas from 5 min timeframes for scalping all the way up to daily etc for longer term trades. I have also added a LIVE trading webinar room with a view of my live desktop as i trade right on front of your eyes.

alot of traders ask other traders that have created a method/system...
I see you are scalping.. I scalp too with 8pips sl and and 8pips target..This looks interesting will check your thread
  • #711
  • Apr 25, 2012 5:49am Apr 25, 2012 5:49am
Its worrying dean has gone and that in the later posts his method changed from simply supply and demand to adding ridiculous indicators from symphonie thread. Theres deffinately something to supply and demand, but it looks like most have stopped trading deans method.
  • #712
  • Apr 25, 2012 5:56pm Apr 25, 2012 5:56pm
Quoting chewz
Could someone also explain why after I spotted a supply level (top two horizontal lines) another supply formed a bit further down. Why would I of not taken the second supply level down as a proper 'level'?. This is where I seem to go wrong, I'll mark out a good supply level and whilst waiting for the reversal to come back to it, I'll spot another level and draw it in and try and trade from that.

I havent gone down timeframes to tidy the level up, just wanted to show as an example. Is it to do with not doing fib studies on them? or am I missing...
Hi Chewz, both your levels are way off, those are not supply areas at all.
  • #713
  • Edited 6:47pm Apr 25, 2012 6:06pm | Edited 6:47pm
Quoting phi1ipp
Just another example of a losing trade.

My question is how wide the supply zone should be in terms of SL placement?
1) Is my zone defined correctly?
2) Where the SL should be? Above the upper supply?

Alvin, thank you for your answers! I'm watching Dean's video but they're bloody huge 14 hrs!
hey buddy, that supply area you picked for your trade was a really bad one, i dont even consider it a supply zone. i would have never taken it. One of the main things to consider is " how did price leave that area? you need to see long abnormal candles away from that area. I dont trade smaller time frames, lowest ill go is 1H but if i did, id look at overall direction from a higher timeframe and trade it in that direction too. Here is an example of a supply area, notice the "violent move away from the area" hope this helps. I have been trading this method for the last 2 or 3 weeks and damn, its the best thing ive discoverd in forex. its all about picking your levels.

EDIT: 20 mins later - read 2 post below to see what happend when price touched this 5 min supply area.
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  • #714
  • Apr 25, 2012 6:32pm Apr 25, 2012 6:32pm
I am posting my 3 trades taken this week with real supply/demand areas highlighted and my entries and exits, notice the large candles. Those are true supply and demand areas. Also you will see I exited them early cuz price really moved away alot. The last trade was taken 30 mins ago and I expect the price to move much more. I hope this helps you guys identify the areas, dont just pick any, pick the really good ones.

If you got any questions, just holler but mind you, im still learning to master this method too. So far, this is the best method I have used in 3 and a half years of trading and I only been trading this method for 2 or 3 weeks.
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  • #715
  • Apr 25, 2012 6:51pm Apr 25, 2012 6:51pm
mind you, the 5 minute eur/jpy supply area i mentioned above as an example was not that great as only after posting did i realize that the overall trend was bulish, even so , as soon as price touched the level, it just dropped. so you would have risked 3 pips and gained 12 pips (4:1).

Its dropping more as i type.
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  • #716
  • Apr 29, 2012 11:41pm Apr 29, 2012 11:41pm
Hi guys have not been on FF in a small while as you can probably notice, yes i very much still trade this method as my core of anything i do. Its my bread and butter. Alvin for one knows that i still do anyways ill try get myself on here a bit more, been busy doing stuff with Xbox but i wont get into that
  • #717
  • Apr 30, 2012 12:43am Apr 30, 2012 12:43am
Welcome back, Dean!

Are you still using your skype room for sharing your method?
  • #718
  • Apr 30, 2012 7:55am Apr 30, 2012 7:55am
Quoting phi1ipp
Welcome back, Dean!

Are you still using your skype room for sharing your method?
Thanks, again i havent been on skype in a while, i got overwhelmed on there by people adding me and non stop people talking to me i got lost in skype in the end, so im giving that a break.
  • #719
  • May 1, 2012 5:45am May 1, 2012 5:45am
Hi Guyz,

wanna share my today's trade with you. TP was defined as two times risk which was still lower than min value after the supply zone had been formed.

Thank you Dean for nice thread and sharing your method!
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  • #720
  • May 1, 2012 7:05am May 1, 2012 7:05am
Quoting phi1ipp
Hi Guyz,

wanna share my today's trade with you. TP was defined as two times risk which was still lower than min value after the supply zone had been formed.

Thank you Dean for nice thread and sharing your method!
No problem, keep it up, try to look for more consolidiation rather than a V or shape
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