Southern Fried FX - Supply/Demand Trading

I've been tinkering with FX for a while now, more as a hobby than anything else. I have been out of the markets for some time but ready to get back in. For some reason I thought it would be interesting to start my own journal. This is simply to capture my thoughts, if anyone that trades S/D has constructive comments by all means post away. Please include charts. I will not post every day as I tend to trade longer time frames, so if replies are delayed please understand.


I will trade Supply Demand Zones using mostly D1, 4H, and 1H charts. Please understand that I still consider myself a pure amateur in the financial markets ever learning and evolving, but S/D makes sense to me and is easier for me to wrap my head around than other means of participating in the markets. Please do not follow my trades...as I have already stated I am a novice and have a tendency to make impulsive trades from time to time. This is something I obviously need to work on.

Something else I seriously need to spend time on is developing a Trading Plan. I have not had the motivation to do that but realize it is a must if I am ever going to be a serious, profitable trader. It would also likely help me get a handle on the above mentioned issue of making impulsive trades.

I will trade a live mini account valued at around $350.00. If I prove to myself that I can trade with consistency I will add to that in $500 increments. I am in no hurry.....

I'll start with a couple of charts....

Edited 7/9/12 to provide updated color key:

I decided to simplify my charts by using just one color for each time frame. 8 colors is too damn much to keep up with. The color will represent both Supply and Demand levels.

Weekly - Red
Daily - Plum
4H - Green
1H - Pale Green



Disclaimer: The content of this blog is for 'Forex Trading Journal' purpose only. Nothing on this site should be construed as recommendation to purchase any financial instruments. The choice and risk is always yours. Thank you.

Sold at 4H supply level.

This is one I am stalking

So I was waiting on AU to reach the demand zone as I have marked on my chart however price turned South just short of that zone at the previous levels I have marked with the blue line. Seems like picking these levels can be an art form....

I closed my open 4H UJ trade this morning for 51 pips. I decided to leave a few on the table due to traffic.

EU is getting close to a demand area. Price didn't really race away from this level, however I may get involved if price gets deep into the zone. Dropping down to 4H once price enters the zone and watching PA could help me make a decision as to whether to trade or not. Patience.......

What I need to see now is for price to clear the 1.02238 level and trade up into the supply zone before I will have any interest in selling AU. It seems like taking a trade at 1.02238 would not yield much even though price appeared to turn fairly well there. I still believe the previous supply zone is where the sell orders are sitting. This is just my opinion and you know what they say about opinions, everybody has one...

I have 100 EMA, Stochastics and MACD on my charts, but I don't use them. I just like having the 100 there and I guess I could use one of the others for divergences...but probably won't:nerd:

Good job ! In fact, you will earn slowly but earn big amount of money. Because market trend is just like that, fluctuate within support and resistance. You visually see the chart already know that. I think you trade with high risk to rewards ratio. Am i right? Since this provide the high earning opportunity game but i still not prefer to trade because i like short term game.This is my style.


If this could be contribute to my short term strategy, it would be great. I will look forward from this thread. By the way, just a suggestion that if you could trade with market profile together, it might help too.

Hi Fx2ProTrader,
Thanks for stopping by. In regards to your High R:R reference. I really prefer to trade a 1.5 to 3 Reward to Risk Ratio, but will take a 1:1 if I like the trade enough. Kind of like my UJ 4H trade. That was not the best of trades for that very reason!

I have read a bit on Market Profile and it is intriguing. However I am doing my best to keep my approach uncluttered and simple, so for now I will maintain focus on perfecting the art of selecting good S/D levels.

I have seen where several traders mark these levels on their D1, 4H and even weekly charts and when price reaches those levels they drop down to 1H, 30M, 15M and even 5M charts to trade from. If the level is a good one I suppose short term trading would provide good opportunities for low risk trades. Best of luck in your trading!

Regards,
Deep

Sorry for wrong typo about risk to rewards ratio of my previous post. It suppose to be high reward to risk ratio.

OK.Keep it up for the high opportunity setup! Look forward to see some trades with chart here.

I like the looks of this level on the UJ 1H for a sell. R:R is 1 to 2....barely.

I placed a pending order. Now I can go do other stuff and see how this plays out....

UJ pending order cancelled. Not only did my level not get reached, I believe I was out of synch with the higher time frame levels and direction. This is where a trading plan with a checklist would help me spot or avoid these inconsistencies in my trading.

After analyzing this weeks potential trades, I decided that I liked the NZUSD structure the best. The AU was a close second. I have posted 2 charts. On all my charts going forward I will have the Weekly supply zone marked in red and demand zone in lawn green. The Daily zones will be marked in coral for demand and sea green for supply. The 4H and 1H will have their own colors as well. I need them marked on the same chart so that I can keep an eye on higher time frame zones, especially the weekly.

The daily chart has 3 blue lines that represent my pending sell limit order, stop, and Take profit. This will probably be a slow holiday week so I will keep a close eye on PA and trade the daily and not the 4H or 1H. If PA becomes too erratic I will cancel my orders. Hopefully trading the daily TF will eliminate the need for that.

The R:R is only slightly better than 1:1.

Weekly and Daily levels adjusted slightly as well as plans for entry, stop, and TP. Daily chart posted with updated zones and entries...we'll see if I am on the right track.

I like this 1H EU long setup. Pending orders set. If my order is not triggered by NY close tomorrow I will likely cancel the order. The lime green at the bottom of the chart is a weekly demand zone....

Still watching the Daily NZUSD, but that may take a few days to develop.

This was a poorly planned (not planned) and executed trade. I got away with it here because I had sellers on my side due to the weekly Supply level above. The good thing is I realize what I did and know how to avoid it again. This trade should have been planned since price was right at the supply zone. Not sure how I missed the setup

I will keep looking for opportunities to sell AU on the 4H and 1H at good supply levels because I am close to a weekly supply level. I will try to post them prior to entry.

I may have missed my EU pending buy I posted last night by around 5 pips, it may get there yet......

My pending order on the EU has triggered...we'll see if the 1H Demand level holds up to this aggressive selling happening right now.

Would like to know the coding of the supply demand zone. And please explain about stop loss distant for this trade.