Bull Bear Zone - Anthony Tan

Greetings,

SUPPORT RESISTANCE ZONE - A price zone which either load with excessive bulls or bears.

The main idea is trading at support and resistance levels or supply and demand levels. I think most of you know what is support and resistance levels or supply and demand levels. I wouldn't only look at the levels themselves when executing a trade. I would look where the levels are, either high or low on a trend or trading range.

I learn support and resistance / supply and demand from Sam and also the conventional technical analysis books. If you don't know what are they, you can just Google it on the net and you'll get tons of information.

The purpose I start this thread:
1. As a journal for my trades, so that I can review and refine my trading plan/rules in the future.
2. To help those who are interested to learn.
3. To discuss with other traders so that we can improve our trading skills.

The style I trade:
1. Don't like to have indicators on my chart, I found it's distracting me.
(No offend with indicators fans, it's my own problem that I don't like to get things too complex.)
2. I love plain chart.
3. Focus more on price action.
4. Keep my risk low.
5. Be happy with any wins and losses. (positive mindset)

I'll post my trades often here with my pretty charts. Any comments or thoughts are always welcome as I'm very open minded. Just keep in mind that don't compare with any other trading system or strategy here. In my humble opinion, successful traders depends on their money management, discipline and emotion. Every strategy could bring a trader to success, the only thing to conquer in order to success is ourselves.

I mainly doing day trading and trading mostly major pairs. Seldom trade crosses. Don't look for signals here. Here is just for discussion and learning purpose. I will post all trades including the losses here to discuss together.

Simple rules for the thread:
1. Respect fellow traders
2. No commercial postings
3. Help & Share

When ONE teaches, TWO learn.

Is your broker AGAINST you?

How many times you heard before people discussing about brokers are trading against us? How many times you have doing research which broker to choose? How many times you heard before people telling you that your broker are trading against you? How many times you heard before people saying STOP hunting? How many brokers you have work with?

Market Maker? ECN? STP? DMA? Which one is the BEST?! Which one is TRUE ECN?!! Which is fraud STP brokers?!!!

Don't you feel frustrated when doing such kind of research? When you see people someone posting "I get scammed by this broker, they just don't let me take profit!" "This broker is stop hunter! They hunt my stops! Stay away!", they are probably new to the FOREX market and probably a consistence losers. Sad but that's true.

When YOU lose money, if you don't look at the core problem but looking for someone to blame, you won't improve and learn from your mistake!

People often says that,

Broker job are executing your orders. They can either send your orders directly to their liquidity providers or matching your position within the house.

Below is a rough concept of broker from me:

Straight Through Process (STP):
Either send your orders directly to their liquidity providers or offset your orders with another clients order (same broker clients). Please know the fact that a broker won't send your order directly to their liquidity provider if your order is small, they have to offset by their own or accumulate your orders and other small orders and send them altogether to their liquidity provider.

Electronic Communication Network (ECN):
An electronic system that offer you to access to other market participants. Orders are send directly to the ECN pool without a dealing desk.

Market Maker:
A company that is always ready to buy or sell to you at an quoted price.The main role of a market maker is to provide liquidity. They always act as the counter party to a transaction.



In the past, I often think ECN is the best as it transfer our orders directly to the ECN pool. But after some time, I start to think, how do I know whether my orders are going directly to the pool? I don't know, the brokers just claim they do. And you might see a lot of traders out there says xxx broker is not true ECN and so on.

Now about the market maker, does a market maker job is to kick you out from the market by hunting your stop? Is your order too big which will cause them to bankrupt if you win? Think it through a simple logic my friend. Will market makers know which way the market will head to? I believe no one knows where the market will go. Then why market makers try to be the counter party of your side? I don't think they will take this kind of unnecessary risk while they can offset your positions with their own clients.

How does it work? Here's an example.
A trader buys 1 lot EUR/USD from a market maker at 1.3300/1.3001. Another trader sells 1 lot EUR/USD to the same market maker at the same price at 1.3300/1.3301. The broker will match the buyer and the seller position and the broker earn from the spread(in this case, broker will earn 1pip of spread each from both side.)

You might think the spread is small, and the earnings will be small. What if the broker match $1 Billion a day? How much will they earn?

Here you might wonder about something.

Will there always have enough volume to match every clients trade?
Well, there won't be always have exactly enough volume to offset. Let's say if there're 30 lots of buy orders and 10 lots of sell orders at the same price, the broker will offset the extra 20 lots buy orders through buying 20 lots from a larger market maker such as citibank and so on. Now, the broker are not holding any positions and they are risk free!

I hope you get a clearer picture about the market maker and other sorts of brokers like ECN, DMA, STP.

A broker that tends to hunt their clients stop won't stay in the broker long. Their ass will get caught soon enough if they hunt stops. Trade with a well regulated broker and high reputation broker! Don't get fascinated with those 30% deposit bonus and so on. If you can trade well, will you bother the 30% of bonus? You can even earn 300000% in long term once you are success.

The main purpose of this piece is I hope all traders FOCUS on their TRADES and not on their BROKERS.

Will update if needed.
If there's something wrong, please point me.
Any inputs from you are greatly appreciated.

The first chart is AUD/USD 5min chart.
The second chart is AUD/USD 15min chart.

On the 5min chart, there's a small bullish zone there. Took that trade and made 3.75% profits on that small trades. Actually after the price hitting the Bull Zone, it raise a little and it start to stall, that makes me a little worry about the zone. As if zone is strong enough, the price won't stall there.

On the 15min chart, there's a small bearish zone formed. Looks quite pretty but I forgot that we are on a up trend. Lose 2% on this trade.

The first chart is 15min USD/SGD chart.
The second chart is 30min USD/SGD chart.

A Bull Zone on the 15min chart that failed simply because of we are on a strong down trend.

A Bear Zone form on the 30min chart just before the Bull Zone breaks.

Didn't took any trades on this pairs as the spread is too high for me to trade on such small time frame.

Missed the short opportunity by a few pips.
USD/CAD 4hour chart.

The lower Bear zone breaks, lose 2%
The upper Bear zone looks like working well, but I didn't take the trade. Have another similar setup on USDCAD.

Taking two trades which are quite correlated will just double my rewards and at the same time double my risk. Stay patience.

Will keep on eye on this Pound Bear zone.

The zone breaks just right after I decided to get out at break even.
Reason I quit this position is I don't like the price stall at a level. Price should shoot up if it's strong level. Although it may take some time for the order to process before it rally, but it's better for me to quit the position and look for other entry rather than holding it.

EUR/USD 4Hour Bear Zone.
Made 5% on this trade with 2% of risk.
2.5 : 1 Risk to Reward ratio. Hope everyone caught this position

Nice and works well!!!

USD/JPY 1hour chart with a bullish zone. Enter the trade with a pending order. Looks fine when enter but price hovering above the zone for a period of time. Therefore I decided to exit with +3pips/+0.5%

Don't know whether the bulls can push the price higher or not. But at least I follow my plan.

After the news release, price decline into a support zone which loads with bulls and the price get push back high to a resistance level.

1:2 risk to reward ratio on this position.

GBP/USD Daily Resistance have push the price down several times.

Before US economic data is released, there was a bullish zone on 15min chart. Make some small profits from this position. Took profit at the resistance level. However, the price looks like just ignore the resistance level and get to a higher resistance.

The news push gold price up, but it stop rising after hitting a resistance zone. Price immediately decline after hitting the resistance zone. Below is 4hour Gold price chart.

Below is American Express 4Hour chart. Shorted at the Bearish zone and Took profit at the support zone. Make some great profits at the beginning of month!

FTSE100 and GBP/USD Bullish zone works well. Makes some profits here.
1st chart is FTSE H4 chart
2nd chart is GBP/USD is Daily chart

1st chart is NZD/USD H4. Demand at 0.8100
2nd chart is EUR/USD Daily. Approaching supply level.

1st chart.
Close NZD/USD long order for 0.6% profits. Hate price stalls on a level.
2nd chart.
Miss IBM H4 support level by a few points!!

Yen....