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Attachments: C-12's Supply, Demand and PA thread
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C-12's Supply, Demand and PA thread

  • #241
  • Oct 31, 2012 8:26am Oct 31, 2012 8:26am
Quoting C-12
Morning guys. I'm sure we've all spotted the supply level in the EURUSD. I've just been picking off my 6 pips x 2 off this all morning. Now caught another pocket of supply within larger supply.
*Update*

3/4 taken off and we're off!
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  • #242
  • Oct 31, 2012 11:12am Oct 31, 2012 11:12am
trailing
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  • #243
  • Nov 1, 2012 4:35am Nov 1, 2012 4:35am
Good morning.
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  • #244
  • Nov 1, 2012 5:05am Nov 1, 2012 5:05am
Quoting C-12
Good morning.
Hi C-12,

Really appreciate the thread and your insights, but would like to second another's request for you to highlight, with a simple arrow perhaps, the actual candle you enter on. Just while we're still in apprentice mode

If possible, much thanks

If not, no worries
  • #245
  • Nov 1, 2012 5:10am Nov 1, 2012 5:10am
Quoting C-12
Good morning.
nice trade,
  • #246
  • Nov 1, 2012 5:16am Nov 1, 2012 5:16am
Cheers guys, this is what I was leaning on this morning. A M15 pocket of supply hidden up there (in violet). Caught a nice rejection so got straight in and locked in at BE.

It was the PMI data release that moved the price down sharply.
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  • #247
  • Nov 1, 2012 8:09am Nov 1, 2012 8:09am
M1 chart with entry candle highlighted. Initial stop just above blue rectangle, 6 taken x 2 and at BE.
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  • #248
  • Nov 1, 2012 8:11am Nov 1, 2012 8:11am
Chart
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  • #249
  • Nov 1, 2012 8:57am Nov 1, 2012 8:57am
Quoting C-12
M1 chart with entry candle highlighted. Initial stop just above blue rectangle, 6 taken x 2 and at BE.
Why did not enter on the first touch of the level, 3 candles before? Next candle there is veeeeery big red candle.
You can control your emotions
  • #250
  • Nov 1, 2012 9:03am Nov 1, 2012 9:03am
Quoting Sztukmistrz
Why did not enter on the first touch of the level, 3 candles before? Next candle there is veeeeery big red candle.
I wasn't in love with the level. It was that red candle that gave me confidence that there were strong sellers there. When price retraced straight back I wanted in.
  • #251
  • Nov 1, 2012 12:03pm Nov 1, 2012 12:03pm
Quoting C-12
I wasn't in love with the level. It was that red candle that gave me confidence that there were strong sellers there. When price retraced straight back I wanted in.

Thanks for the extra highlighting!
  • #252
  • Nov 1, 2012 2:57pm Nov 1, 2012 2:57pm
Quoting C-12
Chart

This Short @ Supply is as classic as it gets. This is Smart Money selling into a level. Remember, SM's will operate in all time frames. Why?? Because, when trading with such size, this is one of the ways they try and hide their moves. Think about it. If they traded in just one TF they would be really easy to spot.

1) Look at how price approached this level. Price moved into a level approx 20pips in a smaller TF. One of the Odds Enhancers is how price approaches a level. In order for buyer to be buying..Sellers have to be selling. The Smart Money.

2) Because of the size that SM's trade in, they have to sell into these rallies, buy into declines. It is the only way they can make the kind of money they need to make. Most likely, they are taking the other side of those buyers going long. They have lots of inventory... They have to find willing buyers because they are selling.

3) Once the level was hit the SM's took out the rest of the buyers. When you run out of buyers for your selling... What happens...? Price goes in the opposite direction. DOWN. How do we know this? Look at the Pin Bar... Price went up and then closed near the low ** Right at a Supply Level ** ( look where it happen, what it looks like, it’s position in relation to previous price action )

4) Another thing you will notice is if you go up in time frames 30M or 1H, you see that price had turned but, looking left, you see no defined levels. This is another way the SM will hide themselves inside the smaller TF’s. The SM’s trade in all TF’s therefore level will exist in all TF’s


Quick Point: One of the interesting aspects about candlesticks is that they work best around Support/Resistance levels, beginning and ending of trends. The same can be said regarding Supply/Demand levels. (I think even more so IMHO) Hence, the beauty of candlesticks when using S/D levels.

For comparison let’s look at the preceding Pin Bar in Red 3 candles back. “Why not this one? “ Look where it is at. Looking left we see a small Resistance Level... One may even call this a small supply level, but a rather weak looking one if that??? Now let’s look at the two Pin Bars. The one in Red is pretty much inside the previous candle. Just a small amount of price above the previous candles high. The Green Pin Bar is very OBVIOUS. Well defined, well above the previous candle... And most important >>> it’s happening at a solid level!!!


Why this level??... Let look left, back on Oct 30 on the 5M... See how price hit this level... Go back farther. This level kept getting hit... Looking left many times will help you determine what level is the right level, especially when you have multiple levels. It’s not perfect but it does help!


Just some additional observations to help those using C-12’s method. Open your field of vision. Use all the tools at hand. We all ( including myself ) tend to get caught up in the micro view and we forget about taking a quick look at the macro view..

Good trading to all

TSD
  • #253
  • Nov 1, 2012 3:18pm Nov 1, 2012 3:18pm
Quoting C-12
Chart
Well I got my 6 pips x 2 out of it and then stopped out for BE.

Then look what happened right after I have to go out of the house...
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  • #254
  • Nov 1, 2012 4:28pm Nov 1, 2012 4:28pm
Quoting C-12
Well I got my 6 pips x 2 out of it and then stopped out for BE.

Then look what happened right after I have to go out of the house...
Still a solid trade on a classic set up. The beauty of trading the smaller TF's is position sizing as you demonstrated with a 2 lot short. Price did fall to it's first Demand from the Rise-Base-Rise pattern coming into the Supply level. Trading this correctly, as you did, seeing price stall and stumble at this first level.. Yes, it could have gone right through but price showed something completely different, eventually showing two solid pin bar pearcing the 2968 level.. What's really interesting is if you look at the 5M TF and the level you picked .. there was also a level just above @ 2990 area..By watching PA, and how it rejected your level, this was the correct level to take short..

Good trading to all
TSD
  • #255
  • Nov 1, 2012 10:09pm Nov 1, 2012 10:09pm
Quoting Dave987c
trailing
What indicator do you use ,that show red dot and greet dot at your picture ? Could you share it? thanks
  • #256
  • Nov 1, 2012 11:08pm Nov 1, 2012 11:08pm
I've been trading for a couple years now. Lost my firsts account ... well, let's just leave it at that. Second account and I'm on my third broker, whom I'm really happy with. I've gotten myself stuck in a trade going bad for me with no stop loss. I know, really dumb, but that's all water under the bridge at this point. Anyway, I can hedge in this account so I started trading 1M charts during the month of October and it saved my account. I'm completely self taught, not something to brag about, and am still hunting for things to help me trade better.
I keep hearing and searching for Supply and Demand stuff with no success. Early in this thread there's a MetaQuotes Editor link, which I downloaded but make no sense out of. I'm NOT a programer.
Can some one direct me to more education on Supply and Demand as I know this is key to 1M trading.
Thanks
Really enjooy Forex Factory. It's one of the sites I have open all the time I'm trading.
Lowell .... San Diego, CA, USA
  • #257
  • Nov 2, 2012 1:43am Nov 2, 2012 1:43am
Pretty straightforward:

http://www.forexfactory.com/showthread.php?t=230888

http://www.fxstreet.com/search/contr...1-e9bf77216d2f

Best wishes...
Scarlett
  • #258
  • Nov 2, 2012 3:25am Nov 2, 2012 3:25am
and

http://www.forexfactory.com/showthread.php?t=288707

and

http://www.forexfactory.com/showthread.php?t=311095
All that matters is winning the week
  • #259
  • Nov 2, 2012 4:27am Nov 2, 2012 4:27am
Quoting TraderinSD
Still a solid trade on a classic set up. The beauty of trading the smaller TF's is position sizing as you demonstrated with a 2 lot short. Price did fall to it's first Demand from the Rise-Base-Rise pattern coming into the Supply level. Trading this correctly, as you did, seeing price stall and stumble at this first level.. Yes, it could have gone right through but price showed something completely different, eventually showing two solid pin bar pearcing the 2968 level.. What's really interesting is if you look at the 5M TF and the level...
Cheers TSD, It was a great level. I would have caught it again if I was at home. I'm now trying harder to run my trades, especially the ones I manage to get on a higher time frame. Still learning.

Anyway. Not much action today. Caught the USDJPY in a supply area.
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  • #260
  • Nov 2, 2012 4:54am Nov 2, 2012 4:54am
Why I don't use pending orders....
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