Attachments: LJ Forex Group

LJ Forex Group

#4,701
Apr 12, 2013 12:09am Apr 12, 2013 12:09am

keroro0o0o
Joined Nov 2012 | Status: Be consistent, Be persistent. | 1,847 Posts

Quoting Donkey

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A few observations on EJ.... Price looks to be compressing on the 1 HR chart after the strong move. I looked at the weekly chart and there seems to be old weekly supply. Is this supply too old to consider? {image} Couldn't zoom lower than 1 HR...but I think I saw a lot of information in that weekly zone on the one hour, DP, source of the move and several pockets of 1 HR supplyd, which would give lots of areas to watch for PA {image} Finally watching price compress toward the weekly supply zone {image}

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Hi Donkey,

Nice top down analysis.

Here are some thoughts on your marked zones.

just my 2 cents.

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Knowing is not enough; we must apply. Willing is not enough; we must do.

#4,702
Apr 12, 2013 6:07am Apr 12, 2013 6:07am

Donkey
| Joined Apr 2010 | Status: jarbq16 | 725 Posts

Quoting keroro0o0o

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Hi Donkey, Nice top down analysis. Here are some thoughts on your marked zones. just my 2 cents. {image}

Ignored

Thanks for your reply....identifying fresh zones is definitely something I need to work on.

Swap zone? Supply switching to Demand or Demand to Supply? I'm not familiar with that term.

Thanks again for your response!!

#4,703
Apr 12, 2013 8:50am Apr 12, 2013 8:50am

keroro0o0o
Joined Nov 2012 | Status: Be consistent, Be persistent. | 1,847 Posts

Quoting Donkey

Disliked

Thanks for your reply....identifying fresh zones is definitely something I need to work on. Swap zone? Supply switching to Demand or Demand to Supply? I'm not familiar with that term. Thanks again for your response!!

Ignored

Hey buddy, Swap zones actually works pretty much like PPZ, which was taught by J16. i bliv you're familiar with that.

It simply means a supply/demand that was neglected, had lost its significance, since market thinks that zone is better off as a demand/supply. Nothing complicated.

Glad if I can be of any help

Knowing is not enough; we must apply. Willing is not enough; we must do.

#4,704
Apr 12, 2013 9:41am Apr 12, 2013 9:41am

extremerrage
| Joined Jan 2011 | Status: Trader | 201 Posts

Quoting keroro0o0o

Disliked

Hey buddy, Swap zones actually works pretty much like PPZ, which was taught by J16. i bliv you're familiar with that. It simply means a supply/demand that was neglected, had lost its significance, since market thinks that zone is better off as a demand/supply. Nothing complicated. Glad if I can be of any help

Ignored

If price crosses and closes below a demand area, traders and investors declare price as too high, so more are willing to sell at this level than to buy = when price returns to this level we expect that traders gonna sell again at this level since price was too high there before as well. but j16 pivot is only a support and resistance flip

#4,705
Apr 12, 2013 11:49am Apr 12, 2013 11:49am

keroro0o0o
Joined Nov 2012 | Status: Be consistent, Be persistent. | 1,847 Posts

Quoting extremerrage

Disliked

If price crosses and closes below a demand area, traders and investors declare price as too high, so more are willing to sell at this level than to buy = when price returns to this level we expect that traders gonna sell again at this level since price was too high there before as well. but j16 pivot is only a support and resistance flip

Ignored

I was saying the concept is almost the same, not exactly. Also, I wouldn't say there's a flip by just looking at the close of any candle, as it's too subjective. I would want to see price ignore the zone, and leave the zone at a quick pace, then come back after some time, then I will consider this as a flip zone. Just my way of looking at it.

Knowing is not enough; we must apply. Willing is not enough; we must do.

#4,706
Apr 12, 2013 4:19pm Apr 12, 2013 4:19pm

lovejoy80
| Commercial User | Joined Feb 2008 | 4,633 Posts

Quoting Donkey

Disliked

Thank you very much for the response. I watched your webinar on FTB on the guild last night and the point on DP's, substance and clear edges was pointed out very well. Really great webinar. After viewing that I would consider some of what I was previously seeing as FTB to be merely TT. Regarding the 15 minute TF Demand zone within a higher TF zone, would you consider an entry just a TT of the 15 min demand? Is this a valid way to trade these zones?

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If a zone doesn't meet the standard objective criteria for a TT FTB then no I won't take a TT on it unless I have another reason too and that could be a higher TF bias and I'm looking for areas that should hold on a retest entry for example. That's pretty much what I do with the DRT strategy as they aren't necessarily FTB quality VLTF zones but we are looking for sources of demand that lead to the breakout as where we expect to hold on the higher TF retrace etc.

#4,707
Apr 12, 2013 4:44pm Apr 12, 2013 4:44pm

lovejoy80
| Commercial User | Joined Feb 2008 | 4,633 Posts

Quoting DaGrizlyBull

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Hey Mark, I'm not quite sure what DBD you are talking about (I assume the one at the scene of the LS). I entered there because I wanted some signs of the demand to the left being consumed before attempting the short. I considered the lower edge of the range / consumed demand to be a good point to take a retest entry. I agree that time of day sucked all the momentum / profitability of the trade. {image}

Ignored

Ah ok I would have been looking to enter once the immediate former RBR has been consumed following the strong LS+reversal down to the next demand, you know me always looking for the momentum move!

Following this price just moves sideways and doesn't display any noticeable selling strength for me to want to get involved in a further short.

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#4,708
Apr 12, 2013 4:49pm Apr 12, 2013 4:49pm

lovejoy80
| Commercial User | Joined Feb 2008 | 4,633 Posts

Quoting freeze

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I bought this FTB on GBPAUD, half risk. {image} Edit: it did juust reach the FLR, but my TP was more ambitious. Closed for a partial loss. {image}

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I was close to taking this half risk too.

I wouldn't have liked that reaction from the higher ignored supply though.

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#4,709
Apr 12, 2013 4:55pm Apr 12, 2013 4:55pm

lovejoy80
| Commercial User | Joined Feb 2008 | 4,633 Posts

Quoting freeze

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Learning to trade noise, I'm starting with small positions. It did easily hit the FLR, but I wanted that ride to 100.00 so I trailed my stop (-0.45R). {image}

Ignored

I like your entry but would have used a tighter SL below the new demand that was created.

When looking at the FLR it is obvious to be drawn to that clear untested supply but don't forget to look to the left, there was previous demand and other slightly lower DP's at this flip area to be wary off ahead of that supply.

Any reason why you wanted to run the trade beyond the FLR, I would have been all off at the FLR myself.

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#4,710
Apr 12, 2013 5:13pm Apr 12, 2013 5:13pm

DaGrizlyBull
| Joined Sep 2011 | Status: Hybrid | 413 Posts

GU short today after a LS on M5 (1.5R ish after commission) :

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Is this entry too aggressive/optimistic considering the demand below (wasn't completely consumed)? I basically had to hope the demand will break and hold through all that range-like motion. Does a strong LS overcome the risky entries like this one?

I don't need easy. I just need possible.

#4,711
Apr 12, 2013 5:30pm Apr 12, 2013 5:30pm

lovejoy80
| Commercial User | Joined Feb 2008 | 4,633 Posts

Quoting freeze

Disliked

Nice, I was inspired to do some EUR scalping as well. +2.1R {image}

Ignored

Nice

My style is not to hold through draw-down, to pinpoint precise entries looking for quick momentum moves...3 trades on EU and 1 on UJ today in the few hours I was actively watching my charts.

M15 chart on EU - technical FB and test of lower demand - clearly this gives a long bias with a target somewhere in the supply marked.
M5 chart shows reason for the first trade.
M1 chart shows pinpointing the entry on the 1st trade and 2 subsequent trades in line with the long bias.

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#4,712
Apr 12, 2013 5:37pm Apr 12, 2013 5:37pm

lovejoy80
| Commercial User | Joined Feb 2008 | 4,633 Posts

Quoting lovejoy80

Disliked

Nice My style is not to hold through draw-down, to pinpoint precise entries looking for quick momentum moves...3 trades on EU and 1 on UJ today in the few hours I was actively watching my charts. M15 chart on EU - technical FB and test of lower demand - clearly this gives a long bias with a target somewhere in the supply marked. M5 chart shows reason for the first trade. M1 chart shows pinpointing the entry on the 1st trade and 2 subsequent trades in line with the long bias. {image} {image} {image}

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...and the UJ trade.

M15 FB, looking for a retracement opportunity on M1 to ride price up to the M15 target.

Clear demand that should hold on the retrace on M1, took partial profit along the way and final TP after price got rejected from the first target zone area. For a net +1.6R

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#4,713
Apr 12, 2013 5:44pm Apr 12, 2013 5:44pm

lovejoy80
| Commercial User | Joined Feb 2008 | 4,633 Posts

Quoting pex

Disliked

potential FTB? {image}

Ignored

I passed on this, I'm pretty picky with the technical description of what constitutes a clear zone and a clear SR.

For me when you strip this down the zone is not a zone that has substance or any clear DP's and the Sr is just 2 bars which are in fairly close proximity to each other with a 3rd bar which is too far away to consider it part of the SR.

Having said that it's one of those areas that you can look at and not be surprised if price reacted there given the location and strength of the breakout from that zone. Although that can be enough for me to 'relax' my zone, SR analysis it wasn't in this case so I passed on it.

That's how I look at things anyway.

I see price did react but there was no value in the setup - my entry and SL would have been 39's / 51 and the nearby former supply formed on that close approach would have been an FLS which destroyed any value in the setup.

#4,714
Apr 12, 2013 6:10pm Apr 12, 2013 6:10pm

lovejoy80
| Commercial User | Joined Feb 2008 | 4,633 Posts

Quoting Donkey

Disliked

A few observations on EJ.... Price looks to be compressing on the 1 HR chart after the strong move. I looked at the weekly chart and there seems to be old weekly supply. Is this supply too old to consider? {image} Couldn't zoom lower than 1 HR...but I think I saw a lot of information in that weekly zone on the one hour, DP, source of the move and several pockets of 1 HR supplyd, which would give lots of areas to watch for PA {image} Finally watching price compress toward the weekly supply zone {image}

Ignored

People will have different styles in this regard, for me the most important aspects are:

1. Looking for zones / DP's where price left with good momentum last time out - this of course gives us information about the SD imbalance etc.
2. DP's and DP zones that were created last time out - I'm not that fussed about what that zone was a reaction to before then it's mostly about the last time price left that area and how it left that area - as supply and demand is dynamic and not static so a reaction to a previous zone can in itself create a new stronger zone.

Here for example at a quick late night scan down from weekly to H1 is what I would mark up as my DP's and DP zones that I'd be looking for action in in terms of PA with a bigger focus on the lower end as this is the edge of the weekly/daily zone.

I'll do a video over the weekend explaining in more detail my process for marking up these zones and why and the type of PA I would use to to look for a trade of this whole area - easier to explain in a video than on multiple charts.

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#4,715
Apr 12, 2013 6:16pm Apr 12, 2013 6:16pm

lovejoy80
| Commercial User | Joined Feb 2008 | 4,633 Posts

Quoting Borg

Disliked

Hello Lovejoy80: I enjoyed reading about your price action trading approach and life story at the beginning of this thread. I look forward to learning more about price action from you especially the part where you say "...price action trading should be mostly objective and not subjective" The "what is true for you, may not be true for me" line always struck me as fuzzy thinking. Just try that line on your math teacher and see where it gets you. I have been studying your material and it looks great. Thank you for starting this thread. Borg

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Hi,

Yes I agree in that I don't like all the subjective PA material that is common in the retail space - PA for me isn't about bar sizes, certain bar types or fixed patterns it's about more fundamental concepts and asking certain questions.

However, within trading there is the ability for a lot more creativity and diversity than there is within most subjects but just as there is in maths the ability to take concepts and use them in different ways to reach the same conclusion the same is true off trading, different styles, approaches and risk tolerances exist, but it's the understanding of important fundamental concepts and consideration of the same concepts when analysing the PA (among various traders) that is largely missing for most.

#4,716
Apr 12, 2013 6:30pm Apr 12, 2013 6:30pm

lovejoy80
| Commercial User | Joined Feb 2008 | 4,633 Posts

Quoting DaGrizlyBull

Disliked

GU short today after a LS on M5 (1.5R ish after commission) : {image} Is this entry too aggressive/optimistic considering the demand below (wasn't completely consumed)? I basically had to hope the demand will break and hold through all that range-like motion. Does a strong LS overcome the risky entries like this one?

Ignored

Annotated chart.

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#4,717
Edited 9:24pm Apr 12, 2013 9:07pm | Edited 9:24pm

the12secret
| Joined Dec 2012 | Status: Trader | 14 Posts

Quoting lovejoy80

Disliked

Nice My style is not to hold through draw-down, to pinpoint precise entries looking for quick momentum moves...3 trades on EU and 1 on UJ today in the few hours I was actively watching my charts. M15 chart on EU - technical FB and test of lower demand - clearly this gives a long bias with a target somewhere in the supply marked. M5 chart shows reason for the first trade. M1 chart shows pinpointing the entry on the 1st trade and 2 subsequent trades in line with the long bias. {image} {image} {image}

Ignored

Nice trade, LJ
I took EU trades at the same times, but a different direction.
I thought compression at H4 TF was enough to shoot down after touching a daily SR.
I found an ignored D zone which turned into S zone and sold one after seeing PA at M5(a little late)

Would U give me an advice to my approach?

p.s:When I post my messages on your thread, I got some sort of limit such as file size, being visible...etc
Could U raise my grade? Sorry for my poor English!!

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#4,718
Apr 13, 2013 12:25am Apr 13, 2013 12:25am

Borg
| Joined Mar 2013 | Status: Trader | 357 Posts

Hello lovejoy80:

I was watching the EURUSD real time and saw the below price action enfolding on the 5 min and 1 min charts shown below, and I felt like a deer in the head lights.

There was a move up on the 5 min from the April 9, 2013 20:10 Lo demand level to the Apr 10, 00:50 Hi.

And then an impulsive move from the Apr 10, 00:50 Hi back to the April 9, 2013 20:10 Lo demand level at the April 10, 2013 1:25 bar.

I was trying to call this a FB but it was from an impulsive move not from sideways action which I recall from your video is the preferred context. Also there was not much of a rejection at the Apr. 10, 1:25 Lo level since price closed below the demand level on the 5 min at April 10, 2013 1:25.

In any case I ended up watching it go from the 04/10/2013 01:25 Lo to the 04/10/2013 03:35 Hi a move of about 42 pips without quite knowing what I should have done.

Can you please comment on what you would have done after seeing the drop from the Apr 10, 00:50 Hi supply level down to the April 9, 2013 20:10 Lo demand level at the April 10, 2013 1:25 bar.

Thank You

Borg

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May the Forex be with you.

#4,719
Apr 13, 2013 8:44pm Apr 13, 2013 8:44pm

DaGrizlyBull
| Joined Sep 2011 | Status: Hybrid | 413 Posts

FTSE.

Daily Trend appears to have shifted to the downside and we are now retesting a Supply zone from which price made a Daily LL (A lower low that is a 2nd time back to a Daily Demand Zone, therefore weakening it). May be useful for letting some LTF trades run beyond FLS-es maybe ?

Daily:

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