Mr. Bantro1 sorry to ask u alot of questions hope u got a patience with me
- what do you think about the difference between suport resistant and supply demand?
- for the entry inside the s/d zone..how do you take a zone specifically? i mean from the opening/closing of the last candle before price move? the distal or proximal wick of some candles?
There's a big difference between the two. Most turning points on a chart (if you look back far enough) happen because of a prior supply/demand dynamic or a major fib level. Once price returns to that level, which at that point is no longer a fresh level, the odds of it holding are greatly diminished. That's the problem with trying to trade off traditional support/resistance levels especially if you're not aware of what created the support/resistance level in the first place.
My entries are based on the top of the zone with a stop loss a few ticks below the zone. Each trader has to determine their own level of risk...if a zone is wide, maybe placing a SL halfway into it.
If a zone holds a major fib retrace level inside it, I will place my entry at that fib level with my SL a few ticks below the zone.
- i am looking the post #85 again.. in the chart there are several things that come into my mind:
1. the price already broke the trend line
2. the demand zone already tested once before
You're right about the demand zone having a prior test. So on the next test one can expect price to move deeper into the zone. But the 76.4% retrace had not been tested before. And when there was a clear rejection off the 76.4% "long-term" fib retrace and huge volume driving price to that level with down volume falling off dramatically, showed a level that should hold.
Actually if you step back to the 240 min chart, there is a down trendline that crosses the 76.4% level...all inside the demand zone.
OK. Now u have 2 demand and 1 supply level. I am irritated by the little one in between. Why is this a demand zone?
In case that price reaches the little demand zone in between, you consider to buy. Do you think the supply level holds again? is this a "take profit" level?
If that small zone irritates you then don't pay any attention to it.
Price spent a short time at that level before moving higher on higher volume so I consider that a short-term zone to be aware of. Is that a major turning point...no! But it could be a speed bump to price action.
Came within two pips of getting filled. Since I was looking at this trade as a scalp and missed my initial entry I will cancel the trade and look for another opportunity.
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Joined Dec 2008
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Status: It takes a thief to catch a thief
|35 Posts
bantro
thanks for this thread its very interesting.
if you dont mind answering to my questions as well:
1. as i can see you only trade the S&D in higher Timeframes. Does this means that S&D system is not "working" in lower TFs like 30M, 15M, 5M etc?
2. What about if on a Daily chart you see that price is reaching a Supply zone but in 60min is reaching a demand zone. Which zone got priority? Higher or Lower timeframe?
Thanks
PS. I ve only read the first two pages of your thread and left the rest for later on so excuse if my questions have already answered
S/D zones are in and work in all timeframes. The longer timeframes definitely take priority. Always be aware of the longer term S/D zones and major fib levels. For example, be careful taking trades from short term demand zones into higher timeframe supply (and short term supply zones into longer term demand).
Lower timeframe S/D zones can work very well for scalp trades and for riding price action into the priority zones.
Once a longer term zone is identified, drop to a lower timeframe to help define the zone.
Here is the scenerio I will personally be watching for over the next couple of weeks. I'm expecting price action to temporairily move up and then make it's way down to complete the 'C' leg of the A,B,C swing.
