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Price Action made simple with Supply and Demand levels

  • #81
  • Edited 10:24am Oct 19, 2013 7:15am | Edited 10:24am
When you said "I only take 1-2 trades per week, but thanks to these rules I'm profitable."

Is that while trading H1 charts?

And I agree with how you mentioned that it's hard to find information about supply/demand with those 500+ page threads. So I'm glad you started this thread to answer questions.
  • #82
  • Oct 19, 2013 8:00am Oct 19, 2013 8:00am
Quoting thomaas
To the people asking me for proof that my system works: I don't know what to say since every proof I could show you can be faked. Will this system work for you? Am I just lucky with my trades? I have no idea. All I know is that this system is working for me right now, and I know other traders that are profitable with S&D levels. The best proof you can get is by trying S&D levels for yourself, and see how it goes. {quote} Good question! I plan to write about how to identify good levels. Here's my comment about your levels: {image} Legend: 1- The...

Hi Thomaas, no you have the wrong idea here. I dont feel that anyone is aiming to disprove anything, quite the opposite to be honest.

My suggestion was to show an old demo account with say 2, 3 or 4 months trades, then any serious people like myself will put the time and effort in to open the 1h charts and effectively 'reverse engineer' each of your trades.

This will help to quickly get inside your mindset and will help to accelerate the learning process with the aim of building confidence in this approach. After all it would be unreasonable to ask you to post annotated charts going back this far, not to mention far simpler.

Just a suggestion if you have the data to hand.

Once again thank you for taking the time to start and maintain this thread.
  • #83
  • Oct 19, 2013 8:24am Oct 19, 2013 8:24am
Quoting stricky1967
{quote} Hi Thomaas, no you have the wrong idea here. ....show an old demo account with say 2, 3 or 4 months trades, then any serious people like myself will put the time and effort in to open the 1h charts and effectively 'reverse engineer' each of your trades.....

I think you have wrong idea here ...You do not put to anyone conditions for your own learning....learn if you want and need.
The Market pays you to be disciplined
  • #84
  • Edited 8:39am Oct 19, 2013 8:26am | Edited 8:39am
Quoting mima
{quote} I think you have wrong idea here ...You do not put to anyone conditions for your own learning....learn if you want and need.

why start the thread? If not to help others.....anyway it was only a polite suggestion and certainly NOT a condition
  • #85
  • Oct 19, 2013 8:29am Oct 19, 2013 8:29am
Quoting stricky1967
{quote} why start the thread?
Do you know what the word "share" mean ?
MT4/MT5 EAs/Indicators/Alerts coder
  • #86
  • Oct 19, 2013 8:59am Oct 19, 2013 8:59am
Quoting thomaas
To the people asking me for proof that my system works: I don't know what to say since every proof I could show you can be faked. Will this system work for you? Am I just lucky with my trades? I have no idea. All I know is that this system is working for me right now, and I know other traders that are profitable with S&D levels. The best proof you can get is by trying S&D levels for yourself, and see how it goes. {quote} Good question! I plan to write about how to identify good levels. Here's my comment about your levels: {image} Legend: 1- The...
Thanks a lot for you help. you know I just want to learn about these levels and I am sure my trading will turn around with right psychology, pls continue what yu are doing, am appreciate the work you are doing in helping us , thanks
I Have Learned to Take Some Losses to Make Profits
  • #87
  • Oct 19, 2013 9:31am Oct 19, 2013 9:31am
Guys stop arguing, you are killing this thread befor the author even finished it. Please...
Demo only
  • #88
  • Oct 19, 2013 10:02am Oct 19, 2013 10:02am
Quoting bg_sunny
Guys stop arguing, you are killing this thread befor the author even finished it. Please...
nobody arguing just suggesting things.
i will be glad to see some more stuff from thomass of course.

does anybody had some nice trade recently ? using S/D ?
  • #89
  • Oct 19, 2013 10:23am Oct 19, 2013 10:23am
Quoting bg_sunny
Guys stop arguing, you are killing this thread befor the author even finished it. Please...
Well said, so let's move on. I think it's time to talk about how to draw the levels.
Since it's a bit difficult to explain, I'd love to have your feedback/questions on this, before including this content on the first post.

---

How to precisely draw levels
This part is a bit hard to explain. Why? Because even if there are some rules to follow, you also need some kind of "instinct" that you can only learn by doing.
Anyway, the basic idea is this:
1) Look at the base of a strong price movement to find some small candles moving sideways
2) Make the level cover most of these candles, including the shadows
3) Then refine your level by reducing it a little:
- If it's a supply level, you do not care about the lower shadows of the candles
- If it's a demand level, you do not care about the upper shadows of the candles

It may look simple at first, but it's not always easy. Drawing level is an art. Here are 3 examples of levels I drawn from CHF/JPY on a 1h TF:

Attached Image (click to enlarge)
Click to Enlarge Name: levels.jpg Size: 76 KB


I think you should practice finding and drawing levels on your own charts. Feel free to post them here to gather feedback.
  • #90
  • Oct 19, 2013 10:26am Oct 19, 2013 10:26am
Quoting stricky1967
{quote} Hi Thomaas, no you have the wrong idea here. I dont feel that anyone is aiming to disprove anything, quite the opposite to be honest. My suggestion was to show an old demo account with say 2, 3 or 4 months trades, then any serious people like myself will put the time and effort in to open the 1h charts and effectively 'reverse engineer' each of your trades. This will help to quickly get inside your mindset and will help to accelerate the learning process with the aim of building confidence in this approach. After all it would be unreasonable...
Yes!
  • #91
  • Oct 19, 2013 10:28am Oct 19, 2013 10:28am
Quoting thomaas
{quote} Well said, so let's move on. I think it's time to talk about how to draw the levels. Since it's a bit difficult to explain, I'd love to have your feedback/questions on this, before including this content on the first post. --- How to precisely draw levels This part is a bit hard to explain. Why? Because even if there are some rules to follow, you also need some kind of "instinct" that you can only learn by doing. Anyway, the basic idea is this: 1) Look at the base of a strong price movement to find some small candles moving sideways 2)...
Lol , i took this trade on chf/jpy this week
Attached Image (click to enlarge)
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Attached Image (click to enlarge)
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  • #92
  • Oct 19, 2013 10:42am Oct 19, 2013 10:42am
Thomas,
What is your opinion on Supply/Demand indicators that draws the zones for you?
  • #93
  • Oct 19, 2013 10:50am Oct 19, 2013 10:50am
hi thomas
thats my first homework
whats you think?
1-usd/chf
Attached Image (click to enlarge)
Click to Enlarge Name: 063-677.jpeg Size: 52 KB

2-usd/jpy
Attached Image (click to enlarge)
Click to Enlarge Name: 064-971.jpeg Size: 62 KB

note: about supply level i think we don't use it because it's not fresh level, right or no?
Please correct to me
I will spend the coming hours in drawing these levels and will attach here
  • #94
  • Oct 19, 2013 10:52am Oct 19, 2013 10:52am
Quoting thomaas
{quote} Well said, so let's move on. I think it's time to talk about how to draw the levels. Since it's a bit difficult to explain, I'd love to have your feedback/questions on this, before including this content on the first post. --- How to precisely draw levels This part is a bit hard to explain. Why? Because even if there are some rules to follow, you also need some kind of "instinct" that you can only learn by doing. Anyway, the basic idea is this: 1) Look at the base of a strong price movement to find some small candles moving sideways 2)...

Maybe since you named it Price action made simple, I'd say that one has to look out for an engulfing candle. Nice to see on 2nd and 3rd example. Not so good in the 1st. But then one could take your approach about looking for candles moving "sideways".

Any info on when you go for RRR 1:2 and when you go for 1:3 ?

Thanks
Demo only
  • #95
  • Oct 19, 2013 11:09am Oct 19, 2013 11:09am
check out EurUsd on weekly chart, and watch for the 1.3710 level to be rejected and then down she goes. Wait for confirmation of this breakdown before jumping in as the USD is weak and may sell off a bit more and thus this level may not hold. Keep a close eye on this one, as the level got rejected somewhat on Friday, but only to the tune of 40-50 pips ... I'll be waiting for this
  • #96
  • Oct 19, 2013 11:14am Oct 19, 2013 11:14am
nzd/usd
first demand line
Attached Image (click to enlarge)
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other demand lines i back to left chart
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Click to Enlarge Name: 010-341.jpeg Size: 58 KB

about supply levels i back to 11/4/2013
i found 2 supply level
Attached Image (click to enlarge)
Click to Enlarge Name: 011-779.jpeg Size: 50 KB

i wait price on number 1 because number 2 not fresh level
Attached Image (click to enlarge)
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whats you think thomas?
  • #97
  • Oct 19, 2013 11:24am Oct 19, 2013 11:24am
my last homework
usd/cad
supply levels (ifeel there is wrong in my levels)
Attached Image (click to enlarge)
Click to Enlarge Name: 009-320.jpeg Size: 48 KB

demand levels i found this level on 19/6/2013
Attached Image (click to enlarge)
Click to Enlarge Name: 010-461.jpeg Size: 45 KB

whats you think ? iwaiting you for correct my homework
  • #98
  • Oct 19, 2013 11:53am Oct 19, 2013 11:53am
Thomaas I have a suggestion on the thread. Since you are more familiar with EURUSD pair. Perhaps we can start off limit the learning and discussion pair to EURUSD. So perhaps is easier for new members like me to follow through and easier to illustrate?

Just a suggestion.
  • #99
  • Oct 19, 2013 12:23pm Oct 19, 2013 12:23pm
Quoting bg_sunny
{quote} Maybe since you named it Price action made simple, I'd say that one has to look out for an engulfing candle. Nice to see on 2nd and 3rd example. Not so good in the 1st. But then one could take your approach about looking for candles moving "sideways". Any info on when you go for RRR 1:2 and when you go for 1:3 ? Thanks
True for the engulfing, but as you mentioned it's not always the case. So I'm not sure I should mention it.
About the RRR, the majority of my trades is 1:2. But sometimes, when the price movement is really strong and the level small, you can see the the price has a lot of room to move. In this cases I go for 1:3. You can see the first chart in my first thread for a good example of a 1:3 trade.

Quoting rtkwar
{image} whats you think thomas?
You got the basic idea right, but your levels are not always excluding the right candles' shadow. I think my explanation was not really clear…. here's my second attempt with more detailed examples.

---

How to precisely draw levels
This part is hard to explain precisely, cause there may be some rules to follow, but your also need some kind of "instinct", that you can only learn by doing.
Anyway, the basic idea is this:
1) Look at the base of a strong price movement to find some candles moving sideways
2) Make the level cover all of these candles
3) Then refine your level:
- If it's a supply level, you do not care about the lower shadows of the candles
- If it's a demand level, you do not care about the upper shadows of the candles

It may look simple at first, but it's not always easy. Drawing level is an art. Here are 3 examples of levels I drawn from CHF/JPY:

Attached Image (click to enlarge)
Click to Enlarge Name: levels.jpg Size: 82 KB



Legend:
- In blue + red: the whole level that covers all the candles
- In red: the shadows we're not interested in, as explained in 3) above
- In blue: the refined level to use for the trade
  • #100
  • Oct 19, 2013 3:14pm Oct 19, 2013 3:14pm
If I may make a recommendation, please make a guide on how to identify bad supply/demand levels.
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