Price Action made simple with Supply and Demand levels

why i can't upload pictures every time click on upload link i move to home page any help?

Hi all , i got interested about S&D, here is my view of S&D in gbpusd H4 chart:




Here you can see the 30 min demand zone.

Thankyou everyone who responded to my post. This chart I have is from GBP/USD 1hr. It will not only help you rtkwar it is an example of what are stronger trades to take and what not to consider as supply or demand zones once they have been tested already.

Note to Zelenko, I used the same timeframe and chart as you but I explain why those areas do not work well on your chart.




Note to Clementngu, My S&D pip range needs to be at least 2:1 reward to risk for me to consider opening a trade. The pip range is determined by my entry (first line closest to price) and my stop which is my total risk for the trade, multiplied by 2.

Please let me know if my file uploaded. I checked preview before I posted and I do not know if it is only a link or an attached file.

I would like to add a couple of trades I am going to take. If you want to follow along that is fine but I reccomend you to use a demo account if this is new to you. Remember the market will be here after you master you techniques. I have several other things I do in my pre market routine to decide on what currency pair I plan on looking at but that is another subject.
I have tried my best to explain my stops, entries and targets. Go ahead and look at your 1hr and 15 min charts to compare with my analysis.



I will also set price alerts if I am away from my computer so that I don't miss the initial entry. Price alerts are usually 5-20 pips away from my entry levels. Remeber to set your price alert to go off immediately. My platform has settings from 1min to 24 hrs bfore it goes off. I learned this the hard way.

Hi GilaMonster and Thomaas,

How would you guys consider to close the pending trade? Would it be a time where the level that we thought is strong become useless due to too old?

those are good uploads of your charts, with S/D zones identified. The only problem is that you are using too dark a shading for the rectangle, so by the time it travels over the internet the resolution is quite low and one can't read the notations made within the rectangles. Would you please use a lighter color and perhaps a font that gives sharper resolution. Otherwise your information is great.

Clementngu-
My trade entries will be valid until the zone is not fresh anymore.

However if the zone is created on a 15, 5 or 1 min timeframe and can not be found on a larger timeframe such as, 1 hr or 4 hr, then to me that zone is not as strong but still valid.

My reason for this is that market sentiment will change and my high reward for the trade will go down. This might be a determining factor for me to not take the trade because the price action and momentum could be more valid than the zone on the OLD short timeframe.

I perfer to not leave any grey areas in my trades but if my price alert goes off I will validate every entry before I take the trade.

Using my Fine Tuning Line Placement: Intraday, and Short Swing trade(up to 2 weeks)

1. For you I would reccomend finding zones on 1hr charts and up because they are more valid.
2. After you find your zone and draw your area in, zoom in on the same workspace to a 5 min or 15 min chart on that same zone and fine tune even further to find your zone in a zone.(you may get a better fill)
3. If trade doesn't hit right away don't be discouraged and learn to be patient, and disciplined.
4. Once area has been tested on any timeframe any trades after would be in vaild.

Thats it, work with that and expect a couple of good returns. You should be averaging up every week by trading this way.
Don't Judge After One Trade, Send chart image of a trade you plan on taking and I will check it out for you.

Stelpm-

I tried changing the color on the rectangle to a lighter shade on my platform. I call tech. support and they said I would not be able to do that.

Bummer for me to because I use those so that i can go back and log my notes from my trades and the darker shade does throw me off.


Imperfection is the way of our materialistic lives.

Amazing how some people can be demanding ...

mima-

Yeah I am just trying to anticipate everyones needs. But it keeps me on my game and following my rules. As a intraday trader I need structure somewhere in my trading day because I isolate myself for up to 2 hrs at a time. Then between the Diane Rhems Show and quiet time I do go for a bike ride. Then its back to tading for me.

This is really the basics of trading. All those indicators and magic systems will ultimately play off of this as does support and resistance. VSA would also be handy to use along with this, still no indicators just a trade ladder with time and sales. Unfortunately it will not do you any good with currencies unless you trade the futures rather than the pairs.

The more you try the more demanding....

tradewind-

I do trade currency futures. Actually I will not set a forex entry without consulting my futures charts, which is just apart of my pre market routine.

Also tradewind, I like to keep an eye on my negative inter-market correlation at http://www.mrci.com/special/corr030.htm
When you see a highly negative correlation such as ,-90 to-99, then match those currencies to your futures chart. You will see the negative correlation of the two.
Helps me find a good strong swing trade.

Thomaas

I don't want to kill it, but you have to reduce the info. (ça deborde...). Let's stick with the essentials.

There is a price movement. It is due tu a large order from (mostly) a bank. Why? Because banks use the Forex market in order to hedge their own positions on other markets.
Why the Forex market? Liquidity.
The trading rooms are empty in banks. They just get orders (yes exactly, those round number orders) and then boom... BIG CANDLE ON LOW TIME FRAME.
Stop believing that they are making money on this. They are protecting (through hedging) their own gambling with their (hopefully own) money.
This is why fx-traders at banks don't mind being up or down. They use it just to get a feeling of the market.
We are talking about orders in the range around several hundred million Euros/Dollars. Enough to make a decent move (Feeling wise I'd say a candle on M15 moving straight up/down for say 80-150 or more pips).
And here comes into play what thomaas said in the first post: Other buy/sell orders could not be triggered. and are still stacked up at the same place (those round numbers, but of course not always).
Wouldn't that be nice to know where these orders are? Oh well, I guess that is what they call insider trading....
Don't ever think, that the market is in equilibrium. The "direction" is given by the one with the biggest pockets...

A bit Pareto-Rule like: 20% of the players control 80% of the market. It's probably even worse (less players controlling more...).
So here we are, fooled by technical analysis, fundamental mental masturbation (this guy said that, that CNN reporter said this, and those rates are going up...) WHAT IS REALLY MOVING THE MARKET?
And how can we profit from it?

You can find levels anywhere. Filtering out the "bad ones", those with the highest probability of being bad, that is what matters.
Knowing what is not is very very helpful. The truth is found by subtracting and not by adding.
So why don't we post BAD SETUPS here? You will learn immensely more from that.
WHY?- Because there are more bad setups than good ones. Think about this, would we really bother with Risk to Reward Ratio if 90% of our trades where good setups? Of course not. We know we lose more often than we win, that's why we have to use RRR 1:2/1:3

Let's go further: What is happening since Forex exists? It is growing, getting more and more volume.
What does this mean? 500 Million Dollars don't make the same impact on the market than before. So good opportunities
a) become rarer
b) will be more and more accessible on low Time Frames only

Look for the bad trades. They teach you because there is more of them.

Quantitative accumulation leads to qualitative change (bulgarian saying)

That's it.

thank you very much gilamonster i will read your explain again and i will start training

Fresh Supply and Demand will always be valid. Even your broker can't manipulate that because they don't have enough money.

It is true what bg sunny does say about more bad trades setting up than good ones. And if you are being picky and looking for low risk trades with higher profitability with a higher return you will not average down. I hope to have moved up by the end of the day. If I don't I guarantee that if you check back to your days trades you will see your mistakes all laid out for you.

Don't trade based on emotion, and keep out of the markets during economic announcements unless your know what you are doing.
Only trade what you know, and what is on your screen.
Have a Plan of Action for your trading day.(pre market routine to closing out your last trade of the day):nerd:

Great to see people exchanging knoweldge in my thread!

I think I managed to keep the first post of this thread simple and clear. And it's good to see more information or other strategies talked about in the thread, it gives people a better understanding of the whole idea.
About the rest of your post about banks, you are completely right!

---

So the next big subject to cover is how to filter out bad levels with examples. But before that we should talk about "what makes a level good".

What makes a level good
Not all levels are created equals. Some are more likely to work than others. Let's talk about the good levels.
Remember what the characteristics of a level are? Well, we'll use them to describe what would be a perfect level:
- The level is a DBD or RBR
- The price moves VERY STRONGLY in one direction. It means both big and multiples candles of the same colors in a row
- There is a small number of candles into the level
- The level is fresh, it was never tested before

To learn more about this, you should follow me on Twitter where I post levels daily: @Fx_Price_Action

thomas whats DBD or RBR mean?

Nice thread, has potential but..
i dont see alot of setups

thanks thomaas for starting this and giving back

Nice comment by sg sunny
Also gilamonster cheers, you made an intensive checklist
I will spend time testing this strategy

I cannot find any fx setups, mostly exhausted or used

How about this XAU long setup - see attachment - is it correct?