Price Action made simple with Supply and Demand levels | Page 19 | Forex Factory

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Price Action made simple with Supply and Demand levels

  • #361
  • Oct 27, 2013 2:55pm Oct 27, 2013 2:55pm
Quoting edge540
{quote} Given you are from the USA I presume English is your first language so here is a little grammar lesson.What you are trying to say is \"You are welcome\" or \"You're welcome\" not \"Your welcome\".This misuse of the word \"your\" is very common here on the FF.
edge540 - your right, thank you so much for your invaluable lesson..
  • #362
  • Oct 27, 2013 2:59pm Oct 27, 2013 2:59pm
edge 540-

Yeah I live in the States.

Unfortunately the English language has so many words that can be said, and written then mean differeent things.

Our cultural standards have gone down. Basically we are getting more lazy. Maybe following suit with our GREAT leaders.
  • #363
  • Oct 27, 2013 3:03pm Oct 27, 2013 3:03pm
But that is a discussion for another Thread.

I am weighing, English grammer or sharing trading experiences. HMM?
  • #364
  • Oct 27, 2013 3:22pm Oct 27, 2013 3:22pm
Quoting Gilamonster
But that is a discussion for another Thread. I am weighing, English grammer or sharing trading experiences. HMM?
Hi Gilamonster,

Allthough one may be tempted towards English grammer, let's stick to trading for now, shall we?
Recently I have read this PriceVolume[1].pdf from http://www.forexfactory.com/showthre...54#post6625554.
It says there that if price tests a pivot area on a decreasing volume, which is at least 8% less compared to previous touch, it implies a reversal.
And if price tests previous pivot on 3% or smaller decrease in volume then it implies a continuation.

While in SD we are interested if our levels will be touched and if price will reverse there or not - would you consider appropriate to incorporate this idea to improve the chances of having a good result?
I have recently red about and did not verify it yet, but seems interesting and thought to share
  • #365
  • Oct 27, 2013 4:19pm Oct 27, 2013 4:19pm
Quoting FerruFx
{quote} Try to finetune the zone on a lower timeframe ... and see if you can improve the RR.
That's a really good point! I should talk about it actually.

Using smaller timeframes
Sometimes I find a nice level on a 1h TF, but the level is really big. It means it's going to be difficult to have a nice RRR without having a TP really far away from the entry, which is risky.

When that happens, I zoom in the level, and look at a 30min or 10min TF. When you zoom, candles "move", so your level will be different. You can then try to adjust and reduce your level to make it work on a smaller TF.

But be careful with this technique, because when you change your level, you might miss your trade or hit the SL. So use this technique only when it make sense:
- There is a too big level on a 1h TF
- And you can find a clear level on a smaller TF
  • #366
  • Oct 27, 2013 4:21pm Oct 27, 2013 4:21pm
dragos-

Volume is a great trade enhancer to verify a trade.

I agree that if volume is 8% or more below the last test of price correlated to the same last test with volume then this is another confirmation for the trade.

What I also use is ascending and descending trend lines on volume charts.

  1. I only place trend lines on the tops of the volume bars
  2. Volume rising and fallen tells me where orders are more than likely to be filled and where they have been filled.

And yes if volume is only down a small percentage I would agree that this could bea continuation.
If I am in a trade I will tighten my stop.
If not I will wait for a pull back then enter on the continuation.

  • #367
  • Edited 5:23pm Oct 27, 2013 4:41pm | Edited 5:23pm
Quoting Gilamonster
dragos- Volume is a great trade enhancer to verify a trade.[..]What I also use is ascending and descending trend lines on volume charts. 1.I only place trend lines on the tops of the volume bars. 2.Volume rising and fallen tells me where orders are more than likely to be filled and where they have been filled [..].
Could you please give us a chart example on interpreting the filling of orders with volume, in relation to SD levels?
Thank you in advance

edit: maybe we'll have the chance to develop more on the subject in the future. For now I propose to close the discussion about volume, while I see there are people here wanting to stick to SD only. Thanks
  • #368
  • Oct 27, 2013 4:51pm Oct 27, 2013 4:51pm
oh je... another thread going down..... where is the volume, where is this indicator.....bla bla bla.
It's a rectangle and it is supposed to work 30-40 times out of hundred with an average RRR of 2.2-2.5.
Yeeee why so complicated?
Demo only
  • #369
  • Edited 5:31pm Oct 27, 2013 5:08pm | Edited 5:31pm
Quoting bg_sunny
oh je... another thread going down..... where is the volume, where is this indicator.....bla bla bla. It's a rectangle and it is supposed to work 30-40 times out of hundred with an average RRR of 2.2-2.5. Yeeee why so complicated?
Sorry, just wanted to be constructive while I really like the discussions here in thomaas's thread.
I see people trying to improve by fine tuning levels, using smaller timeframes. Also, since SD's success comes from unfilled orders I believe their volume should interest us when close to our selected level

edit: I've looked back to the first post: 'My trading technique is simple: price action with supply and demand levels'. So while is thomaas's thread and about the trading technique that he uses and there are people here wanting to stick to it, I would not insist further
  • #370
  • Oct 27, 2013 5:26pm Oct 27, 2013 5:26pm
Does not matter what TF you look at. It works the same on any TF in any instrument. I trade real money in CL on a 5 minute chart and make some money everyday.

No one patented supply and demand trading BTW. Saw that earlier in this thread. It's how the market has worked since there WAS a market and how it will always work till mankind ends. If you want to be sure about it though you can just do a patent search online and see if ole Sammy the sausage indeed has a patent on supply and demand. My guess he is that he gets a huge percentage from OTA for using his skills that he learned "trading on the floor on the CME"JMO

DM
Trade smart. OR JUST DON'T TRADE!!!
  • #371
  • Oct 27, 2013 5:45pm Oct 27, 2013 5:45pm
Quoting Gilamonster
dragos- Volume is a great trade enhancer to verify a trade. I agree that if volume is 8% or more below the last test of price correlated to the same last test with volume then this is another confirmation for the trade. What I also use is ascending and descending trend lines on volume charts. I only place trend lines on the tops of the volume bars Volume rising and fallen tells me where orders are more than likely to be filled and where they have been filled. And yes if volume is only down a small percentage I would agree that this could bea continuation....

Hi , Im having a hard time understanding volume, Does a high volume bar on a down candle mean more selling than buying and vice versa for a buy?

If so why do you have situations were you have a large up bar and price turns around right after that large volume bar, it would contradict the theory that a high volume up bar means buying pressure.

I havestruggled to try and use volume, but it doesn't eve ,make sense to me. I cant understand how to use it.
  • #372
  • Oct 27, 2013 5:45pm Oct 27, 2013 5:45pm
Quoting detroitmoney
.... No one patented supply and demand trading BTW. Saw that earlier in this thread. ....

http://www.tradingacademy.com/about-...013-01-04.aspx
The Market pays you to be disciplined
  • #373
  • Oct 27, 2013 5:52pm Oct 27, 2013 5:52pm
By the way, does anyone use a tick chart for early entries and is there any benifit to using it?
  • #374
  • Oct 27, 2013 5:55pm Oct 27, 2013 5:55pm
Nice thread... thanks for starting it....
  • #375
  • Oct 27, 2013 6:01pm Oct 27, 2013 6:01pm
Quote
unique to Online Trading Academy

The first 2 words explain it mima. It means their own system "odds enhancers" and the like not supply and demand in general.

If that IS what they are trying to do though have no fears it WILL NEVER happen. You can take that to the bank!!
Trade smart. OR JUST DON'T TRADE!!!
  • #376
  • Oct 27, 2013 6:23pm Oct 27, 2013 6:23pm
Quoting dappa
{quote} Hi , Im having a hard time understanding volume, Does a high volume bar on a down candle mean more selling than buying and vice versa for a buy? If so why do you have situations were you have a large up bar and price turns around right after that large volume bar, it would contradict the theory that a high volume up bar means buying pressure. I havestruggled to try and use volume, but it doesn't eve ,make sense to me. I cant understand how to use it.
I started the topic on volume and feel I have to intervene to properly close it

Indeed in situation described by you the candle is large due to buying pressure. But this may happen for several reasons - possibly that the candle has also a wick which shows there are sellers arising. And most probably the price turns around due to selling of institutional traders whom are selling into buying because they consider the price is high and want to use the buying of the "herd", to be able to short without making price rising against them.

You should read Tom Williams's book "Master the markets" - google it, contains all the info you need. There are also good VSA threads here on FF, just search for them
  • #377
  • Oct 27, 2013 6:30pm Oct 27, 2013 6:30pm
Quoting bg_sunny
oh je... another thread going down..... where is the volume, where is this indicator.....bla bla bla. It's a rectangle and it is supposed to work 30-40 times out of hundred with an average RRR of 2.2-2.5. Yeeee why so complicated?
Huhu, it's true that some people enjoy complexity, and I'm definitely not one of them

Quoting dragos_
{quote} Sorry, just wanted to be constructive while I really like the discussions here in thomaas's thread. I see people trying to improve by fine tuning levels, using smaller timeframes. Also, since SD's success comes from unfilled orders I believe their volume should interest us when close to our selected level edit: I've looked back to the first post: 'My trading technique is simple: price action with supply and demand levels'. So while is thomaas's thread and about the trading technique that he uses and there are people here wanting to stick...
I really like simplicity in trading (and also in general). That's why I only use naked charts to trade, nothing more. So no indicator, no news, no volume, no nothing.
But if people are interested to talk about other inputs that can help them trading S&D levels, I don't mind.

Quoting detroitmoney
Does not matter what TF you look at. It works the same on any TF in any instrument. I trade real money in CL on a 5 minute chart and make some money everyday. No one patented supply and demand trading BTW. Saw that earlier in this thread. It's how the market has worked since there WAS a market and how it will always work till mankind ends. If you want to be sure about it though you can just do a patent search online and see if ole Sammy the sausage indeed has a patent on supply and demand. My guess he is that he gets a huge percentage from OTA for...
Thanks for the info!
  • #378
  • Oct 27, 2013 8:39pm Oct 27, 2013 8:39pm
Quoting Gilamonster
trexy123- There are great opportunities with trading Gaps. There are two different types of Gaps and you will need to understand them: Gaps before a Rally or Drop in price Gaps after a Rally or Drop in price. Gaps before Rally or before Drop in price: This is the type of Gap you want The base, or beginning of Gap is your base area( Imagine the gap as a long \"exciting candle\", and the body is more than 50% of its range e.g. Leg-out) Use your Fine Line PLacement to set up your entry You may need to find a better entry on a lower time frame. Gaps...

Thanks Gilamonster. It's useful info.

Could u give us some examples or chart about Gaps before Rally or before Drop in price ?
  • #379
  • Oct 27, 2013 9:33pm Oct 27, 2013 9:33pm
Quoting dragos_
{quote} edge540 - your right, thank you so much for your invaluable lesson..

No...I've looked to my right and there is nothing!I think you were trying to say "You're right".I know ignorance is bliss and shouldn't be punished but it takes so little to improve....give it a go why don't you.
  • #380
  • Oct 27, 2013 10:14pm Oct 27, 2013 10:14pm
samsungs3-

In FOREX Gaps are not common.

If you trade futures or other type's of ETF's, then you will see gaps more often.

I was just clarifing a point that had been made prior to my post.

I have never worried about gaps in FOREX unless it has been on a longer term chart.( Daily, Weekly and Monthly )

Now we did have a gap on USD/JPY opening. It is plain on my 1hr chart but the zone I am looking at is not in my trading plan so I will stay out of that trade. I will wait for a more obvious and compelling zone. Supply or Demand.

Stick with what you are learning and know. Thomaas is 100% correct. You do not need lagging indicators or a special edge. Your edge is being able to determine where most of the orders are setting up in strong Supply and Demand Zones.

Everyone I know personally that invests on their own will trade different ways but all have the one similarity of using Supply and Demand Zones for determining where orders are camped out.
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