Supply and demand in a nutshell by Alfonso Moreno | Page 179 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Supply and Demand Zones 57 replies

Price movement as a function of Supply and Demand 43 replies

Supply and demand zones and EW principles 1 reply

How Markets Work, in a Nutshell! 32 replies

Demand and Supply 1 reply

Attachments: Supply and demand in a nutshell by Alfonso Moreno
Exit Attachments

Supply and demand in a nutshell by Alfonso Moreno

  • #3,561
  • Nov 19, 2013 6:31am Nov 19, 2013 6:31am
I will be organizing a free supply and demand webinar next Tuesday 26th of November 2013.

  1. DATE: Tuesday 26th November 2013
  2. TIME: 1 PM to 2:30 Central European Time | 7 a.m to 8:30 a.m EST. Right 1 hour before NY Market Open

What will this webinar cover?

  1. Trading with the trend with higher time frame's direction
  2. Questions and answers

If you haven't registered to previous free webinars and would like to attend this one fill out this form: www.set-and-forget.com/free_webinars
On the last confirmation email you will get the link to join.

You can join now if you want, if you do you will be reminded automatically 1 day before and 1 hour before it starts

Hope to see you there.
Alfonso

Set and Forget supply and demand trading community
  • #3,562
  • Nov 19, 2013 6:53am Nov 19, 2013 6:53am
Quoting panoramia
here you have just a few of the LIVE accounts I've traded when I traded intraday and scalping using SD
Can you describe you scalping system rules, please?
  • #3,563
  • Nov 19, 2013 7:28am Nov 19, 2013 7:28am
Quoting mlr
{quote} Can you describe you scalping system rules, please?
I have no rules for scalping, not interested in that since I am not doing any scalping or intraday sorry! You will have to come up with those rules yourself through hours of forward testing. I am a swing/position trader, not longer interested in spending my life in front of a computer

I used to trade scalping but no longer.. it worked well but not for me. The scalping rules I used required the used of MACD, EMAs and bollinger bands together in combination with SD, but no more, too much stress and screentime! I no longer use those indicators for my trading, my decisions are based purely on SD now. That stage is over, so I can't help you there.

Alfonso
Set and Forget supply and demand trading community
  • #3,564
  • Nov 19, 2013 11:23am Nov 19, 2013 11:23am
I've been studying the thread and Alonso's videos to try and figure out an answer to a question that keeps coming up again and again as I find my levels. Sometimes he will mark FRESH BUT NON-ORIGINAL levels, sometimes not. I understand that the odds enhancers are used to validate levels, so that can explain some instances of the inconsistency. However, there are other times where a level is high quality according to the odds enhancers, is fresh, but he doesn't mark it as a level.

I'm just banging my head against concrete trying to understand how to choose the levels. For example, look at the attached chart from Alonso's Oct 13 weekly analysis. I have an orange rectangle labeled A. I don't understand why that's not a valid, fresh level (fully understanding it's not original). It had excellent departure, ultimately made a lower low and took out at least two demand levels along the way. According to the rules, this should be a supply level.

On the other hand, look at the level Alonso drew which was not orginal, B. B was a reaction to C, which I drew but Alonso did not.

Can someone please point me in the right direction as to what rule I'm missing here? Thanks!

Attached Image (click to enlarge)
Click to Enlarge Name: question.png Size: 275 KB
  • #3,565
  • Nov 19, 2013 1:02pm Nov 19, 2013 1:02pm
Quoting coolmoss
I've been studying the thread and Alonso's videos to try and figure out an answer to a question that keeps coming up again and again as I find my levels. Sometimes he will mark FRESH BUT NON-ORIGINAL levels, sometimes not. I understand that the odds enhancers are used to validate levels, so that can explain some instances of the inconsistency. However, there are other times where a level is high quality according to the odds enhancers, is fresh, but he doesn't mark it as a level. I'm just banging my head against concrete trying to understand how...
Hi there!

It all has to do with multiple timeframe analysis and that timeframe's trend. I will not draw some levels because they would be against the trend when price returns so I would wait for a confirmation. The bottom level is a great LOCATION level, that is, a level at the proximal line of the Monthly demand, that is what we call a Location trade.

It all has to do with location and multiple timeframe analysis, a level is not valid by itself on the timeframe that you locate it, you need to know what the bigger timeframes are doing or you will be drawing levels everywhere. It's very difficult to explain in words or in a couple of screenshots all that, that's why I organize webinars from time to time.

You need to foward test for months all the rules and get thousand of hours of screen time to realize how levels work and get the confidence and experience. It's impossible to tell you in a post or 500 posts, you have to do your homework by forward testing with Forex Tester, Metatrader is not good for testing.

Alfonso
Set and Forget supply and demand trading community
  • #3,566
  • Nov 19, 2013 2:40pm Nov 19, 2013 2:40pm
Hi Alfonso!
You do a great job explaining everything. Do you do private lessons? Also i was thinking of making like a flowchart of your method. I attached an an example (however it's in swedish at the moment and not finished, i have to study this thread more). Maybe if you want I can build one for you if you don't have the time.
Thank you for a great thread.
Attached Image (click to enlarge)
Click to Enlarge Name: supply and demand pic.png Size: 110 KB
  • #3,567
  • Nov 19, 2013 3:19pm Nov 19, 2013 3:19pm
Quoting panoramia
{quote} Hi there! It all has to do with multiple timeframe analysis and that timeframe's trend. I will not draw some levels because they would be against the trend when price returns so I would wait for a confirmation. The bottom level is a great LOCATION level, that is, a level at the proximal line of the Monthly demand, that is what we call a Location trade. It all has to do with location and multiple timeframe analysis, a level is not valid by itself on the timeframe that you locate it, you need to know what the bigger timeframes are doing or...

"It all has to do with multiple timeframe analysis and that timeframe's trend"

Once again Alfonso makes a defining point about trading Supply Demand. It is not about a single chart or time frame. Simply, a way to define what direction price has the most opportunity to move to... MTFA (multiple time frame analysis) will allow you see this very clearly. The road map if you will.

Be willing to give yourself time to achieve this most important aspect of trading Supply Demand.

It is truly "one of the keys" to success in Supply Demand.

Great info Alfonso

TSD
  • #3,568
  • Nov 19, 2013 3:38pm Nov 19, 2013 3:38pm
Quoting panoramia
{quote} Hi there! It all has to do with multiple timeframe analysis and ...
Thank you for your reply. I'm keeping at it with homework I need to look at Forex Tester, I'm not familiar with that tool.
  • #3,569
  • Edited 5:36pm Nov 19, 2013 5:13pm | Edited 5:36pm
Quoting panoramia
{quote} Thanks for your message. Let me reply to you. You are not allowed to go long on CP patterns on demand if the trend on the timeframe where you have detected that CP has changed. A CP or Continuation Pattern is great when the TF where it was detected at is in a trend and entry at that level would respect that trend. I use TLs for that. On that SoyBeans D1 TF, the D1 uptrend is broken, so CP demand is not higher odds, you have to lean on fresh valleys (DBR) only. If the D1 trend has now changed you need fresh and original D1 demand areas to...

thank you alfonso very much for replaying.i really appreciate it.

i totally understand your comments of the cp pattern not being valid anymore but i wonder if the D1 DBR i marked is valid as location trade.

its fresh daily demand zone within the proximal line of the monthly.

i wonder if its correct...


p,s:i have edited my proximal line from prior post bc i think i was wrong before.


thanks again!

Attached Image (click to enlarge)
Click to Enlarge Name: s1.gif Size: 87 KB

  • #3,570
  • Nov 20, 2013 12:43am Nov 20, 2013 12:43am
Quoting Ro8in
Hi Alfonso! You do a great job explaining everything. Do you do private lessons? Also i was thinking of making like a flowchart of your method. I attached an an example (however it's in swedish at the moment and not finished, i have to study this thread more). Maybe if you want I can build one for you if you don't have the time. Thank you for a great thread. {image}
Hi Ro8in , i do not understand this chart language. Please edit this chart language english,
  • #3,571
  • Nov 20, 2013 3:58am Nov 20, 2013 3:58am
Quoting ochinkumar
{quote} Hi Ro8in , i do not understand this chart language. Please edit this chart language english,
Hi ochinkumar, I'm going to change it when it's done. I have to make the rules into the flowchart so it's going to take some time, that was just an example.
  • #3,572
  • Nov 20, 2013 7:36am Nov 20, 2013 7:36am
Good day mates,

i want to share my new set up, this is in w1 and h4 combo, we are low in the curve and the price in h4 made a new demand zone
Attached Image (click to enlarge)
Click to Enlarge Name: audjpy wih4.PNG Size: 41 KB
passion and discipline
  • #3,573
  • Nov 20, 2013 8:07am Nov 20, 2013 8:07am
hi all!
i have this on my radar

comments are welcome

Attached Image (click to enlarge)
Click to Enlarge Name: A1.gif Size: 124 KB
  • #3,574
  • Nov 20, 2013 8:43am Nov 20, 2013 8:43am
Quoting rohule
Good day mates, i want to share my new set up, this is in w1 and h4 combo, we are low in the curve and the price in h4 made a new demand zone {image}
Hi, rohule
nice one! I am looking at the same thing as you, but I decided to drill that 4h demand candles from the 1h because that zone is around 44 pips is too wide adding the wiggle and padding from stop and entry

Attached Image (click to enlarge)
Click to Enlarge Name: audjpyh4.png Size: 83 KB
  • #3,575
  • Nov 20, 2013 9:00am Nov 20, 2013 9:00am
ES chart.
it is fomc day so im curious to see how the zones will play out
Attached Image (click to enlarge)
Click to Enlarge Name: es1.gif Size: 138 KB
  • #3,576
  • Nov 20, 2013 11:31am Nov 20, 2013 11:31am
Quoting Ro8in
Hi Alfonso! You do a great job explaining everything. Do you do private lessons? Also i was thinking of making like a flowchart of your method. I attached an an example (however it's in swedish at the moment and not finished, i have to study this thread more). Maybe if you want I can build one for you if you don't have the time. Thank you for a great thread. {image}

Hi Ro8in,
If you can draw such a flow chart you will do this whole thread a big favor. If you want help debugging the logic, you can post your result here for translation and comments. I am a big fan of flow charts, and look forward to yours.
MadCow
  • #3,577
  • Nov 20, 2013 1:11pm Nov 20, 2013 1:11pm
Quoting MadCow
{quote} Hi Ro8in, If you can draw such a flow chart you will do this whole thread a big favor. If you want help debugging the logic, you can post your result here for translation and comments. I am a big fan of flow charts, and look forward to yours. MadCow
Hi MadCow, I will do my best to deliver my part. However I will need help and patience from you guys doing this. As you said madcow trying to decipher the logic here and it will take some time. The flow chart is the perfect tool for this task because it makes you think like a robot and makes everything rule based. If you just read rules and rules then it's easy to get stuck in a loop, you don't get anywhere. If you have a flowchart you get things done (at least if you are a beginner).
  • #3,578
  • Nov 20, 2013 1:15pm Nov 20, 2013 1:15pm
First things first. Draw the levels in control on the big timeframe, right ?
  • #3,579
  • Nov 20, 2013 1:29pm Nov 20, 2013 1:29pm
Quoting Irad
{quote} Hi, rohule nice one! I am looking at the same thing as you, but I decided to drill that 4h demand candles from the 1h because that zone is around 44 pips is too wide adding the wiggle and padding from stop and entry {image}
hi irad,

im holding that one i hope it works out well, if not another trade will come up.

cheers
passion and discipline
  • #3,580
  • Nov 20, 2013 3:06pm Nov 20, 2013 3:06pm
Quoting Ro8in
Hi Alfonso! You do a great job explaining everything. Do you do private lessons? Also i was thinking of making like a flowchart of your method. I attached an an example (however it's in swedish at the moment and not finished, i have to study this thread more). Maybe if you want I can build one for you if you don't have the time. Thank you for a great thread. {image}
Hi Ro8in!
Thanks for your words. It would be great that you created a flow chart in English, that would help you and others to understand the whole flow. What do you mean with private lessons? Whatever need anything contact me through the set-and-forget.com site, I can't use personal message system on FF any more since I am a commercial member!

Have a great night!
Alfonso
Set and Forget supply and demand trading community
1 trader viewing now