The Supply/Demand Zone

Hi All,

OK, I'd like to start a journal of my S/D trades here. Firstly, I am not teaching anything - but I'll recommend a couple of links later on in this post.

It's just going to be a list of trades taken in this method in the hope of trying to improve my craft.

I've got a trade explorer setup for this - I just need to complete one trade to activate it - tied to this thread here: http://www.forexfactory.com/showthread.php?t=321529 - looking to make this small account a 'free account' then pile in with some calculated risk.

If you are looking to learn supply demand method - I'd recommend a look at this guys video's here: http://www.youtube.com/channel/UCg0eWnYo-Wh50Z_3uZDOhZw - and this one here http://www.youtube.com/channel/UCQLyMYak5VBaLFgRJRDPwQA - the 2nd link is a different kind of presentation of SD. But, I like it - and it kind of got me into the stuff.

Let's do this -- cheers

Couple of charts I am looking at.

1) USDCAD: I am looking at this RBR on the H4 Charts. See if this level can hold as Demand?



2) AUDJPY: I like the way price shot up to supply, rejected and shot back down.

Last one for tonight. This one here - GBPUSD - H1, Drop-Base-Drop.



Pending Orders set for all these in the system. Lets see how this maps out.

I am after some 'consistency' to this whole trading business after practicing everything under the sun for about a year and a bit. I'd like to do 50 - 100 trades in this method, to hopefully find that "sweet spot"

Hi Ferrer,
If I can add my 2 cents, you could consider looking farther on the left when you choose your spot. It would adds some precision. Look for where price has been turning and match it with your "zones". I think you're going the right way !

Happy trading


Coin

Thanks mate. Just trying to get an eye for this stuff.

EURJPY - Supply Zone - DBD

I missed this one today - A big down move on the GBPUSD - on the H4, cause by a reaction to news? You can't really see an entry:



But down at the M30 view, you can see a base for a potential entry

The GBPUSD short I posted earlier in this week, didn't quite *pop* downwards as I expected.

I was about up about just about 1:1 R/R when I checked my platform last night - I set this to just below BE - and with a profit target set, let it go.

I got stopped out for a 0.5% gain overnight (this account is tiny, but it's not the point at where I am in this game right now).

A case of monitoring price action now - the DBD is no longer fresh. GBPUSD is ranging a bit now.

Lesson learned: I'm shooting for a 2/1 outcome most times (or more). I'm possibly being a bit generous with my stop placement. However, I'm impressed with how accurate Supply/Demand zones are - when they work they reverse almost to the pip at the base...



Next up is probably EURJPY, about 10 pips from entry.

Well, one week into this - and my 'account' is up by *drum roll* - 1.2%.

2 trades -

1: GBPUSD - well, I definitely moved this to breakeven too soon. News was released the next morning and forced the Pound down. Would have hit my TP, unfortunate, but it happens.

2: EURJPY: Now, the zone I had identified has been busted, so the move to BE was the correct thing to do.

- Onwards and upwards for next week.

GBPUSD:

Type - RbD - Visible on the H4 - but drilling down to the H1 will show where price rose, then shot away.

Lets see where this goes:

ooking at larger time frames will also help. Basically a Pattern within the Pattern. Example would be a Dailey pattern is short, yet the 30M looks to be long. The pleasure is to the down side. So we may: Look to shorten our TP horizon for the long, take partials on multiple positions, wait for price to roll up to a Supply level before taking the trade.


Where are you in the swing in the base of the pattern? Are you trading into a Supply level?? Higher TF is Short = Using the momentum out of the base of the DBR pattern into the Rise of the pattern on a smaller TF ... trading into the Supply from a smaller TF Demand formation.


Simply price is drawn to these Major / Higher TF levels. For me this presents excellent opportunities as price is drawn into a these levels. Yes, these are aggressive trades but, we are trading the SD Method contained in the Pattern within the Pattern

Just some different point to consider.

TSD

Subscribed

[quote=TraderinSD;7098021 TSD Subscribed [/quote]Howdy TraderinSD, thanks for subscribing. Good to see someone of your experience in here

This latest pending order - well, it's a strange one, but fwd testing with a small account allows for some experimentation. Let me show you the logic behind it though:

On H4 - that area, which is supply - price got repelled and sent back down.



Drilling down to the H1 and looking left. On 28 October, I can see that price moved up - based - then shot back down.



I'm looking for price to move back up here - re-hit this turning point - then ideally move back down again. This area to me looks 'fresh'.

Yep - it's in a sea of 'churn' that whole area. Will see how it pans out?

Thanks.

Observation on the 1HR..

I'm looking for price to move back up here - re-hit this turning point - then ideally move back down again. This area to me looks 'fresh'


Price came down to a Big Round Number .6000. Price faded from this number back up... then turned short through .6000.


Looking left along the 5993 level we see where price initiated a very aggressive more upwards. We notice that coincides with .6000 price as price bounced all this area previously.


When we see breaks like this, short or long, price will tend (but not always) retest (Kenneth Lee SD Trading) he calls it a Swap Level....5993 Level. Price should bounce from this fresh Supply Level and continue short from there. PLUS...We have the added influence of the Big Round Number 6000. I assume this is the "re-hit this turning point" you are referring to?

The 6194 Short Sell.. excellent short if your are still in? If the 5993 level is the retest number ..Are up looking to add to the short?

Based on what I have seen at this point.. You have a very good handle on this type of trading.


TSD

Basic problem here. I am not getting enough trades!

Pulled any pending orders in the system - and I'm flat now.

For now, I'm looking to get in on the shorter timeframes - 30min/1hr.

Back to the drawing board for a bit ...

mmmm REWIRE TIME.

If i may make a suggestion. Your statement: " Basic problem here. I am not getting enough trades "

Do you want to trade or be profitable? I know.. seems like a simplitic question.. right?

Answer 1: Most would say, both! .. Actaully, that's a terrible answer. Why ? Gambler mentality.. I need the action !!!

Answer 2: Very few would say, profitable .. It is only about being profitable.. Whether you take 5 trades or 100 trades .. Are you a profitable trader ?

Change the mind set to an extreme amount of patience. I do not need to trade today.. but if the right up set comes into view I will trade it. I may have several trades today.. I may have one trade today.. I may have no trades for days... I do not really care... I will trade my plan with the very best set ups. I know there lots of set ups..But I will only trade the best. I do not need to trade today.. but if the right set up comes into view I will trade it.

Not: "I am not getting enough trades" ... There is a very fine line that defines the two thought processes. It is where so many eventually fail. Sadly they do not even realize this is why they failed. It is never about getting enough trades, there are more than enough trades to be found. Controlling ones trading is the more difficult part.

I execute only trades that have proper money management (preservation of capital). I execute only trades according to plan (trading consistanly) = Profitability

Again.. just a point of view.

TSD

TSD - thanks for your continued support here, and you've raised a couple of good points. I'll answer this from my own perspective - trying to put a plan together. I don't claim any expertise in 'the forex' just trying to document this journey...Hopefully, long term this will help...

1) The quest for more 'action': The aim of the game is to get a 'sample' of trades under my belt (say 50-100) - I can't make the market 'come to me' but rather find trades on lower timeframes, in order to try to establish a pattern of trades (more quickly). I am a little 'underwhelemed' with the amount of interactions I've had so far with the market - personally, I'd rather setup a bunch of POs on lower TFs and let the market play them out.

I don't want to wait months and possibly years for this 'sample' to be established, as on the H4 these setups are rare. The fractal nature of FX will prove that this happens on the lower TFs as well.

2) In the chart time I've had, on demo and on some simulators - I like the idea of trading around the concept 'first time back'. Where established demand/support or supply/resistance is broken - it seems that the FTB is a relatively high probability entry.

3) I don't place a great deal of importance on candlestick formations - more so on 'levels'.

I'd like to show a demo trade I took this morning to see where I am heading with this:

I spotted an area of demand break last night on the Euro - visible on the H4/H1/M15 - from this - an exhaustion of any orders supporting this level? (I don't know the mechanics behind this - but it seems feasible)



The .34878 area didn't act as support any more. So, will it act as resistance?



When price smashed through that level last night - on the M5 we can see a little DBD. I put an order in this level as pending sell - price rocketed up to it's 'first time back', then got pushed back - thats' the level of interest I'm looking to exploit - on lower TFs.

I know how I'd like to trade, but this outlines it. Will get moving on the lower TFs to get some wins/losses under my belt.

Phew! That was a long one - hopefully it made sense.

AUDUSD

I like this H1/H4 demand/support area which has broken. We had 3 tests of the area, then today - it popped.



The area at 0.92382 is of interest. Looking to see if that can act as supply.

There is an approx 10 pip area on the M5 which is an acceptable area to place stops behind - a little base, before price fell through.



Will place an order to go short at this area.

very interesting. I will take part in this topic. Happy trading.

audusd h1,