Learn and Share your Trades using Charts and S/D Levels

what i meant is that this is a key area that when it brakes suply become demand and demand become supply, se we would expact price to return to it after the BO.

ag77-

I get what you are saying.

I call it something else but it seems to be the same idea.

I do agree that price will more than likely retest a prior supply/demand after a STRONG breakout.

But I have to see certain things line up before I set my entries because this always happens high/low on the curve.

Attention Everyone-

I had my USD/CAD entry triggered.

My Patiences and Discipline paid off on this one.

I had found the zone almost two weeks ago, and it still held.

What does that mean, that it still held?

Everyone should know that the largest traders and the largest amount of traders, move price.

The majority of these traders are looking for the best Retail and wholesale prices. Supply and Demand.

They choose the best and strongest zones to enter and will have to meet a certian criteria before setting an entry. They have someone that checks them usually.

There are long term traders(who hold positions for many months or years), Long term swing traders(who hold positions for weeks or months) short term swing traders ( who hold positions for days or weeks) and short term day traders, scalpers, who hold their positions for minuets to hrs only)

The difference is the time frames they are using.

-long term traders, (monthly, weekly and daily charts)
-long term swing traders, (weekly, daily and 1 hr charts)
-short term swing traders, (daily, 1 hr and 5 min charts)
-and short term day traders, (30min, 5min, 2min or tick chart)

All have a plan and will strive for maximum profits while doing the number one thing. Avoiding as much risk as possible.

Here is my trade I entered

Attention Everyone-

I have just updated my first post with my Trade Rules and my updated Trade Procedures.

Please check them out and see if there is anything that you may be able to add to your trade plans.

Attention Everyone-

In respnse to a few personal messages I will be adding a short course thorough this thread on supply and demand.

It will include my:
-Trade Rules
-Daily Procedures and logging your trades
-Fine Tuned Line Placement Procedures
-Finding strong S/D levels
-Rating your zones before an entry
-Strategies and protecting your profits
I have added my Trade Rules and Daily Procedures here for everyones convience.

The definitions are are added in my Daily procedures for everthing i will be sharing and teaching here.

These two things will be the first important subjects I will touch on.
I will be having a very busy week in my life so I will be only devoting 2 to 3 hrs total, per day, to answering questions.

This will be a easy to understand. I am happy to be able to do this only because it helps to keep me foucused on my success. That is my reason for adding this here.

I have to give credit to my personal mentors, Idaho Technical College, and Online Trading Acadmey(OTA) for supplying me with some of the knowledge I will be sharing here.

Attached File(s)

Trading Plan.docx   33 KB | 305 downloads

Attached File(s)

Daily Trade Procedures.docx   66 KB | 302 downloads

Attention Everyone-

First Lesson- Pre market routine.

We are going to use MRCI.com for Inter-market correlations:
-At the MRCI website go to free futures on the left(scroll down a tiny bit.
-In the middle of the page click on inter-market correlations.
-Look at 30,90 and 180 charts(you can look at 60 that is fine) What we are looking for is a consistencey here with the currencies compared to each other on all the charts.
-We want a negative correlation of at least-90(a consistency on all three charts is very strong but on one chart is fine. We are just referencing.

Next is Finviz.com. We are looking for which currency is at supply and which one is at demand.
-We want the most obvious and compelling charts.
-So first go to finviz.com
-click on futures at the top.(goes across horizontaly)
-Now click on currencies(middle of page)
-Start with your daily charts and try first to match the correlation with what you found on MRCI.
-We are looking for a overbought Eur and a oversold Usd.
-Decide if Eur is at supply(overbought)
-Decide if Usd is at demand(oversold)
-Must be obvious to your eyes.
-Now do this down to the hourly chart.
-Are we at supply on the Eur?Demand on the Usd?
-If everything is matching up and compelling enough to look further, then its time to go to the charts.

Time to also get your daily procedures out.
We want to now look at the currency pair scoring.
This will be on the Daily Procedures sheet I gave out.
So, do we have everything lining up?
Well not the best set ups best yes so far everything lines up.

So let me know what you find and at the same time here is all my findings for everything we just went over. (starting with futures down to 5min eur/usd chart)

Thanks mate for answer. It's look very usefull and simply however what about trend line ? Do you use as extra confirmations or place where you go to trade ?


http://charts.mql5.com/3/836/usdjpy-...-markets-2.png

mk89-

Thanks.

No I do not use trendlines because it is hard for me to keep my charts clean.

I am not looking to trade every line or every level.

I am interested in only the strongest levels I can find at the extremes of the curve.

After using them though for so long I have come to almost naturally see where a barrier my be.

Most of the time by coinisidence where a trendline would be ends up being a, minor/major, supply or demand zone.

They can be used as confirmations though for taking an entry that is not a #1 limit entry (set it and forget)

Here is an example of what I am currently trading and what I will look for as possible areas.

hi gila

on the odds enhancers, #6-do u ever take into account the ADR of the pair?
for example, gbp\nzd have 200pips adr, so 40 pips level there will be actually less than 30 pips on usd\cad with 71 pips adr.
when i say less i meant as far as the time it should take it to (usually) move to the Xr target, and also most likely levels on gbp\nzd will be larger than usd\cad.

tyvm

Thanks Gilamonster for sharing . Very much details and I can see you plan your trade.
What I enjoy in this thread here is you not just provide knowledge but also trades you prepare before it happens. It makes me learning so much .
I dont know why you shared so much here but I really appreciate.
May consistent profits be with you. Pls keep doing .

Attention Everyone-
\
I took profit on my USD/CAD position.

I waited to see how price was going to react to the SZ.

I took profit based on price action, but it was not a good exit strategy becuase I had already locked in profit and I could possibly have waited for a new HL and a new HH close.

The slides are 34,35,36

ag77-

I will not use the adr only volume.

I can see price action by looking at my charts.

For example though, with my USD/CAD trade I just closed today I should have let ride.

If I am in profit on any trade I should wait for my stop to take me out then.

Not me taking myself out of a trade because I see that price has reacted to a SZ level.

That will not help me to maximize my profits if I am already profitable on the trade.

Any indicator or oscilator that you use will be lagging. MA, RSI, Stoch., ADR even my volume is a touch behind but I don't use the present volume for trading.

I use volume like this:

If I am confirming a zone on my hourly chart I will look to see if volume was higher than average at that time(or very close to that time).

If it is that tells me the commitment of the larger traders there.

This adds to making my zone compelling.

what i meant is not to set entry by the ADR (average daily range-the volatility of the pair).
i meant for the way u grade the zone by its size.
maybe im wrong on that, by i dont consider it as idicator, more as a data, since were not base our entry on that, just grade the level.
[highlight=rgb(244, 246, 249)]for example, gbp\nzd have 200pips adr, so 40 pips level there will be actually less than 30 pips on usd\cad with 71 pips adr.[/highlight]
[highlight=rgb(244, 246, 249)]when i say less i meant as far as the time it should take it to (usually) move to the Xr target, and also most likely levels on gbp\nzd will be larger than usd\cad.[/highlight]

samsungs3-

Thank you,

But I do this because it helps me to stay focused on my plan.

I use this thread as an early warning sign that I may not be following my plan to the "t".

I also don't see an issue with sharing my knowledge with anyone.

Some may think it is taboo to share information that took you a long time to disect.

But I will guarantee that you will end up fine tuneing your own trade plan to fit your style.

Everyone I know trades different but the core of trading is always the same.

If we were like robots I guess we could all trade the same though.

ag77-

Yeah, I see what you mean now.

I knew it was for volatility but because I don't use it you tend to forget all those other definitions.

Yes I agree it could be used for getting data history on say a potential zone.

If you believe it helps you to determine on how long you should plan on being in a trade or how long until your trade is hit Great.

As long as it is in your plan and it works use it and fine tune it.

Thats how I found the volume to be useful for me.

Let me know if I understood that correctly.

got it tyvm

Attention Everyone-

I have just checked out my Eur/Usd zones.

The first zone below the 70% curve level is getting eaten up.

We stiil have HL's though.

I am monitoring and not setting a trade yet but I will be interested when my alert is hit for the zone above 70%.

I am watching the 1.3690-1.3700 area on the 5 min chart. Alert at 1.3685.

It is the highest on the Curve, Fresh on hourly but not as fresh on 5 min,Plenty of Reward, Very low risk, not much time at the level and volume was just a little above average.

So an 11 out of 12 for odds enhancers this makes for a good entry for my plan.

Two more things this zone I found is in the middle of my daily SZ zone and the long term trend is confirmed to be down.

Attention everyone-

I have had my new USD/CAD order triggered.

Keep in mind that this is not a compelling zone on the ITF (hourly chart)

I had been following this pair since last week but the zone didn't form until early monday morning.

I wanted to enter with the short term trend again.

The trade should not last all day it will be a short term day trade probably.

So my plan is to monitor this pair and protect my profits.

Attention Everyone-

My alert for EUR/USD is about to be hit, but before I enter my trade I want to acess price action before it opens my order.

Seeing a ERC (expanded range candle) just before my entry level is encouraging and I will tEll you why.

First of all ERC's usually happen for three main reasons: ( you could add more but these reasons are the main causing factor)
1. High impact news (thats why we have stops)
2. A strong level for large traders to enter was triggered. (almost always the case)
3. Large traders taking profit and exiting thier trades at once.

I like to see the commitment of price, jumping up to or falling down to, my entries.

Not every time does price do this and hit my entry and react positively for my trade, but more that not.

It is a higher probability that price will be propeled to a strong zone that larger traders have set up camp.

If they are already happy with thier current positions though I will be taken out very quickly.(and almost.. painlessly)

Though by upon my analysis, before I placed my entry, This pair is in a long term down trend(larger traders like), It is now hitting a long term supply on daily(good so far), and we are high on the curve on the hourly chart.

This goes in my favor because the larger traders are going to be concerned about preserving their risk capital more than i am.

The difference. They have to answer to others.

Saying that though I DONT answer to anyone but myself.

So why so confident. Because I trade by stacking odds of having a high probable trade entry. And that is all I can do.

If i get stopped out I move on.

Attention Everyone-

I just want to share my previous eur/usd chart.

This was a short term day trade that I was not watching for because I was waiting for a swing trade entry.

As per my plan I am not allowed to over trade.

By trying to expect two different trade set ups, around the same time and day, I would be trying to predict a price outcome by over trading.

What would have happened if I took the first trade and was taken out, then my second higher entry would of gotten stopped out as well?

It would have been a bad practice and I would have reviewed my trade plan. Or try the same thing again and begin a bad patteren.

So here is the out come of that trade even though I never entered it.