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Supply and demand in a nutshell by Alfonso Moreno

  • #3,981
  • Feb 17, 2014 9:48am Feb 17, 2014 9:48am
Hi Alfonso,

Pls tell me the two indicators your using in Forex Tester 2 in the first video in your first post and where I can download those two.


Thanx in Advance,
Ishara
  • #3,982
  • Feb 17, 2014 11:43am Feb 17, 2014 11:43am
Quoting Succe55
{quote} Great webinar. It was good to help me confirm my (mis) understanding of the amazing RULES and the importance of "forward testing" Thank you Alfonso for your time and patience. Graham
You are welcome Graham, it's a pleasure to help you and any other trying to trade supply and demand.
Take your time to forward test the rules, you may come up with nuances to the existing ones, that's awesome as well. But remember that you will need to forward test for some months in a row, 1-2 hours a day to become consistent, our mind works like that unfortunately, unless you love blowing up accounts

Alfonso
Set and Forget supply and demand trading community
  • #3,983
  • Feb 17, 2014 11:45am Feb 17, 2014 11:45am
Quoting isharasjc
Hi Alfonso, Pls tell me the two indicators your using in Forex Tester 2 in the first video in your first post and where I can download those two. Thanx in Advance, Ishara
Hello there!
I am now using only 1 indicator (support and resistance) and rectangle reader extender version for Forex Tester (still under development)... You will be able to get the first one when I upload today's webinar in a while.

Alfonso
Set and Forget supply and demand trading community
  • #3,984
  • Feb 17, 2014 11:56am Feb 17, 2014 11:56am
Hello fellow trader!

Thank you for attending today's live webinar on real time forward testing supply and demand rules from www.set-and-forget. Those who couldn't attend the webinar will have an opportunity to watch it from the link below.

Today's supply and demand webinar concentrated on real time forward testing supply and demand imbalances with the rules you should know by now. I say "we", because I see all of us like a trading group, the forex trading community we're building here at Set and Forget. I am the one who has set the first initial stones, the ones that got the whole thing going, and others will come after me by adding new nuances (in fact one of our members, Robin already contributed a lot with quite a few incredible flow charts on the supply and demand processes and rules, and Sharon with her documents on the 3 type of trades available), new rules to filter out bad trades or even adding new entries based solely on supply and demand levels and imbalances.

Quote
​I always encourage everybody to forward test any forex trading rules because in my humble opinion it's the only way to gain confidence and become consistent trading any rules set, be it supply and demand, ema crosses, fibonacci, you name it

It's just the way it's, do not believe what I say or do, do it yourself. Step into the "believe stage" of your trading and get the most out of your marriage with the rules you will be embracing, it's the only way. Your thoughts are physical, but you need to word very very hard to make them become real.

The video shows you how by following the rules and being patient, price will reach the high odds supply and demand levels you were looking to trade at.

The only thing we have to prevent us from blowing up our accounts is:

1. Our rules and trading plan
2. Our Stop Loss

Remember these rules can be extrapolated to other timeframe combinations, but at Set and Forget we are concentrated and focused on forex swing trading H4 and above levels for one single reason, it's not just trading but a way of life. Most of us (some may love to be in front of the screen all day long) want to have a life other than staring at the screen all day long, H4 levels can help us achieve that as you can see.

Enjoy the video if you couldn't attend the webinar. If you have any questions, feel free to ask them in at www.set-and-forget.com. The video will show you step by step how to test the rules and configure Forex Tester for your forward tests.

There is only one indicator I'm using for the tests is the Support and Resistance one, it will display the last week/month lows/highs, very useful for confluences when trading supply and demand levels. You can download from the same link above.

WATCH THE SUPPLY AND DEMAND FORWARD TEST VIDEO HERE
You can download the indicator used from that link as well

Enjoy your day and have fun!
Alfonso
www.set-and-forget.com
Set and Forget supply and demand trading community
  • #3,985
  • Feb 17, 2014 11:30pm Feb 17, 2014 11:30pm
Quoting panoramia
Hello fellow trader! Thank you for attending today's live webinar on real time forward testing supply and demand rules from www.set-and-forget. Those who couldn't attend the webinar will have an opportunity to watch it from the link below. Today's supply and demand webinar concentrated on real time forward testing supply and demand imbalances with the rules you should know by now. I say "we", because I see all of us like a trading group, the forex trading community we're building here at Set and Forget. I am...
Hi Very informative, but got to the 1 hour mark of the recording and then there is no sound
  • #3,986
  • Edited 1:48am Feb 18, 2014 12:14am | Edited 1:48am
Quoting whaka
{quote} Hi Very informative, but got to the 1 hour mark of the recording and then there is no sound
Yes, it looks like there is no sound after 1 hour of video, I unplugged the Headphones from the USB port with a move of my leg, then unplugged it again and it looks like Windows' plug and pray did not recognize it correctly, and so didn't the recording software That caused a problem during the webinar, but attendees could listen to me, I thought Windows was recording the last part of the webinar Sorry! Hopefully this won't happen in the next webinar.

The great trades happened right at the end of the webinar and they look like big runners. Sorry for this, because you will miss the explanations of why those trades were taken. The monthly demand overshot allowing us to take a D1 supply right at the D1 trendline confluence, which is still dropping nicely. We took another H4 short on the way down, the target was right above the new D1 demand formed at the MN demand level (when overshot)... I closed both trades and went long on D1 demand. This trade is also running nicely and looks like a great move as well.

Those who attended the webinar could listen to it fully, hope that you enjoyed it and saw the power of supply and demand and patience.

Sorry for this

Alfonso
Set and Forget supply and demand trading community
  • #3,987
  • Feb 18, 2014 1:26pm Feb 18, 2014 1:26pm
whats your view on audjpy Alfonso sir? and about xauusd
  • #3,988
  • Feb 19, 2014 10:55am Feb 19, 2014 10:55am
Quoting Solomon1a
whats your view on audjpy Alfonso sir? and about xauusd
Hey there!
Hope you are having a great day over there

AUDJPY
Doing nothing, it's consolidating on D1 so nothing for me.

GOLD

  1. Price is bouncing off non fresh MN demand, but hit D1 supply without closing above it, now reacting
  2. Unless Gold drops very fast in current H4 CP demand, I will not be able to take it... I drew the aggressive H4 TL after several CP demand patterns, so the top H4 demand would be invalidated. The lower D1 demand zone would be much better for the long since the H4 TL is not used when we hit a HTF demand area in a D1 uptrend in this case
  3. I had a more aggressive H4 TL that covered the lower H4 demand at the D1, but the aggressive one would not allow me to take the trade if one full OHCL candle is closed underneath
  4. Also remember what I mentioned above, the D1 candle did NOT close above D1 supply, that's normally not a good signal and a clue for a potential bigger retracement.

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Set and Forget supply and demand trading community
  • #3,989
  • Edited 3:42pm Feb 20, 2014 3:27pm | Edited 3:42pm
I will be releasing soon a new version of the Rectangle Reader extender indicator that will help those that are trading lower timeframes like H1, M15 and M5.

  1. You will be able to select H1, M30, M15, M5 as timeframes to draw trendlines at the proximal/distal lines of SD levels
  2. Right now it is only possible to do that with H4, D1, WK and Monthly charts
  3. With the new version you will be able to see where the M15 levels are located in the D1 and other timeframes
  4. You will be able to assess if the lower timeframe zone is near or far from a higher timeframe zone

Some of you were asking for this feature, you will have it next week

Hope that you like these new additions. I won't be using them, but I understand that it can help many of you.

Good night!
Alfonso

Set and Forget supply and demand trading community
  • #3,990
  • Feb 20, 2014 3:47pm Feb 20, 2014 3:47pm
Quoting panoramia
I will be releasing soon a new version of the Rectangle Reader extender indicator that will help those that are trading lower timeframes like H1, M15 and M5. You will be able to select H1, M30, M15, M5 as timeframes to draw trendlines at the proximal/distal lines of SD levels Right now it is only possible to do that with H4, D1, WK and Monthly charts With the new version you will be able to see where the M15 levels are located in the D1 and other timeframes You will be able to assess if the lower timeframe zone is near or far from a higher timeframe...
Thank you Alfonso. With the update, would it be possible to allow the rectangle indicator(regardless if the sup/dem rectangles are drawn manually or automatically), to have the curve info read this on all TF's that is set inside properties to show? For example to accept supdem auto indicators and show the curve levels? Right now, the rectangle reader works perfect regardless if drawn manually or automatically, except the curve percentage and color info located top right only shows when you are on the current TF when using a sup/dem auto indicator to draw the rectangles. It disappears when you switch to another TF. The percentage curve info only stays fully on, on all TF's when the rectangles are drawn manually. Hope that makes sense.

Thank you Alfonso. It would be very helpful with the added feature in your planned update.
  • #3,991
  • Feb 20, 2014 4:16pm Feb 20, 2014 4:16pm
Quoting MKFXTrader
{quote} Thank you Alfonso. With the update, would it be possible to allow the rectangle indicator(regardless if the sup/dem rectangles are drawn manually or automatically), to have the curve info read this on all TF's that is set inside properties to show? For example to accept supdem auto indicators and show the curve levels? Right now, the rectangle reader works perfect regardless if drawn manually or automatically, except the curve percentage and color info located top right only shows when you are on the current TF when using a sup/dem...
I think there is a bug with the indicator, I will check it out, on my side it's ok. The indicator cannot display the curve based on the automatic levels, ONLY on the manual levels. That can't be changed, won't code such a feature because the automatic levels can't have trendlines on proximal/distal lines, both indicators are separated and the automatic levels are not well drawn sometimes, so the levels have to be manual. I will check out the problem you described, maybe it's a new function I added, I think I know what it's, but on my side it's ok!

Alfonso
Set and Forget supply and demand trading community
  • #3,992
  • Feb 20, 2014 7:39pm Feb 20, 2014 7:39pm
thanks sir , stay happy and wealthy healthy, i am expecting gold bearish next week, its approaching the D1 fresh demand.
  • #3,993
  • Feb 20, 2014 8:12pm Feb 20, 2014 8:12pm
Quoting Solomon1a
thanks sir , stay happy and wealthy healthy, i am expecting gold bearish next week, its approaching the D1 fresh demand.
I thot the price is approaching D1 Supply in Control zone, then we will be looking for short (bearish), pls correct me if I've misread the chart as I'm rather new with the SD concept.
  • #3,994
  • Feb 21, 2014 1:10am Feb 21, 2014 1:10am
Quoting henry_phua
{quote} I thot the price is approaching D1 Supply in Control zone, then we will be looking for short (bearish), pls correct me if I've misread the chart as I'm rather new with the SD concept.
Henry, I believe he's saying that he is seeing gold bearish and price might drop to fresh D1 demand to buy gold expecting that gold will continue the D1 uptrend off the Monthly demand rejection.

Alfonso
Set and Forget supply and demand trading community
  • #3,995
  • Feb 21, 2014 3:15am Feb 21, 2014 3:15am
Hi Alfonso,
Thanks for your clarification, shall wait for the price to move towards D1 Supply in Control zone to short.
  • #3,996
  • Feb 21, 2014 12:27pm Feb 21, 2014 12:27pm
Quoting panoramia
I will be releasing soon a new version of the Rectangle Reader extender indicator that will help those that are trading lower timeframes like H1, M15 and M5. You will be able to select H1, M30, M15, M5 as timeframes to draw trendlines at the proximal/distal lines of SD levels Right now it is only possible to do that with H4, D1, WK and Monthly charts With the new version you will be able to see where the M15 levels are located in the D1 and other timeframes You will be able to assess if the lower timeframe zone is near or far from a higher timeframe...

Thanks in advance for your updation in Rectangle Reader indicator, we hope we may get that soon.
  • #3,997
  • Feb 22, 2014 5:28pm Feb 22, 2014 5:28pm
Hi Alfonso,

Thanks so much for sharing EVERYTHING that you have shared. Also, thanks for all the hard work you have put into the site and the tools.

Also, thank you Peter.
  • #3,998
  • Feb 22, 2014 6:25pm Feb 22, 2014 6:25pm
The attached images are of the AUD/CHF D1 and H4 timeframes.

Attached Image (click to enlarge)
Click to Enlarge Name: AUDCHF_D1.png Size: 80 KB


Attached Image (click to enlarge)
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A couple of observations about the lowest demand level on both charts (should be considered the same level).

The D1 demand size (509) is smaller than the H4 demand size (751).
The D1 demand is fresh but the H4 demand is not.

Are these 100% correct levels. I don't know but I would think that the H4 size should always be smaller than the D1 level. I think the reason the levels are being drawn this way is that the small candle was created on a SUNDAY (1/26).

I would also think that if the D1 level is fresh that the H4 level would also be fresh. (Due to expectation that the H4 level should be smaller in size).

Scenario 1
Assume all the other rules were valid and you could trade these levels, the D1 level was bigger than the H4 level, and the D1 level was not fresh but the H4 level was fresh. Would you trade the H4 level?

Scenario 2.
You have a valid retest on D1 to the PIP on the proximal line and it did not get to the H4 demand level. Several days / weeks later it comes back and test the H4 level. Would you trade that level since it was fresh or would pass on it due to it is the 2nd touch of the D1 demand level?

Thanks
  • #3,999
  • Feb 22, 2014 6:38pm Feb 22, 2014 6:38pm
Attached Image (click to enlarge)
Click to Enlarge Name: AUDJPY_D1.png Size: 97 KB


Can anyone tell me why there is not a demand zone in the yellow region of the chart. Is there a defined set of rules for what is considered a zone? I can visually recognize what I think qualifies but don't know for sure.

Thanks
  • #4,000
  • Feb 23, 2014 3:06pm Feb 23, 2014 3:06pm
Quoting Xerox06
{image} Can anyone tell me why there is not a demand zone in the yellow region of the chart. Is there a defined set of rules for what is considered a zone? I can visually recognize what I think qualifies but don't know for sure. Thanks
You are using the automatic indicator. Do not expect it to do things right all the time. The automatic one does not take into account if previous zones have been removed. Maybe that yellow are and previous one next to it are reactions to a previous one that cannot be seen on the charts and it considered it used-up (weak) and not shown. Remember the automatic indicator has some flaws, does not detect CP areas, does not take into account if opposing zone is removed and it does not draw the weak zones by default. Try to edit the settings for the indicator and allow it to show weak zones, it will probably draw that one in a different color, yellow/purple.

Alfonso
Set and Forget supply and demand trading community
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