Attachments: ReadtheMarket - Supply and Demand with Price Action

ReadtheMarket - Supply and Demand with Price Action

#421
Feb 28, 2014 10:34am Feb 28, 2014 10:34am

dappa
| Joined Oct 2009 | Status: Trader | 374 Posts

Quoting Ifmyante

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{quote} Trading supply and demand blindly certainly is gambling, and that's always made me feel very uncomfortable. That's what made me look deeper into the actions of the ITs. Simply studying them and decoding their algorithms has made it very clear that supply and demand are just as much a smokescreen as the fib or the trendline or countless other conventional analysis tools. They're made to work sometimes and not work others.

Ignored

What you stated up above is absolutely true, I have always struggled with the fact that those metodolgies didn't work consistently and I never knew why.

Quoting Ifmyante

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{quote}If you can look beyond S/D, you'll see that the Flag Limit is the only true place to look for PA for a trade. Trade these levels and you're taking gambling out of your method.

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But now my question is , what is the significance of a flag (range/sideways movement?

If you went to a higher time frame, wouldn't a flag look like a range/inside bar?

Second is a flag just a range period, from what I see, thats what it looks like to me. price made a move and then ranged.

So my question is , the flag is where orders are coming in the markett, (imbalance occurs) so that's where their stacked?

If so looking for the engulf of these upper limit flags or lower limit means that it is an indication that the remaining orders are no longer their and price can go higher or lower depending on the direction of price into the zone?

Correct me if I am wrong and my thinking is skewed?

#422
Feb 28, 2014 10:53am Feb 28, 2014 10:53am

Ifmyante
| Membership Revoked | Joined Nov 2010 | 3,072 Posts

This is correct.

Now follow that train of thought and you'll get to the meat of market movements!

#423
Edited 4:40pm Feb 28, 2014 3:22pm | Edited 4:40pm

Venice
Joined Jul 2010 | Status: Weebley Wobbly Timey Wimey stuff | 10,604 Posts

Quoting Ifmyante

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Oh I'm the worst to ask about tech stuff I'll ask one of the guys to help get you fixed

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Looks like this is working again for me now If. Thanks matey. Definitely something I have noticed and traded before.

I still like my numbers game though!

Edit: Potential "Flag Limit" areas on a bull run?

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#424
Feb 28, 2014 6:14pm Feb 28, 2014 6:14pm

Winston Reed
Joined Mar 2009 | Status: Hobby Trader | 4,477 Posts

Quoting Gxp1

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hi just to get the back into SD i am posting my chart which is already in my RTM journal I am presenting a 1 hr EU chart- this is a failed entry, i thought the level i was shorting will hold due to: 1. Engulfing of the flip zone below hence indicating downward breach of this level to come 2.Demands 1,2,3,4 all engulfed showing strong supply at source well the stop was hit as seen on rthe 2nd chart and its probably heading towards 4h supply (untested) i now wonder if the engulf (eng) was infact a FO but if this is the case its not hitting any zone...

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Hello GXP,
This is my read of eurusd H1. 1 was a nice supply area that was violated or engulfed at 2. This kind of picture created by 1 and 2 to me is prime trading territory. When price came back at 3 the response was predictable. Pretty much the exact same thing happens at 5 where price engulfs 4 but this time it revisits the area much sooner at 6. There's a alot more going on on this chart especially on lower time frames but from an H1 view these seem to stick out the most.

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#425
Mar 1, 2014 1:05am Mar 1, 2014 1:05am

Gxp1
| Joined Dec 2010 | Status: Trader | 93 Posts

[quote=Winston Reed;7312521]{quote} Hello GXP, This is my read of eurusd H1. 1 was a nice supply area that was violated or engulfed at 2. This kind of picture created by 1 and 2 to me is prime trading territory. When price came back at 3 the response was predictable. Pretty much the exact same thing happens at 5 where price engulfs 4 but this time it revisits the area much sooner at 6. There's a alot more going on on this chart especially on lower time frames but from an H1 view these seem to stick out the most. {image}[/quote

thanks winston

#426
Mar 2, 2014 8:43am Mar 2, 2014 8:43am

Kanzler
Joined Nov 2012 | Status: Account Deactivated | 2,737 Posts

IF, is your team running some upgrades to the site today? Seems to be down at the moment.

#427
Mar 2, 2014 9:35am Mar 2, 2014 9:35am

Ifmyante
| Membership Revoked | Joined Nov 2010 | 3,072 Posts

Yes, there's some scheduled work going on, so watch that space

#428
Mar 2, 2014 9:54am Mar 2, 2014 9:54am

Kanzler
Joined Nov 2012 | Status: Account Deactivated | 2,737 Posts

Quoting Ifmyante

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Yes, there's some scheduled work going on, so watch that space

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Thanks for the reply IF, glad to hear that improvements are being made.

#429
Edited 10:20am Mar 2, 2014 10:02am | Edited 10:20am

PrymeTyme
Joined Oct 2009 | Status: 5%er Wannabe | 769 Posts

Quoting Venice

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{quote} Looks like this is working again for me now If. Thanks matey. Definitely something I have noticed and traded before. I still like my numbers game though! Edit: Potential "Flag Limit" areas on a bull run? {image}

Ignored

its very interresting to see / watch the SD levels.. which i actually dont use ,, actualy work in conjunction with my look at the markets.. which infact involves supply and demand.. (not levels) but as a whole driving force behind price

as for example.. i drew in a channel , (which per se.. is nothing more then a diagonal trading range , in this case.. with demand beeing the stronger force behind it (upwards) , we have the midpoint (fair vaule) somewhat close to your drewn demand level) so.. if we reject or react in a bullish manner at this level .. then yes we have a strong maket , if the level fails to hold we will test the lower limits of the channel or in your case the lower limits of your Demand levels..

the sooner the market reacts at a given level the stronger the market is.

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#430
Mar 2, 2014 11:22am Mar 2, 2014 11:22am

kumaramy
Joined May 2011 | Status: Trader | 1,374 Posts

Hello. RTM is not opening. Is anything wrong with the technical.?

-milkeyway

#431
Mar 2, 2014 11:37am Mar 2, 2014 11:37am

Kanzler
Joined Nov 2012 | Status: Account Deactivated | 2,737 Posts

Quoting kumaramy

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Hello. RTM is not opening. Is anything wrong with the technical.?

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Seems to be up now with changes to the layout.

#432
Mar 3, 2014 4:19am Mar 3, 2014 4:19am

tonegawa
| Joined Jul 2010 | Status: Trader | 236 Posts

Hi,

I'd like to contribute to the thread.

Here is my first chart. I Drew the zones before they were successful but I wasn't sure and I didn't post them before. It looks like they worked very well.

Attached Image (click to enlarge)