Supply and demand in a nutshell by Alfonso Moreno | Page 204 | Forex Factory

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Supply and demand in a nutshell by Alfonso Moreno

  • #4,061
  • Mar 10, 2014 10:39am Mar 10, 2014 10:39am
Quoting smalltalk
A flip zone is simply a price level where support becomes resistance and vice versa or supply level becomes demand level and vice versa.
Quoting panoramia
{quote} {quote} Hi Soni, Like another user mentioned, a flip zone is a price level/zone that was previously support or demand becoming potential resistance or supply. A speedbump is a term no longer used, it's called now a CP pattern (continuation pattern), described in detail in post #1 and the videos. Hope that's clearer! Alfonso
Nice explanations, Thanks all of you guys..
  • #4,062
  • Mar 10, 2014 1:25pm Mar 10, 2014 1:25pm
Any thoughts on this fresh AUDUSD 4h demand zone?
With high NBA Confidence could she bounce?
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  • #4,063
  • Mar 10, 2014 1:38pm Mar 10, 2014 1:38pm
Hello All,

I have been out of pocket for a few months. I'm coming back into this thread with the goal to become profitable. According to the rules, etc., would anyone mind commenting on my analysis of the USDCAD? Your comments, according to the rules established by Alfonso, are what I am seeking.

You can see that the Weekly is in an uptrend and the 4-hour is just breaking its downtrend. I am seeking confirmation analysis on this scenario. The next move would be to catch some DEMAND zone on the 4-hour chart? The SUPPLY that was most recently hit should NOT have been a trade because the trend was counter to the higher time frame, correct?
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  • #4,064
  • Mar 10, 2014 6:01pm Mar 10, 2014 6:01pm
Hi Alfonso, the video that you use how to use the rectangle extender indicator is private. If this is intended, just ignore my message.

By the way, thanks for the thread, I'm always trying to learn from it, hope i can improve my trading and be a successful trader with it.
  • #4,065
  • Edited Mar 11, 2014 4:12am Mar 10, 2014 6:25pm | Edited Mar 11, 2014 4:12am
Quoting californiaki
Any thoughts on this fresh AUDUSD 4h demand zone? With high NBA Confidence could she bounce?{image}
I am short on D1 supply within WK supply since Thursday. MN and WK are down, so shorts is what I want to do.. So far going in my favour! I am not going to go long on a H4 demand against a fresh WK supply and WK/MN in a downtrend.

This is a chart I had posted in the community long time ago, what I was waiting for on the AUDUSD:
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This is the entry last week on the D1 supply level within the fresh WK supply:
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Set and Forget supply and demand trading community
  • #4,066
  • Mar 11, 2014 7:12am Mar 11, 2014 7:12am
Quoting trackntrader
Hello All, I have been out of pocket for a few months. I'm coming back into this thread with the goal to become profitable. According to the rules, etc., would anyone mind commenting on my analysis of the USDCAD? Your comments, according to the rules established by Alfonso, are what I am seeking. You can see that the Weekly is in an uptrend and the 4-hour is just breaking its downtrend. I am seeking confirmation analysis on this scenario. The next move would be to catch some DEMAND zone on the 4-hour chart? The SUPPLY that was most recently hit...
Hi trackntrader,

I agree with your analysis but as I see there is no practical use of my comment because the H4 demand level was touched and it worked. At the next H4 supply level was too much trade so possibly would not hold the price but there are others. The question is only the Risk:Reward ratio is enough to trade it? Hopefully the HTF uptrend will help you.
  • #4,067
  • Mar 12, 2014 1:56am Mar 12, 2014 1:56am
Quoting californiaki
Any thoughts on this fresh AUDUSD 4h demand zone? With high NBA Confidence could she bounce?{image}
I just wanted to update you on my comment regarding your H4 long on AUDUSD. This is the reason why we shouldn't be buying H4 demand areas against a nested D1 supply area within a fresh and original WK supply area, with the WK and the MN in a downtrend. The Trendline belongs to the WK chart. This is why also I am short on the D1 supply zone as I described in a previous post when I replied to your comment.

Buying H4 demand against a WK/MN downtrend when a fresh and original WK supply is in control is not the wisest thing to do, not high probability. Many trades could work in such an scenario, but are they high probability trades? No, they are not, so not on my trading plan

Hope that it makes sense!
Alfonso

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Set and Forget supply and demand trading community
  • #4,068
  • Mar 12, 2014 3:53am Mar 12, 2014 3:53am
Quoting panoramia
{quote} I just wanted to update you on my comment regarding your H4 long on AUDUSD. This is the reason why we shouldn't be buying H4 demand areas against a nested D1 supply area within a fresh and original WK supply area, with the WK and the MN in a downtrend. The Trendline belongs to the WK chart. This is why also I am short on the D1 supply zone as I described in a previous post when I replied to your comment. Buying H4 demand against a WK/MN downtrend when a fresh and original WK supply is in control is not the wisest thing to do, not high probability....
Dear Sir,

As per your Rules we should be Short trade from Resistance and we do not expect the 4H Demand level to be respected.
Becoz Although D1 & 4 H was in uptrend but we Hit Daily resistance and Weekly in downtrend.
  • #4,069
  • Edited 11:57am Mar 12, 2014 11:34am | Edited 11:57am
Hello fellow traders,

Those that have been following me for some time know about the key indicator I am using for my supply and demand trades, the rectangle reader indicator. A new version of Rectangle Reader Extender indicator just released, version 3.2.

Hope that you like this new version!

NEW FEATURES:

  1. Created an auto Installer that will install all indicators, scripts and templates to the correct Metatrader installation folder

    1. If you have installed your Metatrader platform outside C:\Program Files\ you will need to use the ADD METATRADER FOLDER button upon installation. It's recommended that you install Metatrader on your root C:\ folder instead of the C:\Program Files to avoid problems, Windows 7 and 8 are tricky with permissions and UAC

  2. RR INDICATOR NOW CAN OPTIONALLY DRAW TRENDLINES ON PROXIMAL/DISTAL LINES FOR LOWER TIMEFRAMES: H1, M30, M15 AND M5. This is useful for those that trade intraday. We're not focused on intraday and scalping at Set and Forget, but I'm sure that some of you are trading those timeframes. By default the H1 levels are set to true, so if you draw a rectangle on H1, you will see the trendlines as well on all TFs
  3. Rectangle Reader allows you to place the SCALE button in any corner dynamically
  4. Display which candlesticks are 50% and which ones are not. VERY useful for locating bases. All 50% basing candles will have a white dot in the middle. By doing so, you will be able to detect basing candles quicker. See attachment below. The 50% candles feature was created by one of our new members, Chris, we must thank him for adding that feature.
  5. 2 copies of Rectangle Reader indicator have been included, the default one works well with black backgrounds. Drag RectangleReader_White.ex4 version instead (remove the old RectangleReader from your charts before you do that) if you are using a white background
  6. I've created 2 templates: default.tpl and supply_demand_alfonso.tpl, both are the same. By having the default.tpl template created all new charts will have the default template loaded every time you open a new chart
  7. New indicators supply latest Metatrader Build 610

HOW TO INSTALL IT:

  1. This time it's pretty easy
  2. Download the .rar file and uncompress it
  3. Run the installer and follow the instructions. You need to close MT before proceeding with the installation

WHERE TO DOWNLOAD THE LATEST RECTANGLE EXTENDER INDICATOR AND INSTALLER:

  1. The files are no longer available in the first post
  2. Those who have subscribed to the free webinar's list will already have the link to download it on their emails
  3. If you want to have the latest version and installer, you need to fill out the webinar's form. At the end of the process you will get the download link. The download link will be different for each new version released. Sign up here to download the latest version if you haven't done so yet for previous webinars: http://www.set-and-forget.com/free_webinars


PROBLEMS USING THE INSTALLER?
Windows 7 and 8 sometimes have problems installing/updating files under c:\Program Files\ folder for security reasons and UAC. The best thing to do is to have Metatrader 4 installed under c:\ folder. If you see the following message then you either need to lower the permissions at UAC or install MT under C:\ folder. I can't do anything about that.

Attached Image



This 20 minutes video explains the new functionalities created for the Rectangle Reader Extender Indicator:
Inserted Video
Set and Forget supply and demand trading community
  • #4,070
  • Mar 12, 2014 10:10pm Mar 12, 2014 10:10pm
Hi Alfonso,

Appreciate the new version of RR very much! THANK YOU!!
  • #4,071
  • Mar 13, 2014 12:28pm Mar 13, 2014 12:28pm
Alfonso,

I wondered what your thoughts were on time of day for trading S&D levels? Trading the H1 chart, for example, do you think levels should only be traded if they are hit during active trading hours? I assume this to be the case for very small timeframes, but H1? H4? Logically it seems to me it shouldn't make any difference - if there are unfilled orders there, they will trigger whenever they are hit? But perhaps we benefit from new trade order flow as well if the market is active?

And related to this, do you prefer levels that are formed during active hours? How big a factor do you feel this is?

Many thanks for your thoughts,

TzK.
  • #4,072
  • Mar 13, 2014 6:00pm Mar 13, 2014 6:00pm
Quoting tzkennedy
Alfonso, I wondered what your thoughts were on time of day for trading S&D levels? Trading the H1 chart, for example, do you think levels should only be traded if they are hit during active trading hours? I assume this to be the case for very small timeframes, but H1? H4? Logically it seems to me it shouldn't make any difference - if there are unfilled orders there, they will trigger whenever they are hit? But perhaps we benefit from new trade order flow as well if the market is active? And related to this, do you prefer levels that are formed during...
Hey there!

I have no preference for the time where the levels were created. The most important features of a level are: small time at level (tight base), strong departure, freshness of a level, and room to opposing area, as well as the bigger picture. Adding the time at which the level was created is twisting the simplicity of the whole SD idea in my humble opinion. Trading SD is "simple", let's try not to add more things to it

Alfonso
Set and Forget supply and demand trading community
  • #4,073
  • Mar 13, 2014 7:23pm Mar 13, 2014 7:23pm
Hi Mr alfonso and mates,


I just want to share my lastest trades, one is long on NZD/JPY MN,W1 and D1 are trending up as well as the h4. and the other one is on EUR/USD long at a fresh demmand area


Roberto.
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passion and discipline
  • #4,074
  • Mar 14, 2014 2:20am Mar 14, 2014 2:20am
Quoting rohule
Hi Mr alfonso and mates, I just want to share my lastest trades, one is long on NZD/JPY MN,W1 and D1 are trending up as well as the h4. and the other one is on EUR/USD long at a fresh demmand area Roberto. {image} {image}
Thanks for sharing your trades Roberto.

Just a quick thing on the EURUSD H4 long. The level looks good on H4, but there is a rule that prevented me from taking that long trade there. I was already long from lower and exited up there.

There is a rule that says that a level is confirmed once we do have at least 1 full candle consolidating away (staying away from the level). On the D1 demand where that H4 demand is sitting, that didn't happen. The D1 bearish candle dropped right into potential D1 demand on the next candle, invalidating the level for me as an entry. The entry could work of course, but I have that as part of my rules. Find attached the trade I took last week which got closed last night. You will see what I mean. We are also very high in the WK curve.

Alfonso
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Set and Forget supply and demand trading community
  • #4,075
  • Mar 14, 2014 9:31am Mar 14, 2014 9:31am
Quoting panoramia
{quote} Thanks for sharing your trades Roberto. Just a quick thing on the EURUSD H4 long. The level looks good on H4, but there is a rule that prevented me from taking that long trade there. I was already long from lower and exited up there. There is a rule that says that a level is confirmed once we do have at least 1 full candle consolidating away (staying away from the level). On the D1 demand where that H4 demand is sitting, that didn't happen. The D1 bearish candle dropped right into potential D1 demand on the next candle, invalidating the...

Hi Mr. Alfonso,

Thank you for your comment and clarification, i have a cuestion, regarding this trade on EURUSD on W1 we are high in the curve but the supply level is valid even that the trend line is broken?

thank you and have a good one
passion and discipline
  • #4,076
  • Mar 14, 2014 10:45pm Mar 14, 2014 10:45pm
Quoting panoramia
{quote} Thanks for sharing your trades Roberto. Just a quick thing on the EURUSD H4 long. The level looks good on H4, but there is a rule that prevented me from taking that long trade there. I was already long from lower and exited up there. There is a rule that says that a level is confirmed once we do have at least 1 full candle consolidating away (staying away from the level). On the D1 demand where that H4 demand is sitting, that didn't happen. The D1 bearish candle dropped right into potential D1 demand on the next candle, invalidating the...
Hi Alonso:

If I understand this correctly, you are waiting for atleast one full consolidating candle on the daily to form before price comes back into your daily demand zone.
Would you view this consolidating candle as a new fresh supply zone? So the idea is that when price comes back into the demand zone after this fresh supply has been formed, since the trend is up, this new fresh supply will be taken out?

Thanks!
  • #4,077
  • Mar 15, 2014 2:43am Mar 15, 2014 2:43am
Hi Alfonzo,

Excellent thread mate. Thanks very much sharing your knowledge to help the novice. Although i trade bit different, your way of supply demand trading is exceptional and stress free. One thing , are you adding positions and building legs using monthly trend?. looks like your way it can be done.

Take care bro.
  • #4,078
  • Mar 15, 2014 7:06am Mar 15, 2014 7:06am
Hi,

Could you clear another aspect up for me please? I took a long H1 trade on USDCHF on Friday, as we are low in the D1 curve (according to my calculations). I closed for a small profit as it was Friday. But should I wait until the D1 demand level is hit and reacts before taking longs, as we're in a daily downtrend? In other words, does price 'want' to get to the D1 demand zone below, therefore making long trades (as well as short trades) a bad idea here?

Many thanks,

TzK.

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  • #4,079
  • Mar 15, 2014 11:20am Mar 15, 2014 11:20am
Quoting panoramia
Hello fellow traders, Those that have been following me for some time know about the key indicator I am using for my supply and demand trades, the rectangle reader indicator. A new version of Rectangle Reader Extender indicator just released, version 3.2. Hope that you like this new version! NEW FEATURES: Created an auto Installer that will install all indicators, scripts and templates to the correct Metatrader installation folder If you have installed your Metatrader platform outside C:\Program Files\ you will need to use the ADD METATRADER FOLDER...

Hi,
how can I do to resolve the UAC problem?
  • #4,080
  • Edited 6:03pm Mar 15, 2014 12:34pm | Edited 6:03pm
Quoting GiovanniV
{quote} Hi, how can I do to resolve the UAC problem?
I don't believe the issue is UAC related as I had the same issue trying to install with Windows XP (does not have UAC), as well as Windows 7 x32 and Windows 7 x64. The errors are shown below.

My workaround was to run the installation, then press cancel after the errors. This will not install the rectangle reader but it will have created ( in my case) the folder c:\program files (x86)\set and forget\templates\

You will find the two new templates in there.
If you then go back to the email from alfonso, look at step 4 of the installation instructions (If you are experiencing problems ) and click on the link.
You will probably get what looks like a screen full of gobbledegook in your browser. don't panic! This is the file you need. Click on file\ save as. It should show as "RectangleReader.ex4" This is the rectangle reader. Copy this to your c:\program files (x86) metatrader 4\MQL4\indicators directory. The next time you open the platform you should see it listed under indicators\custom\ as rectangle reader.

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