Attachments: Supply and demand chess game

Supply and demand chess game

#321
Mar 10, 2014 4:38am Mar 10, 2014 4:38am

Ainur
| Joined Feb 2014 | Status: Trader | 76 Posts

Quoting danial2537

Disliked

{quote} ....these types of candles are not the consequence of normal market condition where demand exceeds supply ( demand zone) or supply exceeds demand ( supply zone). These candles forms because of low volume of the market.......

........ always wait for the price to show some sort of reaction in the level before get in the trade.

Ignored

Hi danial. I agree with you that big news candles aren't coming from supply/demand imbalance. Looking at Futures Volumes we can see that a news candle has same volume of a normal candle, the wide range is because liquidity providers remove limit orders above and below price during the news and this provide high volatility, like you said.

And also I want to ask you a question, when you look for a rejection at your level, how do you know if it is real rejection and price will continue in your direction or only consumption of remeining orders before break the level? Always struggling about this, so I prefer use limit orders with tight stop and see what happen.

#322
Mar 10, 2014 5:08am Mar 10, 2014 5:08am

danial2537
| Joined Apr 2013 | Status: Trader | 30 Posts

Quoting Ainur

Disliked

{quote} Hi danial. I agree with you that big news candles aren't coming from supply/demand imbalance. Looking at Futures Volumes we can see that a news candle has same volume of a normal candle, the wide range is because liquidity providers remove limit orders above and below price during the news and this provide high volatility, like you said. And also I want to ask you a question, when you look for a rejection at your level, how do you know if it is real rejection and price will continue in your direction or only consumption of remeining orders...

Ignored

Hi Ainur,

refer to your question, my answer is simply " we will never know".

You are doing right by placing the limit order at the zone and this is the way works.

We know that limit orders are accumulated in supply and demand zones and there is high probability that in demand zones limit buy orders get filled and exceed the sell orders and other way round in supply zones.

Nobody knows if volume of these accumulated limit orders are enough to exceed the counter orders at a specific zone and it may not work for example sell of Yen crosses last week which didn't work and only sell orders consumed for more buyers.

To be a profitable trader you have to take advantage of probabilities by being disciplined and always doing the same thing otherwise no way that 100% of your trades become successful. About the stop loss, if you trade forex spot please don't go for a very tight stop specially in lower time frames.

As a rule of thumb, stop loss and take profit should be in the places that chart offering us not wherever we like and comfortable with however position size should be exactly what we like and we are comfortable with.

Sometimes I am thinking you guys are more experienced than me and I am saying some stuff which you already know and may not be useful for you. Excuse me if that's the case but we always have someone who read these threads and our advises could be useful for him/her.

Have a great trading week

Danial

#323
Mar 10, 2014 8:22am Mar 10, 2014 8:22am

torance
| Joined Jan 2014 | Status: Trader | 9 Posts

Danial - Great contribution, thanks. Please keep it up. SSS and Ainur too.
You are giving good insights and advice. Much appreciated.

#324
Mar 10, 2014 8:40am Mar 10, 2014 8:40am

danial2537
| Joined Apr 2013 | Status: Trader | 30 Posts

Quoting torance

Disliked

Danial - Great contribution, thanks. Please keep it up. SSS and Ainur too. You are giving good insights and advice. Much appreciated.

Ignored

You are the most welcome Torance,

I am happy you found it useful. Please do not hesitate to share your idea and views about supply and demand.

Cheers,
Danial

#325
Mar 10, 2014 9:58am Mar 10, 2014 9:58am

danial2537
| Joined Apr 2013 | Status: Trader | 30 Posts

Ladies and Gents,

This is a set up that meets my trading plan. Location is good to me as it is high on the curve followed by a strong move away.

Area seems to be an important area as we already had a kind of demand zone at the same price area. I am keeping eye on the zone.

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#326
Mar 10, 2014 2:40pm Mar 10, 2014 2:40pm

Dumper
| Joined Aug 2013 | Status: fxmaster | 73 Posts

Quoting danial2537

Disliked

Ladies and Gents, This is a set up that meets my trading plan. Location is good to me as it is high on the curve followed by a strong move away. Area seems to be an important area as we already had a kind of demand zone at the same price area. I am keeping eye on the zone. {image}

Ignored

Hello danial, I really like your tradingstyle, like me you seem to use fib to determine a good level. I will follow this thread and you danial.. I hope I can contribute with some levels further on

#327
Mar 11, 2014 4:06am Mar 11, 2014 4:06am

danial2537
| Joined Apr 2013 | Status: Trader | 30 Posts

Quoting Dumper

Disliked

{quote} Hello danial, I really like your tradingstyle, like me you seem to use fib to determine a good level. I will follow this thread and you danial.. I hope I can contribute with some levels further on

Ignored

Hello Dumper,

Many thanks and I look forward to see some of your trading set up for discussion.

I use Fibo levels mainly to gauge the location of level and always prefer to take a level anywhere between 61.8 to 72% with stop above 72%. I also take 50% level only if there is nothing higher until 100% of the wave.

All of us saw many times that price retraced from these key fibo levels and if we mix it with supply and demand which is the core strategy, we should get a good result. It is very important that quality of level should not be compromised because of the location. Low quality level is a showstopper.

I keep post the set up and watch how the level works. Any counter argument would be very welcome as we are here to have a healthy discussion about supply and demand.

Best of luck

#328
Mar 11, 2014 6:21am Mar 11, 2014 6:21am

Dumper
| Joined Aug 2013 | Status: fxmaster | 73 Posts

Took this trade today on the morning on eurusd m30t

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#329
Mar 11, 2014 7:09am Mar 11, 2014 7:09am

danial2537
| Joined Apr 2013 | Status: Trader | 30 Posts

Quoting Dumper

Disliked

Took this trade today on the morning on eurusd m30t {image}

Ignored

Good Job Dumper,

unfortunately I missed that one as level formed early morning and I was not in front of the chart when price hits the level.

#330
Mar 11, 2014 7:19am Mar 11, 2014 7:19am

danial2537
| Joined Apr 2013 | Status: Trader | 30 Posts

Ladies and Gents,

Please be informed that trade set up which I posted yesterday is cancelled as price continued to go lower without retracement.

Cancelation of trade is because of the trend. Simply if price move from this point and reach to our level, we will be no longer in down trend and I personally only trade with trend.

I will look for a new set up

Cheers,
Danial

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#331
Mar 11, 2014 12:52pm Mar 11, 2014 12:52pm

Dumper
| Joined Aug 2013 | Status: fxmaster | 73 Posts

Quoting danial2537

Disliked

{quote} Hello Dumper, Many thanks and I look forward to see some of your trading set up for discussion. I use Fibo levels mainly to gauge the location of level and always prefer to take a level anywhere between 61.8 to 72% with stop above 72%. I also take 50% level only if there is nothing higher until 100% of the wave. All of us saw many times that price retraced from these key fibo levels and if we mix it with supply and demand which is the core strategy, we should get a good result. It is very important that quality of level should not be compromised...

Ignored

Yea my favorite levels is 61.8 and 78.6 and of course i try to trade with the trend, if I counter-trade I want supply/demand level at one of those fib levels and it MUST be a fresh and original level

#332
Mar 13, 2014 10:39am Mar 13, 2014 10:39am

Iron Pawn
Joined Feb 2011 | Status: Trader | 834 Posts

Nice little setup on Eur/Jpy. Had also a really good run on Gbp/Aud (didn't took a snapshot on entry but it's ok)...

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"A handful of patience is worth more than a bushel of brains"

#333
Mar 13, 2014 10:47am Mar 13, 2014 10:47am

danial2537
| Joined Apr 2013 | Status: Trader | 30 Posts

Hi IP,

Thank God you came back and shared something,

I can't find anything fancy,Not sure I became blind or what? lol

Loved your GBP/AUD set up. This is the trade we want to be in

Cheers,
Danial

#334
Mar 13, 2014 10:56am Mar 13, 2014 10:56am

Iron Pawn
Joined Feb 2011 | Status: Trader | 834 Posts

Quoting danial2537

Disliked

Hi IP, Thank God you came back and shared something, I can't find anything fancy,Not sure I became blind or what? lol Loved your GBP/AUD set up. This is the trade we want to be in Cheers, Danial

Ignored

Thanks Danial! Yeah, G/A was a good one to be in, no need to work to hard he he... hopefully, E/J will be similar (covered stop and let it run, what you gonna do)... Eur/Cad could be interesting, hmmmm... we'll see!

"A handful of patience is worth more than a bushel of brains"

#335
Mar 13, 2014 11:08am Mar 13, 2014 11:08am

danial2537
| Joined Apr 2013 | Status: Trader | 30 Posts

Quoting Iron Pawn

Disliked

{quote} Thanks Danial! Yeah, G/A was a good one to be in, no need to work to hard he he... hopefully, E/J will be similar (covered stop and let it run, what you gonna do)... Eur/Cad could be interesting, hmmmm... we'll see!

Ignored

Zone and Time frame please