Supply and demand in a nutshell by Alfonso Moreno | Page 223 | Forex Factory

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Supply and demand in a nutshell by Alfonso Moreno

  • #4,441
  • Jun 29, 2014 3:19pm Jun 29, 2014 3:19pm
Gpb\usd emblematic doubt
I don't trust for now in this chart.... maybe i tell us a fake history.... waiting for signals
What do you think?

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  • #4,442
  • Jun 30, 2014 3:16am Jun 30, 2014 3:16am
i've just buy the forex tester, but now i have another problem: the indicators in that platform... somebody can help me??
  • #4,443
  • Jun 30, 2014 10:01am Jun 30, 2014 10:01am
hello,

@alegargano: as far as i know you don't need any indicator in forex tester, take a look here: panoramia replied

@everyone: for validating a sd zone it has to take out previous valid sd zone or makes alltime high/low, is there another rule for it? because with a lot of history it takes a lot of time.

greetz
joe
  • #4,444
  • Jun 30, 2014 3:37pm Jun 30, 2014 3:37pm
Quoting JoeMcCool
hello, @alegargano: as far as i know you don't need any indicator in forex tester, take a look here: panoramia replied @everyone: for validating a sd zone it has to take out previous valid sd zone or makes alltime high/low, is there another rule for it? because with a lot of history it takes a lot of time. greetz joe
Hello Joe,

If there is no opposing zone to be taken out when making all time highs or all time lows, there is only one thing we can do... Buying all new imbalances in the direction of the all time highs/lows, the imbalances must follow all he rules, good departure, minimum 2:1 imbalance, consolidation away, etc.

Alfonso
Set and Forget supply and demand trading community
  • #4,445
  • Edited Jul 1, 2014 1:00am Jun 30, 2014 11:43pm | Edited Jul 1, 2014 1:00am
yesterday, i've started to test the strategy without indicators, drawing supply and demand zone by myself and for now I've done a good job at least this is what it says my equity in forex tester.... I think it's good to proceed in this way to learn a lot more, stop and figure out what went wrong
Of course I make mistakes Stop Loss orders or location, etc., but i'm at the beginning and I have no hurry
I will try to improve in the time required to me....
Thanks a lot Alfonso for the explanation of all!!
  • #4,446
  • Jul 1, 2014 6:47am Jul 1, 2014 6:47am
Quoting alegargano
yesterday, i've started to test the strategy without indicators, drawing supply and demand zone by myself and for now I've done a good job at least this is what it says my equity in forex tester.... I think it's good to proceed in this way to learn a lot more, stop and figure out what went wrong Of course I make mistakes Stop Loss orders or location, etc., but i'm at the beginning and I have no hurry I will try to improve in the time required to me.... Thanks a lot Alfonso for the explanation of all!!
You are welcome my friend, no need to thank me. Forex Tester and forward testing the rules, be it supply or demand or any other strategy is the best way to improve your trading skills and confidende in your trading plan and rules. People don't know how powerful that is, traders just want to trade live and get as much as possible but the reality is that most will blow up their accounts because they do not have any confidence at all in themselves and the trading rules they are trying to make work.

Trading is hard, very hard. If you don't allow yourself for 1 year or more of testing, you will probably not succeed which is one stats say 95% or more fail to become traders.

Alfonso
Set and Forget supply and demand trading community
  • #4,447
  • Jul 1, 2014 11:40am Jul 1, 2014 11:40am
hi Mr Alfonso and mates,

Im going to buy a cp on GBPUSD, on montly we are in a over extended uptrend, W1 is making new valid demmand zones as well as d1.


comments are always welcome
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passion and discipline
  • #4,448
  • Jul 2, 2014 8:05am Jul 2, 2014 8:05am
Quoting rohule
hi Mr Alfonso and mates, Im going to buy a cp on GBPUSD, on montly we are in a over extended uptrend, W1 is making new valid demmand zones as well as d1. comments are always welcome {image} {image} {image} {image}
Buying all valid levels as per the rules is the way to go with GBPUSD, yes
Set and Forget supply and demand trading community
  • #4,449
  • Jul 2, 2014 8:07am Jul 2, 2014 8:07am
A quick update on my D1 buy trade on S&P 500, it was mentioned on last live webinar.

What to do when price is making higher highs and making all time history over and over? Shorts because you expect a pullback and uptrend cannot be sustained. No way! Longs is the only way to go for higher odds.

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Set and Forget supply and demand trading community
  • #4,450
  • Jul 3, 2014 1:53am Jul 3, 2014 1:53am
I've a question about the gpb\usd:
It's right to say that we can't draw any bullish trendline yet because we can't see an obvious peak and consequently we can't see a second valley but the movement is Up because there was the breaking of two zones supply?


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  • #4,451
  • Jul 3, 2014 2:26am Jul 3, 2014 2:26am
Quoting alegargano
I've a question about the gpb\usd: It's right to say that we can't draw any bullish trendline yet because we can't see an obvious peak and consequently we can't see a second valley but the movement is Up because there was the breaking of two zones supply? {image}
You can also draw an aggressive trend line when you have 3 or more continuation patterns, which you have on that chart.
  • #4,452
  • Jul 3, 2014 4:38am Jul 3, 2014 4:38am
Guys, I have problems setting up the indicator for all time frames. It works only on 1h. Any suggestions how to change it or did anyone have similar problem?

Thanks in advance
  • #4,453
  • Jul 3, 2014 6:04am Jul 3, 2014 6:04am
Quoting kptMisiu
Guys, I have problems setting up the indicator for all time frames. It works only on 1h. Any suggestions how to change it or did anyone have similar problem? Thanks in advance
Hello my friend!

The Rectangle Reader indicator needs you to manually draw the levels, the automatic one called "supply_demand_zones" has the visualisation properties set to H1 only, if you edit those properties, you will see the levels on the timeframes you select. I draw all my levels manually, the automatic one does not draw CP patterns and uses an algorithm that skips many of valid levels.

Alfonso
Set and Forget supply and demand trading community
  • #4,454
  • Jul 3, 2014 7:09am Jul 3, 2014 7:09am
Quoting panoramia
{quote} Hello my friend! The Rectangle Reader indicator needs you to manually draw the levels, the automatic one called "supply_demand_zones" has the visualisation properties set to H1 only, if you edit those properties, you will see the levels on the timeframes you select. I draw all my levels manually, the automatic one does not draw CP patterns and uses an algorithm that skips many of valid levels. Alfonso
Thanks for the immediate answer, Alfonso. Somehow it still doesn't work, but I take it as a signal to draw my levels manually
Attached Image
  • #4,455
  • Jul 3, 2014 8:10am Jul 3, 2014 8:10am
Quoting kptMisiu
{quote} Thanks for the immediate answer, Alfonso. Somehow it still doesn't work, but I take it as a signal to draw my levels manually {image}
You didn't read my post correctly then I said "visualization" tab properties, not the inputs tabs my friend You are checking it at the wrong tab, too more to the right
Alfonso
Set and Forget supply and demand trading community
  • #4,456
  • Jul 3, 2014 8:30am Jul 3, 2014 8:30am
Quoting panoramia
{quote} You didn't read my post correctly then I said "visualization" tab properties, not the inputs tabs my friend You are checking it at the wrong tab, too more to the right Alfonso


Thank you very much, now it works. Sorry, my bad.

Have a nice day...
  • #4,457
  • Jul 3, 2014 9:53am Jul 3, 2014 9:53am
hello again,
i think i didn't understand the validation correct. i would be in a loop until i reach the highest high/lowest low, where i can say this zone is valid there is no other zone to take out. where is my error in reasoning? thanks
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  • #4,458
  • Jul 3, 2014 11:26am Jul 3, 2014 11:26am
Quoting JoeMcCool
hello again, i think i didn't understand the validation correct. i would be in a loop until i reach the highest high/lowest low, where i can say this zone is valid there is no other zone to take out. where is my error in reasoning? thanks {image}
Joe,

As per the rules its my understanding the loop is infinite, meaning going back to see what (1) took out. If it cant be found it looks like it was a great imbalance. great big ERC, probably news related. Big spike like that on hourly. look at the way price comes back through the ERC on the way down. its grinding chewing opposing orders, which suggests to me that ERC has RBRs on LTFs on the way up.

Alfonso has created rules however we must also understand rules of liquidity and orderflow. For instance a move on the monthly with same size candle is mammoth as opposed to same candle on a minute chart.

Alfonso puts forward a outstanding methodology that has been tested . However remember reading how price reacts and testing your own rules or theories is priceless. The rules establish consistency.

All the best
Bye Bye FF
  • #4,459
  • Jul 3, 2014 3:09pm Jul 3, 2014 3:09pm
Quoting JoeMcCool
hello again, i think i didn't understand the validation correct. i would be in a loop until i reach the highest high/lowest low, where i can say this zone is valid there is no other zone to take out. where is my error in reasoning? thanks {image}
Hello Joe,Chicago made a good point in his/her reply. Rules are there but they must be understood and tested.A level will be confirmed when it removes its opposing on the same timeframe. If there is no level to be removed and enough profit margin till next opposing level then it will be automatically validated.If you want to see a loop u will see a loop. You have to stop once u reach one timeframe higher zone. Analyzing the so called loops will help u understand and see why an area needs to remove its opposing and how those that do not achieve that are lower probability. But you have to teat that for months and get your brain to understand it and create habits, unfortunately that's not a limitation of supply and demand rules in this strategy or any other, but a limitation of our own brains. Learn how our minds work and that will help u understand everything. It may sound out of context but it's one of the main reasons why traders don't succeed.Alfonso
Set and Forget supply and demand trading community
  • #4,460
  • Jul 3, 2014 3:22pm Jul 3, 2014 3:22pm
thanks to both of you, i will work at it.

greetz
joe
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