DislikedTrader555 This is a quote from post 1. When is a supply or demand level confirmed as a level? We need that the opposing supply/demand area is taken out (absorbed) before we consider an area to be valid AND/OR price making Higher Highs or Lower Lows in the timeframe where the level is being drawn If previous opposing area is not taken out AND/OR price is not making HH or LL, the new level will be negated For instance, if we see a D1 demand forming, we'd require that at least one full candle (OHLC, Open, High, Low and close) closes entirely above...Ignored
Supply and demand in a nutshell by Alfonso Moreno
Hi to everybody and good morning!
I want to share with you the reasoning that I did this morning on gpb\usd cross and my open DEMO trade:
The first picture is of the weekly chart. We are in a level on top on level of demand zone that i don't drawn for clarity of image.
We have this situation also on the monthly...
On the daily
on the H4
are my thought that wrote in my pictures correct?
I want to share with you the reasoning that I did this morning on gpb\usd cross and my open DEMO trade:
The first picture is of the weekly chart. We are in a level on top on level of demand zone that i don't drawn for clarity of image.
We have this situation also on the monthly...
On the daily
on the H4
are my thought that wrote in my pictures correct?
- #4,643
- Aug 22, 2014 1:58am Aug 22, 2014 1:58am
- | Commercial User | Joined Aug 2011 | 3,559 Posts
Set and Forget supply and demand trading community
- #4,645
- Aug 22, 2014 2:38am Aug 22, 2014 2:38am
- | Commercial User | Joined Aug 2011 | 3,559 Posts
I' Alfonso, thank you for the quick answer! One day i wan't to be a swing trader, but i have a lot of work to do before, as you can see...and an important part will be to work on a psychological level, I have to eliminate fear, hurry and old concepts, I have to reset everything, you know, I have met many bad teachers enough to want to at some point, find a street away from Italy even though I am physically still here, for the moment... Thank you again and a lot
Alfonso
Set and Forget supply and demand trading community
- #4,647
- Aug 22, 2014 1:05pm Aug 22, 2014 1:05pm
{quote} Hi jsr and Alfonso, Using a real market example, I was wondering if you wouldn't mind confirming whether or not the following 3 statements are correct, so I have this part of the rules in my mind set in stone. Please amend if I've made any mistakes: Statement 1 'A' on the chart is a valid supply area because it satisfies two rules: 1. It took out previous Continuation Pattern labelled 'C' and 2. It made lower lows past the low labelled 'B' Statement 2 Demand area 'B' on the chart is not valid because it did not take out any recent valid...
1. A is not a zone I would depend on because it's not a 1:2 drop. It did satisfy the break of the previous low and the break of the CP though.
2. Correct, zone B is nothing.
3. Just as I mentioned in 1, it didn't go very far down apart from breaking the previous low, so I would still not consider it a zone.
Again, I'm not the teacher so let the wiser people confirm what I just said
- #4,648
- Aug 22, 2014 2:06pm Aug 22, 2014 2:06pm
{quote} I'm not the teacher here but I would like to reply: 1. A is not a zone I would depend on because it's not a 1:2 drop. It did satisfy the break of the previous low and the break of the CP though. 2. Correct, zone B is nothing. 3. Just as I mentioned in 1, it didn't go very far down apart from breaking the previous low, so I would still not consider it a zone. Again, I'm not the teacher so let the wiser people confirm what I just said
Thank you for replying. I did a very silly thing. I deleted my post as I spotted the 2:1 rule not being satisfied just now and then I just realised you posted a response. Sorry about that. I should not have deleted it. For the purposes of other beginners like myself, I've reposted the example here:
Here are my original statements (from memory):
Statement 1
'A' on the chart is a valid supply area because it satisfies two rules: 1. It took out previous Continuation Pattern labelled 'C' and 2. It made lower lows past the low labelled 'B'.
Statement 2
Demand area 'B' on the chart is not valid because it did not take out any recent valid supply and it did not make higher highs.
Statement 3
If Continuation Pattern at area marked 'C' did not exist, then supply area 'A' would still be valid as it made lower lows past the low labelled 'B'.
Anyone reading this, please see previous post from Psych0F0x.
- #4,652
- Aug 23, 2014 12:41pm Aug 23, 2014 12:41pm
- | Commercial User | Joined Aug 2011 | 3,559 Posts
Set and Forget supply and demand trading community
- #4,655
- Aug 25, 2014 7:42am Aug 25, 2014 7:42am
- | Commercial User | Joined Aug 2011 | 3,559 Posts
Set and Forget supply and demand trading community
- #4,658
- Edited 6:33pm Aug 27, 2014 2:20am | Edited 6:33pm
- | Commercial User | Joined Aug 2011 | 3,559 Posts
Set and Forget supply and demand trading community
- #4,659
- Aug 27, 2014 2:21am Aug 27, 2014 2:21am
- | Commercial User | Joined Aug 2011 | 3,559 Posts
Set and Forget supply and demand trading community
- #4,660
- Edited 4:58am Aug 27, 2014 4:40am | Edited 4:58am
- Joined Jun 2009 | Status: Trader | 1,946 Posts
{quote} Can you please upload the charts for your top down analysis. You just uploaded one chart zommed out and no other TF. We can hardly see what you are trying to point out. Thanks a lot Alfonso
1) There is a Daily Downtrend opposing a Weekly and Monthly Uptrend, with no single valid Demand having been removed on the Weekly and Monthly.
2) There is a very good Risk/Reward Ratio of greater than 5 to 1.
3) There is a nested Daily demand Zone within the Weekly Level that might be used to reduce risk from the Weekly Entry level.
4) The one warning is that the Weekly and Monthly TL's are broken, and so according to the rules, confirmation of new Demand is required on the Daily.
(I hope this is all correct
)
