Trendzalore's Gravity System

I am starting this journal basically because I realise that my best periods in trading have been when I took notes on why I made a trade whether good or bad. I fully know what I want to do but rarely do I stick to it all the time. I hope this will break the final barrier to my sustained success in trading.

To that end I opened an Myfxbook account to keep track on demo.
https://www.myfxbook.com/portfolio/s...demand/1040779

I trade both spot and Binary but for this journal I will focus more on spot. My potential to earn is greater in binary however the time constraints can be frustrating when you are right but not at the right time.

So why call it the gravity system? Because I like the sound of it . Basically When price is at supply gravity brings it down and when it is at demand it pulls it back up. Nothing new under the sun and this is just like many other supply and demand theories. I just put a name on it I happen to like.

What Do I trade?

I will focus on mainly USD/JPY because I am very familiar with that pair and how it moves. I will also trade EUR/USD. I wont trade any other pairs simply because I work best when I am Master of few more than good at a bunch.


So how do I trade?

I have taken bits and peices from everywhere but I focus on supply and demand as well as value.
The following threads helped me immensly along the way to get a better understanding of what method I like to use.

I use market profile as a reference to see where value is. I dont use it as an entry, I just refer to value and if there is potential in a trade. The auction theory thread is a great resource on this subject. Points of Control I do take note of.
http://www.forexfactory.com/showthread.php?t=277528

Supply and Demand
Supply and demand is the KEY to my method and a lot on the subject can be found here:
http://www.forexfactory.com/showthread.php?t=311095

My entry and TP are bases closely to Sam Seiden's way of trading but with my own discretion. I dont trade every Supply/Demand area. I take note of where price is in conjunction with value, Cloud, MA, and Camarilla points to help make an informed decision. I ALWAYS try to set a TP Before price hits next area of Supply or Demand.

Camarilla Pivots

I use these pivots because they really help with entry and profit targes.

Ichimoku
I basically use the cloud and chiku span. I use the cloud as a filter, if price is in the cloud in the timeframe I am using I wont trade until it clears the cloud. Chiku span helps to see where price is vs past price and where it may be headed.

240 exponential MA on hourly chart.
I make my trades off the 1 hour chart but I do it in a daily fashion. I will explain more later. I use this MA on the 1 hour because it closely mimics the 4hr trend. Just a reference, it does not effect my entry but I am mindful of whether price is above or below the MA for directional bias.


And lastly I use OBV indicator to gauge momentum and to help uncover divergence.

The core of what I wish to do is locate a Supply or Demand area. Wait for the 4 hour candle to close that shows a validation of the level and enter on the break of that candle. In a way I guess it is picking tops and bottoms but in an informed way with probabilty on my side. Using the break in conjunction with the other filters I hope will give me a slight edge.

On a side note, I have NO system to sell nor do I intend to. I am not affiliated with anyone or any site. This is basically my journal to see if I have come as far in trading as I think I have and perhaps some who read this may also give insight or learn something.

So lets see where this goes. As I note the journal I will more clearly explain my trades.

Gravity alert....

Looks like good demand at 107.10 on the 4 hour. In trying to think more like an institution I will avoid any temptation to join the short crowd and wait for retail traders to get trapped.

So this is how I see it. With demand at 107.10 and price moving down towards it, I assume retail traders will jump on the short side even though it may be near exhaustion. Who else would sell with demand so close?

Trade Idea: BUY 107.05 SL 106.75 TP 108.30

Reason for the trade idea:

Demand being approached is fresh (Hasn't been touched)

4 hour OBV is showing divergence which means there are already hidden buyers.

Weekly and daily price is out of value. Market profile suggest either a steep drop or rise as traders find value and balance. I lean to a reversal of downtrend because of the OBV divergence and demand near by.

Entry is just inside of demand with SL just on the other end of it.

High risk to reward potential.

What I expect:
I expect with price being out of balance that my entry will be hit pretty soon as sellers take price lower as it appears the current case. I assume these sellers will be retail and I will be buying while they are selling.

Once price is in the 107.10 area I expect buying to start in earnest. The 00 level my be tested and by then I will be in the trade.

I expect short term supply at 107.90 based on hourly chart. However because of 4hr OBV I expect this to be broken as all the sellers try to unload as stops above 108 are taken out. I place my TP just below the weekly high value area and WELL below what I see as strong supply at 108.90.

Because of the short term supply I will monitor price action in that area to see if I need to exit in this area or let it run.

Observation:

The approach to the demand area has been stalled somewhat which suggest the rise from demand may also occur in a meandering way.

Anyways, that is my idea. Lets see how it goes.

Note: Another thing I didn't note is that price was close to L4 area (Camarilla Pivot) which if breached should indicate a continued downward move.107.33 was this area and it has been breached and price is continuing down.

Looks like demand may hold. Wont quibble over a few pips. In at 107.21. Same stop 106.75 and TP 108.30. Still 1:2 RR.

I should note the reason for the buy. I say momentum changing right at demand. Did not want price running away before hitting my entry. I will stick to entry just BEFORE S/D instead of hoping it digs into it first. Anyways, trade is on now and I will let it run its course. Monitoring 107.90

Gravity Alert

EUR/USD Pending sell 1.2750 SL 1.2801 TP 1.2650.


Current price is 1.2690.


Reason for pending order:

Price headed toward strong 4hr supply pretty rapidly which means buyers should be exhausted when it reaches there.

Entry would be near upper value high of day a few days ago

OBV momentum is slowing down.

I placed a 50 pip trailing stop just in case when price reaches 107.80 -90 area if it reverses I will have a SL at breakeven. I have no idea if that supply will be broken.

Price rocketed up to entry at 4pm eastern Not sure why. Anyhow, trade has been executed and now its time to see if it will run.

USDJPY update. Very near what I think is the bottom. Took another buy at 106.89. Same stop of 106.75. Put a 60 pip trailing stop on the 2nd trade. I really should have waited for this setup. Price at L4 did signal a downward move earlier that I even noted. Proof I still need to be more patient with my entry. This met the requirement because price rushed to demand. Could be retail jumping on late, OR this may be institutions deciding to drive the price lower. If the stop is hit then I think its the later. If not then shorts are about to get killed.

I enjoy the game being played. Learning thee mental aspect is what can make a big edge, trying to think like the banks.

Stacks of demand on EURUSD. Readjusting TP to 1.2580 just ahead of demand on hourly.

Price is now at 1.2716. Placing SL at breakeven to take away risk and price has moved far enough away. When price hit demand it came back as planned. I know it wont always be that way but its good too an idea workout.

This was taken as it showed it was reversing right at bottom of demand. It is now the low of the day pretty much so it is safe to say I can place SL at break even because if it reaches here again then my trade idea has failed.

Looking ahead I see fresh supply before my TP. New supply at 107.92. I will change my TP to 107.7 which is just ahead of it. I have to learn to take what the market is showing me, not just what I want it to do. Still will be a good return.

Woke up to this target hit.

Got stopped out. I saw fresh supply and should have adjusted accordingly for profit. I will take what the market gives me next time.

After the trades I have come across something odd on myfxbook. Even though I spend much more time looking at usdjpy I seem to get MUCH more of a better entry accuracy on eurusd. I will keep a closer eye on this to see if it remains a trend.

Eying a new trade.

My trade idea.

Buy 1.2630
SL 1.2597
TP 1.2710

THEN

Sell 1.2740
SL 1.2780
TP 1.2640


Supply and demand zones. I will monitor how price is approaching.

Current price on eruusd 1.2665

The reason why I like this idea is because there is a big 4hr cand with inside bars. I anticipate the first break will be the false one.

Trade triggered.

Buy usdjpy 107.12 SL 106.79 TP 107.60

Price opened out of balance in upper value. Came back to POC of previous day which was also near hourly demand. The supply above has been hit 3 times so could possibly be week. TP is just above as I anticipate the break of L4 and supply. TP is also just below another supply area on hourly that has not been touched.

Cat and mouse game I know. But I need to flesh this out on ranging and trending scenarios.