Supply and demand in a nutshell by Alfonso Moreno

in this picture zone is true ? if not why?

eurjpy daily.

Can I download the triangle indicator. I had it at one time, but I reformatted my pc and reinstalled my old OS, windows xp. Will the indicator work with XP 32. How do I download the indicator. Anyone have a link. I have found just by reading about zone areas it will help my trading. Makes since, look for new areas of supply and demand. Info. appreciated.

All zones are old Randolf, once a zone has been pierced by 1 pip they are no longer zones. Please read Post #1 to see what a zone is and how they work, you are not following the rules

Alfonso

You have to follow the link in Post #1 in order to download it, else send me an email by using set-and-forget.com contact form.
Cheers,
Alfonso

hi alfonso
please show demmand and supply on the eurjpy weekly-daily
demmand blue box
supply red box
.

These are the zones on Weekly and Daily chart on EUR/JPY. There are rules to draw them, post #1 explains them for both zones and trendlines. You have to follow the rules if you want to ask or participate.

This is also a message to anybody else, you can freely ask whatever you want but please follow the rules on Post #1.

Below you will fine the zones and TLs you should come up with IF you follow the rules. There is nothing else on the WK and D1 charts, just that. Makes sense?
Alfonso

Hi Alfonso,

I'm still in the process of learning how to trade SD zones. I'm watching your videos and reading the first post of this thread, but I'm still confused about when there are two zones very close to each other. For example, let's say we have a potential drop-base-rally Demand zone, potential, because it didn't made a new high or broke opposing supply.
1) Then price returns to that potential Demand zone.
2) On the reaction back upwards to that zone a new drop-base-rally Demand zone emerges and becomes valid when price breaks through the supply zone

So the initial demand zone now becomes a valid demand zone too and the situation is like this: we have:
- an original, but no more fresh demand zone
- a fresh, but not original, demand zone right above

I guess given your rules, that we will trade the 2nd zone (fresh, but not original), but only with confirmation.

But do you always draw both on your charts?
And more importantly, if price reverses, do you considere them to be two demand zones, and then the reversal can be considered as a down trend, or it is counted as only one zone, because the second one is a reaction to the first one?
When do you considere that a zone is no more fresh? I'm often lost when i have to draw a zone and the next bar immediately after the first bar closing above the base (after the bullish engulfing pattern) is touching the zone again? Should we ignore it? Move to a lower timeframe to see if there is a smaller but still fresh zone?



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Also, I've seen in a forum, I don't know which one anymore, that when price reacts to a zone and if the zone is likely to hold, there will often be an inside bar on the chart. I've created a small indicator drawing a dot when there is an inside bar and, just in case, also when there is an inside body (even if the whole bar is not an inside bar). And I've noticed that they are in fact very good in indicating a possible SD zone. I've also noticed that even if there is a nice looking SD level, and especially for a continuation pattern SD zone, if it doesn't contain an inside bar or an inside body, it will very likely not hold. Or if there is a valley pattern SD zone without an inside bar or inside body, in its base, price will very often not retest that zone. Have you experienced similar things in your trading?

hi alfonso
your theard very good and usefull
you doing agreat job
i trade this supply and demand since 5 month
i am in forex 10 years and i learn lot of system
anyone not good like this system
this is very profesional system and i build the pazel slowly
i spent lot of moeny to lern how to trade untill i saw your theard
thank you to lern it for free It is not obvious
i am trde on demo acount i have agoal to do from 5000 to 7000 on demo acount
then i go to real moeny.
i am in trade on eurusd you can tell me is it ok?
see the chart please and tell me if i Do I drew it right
my entry was on 4h chart.
One more thing the rectangle indicator is great Saves a lot of time to draw it
Sorry for my English
Thank you and have a good week

hello to all
how to determine a peak level or CP pattern?
Are there any rules for their differences?

You have to read first post and watch some videos.

On my charts, the rectangleReader indicator is very often adjusting the high and low of the rectangles. Is it possible to desactivate this, so that the rectangles top and bottom are drawn exactly as I define them?

No, it's not possible. Rectangle reader indicator will always round up/down the numbers, that is... 1.23006 will be 1.2300. It's nothing, just 0.x pips, that should not matter at all, it always round up for supply and down for demand. Sorry, but it's the way I built, it's better like that, not interested in fraction of pips.

Alfonso

It. should be fine then ;-) Thank you for your answer Alfonso! And thank you very much for the really great work you're doing here!

Hi alfonso,

on below chart, you see a daily CP inside monthly supply. Do you take set and forget on that CP or wait for confirmation?



Regards

Hi Alfonso,

I don't remember in which one of your videos you explain how many pips stoploss we should had to give some room if an area is broken? What is the amount for monthly, weekly, daily and 4H?

I also have a question about the use of the sequence. If for example the monthly trend is up and the weekly trend is down. The weekly is thus out of sequence and we have to wait for a pullback to a monthly demand area to be allowed to trade long again.

If we consider now the weekly trend which is down. It is likely to go further down until it reaches a higher timeframe (for example monthly) demand area. I don't know if that's right to generalize, but we could say that a trend on a given timeframe is likely to be reversed by an opposing S/D area on the higher timeframe.
In addition to that, we say that in an up trend, demand zones are respected and supply zones are broken (on the same timeframe) and opposite is true in a down trend.

So my question is: couldn't we take into account only the supply zones of a higher timeframe in an up trend, and only the demand zones of a higher timeframe in a down trend? This means that we should not be scared by any opposite S/D zones on the same timeframe and we could avoid to draw them (we would use them only to confirm that the new zones created in the direction of the trend are valid, because they broke an opposite S/D zone). We would then start to draw them only if they are created after higher timeframe opposing S/D zone has been reached or if the trend is broken.

Hello panoramia
Can we consider, as a level S/D, a strong price movement during a news (NFP, interest rate, etc...) even if this level doesn't comply with your requirements ?
Thanks

Hi Alfonso,

I've watched one of your last videos about how to draw trend lines and SD zones. You explain that for a demand zone to be valid, it needs to break opposite supply or make a new chart history high. If we are in a long up trend and a there is a new demand zone breaking the previous high, but that high was not supply (was not validated because it didn't break opposing demand zone), can we say that the demand zone is valid, or do we have to go like 10 years in the past to see if a supply zone has been broken?

All time highs is part of the rules, if there is no zone to be removed and it's a clear trend, then we'll be trading new zones as long as the trend (trendline) is being respected on your entry TF. Makes sense?

Alfonso

A level is a level by ITSELF. News will not affect the creation of a level or the decision process to confirm/negate a level. If the level is well formed, nice departure, bigger picture's trend is with us, right basing, etc, who cares if it was caused by news or not? We are looking at imbalances, at how and where they are created (location is important).

Another thing is if you are doing intraday or scalping. Levels can be much trickier and easily absorbed.
Alfonso

I don't see any monthly supply drawn in your charts. I guess you changed the Monthly trendlines stype and you have it as 1 pixel wide yellow line. We have to jugde trend and price on your entry timeframe when you reach that zone, it may take weeks or months to reach it. In the meantime you'd have to use the sequence/realignment rules as explained in the last webinars.

Monthly trend is no longer up. WK is down, D1 is ranging but looks like dropping further down (at least now on NZDUSD). Shorst is the way to go, but that high thing could have changed a lot when price reaches that area, so I would not set and forget up there unless the circumstances are correct. Right now shorts is the way to go on NZD/USD.

Cheers,
Alfonso