Supply and demand in a nutshell by Alfonso Moreno | Page 253 | Forex Factory

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Supply and demand in a nutshell by Alfonso Moreno

  • #5,041
  • Dec 16, 2014 4:37am Dec 16, 2014 4:37am
Hi,
panoramia,

Do you trade stock?

Does it apply to stock markets?
  • #5,042
  • Dec 16, 2014 5:03am Dec 16, 2014 5:03am
Quoting cnnewt61
Hi, panoramia, Do you trade stock? Does it apply to stock markets?
I personally don't trade stocks because my metatrader broker does not have any stocks.

But a very imporant thing here, supply and demand applies to ANY markets, forex, stocks, equities, indexes, commodities, bonds! All markets! So the answer to your question is YES, it applies and works with the stock markets, I have some fellow trades that trade stocks with these rules, it just works the same way!

Alfonso
Set and Forget supply and demand trading community
  • #5,043
  • Dec 16, 2014 3:10pm Dec 16, 2014 3:10pm
hello.
Sorry i'm italian and i have some problems with english language.
I'm traing to drawa supply zone on daily chert(the yellow rectangle).
Then i switch to 4h and draw the demand. In this tf the bulls thake the control and are near the offer 1d zone that i have draw.
Is it correct?
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  • #5,044
  • Dec 16, 2014 3:20pm Dec 16, 2014 3:20pm
Quoting 81raffae
hello. Sorry i'm italian and i have some problems with english language. I'm traing to drawa supply zone on daily chert(the yellow rectangle). Then i switch to 4h and draw the demand. In this tf the bulls thake the control and are near the offer 1d zone that i have draw. Is it correct? {image} {image}
Welcome my friend! Thanks for posting your charts and asking the questions.

As per your chart, Daily supply is in control and H4 is in an uptrend. Remember a very imporant thing, part of the rules, a big timeframe normally wins over a smaller timeframe, it's a very important odds enhancer to score how high/low probability is for any given level.

Night night!
Alfonso
Set and Forget supply and demand trading community
  • #5,045
  • Dec 16, 2014 4:19pm Dec 16, 2014 4:19pm
Quoting panoramia
{quote} Welcome my friend! Thanks for posting your charts and asking the questions. As per your chart, Daily supply is in control and H4 is in an uptrend. Remember a very imporant thing, part of the rules, a big timeframe normally wins over a smaller timeframe, it's a very important odds enhancer to score how high/low probability is for any given level. Night night! Alfonso
thank you. I see also that we are near a supply zone on the daily chart and so, also if in the 4h the bulls control the market ,i have to wait. I have wait that a demand or supply zone is take out and absorbed.
I'd like to know if is correct how i have draw the S/D zone on m y chart.
  • #5,046
  • Dec 17, 2014 4:28am Dec 17, 2014 4:28am
Quoting 81raffae
{quote} thank you. I see also that we are near a supply zone on the daily chart and so, also if in the 4h the bulls control the market ,i have to wait. I have wait that a demand or supply zone is take out and absorbed. I'd like to know if is correct how i have draw the S/D zone on m y chart.
Your zones are correctly drawn, there are more zones though but your question was about the ones you had drawn

Cheers,
Alfonso
Set and Forget supply and demand trading community
  • #5,047
  • Dec 17, 2014 4:31am Dec 17, 2014 4:31am
Quoting panoramia
GBP/NOK is very bullish in a clear uptrend. Taking longs at valid demand levels is the way to go for swing/position and intraday traders. Forex trading is not only about trading the majors, there are many other pairs and instruments you can trade. GBP/NOK is one of them, that is the pound versus Norwegian Krone. Let's make a top down analysis to make a decision on which direction we should be trading to trade swing/position and also intraday. Intraday as well? Yes, always try to trade in the direction of the bigger picture's trend, it's MUCH higher...
An update on GBP/NOK. My Take Profit was hit on my GBP/NOK long trade, similar happened on other Nok pairs I had running. Still holding others.

This trade was explained a few days ago, I even sent a couple of emails related to Nok pairs, to short it. Hope you could get some intraday trades at least.

Price hit the non fresh MN SZ and even overshot it, my TP was within that MN SZ, was hit and got a really nice profit on this one! Now next one!

Cheers,
Alfonso

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Set and Forget supply and demand trading community
  • #5,048
  • Edited 8:19am Dec 20, 2014 5:11am | Edited 8:19am
Hey Alfonso.

I would like to start testing on Forex Tester 2, but i dont have indicators for FT 2. Do you have all the same indicators for FT2 as MT4?

I tried to check attachments on this thread ,but couldnt find.

Edit: I see i need to subscribe your website to get those.
  • #5,049
  • Dec 20, 2014 12:38pm Dec 20, 2014 12:38pm
Hello Alfonso

I buy Forex tester 2 but when i try to add indicator i found he request it with dll !!!

how i convert it ?
  • #5,050
  • Dec 20, 2014 2:05pm Dec 20, 2014 2:05pm
Quoting medIce
Hey Alfonso. I would like to start testing on Forex Tester 2, but i dont have indicators for FT 2. Do you have all the same indicators for FT2 as MT4? I tried to check attachments on this thread ,but couldnt find. Edit: I see i need to subscribe your website to get those.
There is no need to use any indicators on forex tester, just trendlines and rectangles will do. You can only test 1 pair at a time. Indicators would help but not much really. Just do it manually, that should do!

Alfonso
Set and Forget supply and demand trading community
  • #5,051
  • Dec 20, 2014 4:47pm Dec 20, 2014 4:47pm
Quoting panoramia
{quote} There is no need to use any indicators on forex tester, just trendlines and rectangles will do. You can only test 1 pair at a time. Indicators would help but not much really. Just do it manually, that should do! Alfonso

Sure i can do that manually. Im just not that good notifying all the supply and demand zones. I need to practice more.
  • #5,052
  • Dec 20, 2014 11:51pm Dec 20, 2014 11:51pm
Quoting medIce
{quote} Sure i can do that manually. Im just not that good notifying all the supply and demand zones. I need to practice more.
Well, you wil have to draw the zones manually in real live trading as well. There is no tool/indicator that will draw them for you automatically as per the rules (I'm working on one but will take some time to be completed).

If you want to know how the zones work, you'll have to do them manually. I draw them manually for about 70 instruments, do I complain? No, I don't. I'm VERY happy to draw them manually because every time I do it, I get more and more confidence on what I'm doing. There is not a better way!

Alfonso
Set and Forget supply and demand trading community
  • #5,053
  • Dec 21, 2014 8:07am Dec 21, 2014 8:07am
Quoting panoramia
{quote} Well, you wil have to draw the zones manually in real live trading as well. There is no tool/indicator that will draw them for you automatically as per the rules (I'm working on one but will take some time to be completed). If you want to know how the zones work, you'll have to do them manually. I draw them manually for about 70 instruments, do I complain? No, I don't. I'm VERY happy to draw them manually because every time I do it, I get more and more confidence on what I'm doing. There is not a better way! Alfonso
Youre right.! But just to notify im was not complaining. I know that best practice is to draw them. I just need to draw to be confident with it. Your videos has teached a lot.
  • #5,054
  • Dec 21, 2014 5:01pm Dec 21, 2014 5:01pm
Hello Alfonso , I am following your method and studying the rules over and over so I can apply them, I have one query you might clarify . It relates to CP patterns -in your recent webinar -which was very good- thank you,( I could not attend as I was at work ) you had a supply CP using a maribozu candle and all the candles in the CP were the same colour, however in the flow chart on page 1 it states there should be a minimum of 1 candle of a different colour forming a CP.

do you think a CP with 1 candle of a different colour is higher probability, or is it the same probability if the CP has all the same colour candles?
  • #5,055
  • Dec 21, 2014 11:56pm Dec 21, 2014 11:56pm
Quoting Fatyflathead
Hello Alfonso , I am following your method and studying the rules over and over so I can apply them, I have one query you might clarify . It relates to CP patterns -in your recent webinar -which was very good- thank you,( I could not attend as I was at work ) you had a supply CP using a maribozu candle and all the candles in the CP were the same colour, however in the flow chart on page 1 it states there should be a minimum of 1 candle of a different colour forming a CP. do you think a CP with 1 candle of a different colour is higher probability,...
The flow chart is outdated, the color of the candle at a CP is irrelevant. It was a rule I had but no loner after some more serious tests performed on continuation patterns. Skip that ok? A CP is a pause after which price will continue to rally/drop, color of the candles at that base/base is irrelevant.Cheers,Alfonso
Set and Forget supply and demand trading community
  • #5,056
  • Dec 22, 2014 11:55am Dec 22, 2014 11:55am
hi alfonso
I have a question in your forum subscriptions before you go to TRADE you share it or just after you in the TRADE you post and you explain to the TRADE?
Thank you
  • #5,057
  • Dec 22, 2014 1:44pm Dec 22, 2014 1:44pm
Quoting ronentn
hi alfonso I have a question in your forum subscriptions before you go to TRADE you share it or just after you in the TRADE you post and you explain to the TRADE? Thank you
They are before the fact trades my friend, before they happen and full explanation is shown. It's not only me but other traders that post trades before they happen according to the rules.

Check out this video I had created some time ago on a typical trade, in this case a long on Nikkei index. You will see how it works

Inserted Video


Have a great day!
Alfonso
Set and Forget supply and demand trading community
  • #5,058
  • Dec 22, 2014 2:40pm Dec 22, 2014 2:40pm
thank you alfonso for your answer
you only trade position trade or daily also?
your entery to trade only on daily ?
i have 500$ real acount It is enough to trade with your forum?i ask becuse the stop is big on daily
Price is still the same forum What price listed on the site?

thank you
  • #5,059
  • Dec 22, 2014 3:11pm Dec 22, 2014 3:11pm
Quoting ronentn
thank you alfonso for your answer you only trade position trade or daily also? your entery to trade only on daily ? i have 500$ real acount It is enough to trade with your forum?i ask becuse the stop is big on daily Price is still the same forum What price listed on the site? thank you
My entry timeframe is the Daily chart yes, others trade the H4, some even lower but in the community it is not allowed to post timeframes lower than H4, those are the rules.

The amount of money that you have is irrelevant, you won't earn your living with a $500 account. But have an account growth of 5-10% for 9-12 months doing the right thing, correct risk, etc, and then money will no longer be a problem, it will come to you. Prove you can do that and you will have the money you want.

All details of the forum are on the site, take your time to go through it.
Alfonso
Set and Forget supply and demand trading community
  • #5,060
  • Dec 22, 2014 3:15pm Dec 22, 2014 3:15pm
Remember the gold short trade that was covered in last webinar? Still holding and dropping as we were talking in that webinar. I didn't take that short because I usually don't trade Gold but it was taken by other traders.

Find below the updated chart, it's not one of my trades by it follows the rules one by one.

Multiple timeframe analysis on Gold:

  1. Monthly clearly down, Trendline being respected
  2. Weekly clearly down, Trendline being respected
  3. D1 was up at the moment of entry
  4. Price realigned with Monthly/Weekly downtrend. Realignment rules by the book
  5. Price hit a nested D1 supply zone within Weekly supply zone and dropping to realign with the bigger picture's downtrend

Entry was on the Daily chart, but you can drill down the entry to lower timeframes like H4 or H1, or even later after the bounce use those lower timeframes to take shorts.

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