ReadtheMarket - Supply and Demand with Price Action

Is it a QM (Quasimodo) ?

Hi BM!
This is how I see it:

IF I followed you for a while here on forexfactory and rtm and I think you are an amazing teacher and want to thank you for all your hard work. Ive learned a lot from you over the past months only by looking at your charts and you have added another dimension to my SD-trading.

Im a simple guy that dont want to overcomplicate things. Im now trying to focus on FL:s and FTR:s at good locations. Have some examples from today.

This one was a nice one..

This one I missed... because of holiday

Really nice, simple work Dumper. That's just how it should be

By the way, RTM is up again in our normal URL, so you can use your bookmarks again, at last!

By the way, IF, the articles are still not accessible, same errors. Help!

Sucessfully registerd @ RTM as the same name here

Ty mate!

I lie if I say I was 100% confident about this trade, when you see that kind of sellingpressure towards your PO!

Hi Everyone!

Looks like the RTM site is back .

But I cannot Log-in. Says "Error: Ajax request failed".

Anyone experiencing that?

Thanks.

Hey everyone, great thread, really picked up a lot from it, thanks to all, especially IF.

One thing still puzzles me a little however. I've created a few images to help me explain myself.

In the first chart here, we're on a bullish move, and there are two important shorts FTRs (A & B) to get through. A FL (1) forms just below (A), pushes through it, and then another FL forms above, making the FTR (2). There is some distance between (1) & (2). A second FL then forms (3), which pushes through the second FTR (B), and then prices comes back and retests the FL before making new highs, meaning the second bullish FTR is basically on top of the FL where the decision was made to push through (3).



In the second chart, price fails (off some imaginary level I've not marked in), and falls through the second of the bullish FTRs created on the up move (3). The bullish DP to push through the short FTR (B), and the FTR formed thereafter, are basically on top of each other, and can be thought of as a single zone. The engulf of this zone opens up the way down to the next important FL (2), which is the FL/FTR formed after the break of the lower short FTR level (A).



Next, the lower bullish FTR is engulfed (2). But here's where I get a bit confused.



Is it only FTRs which are important? Working on that assumption, then after the engulf of (2), even though we might have a bounce off the lowest bullish FL (1) - which is where the decision was taken to push through the lower short FTR (A) - we would expect price to reach all the way down to the origin of the move.

Or is it the case that each FL (1) & (2) must be thought of important levels in their own right? That the FL decision to push through a FTR (1) is just as important as the FTR formed thereafter (2)? In this case, the engulf of (2) would only open up as far as (1), and (1) would also need to be engulfed to reach the origin of the move.

When the DP FL and the FTR are basically on top of each other like in (3), this is simple, because they can be thought of as one zone. However, when there is some distance between DP and FTR (1) & (2), then I'm unsure if only FTR (2) is important, or whether both (1) and (2) are separate important levels in their own right.

Hope this makes sense, and thanks in advance for any help :-)

(edit: just to simplify things, let's assume that the FL (1) is not an important FTR itself - it's just a FL that formed at the end of a pole. Obviously if (1) was in itself an important FTR, it would be clearer, but let's just say it wasn't formed after the break of anything significant)

Hi, Apparently you've thought it over for a while.

I guess that my answer might seem not an answer, but please take time. It takes time to sink.

Now, this is merely my opinion. IF or Yogi please correct me if it's wrong.

Hah, I was thinking that might be the answer! From what I've seen myself, sometimes the DP to engulf becomes an important level in its own right, and sometimes it seems inconsequential.

It's figuring out why that's preventing me from getting over the last hurdle into making consistently accurate trades. To add to the confusion, sometimes the "apparent" DP to engulf gets taken out on M1, but if you switch to M5 or M15, the DP to engulf can be a lot further away, and this then ends up rejecting price totally.

To make matters worse, every larger swing FTR has an edge, and then an actual "origin", which is usually the first FL to form after the break of the first important opposing level. Which then is the important level to consider? The edge, or the origin? As I suspect, it depends what the FTR edge formed from.

you might have not understood my point, but it's fine. take time, it'll sink.

as to the issue i quote below, i attach a chart.

i'm not sure how to best describe it in words, and i'll call it 'scale'.

you see, both FL A and FL B are valid FLs, they are similar situation. Trade 1, and Trade 2 are two trades according to these 2 FLs.

when a trade is involved, (risk:return is involved), it is very logical for you to zoom in FL B in Lower TF, to finetune its edge (or inside FL) so that you can better define entry and SL of your trade 2. in this case, FL B turns to a flag. ---- why? again, its scale is not pretty, it is too wide.

on the other hand, FL A may be directly traded upon, if you feel reluctant to zoom Lower TF. it will be fine, since good RR allow you NOT to check lower TF. ---- why? its scale is pretty, it is narrow.

i hope i didn't misunderstand your point, sorry if i did......

I didnt understand the question and answer properly LOL. Sorry i think my brain already drained watching charts.

But i assume he is asking decision point to engulf or FTR is important to read the market.

It is always the second.

Hi Everyone!

I cannot Login to RTM site.

Anyone know what's going on?

Thanks.

Brilliant, thanks Yogi, that's exactly what I was after. That makes reading things an awful lot simpler. Now I've just got to figure out what I didn't read correctly when the principle seems to fail!

Hi Dumper,

may i know what indicator on bottom and upper left?
thank you in advance.

green pips

Excuse me for dredging up an old comment, but what if there is a pole base within an important FL, but not at the edge of the FL? Which is then the important engulf - the engulf of the edge of the FL, or the engulf of the pole base?

I'll post a chart here for clarity:



Which FTR is more important, (4) or (5)?

Thanks for any help

Hi everyone and specialy the owner of the thread !

I would like just to ask you where can I get the ORDERFLOW and LIQUIDITY GAPS articles and information ? Because there are not any more on the website.

Thank you very much for help.

Luis