Learn, a forex trader must, unlearn and relearn he will.
- Joined May 2012 | Status: ... | 1,939 Posts
Here is another example, price broke the S/D zone, tried to retrace back in but was rejected {image}
- Joined Dec 2013 | Status: Member | 1,889 Posts
Learn, a forex trader must, unlearn and relearn he will.
- Joined May 2012 | Status: ... | 1,939 Posts
I have always wanted to do well with supply and demand zones, but I tend to not draw them properly. How do you know which zones the big money is looking at and which zones are maybe areas retail traders are looking at? Any advice?
In my view, if you start to try and reconcile these two facets of a SD zone then you're only going to be adding a further layer of complexity. It's best to just look out for what appear to be decent zones.
"Decent zones" obviously may be a slightly subjective terms but the best advice I can give you to begin "eye-training" is to start by trading in one TF only and observe the process (price action) that the market enacts when it breaks areas of price (either SR or Swing Points) and continues on a prevailing direction. One way to expedite this process is to use a copy of Forex Tester.
When you're ready, if you wish to post some charts for discussion, please feel free.
{quote} Hi Level2Trader, In my view, if you start to try and reconcile these two facets of a SD zone then you're only going to be adding a further layer of complexity. It's best to just look out for what appear to be decent zones. "Decent zones" obviously may be a slightly subjective terms but the best advice I can give you to begin "eye-training" is to start by trading in one TF only and observe the process (price action) that the market enacts when it breaks areas of price (either SR or Swing Points) and continues on a prevailing direction. One...
P.S. Although this chart presents an example of a supply zone I'm cautious about selling this pair on touch-trade and would prefer instead to watch and wait how price reacts.
- Joined May 2012 | Status: ... | 1,939 Posts
EURJPY H4 One possibility (among many for what this pair may do) for next week. {image}
Following on from the earlier post, I'd placed an alert in the H1 TF EJ at 129.50. Alert has recently sounded. Market has already reacted. Am now watching this pair closely to see how things unfold.
- Joined May 2012 | Status: ... | 1,939 Posts
GJ M30 Tech
Just some standard levels stuff none of which looks particularly strong at the moment although this can be "famous last words".
Just some standard levels stuff none of which looks particularly strong at the moment although this can be "famous last words".
- Joined May 2012 | Status: ... | 1,939 Posts
Hi Simon ,Famous last words indeed! Greek surprise!! No one could have known this was going to happen when it did!However the market was suggesting down move on the 5 min chart with LL and LH coming away from a 1hr supply back at 0500 gmt. Also the $ index was showing strength.This brings me to the question I have which is, Do you tend to live mostly on the 30 min chart and had you been going into a trade where would you have considered a short and off which time frame? Happy trading
Yea, surprise surprise indeed.
The 5AM level you're referring was nice - and had I been awake and trading at 5AM this was the only PA that I'd have happily shorted today, particularly given the context in which it occurred (don't forget that we've got big GBP news today and so it's wise perhaps to maintain a healthy level of suspicion that this down move is a "front run" of that).
In terms of which TF I watch - to be honest, I'm watching all TFs (except M1) for the patterns that I recognise ("any TF any pair" - remember that phrase???
) I only watch 3 x pairs on intraday though - AUDUSD, EURAUD, GBPJPY.Here's my revised GBPJPY chart
- Joined May 2012 | Status: ... | 1,939 Posts
{quote} EURJPY Following on from the earlier post, I'd placed an alert in the H1 TF EJ at 129.50. Alert has recently sounded. Market has already reacted. Am now watching this pair closely to see how things unfold. {image}
Based on the chart below does anyone wish to add some simple annotation to aid us in what can we learn from the recent PA? Please remember, from my side there's no wrongs or rights, just an individual trader's point of view.
- Joined May 2012 | Status: ... | 1,939 Posts
does anyone wish to add some simple annotation to aid us in what can we learn from the recent PA?
This is how I see it. Based on the original assessment from on or around 2nd April my analysis would have been the same. On the H4 TF, price was going up so I was thinking of buying. I just set an alarm and didn't look at this pair again until the alarm sounded.
A strange aspect of supply/demand trading is that whenever price is going up, people are thinking of selling. Perhaps it's the way other traders have presented the methodology. Perhaps it's because other traders have routinely only offered about half of the facts regarding supply/demand trading - I don't know. But I spent a couple of years battling my own mindset of being a seller in a rising market. In my view, until a supply/demand trader overcomes and dispenses with this way of thinking, it is not possible to trade in sync with the market.
I wasn't watching this pair every 4 hours, however, if I had been watching it, price began to turn at the supply zone dmostpips had pointed out. Who knows whether or not retail traders would have dived in as soon as price arrived and printed a bearish candle, however, it was only once the market had printed the LL of a QM that I would have considered myself well enough informed that price is going down. It would be then and only then that I would have considered selling.
- Joined May 2012 | Status: ... | 1,939 Posts
Is it me, or does Google actively promote cognitive dissonance?
