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Price Action made simple with Supply and Demand levels

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  • Post #861
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  • Oct 29, 2014 5:12am Oct 29, 2014 5:12am
  •  Master_kiwa
  • | Membership Revoked | Joined Jun 2013 | 490 Posts
From having a look at some of the latest post, it would suggest that supply/demand trading is indeed apart of this system, but price action isn´t at all apart of the system. The main part of price action is identifying candles within the supply and demand zone which are engulfed which result in a breakout out of the supply and demand zone.

Simply drawing two lines may be enough to satisfy the supply/demand zone trading, but the engulfing patterns, and many different engulf patterns is what should be mentioned here. Once we begin to speak about that, will you guys see the power of supply/demand zone with PRICE ACTION.
 
 
  • Post #862
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  • Oct 29, 2014 6:47am Oct 29, 2014 6:47am
  •  Master_kiwa
  • | Membership Revoked | Joined Jun 2013 | 490 Posts
Good morning everyone... Here is my only scalp of the day (That trade is also posted on my trade explorer)

Although I don´t use supply or demand zones, I do use MA lines, and based on the patters formed inside those lines on the 1m compared to 5m I then open my trade. You can see here that this trade resulted in a + trade, with a Pip drawdown of less then 2 pips. Althought one may contend that it was luck, the reality is understanding price action will result in those type of trades.
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You will also see another trade on the same pair in the same direction which resulted in a + trade (although I took a very small order because I didn´t have confidence in the trade) and you can see that it also resulted in a pip drawdown of less then 2 pips after entry.
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The formations which I trade may only appear 6 times a day, and the broker which I trade with has horrible spreads on most of the currency pairs which I would like to trade. So my positions are restricted to UJ and EU for the most part, but the reality is if we follow price action, and engulfing patterns then you should for the most part should have orders with net pip profit and a Pip drawdown of less then 5 pips.
 
 
  • Post #863
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  • Mar 16, 2015 5:02am Mar 16, 2015 5:02am
  •  birdchew
  • | Joined Jun 2014 | Status: Member | 4 Posts
Quoting dee50
Disliked
When I first learnt about Supply & Demand I found it difficult to mark the relevant levels. These 2 indicators helped a lot. Once you have become more confident about identifying the levels just delete the indis. Hope it helps. Do not be fooled by the name of the first indi. It is a S&D indi. {file} {file}
Ignored
I've made the necessary modification for the indicator to support MT4 v.7.6.5.
Attached File(s)
File Type: mq4 SS_SupportResistance_Support MT4 Build 765.mq4   25 KB | 1,427 downloads
 
 
  • Post #864
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  • Mar 28, 2015 4:03am Mar 28, 2015 4:03am
  •  neo269
  • | Joined Mar 2012 | Status: Member | 28 Posts
@birdchew - Thanks for new version
Â
Can you please guide me where I can find documentation of the indicator?
 
 
  • Post #865
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  • Apr 27, 2015 6:00am Apr 27, 2015 6:00am
  •  yyc196
  • | Joined Oct 2006 | Status: PIP Sheker | 459 Posts
GBPJPY

Monthly - UP trend
Weekly - Side Market
Daily - Looking to short, pls see attached.

All comments welcome

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  • Post #866
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  • May 19, 2015 2:59pm May 19, 2015 2:59pm
  •  umairsheikh2
  • | Joined Oct 2014 | Status: Trend Trader! | 338 Posts
Why this thread dead? Its looks amazing and true approach to the forex market...
I Win, I Lose, It's my Job... And I Love it!
 
 
  • Post #867
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  • Oct 23, 2015 12:17am Oct 23, 2015 12:17am
  •  JoshFisher
  • | Joined Sep 2014 | Status: Junior Member | 2 Posts
Would love to see more post!
Sazid.
 
 
  • Post #868
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  • Nov 16, 2015 11:59am Nov 16, 2015 11:59am
  •  4xtradingllc
  • | Joined Oct 2015 | Status: Junior Member | 2 Posts
Some charts on a 15 minute chart showing supply and demand zones....just my thoughts

http://content.screencast.com/users/...11-16_1154.png
 
 
  • Post #869
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  • Mar 15, 2018 10:41am Mar 15, 2018 10:41am
  •  Kindi1980
  • | Joined Mar 2018 | Status: Member | 6 Posts
[- Is it a supply or a demand level?
- The type of the level, as discussed above.
- How price left the level: height of the candles and number of candles in the same direction.
- The number of candles in the level.
- Freshness. How many time the price have touched the level? If none, it means the level is fresh.

As an example, how would you describe the level in the first chart of this post?
It's a RBD supply level, with a really fast and strong price movement. There are only 2-3 candles at the beginning of the level. And the level was fresh before getting at 2).]
Dear Thomaas,

I was scouring the factory and then I came up across this thread. Thank you so much. Few questions from me. I have been learning to trade for the past 6 months.
-Why is the type of the level important?
-Kindly please show the numbers of the candles by labeling the candles in the picture which you used
-Why does freshness of the candle matter?
- Please pass me through the process of putting a limit order on a level, after you are satisfied and decide to trade it. You may use the same chart.
-How would you know and confirm that the level is an important level and trade it, before having the price leave the level and come back to it, while you have said you only trade fresh levels?
-Thanks a lot. Please bear with my many questions.
 
 
  • Post #870
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  • Mar 15, 2018 10:52am Mar 15, 2018 10:52am
  •  Kindi1980
  • | Joined Mar 2018 | Status: Member | 6 Posts
Quoting rtkwar
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hi thomas i think i will sell GBP/USD from one from this two points {image} whats you think thomas?
Ignored
But the 3 demand zone from the bottom is not fresh. right?
 
 
  • Post #871
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  • Mar 15, 2018 12:08pm Mar 15, 2018 12:08pm
  •  Kindi1980
  • | Joined Mar 2018 | Status: Member | 6 Posts
Quoting thomaas
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Here's more information about the levels that should interest you! How to filter out bad levels What is a bad level? Well, it depend on what risk you are willing to take. If you don't mind risk, you should use every level you found. Or if you hate risk, you should wait for the perfect level. It's up to you! My way of doing is to use only perfect or close to perfect levels. And you already know what a good level is (read my previous comments), so let's look at some levels that I don't like. {image} From left to right: - This is a good level that...
Ignored
Hello again Thomas, I am a very novice trader. Earlier you said that a good zone is either rally base rally or drop base drop. Why then do you say you do not like rally base rally? I know that is your rule. But the rationale behind the rule will help me prepare my rules. Salute and thanks
 
 
  • Post #872
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  • May 13, 2018 3:26pm May 13, 2018 3:26pm
  •  Diddyy
  • | Joined May 2018 | Status: Member | 125 Posts
Hello Thomaas and 'SUPDEM' Traders

New to FF, and have gone through this thread and its a really good one, just wondering why its DEAD.
Where is Thomaas?? and the rest of you good traders??....Thomaas if you still come on FF(forexfactory)
please continue the thread.
 
 
  • Post #873
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  • Dec 10, 2018 1:39pm Dec 10, 2018 1:39pm
  •  Kindi1980
  • | Joined Mar 2018 | Status: Member | 6 Posts
Quoting thomaas
Disliked
Thanks for your support, glad to see people interested! I'll spend some time tomorrow to update the first post. In the meantime I'll answer your questions. {quote} Well I haven't invented the supply and demand technique. So if you already read a lot about it, that's true that there may not be a lot of new things to learn here. But from my experience it is really hard to learn supply and demand level because the important information if often buried into long videos and if too long thread. Here I want to make the information as clean and...
Ignored
Hello Thomas,

I am very new to supply and demand concept. I have across your thread.
You are still trading, right? Please help me how to determine freshness of a level.
I will appreciate a screen shot as an example. I hope you see this. Thanks
 
 
  • Post #874
  • Quote
  • Dec 10, 2018 1:52pm Dec 10, 2018 1:52pm
  •  Kindi1980
  • | Joined Mar 2018 | Status: Member | 6 Posts
Quoting Gilamonster
Disliked
Thomaas, I would like to add to your first post. I call it: Fine Tuning Line Placement Has to have a Leg-in, Base, Leg-out( a "leg" is a large candle with more than 50% of the whole range [meaning shorter wicks] the "base" is a candle with 50% or less than the range [meaning longer wicks] can have one candle) For "demand" or "supply" trades start at current price on your 1hr chart Look left and up for fresh supply, or left and down for fresh demand Leg candles have to be exciting(explosive especially the leg-out) usually very large candle Base candles...
Ignored
Hello trader,

I have come very late on your thread. Kindly please support this with a screen shot.
Also, on number 3, how far left should 1 go please?

Thanks for your help. I hope you see this
 
 
  • Post #875
  • Quote
  • Dec 13, 2018 11:52am Dec 13, 2018 11:52am
  •  Guruplug
  • | Joined Dec 2018 | Status: Junior Member | 3 Posts
Quoting bg_sunny
Disliked
And then thomaas became commercial member. Fuck this thread. Fuck Forexfactory. Forexfactory is good for: 1. Boasting one's ego 2. advertising I'm out of this shit. If you are seeking to learn how to trade ask you the following question: DID A COOK EVER LEARN TO COOK FROM A WEBSITE OR DID HE DO SO IN KITCHEN? Fucking idiots.....
Ignored
And now he's gone, ungrateful.
 
 
  • Post #876
  • Quote
  • Jun 6, 2019 3:39am Jun 6, 2019 3:39am
  •  Vroyfx
  • | Joined Apr 2019 | Status: Junior Member | 1 Post
Id like to add on how this strategy works
look for engulfed candles to draw your supply and demand
always make pending orders
on sell its sell limit
on a buy buy limit
 
 
  • Post #877
  • Quote
  • Jul 15, 2019 5:42pm Jul 15, 2019 5:42pm
  •  TinyRick
  • | Joined Jan 2019 | Status: Member | 5 Posts
Thank you for taking the time to look at this post.

I have just started to study supply and demand trading. This is my first time drawing these zones. I'm hoping to get some critiques and thoughts on the zones that I've drawn. Any feedback is greatly appreciated.


Pair - AUD/CAD 1W, 1D, 4H

Blue - weekly zone
Yellow - daily zone
Purple - 4h zone

Green border - demand zone
Red border - supply zone


Thanks again and good trading
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Name: sadaudcad4h.jpg
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  • Post #878
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  • Oct 24, 2019 8:26am Oct 24, 2019 8:26am
  •  coolazr
  • | Joined Sep 2019 | Status: Member | 38 Posts
Nice Strategy , lets start it again ...
 
 
  • Post #879
  • Quote
  • Last Post: Nov 24, 2020 8:20pm Nov 24, 2020 8:20pm
  •  roods290
  • | Joined May 2020 | Status: Member | 12 Posts
Does anyone use this for day trading at all? Using 5 minute time frames? Or do we always look at longer time frames as well
 
 
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