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Easy Supply and Demand Trading

  • #21
  • Jul 3, 2015 2:25am Jul 3, 2015 2:25am
Btw here is a recent example of a trade in lower timeframe:

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This is a possible aggressive entry with a Sell Limit at the Supply Zone.

There is also a conservative entry on even lower timeframe possible:

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Just to show you that Supply/Demand works on lower timeframes! But higher timeframes are better to depend on.
  • #22
  • Jul 3, 2015 3:17am Jul 3, 2015 3:17am
EURAUD running into a Supply zone. The first zone at 1.47100 isn't fresh anymore. The zone above is still fresh.
We can watch out for reversals on lower timeframe.

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  • #23
  • Jul 3, 2015 3:40am Jul 3, 2015 3:40am
what is the lower time frame alarm?

indicator divergance ? breaking trend line ? candle closing below support levels or above resistence levels?
OR the other ?

your strategy has got very word of its own .

declare it more

thanks
  • #24
  • Jul 3, 2015 3:49am Jul 3, 2015 3:49am
Drop by to support... keep it up...
With the supply and demand, we could we the R:R at least 1:2... not sure about the win ratio...
  • #25
  • Jul 3, 2015 3:50am Jul 3, 2015 3:50am
Possible to show us your trade?
  • #26
  • Jul 3, 2015 3:51am Jul 3, 2015 3:51am
Quoting take-profit
what is the lower time frame alarm? indicator divergance ? breaking trend line ? candle closing below support levels or above resistence levels? OR the other ? your strategy has got very word of its own . declare it more thanks
As I pointed out in the first post. When you are entering on lower timeframes the opposite supply/demand level has to be broken.
  • #27
  • Jul 3, 2015 3:52am Jul 3, 2015 3:52am
Quoting Hoffi4201
Btw here is a recent example of a trade in lower timeframe: {image} This is a possible aggressive entry with a Sell Limit at the Supply Zone. There is also a conservative entry on even lower timeframe possible: {image} Just to show you that Supply/Demand works on lower timeframes! But higher timeframes are better to depend on.
What about these 2 zones? Aren't Supply zones?
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  • #28
  • Jul 3, 2015 3:53am Jul 3, 2015 3:53am
Quoting happytrade38
Possible to show us your trade?
I didn't enter EURAUD till now. There is no right setup so far
  • #29
  • Jul 3, 2015 3:56am Jul 3, 2015 3:56am
Quoting lucariga
{quote} What about these 2 zones? Aren't Supply zones? {image}
The upper zone isn't a good supply zone because of the choppy price action in there. (reason is NFPs)

The lower zone is kind of supply zone. You can see on the right site the reaction to this zone.
But as I pointed out the higher the timeframe the more reliable the zones.
Not every zone is a 100 % winner !
  • #30
  • Jul 3, 2015 5:36am Jul 3, 2015 5:36am
Quoting Hoffi4201
{quote} The upper zone isn't a good supply zone because of the choppy price action in there. (reason is NFPs) The lower zone is kind of supply zone. You can see on the right site the reaction to this zone. But as I pointed out the higher the timeframe the more reliable the zones. Not every zone is a 100 % winner !
Ok. As for the upper zone, when a base became invalid?

Ps: i know that not all the zones are winner, and I'm not looking to win every trade. I Just want to make sure we all draw the same zones.
  • #31
  • Jul 3, 2015 5:49am Jul 3, 2015 5:49am
IMHO it is much better to draw the S&D zones on daily or H4 chart and then drill down to lower time frames. Don't forget that real S$D zones are fresh ones where price moves away quickly and dramatically.
  • #32
  • Jul 3, 2015 5:57am Jul 3, 2015 5:57am
Quoting Hoffi4201
{quote} The upper zone isn't a good supply zone because of the choppy price action in there. (reason is NFPs) The lower zone is kind of supply zone. You can see on the right site the reaction to this zone. But as I pointed out the higher the timeframe the more reliable the zones. Not every zone is a 100 % winner !
the choppy the zone...it is good to indicate we have supply there..
  • #33
  • Jul 3, 2015 5:59am Jul 3, 2015 5:59am
Quoting happytrade38
Drop by to support... keep it up... With the supply and demand, we could we the R:R at least 1:2... not sure about the win ratio...
how u define supply and demand??by looking the Price action???price action is demand supply?? it is not...!!!dont get trap
  • #34
  • Jul 3, 2015 6:33am Jul 3, 2015 6:33am
@Nfp, @lucariga

Just to be clear what for me are "good" bases:

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You have to be able to see them easily.

@handy

You are absolutly right about drawing SD zones on H4, Daily, Weekly. I just wanted to show that it is possible to trade them on lower timesframes, too.
I switch primarly to lower timeframes to get a good entry !
  • #35
  • Jul 3, 2015 7:05am Jul 3, 2015 7:05am
Quoting Hoffi4201
@Nfp, @lucariga Just to be clear what for me are "good" bases: {image} You have to be able to see them easily. @handy You are absolutly right about drawing SD zones on H4, Daily, Weekly. I just wanted to show that it is possible to trade them on lower timesframes, too. I switch primarly to lower timeframes to get a good entry !
The problem with strong trends of course is that sometimes price just moves away without retesting a zone. Using your chart as an example, trading the trendline breaks would have resulted in two succesful trades whereas the strong move would otherwise have been missed if one was waiting for zones to be hit. If we do now get a test of the upper zone I would be cautious as price is now making lower highs and lower lows.
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  • #36
  • Jul 3, 2015 7:05am Jul 3, 2015 7:05am
Quoting Hoffi4201
{quote} I didn't enter EURAUD till now. There is no right setup so far
That zone is very strong in H4. What pattern would you then consider good setup? With pin bar or bearish engulf bar?
  • #37
  • Jul 3, 2015 7:14am Jul 3, 2015 7:14am
Quoting JackAntigua
{quote} The problem with strong trends of course is that sometimes price just moves away without retesting a zone. Using your chart as an example, trading the trendline breaks would have resulted in two succesful trades whereas the strong move would otherwise have been missed if one was waiting for zones to be hit. If we do now get a test of the upper zone I would be cautious as price is now making lower highs and lower lows. {image}
You are absolutly right. When the trend is strong, it may not come back to the zone but the zone still exists. So we have to wait for the price to return to the untouched zones.
look what happened to the upper zone:

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  • #38
  • Jul 3, 2015 7:21am Jul 3, 2015 7:21am
Quoting happytrade38
{quote} That zone is very strong in H4. What pattern would you then consider good setup? With pin bar or bearish engulf bar?
You are right, it's a strong zone on H4 but it has been retested once, so no fresh zone anymore.

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As I already mentioned, enter when opposite Zone on lower timeframe has been broken.
When you watch out for candle formation you could enter for example at a broken 1-2-3 formation with a SL on recent Swing High/low!
  • #39
  • Jul 3, 2015 8:12am Jul 3, 2015 8:12am

nice topic,
i'm in!
nescentia necat
  • #40
  • Jul 3, 2015 8:23am Jul 3, 2015 8:23am
Quoting Hoffi4201
{quote} You are absolutly right. When the trend is strong, it may not come back to the zone but the zone still exists. So we have to wait for the price to return to the untouched zones. look what happened to the upper zone: {image}
Hi Hoffi, thanks for the reply.

Where you draw the zone is of course pretty important. If drawn from the high of the inside bar, the entry would have been missed by 1.1 pip whereas at the high of the subsequent bar you would have been triggered in. Or you could enter say within 5 pip's of a zone to alleviate this problem to some extent.

I was just wondering on your precise methadology to determine the zone.

Thanks.
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