Supply and demand in a nutshell by Alfonso Moreno | Page 333 | Forex Factory

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Supply and demand in a nutshell by Alfonso Moreno

  • #6,641
  • Dec 15, 2015 10:01am Dec 15, 2015 10:01am
Quoting John.
Hello Alfonso! I want to ask about a situation when we have 2 types of zones at the same place (a zone in another zone). Please see my chart. Yellow - is CP supply. Red - is pick supply. Pick is inside CP. I'm sure you find these situations very often on charts. What can you say? May we use this pick to draw a trendline? May we use this pick to trade (if it's valid and etc)? {image}
That's just one zone, maybe on a lower timeframe you'll have two, not on that one John. There are different blocks of candles closing higher and lower, the higher one is the peak the rest is part of a bigger timeframe zone probably.

Cheers,
Alfonso
Set and Forget supply and demand trading community
  • #6,642
  • Dec 15, 2015 10:06am Dec 15, 2015 10:06am
Quoting Alehandro
{quote} Can you show me any example? pls
Attached Image

Attached Image


another tip, try and google pro gap vs novice gap, hope this helps
the 3rd wave is the crowd's wave
  • #6,643
  • Dec 15, 2015 11:50pm Dec 15, 2015 11:50pm
Quoting juriFX
{quote} {image} {image} another tip, try and google pro gap vs novice gap, hope this helps
Thanks a lot man!
  • #6,644
  • Dec 15, 2015 11:53pm Dec 15, 2015 11:53pm
Alfonso, if you trade on stocks too, so maybe you have the same indicators for Thinkorswim platform or for another platform? MT4 doesn't use in NYSE, AMEX, NASDAQ.
  • #6,645
  • Dec 15, 2015 11:56pm Dec 15, 2015 11:56pm
Quoting juriFX
{quote} {image} {image} another tip, try and google pro gap vs novice gap, hope this helps
So difficult to identify basing candles on any clear charts without dots (rectangle reader indicator) on candles

And what is a "pro gap" and "novice gap", can you explain me, thanks
  • #6,646
  • Dec 16, 2015 2:04am Dec 16, 2015 2:04am
Quoting Alehandro
Alfonso, if you trade on stocks too, so maybe you have the same indicators for Thinkorswim platform or for another platform? MT4 doesn't use in NYSE, AMEX, NASDAQ.
I trade stocks with CFDs with Metatrader so I can't recommend you a different platform, maybe someone else can help you. Alfonso
Set and Forget supply and demand trading community
  • #6,647
  • Dec 16, 2015 2:05am Dec 16, 2015 2:05am
Quoting Alehandro
{quote} So difficult to identify basing candles on any clear charts without dots (rectangle reader indicator) on candles And what is a "pro gap" and "novice gap", can you explain me, thanks
Gaps aren't covered in post #1 but I believe it's on some of the videos, maybe someone else can give you some hints on the differences, you may also think about it and try to come up why some are called pro and others are called novice gaps.

Cheers,
Alfonso
Set and Forget supply and demand trading community
  • #6,648
  • Edited 5:38am Dec 16, 2015 3:06am | Edited 5:38am
Quoting panoramia
{quote} Gaps aren't covered in post #1 but I believe it's on some of the videos, maybe someone else can give you some hints on the differences, you may also think about it and try to come up why some are called pro and others are called novice gaps. Cheers, Alfonso
Well said, better think and research on your own, brings your surely further than getting everything delivered and explained on a silver plate.
As a start, this is a good video of Sam Seiden where pro vs novice gaps are discussed
Inserted Video


Another thing, everyone overlooks and dismisses speed bumps (continuation patterns) but they work pretty well, especially on lower time frames.
Good to see that Alfonso includes them, because the usual motto of S/D traders is to trade only RBD/DBR.

Good thread
the 3rd wave is the crowd's wave
  • #6,649
  • Dec 16, 2015 4:43am Dec 16, 2015 4:43am
Quoting juriFX
{quote} Well said, better think and research on your own, brings your surely further than getting everything delivered and explained on a silver plate. As a start, this is a good video of Sam Seiden where pro vs novice gaps are discussed https://www.youtube.com/watch?v=4OjCvnGqbHA Another thing, everyone overlooks and dismises speed bumps (continuation patterns) but they work pretty well, especially on lower time frames. Good to see that Alfonso includes them, because the usual motto of S/D traders is to trade only RBD/DBR. Good thread...
Thanks for sharing and your contribution trying to help others.

Have a great day!
Alfonso
Set and Forget supply and demand trading community
  • #6,650
  • Dec 16, 2015 7:56pm Dec 16, 2015 7:56pm
Hello, Alfonso! And everybody!!

I confused a bit about TL on NZDUSD Weekly. If we have 2 CP's and the third one is a base but at the higher TF (MN) it is CP pattern. So the question is can I draw a TL through those CP's patterns and use the base like CP ?

Thank's.
Attached Image (click to enlarge)
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  • #6,651
  • Dec 16, 2015 11:06pm Dec 16, 2015 11:06pm
Hello Alfonso. I'm a little bit confused with identifying a freshness of a zone which controls the market after a test(-s). Here is an example. Demand controls the market after the 1st test. We must say: "Non-fresh demand controls the market", aren't we?
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  • #6,652
  • Dec 17, 2015 1:22am Dec 17, 2015 1:22am
Quoting panoramia
{quote} I trade stocks with CFDs with Metatrader so I can't recommend you a different platform, maybe someone else can help you. Alfonso
I know that CFDs are more available and require less margin, but there is (in MT4) very little compared to what is in NYSE e.g. - only if we trade only on Weekly or Daily timeframes.
  • #6,653
  • Dec 17, 2015 1:47am Dec 17, 2015 1:47am
Quoting Alehandro
{quote} I know that CFDs are more available and require less margin, but there is (in MT4) very little compared to what is in NYSE e.g. - only if we trade only on Weekly or Daily timeframes.
There are enough CFDs on most Metatrader platforms to earn your living really well

Alfonso
Set and Forget supply and demand trading community
  • #6,654
  • Dec 17, 2015 3:23am Dec 17, 2015 3:23am
Quoting John.
Hello Alfonso. I'm a little bit confused with identifying a freshness of a zone which controls the market after a test(-s). Here is an example. Demand controls the market after the 1st test. We must say: "Non-fresh demand controls the market", aren't we? {image}
Freshness is irrelevant for the zone in control. A zone is in control when it's in control As simple as that

Alfonso
Set and Forget supply and demand trading community
  • #6,655
  • Dec 17, 2015 3:24am Dec 17, 2015 3:24am
Quoting Agafon79
Hello, Alfonso! And everybody!! I confused a bit about TL on NZDUSD Weekly. If we have 2 CP's and the third one is a base but at the higher TF (MN) it is CP pattern. So the question is can I draw a TL through those CP's patterns and use the base like CP ? Thank's. {image}
Aggressive bearish weekly trendline allowed, yes.

Alfonso
Set and Forget supply and demand trading community
  • #6,656
  • Dec 17, 2015 7:32am Dec 17, 2015 7:32am
Quoting panoramia
{quote} There are enough CFDs on most Metatrader platforms to earn your living really well Alfonso
How much and where? Can you PM me about this broker, thanks a lot Alfonso!
  • #6,657
  • Dec 17, 2015 11:38am Dec 17, 2015 11:38am
Quoting panoramia
{quote} Aggressive bearish weekly trendline allowed, yes. Alfonso
Thanks Alfonso!
But I have another question. Are you trading a shares? I have indexes and shares in my MT4 (FXCM broker) and I tried to analyze shares US. It is imposible in most cases, there are many gaps. My TF entry is D1.
  • #6,658
  • Dec 17, 2015 1:23pm Dec 17, 2015 1:23pm
Hello Alfonso! Some days ago you said that a zone which had not accomplished anything can not control the market. But if price hit such zone and falls to our lower TF zone which we want to trade, what is your recommendation?

Here is a picture. We want to trade D1 demand and bigger picture is with us. But price hit HTF (weekly) zone (peak, fresh, but it did not accomplished anything but just inherited its property from another zone) and falls to our D1 demand. What is your recommendation to do?
- to buy
- to buy with confirmation
- miss the trade

I hope that you will understand my question and spend some time to answer me because I'm lost now. Some days ago I never take such long because I thought that WK supply controls the market. But now I do not know what to do with such inherited HTF zones.

Many-many thanks in advance!

Attached Image
  • #6,659
  • Dec 17, 2015 1:54pm Dec 17, 2015 1:54pm
Quoting Agafon79
{quote} Thanks Alfonso! But I have another question. Are you trading a shares? I have indexes and shares in my MT4 (FXCM broker) and I tried to analyze shares US. It is imposible in most cases, there are many gaps. My TF entry is D1.
What's the problem with gaps? They are great when it goes in your direction. If you trade lower timeframes sequences and counter-trend, you will blow up your account very easily. I'm not doing that!

Alfonso
Set and Forget supply and demand trading community
  • #6,660
  • Dec 17, 2015 1:56pm Dec 17, 2015 1:56pm
Quoting John.
Hello Alfonso! Some days ago you said that a zone which had not accomplished anything can not control the market. But if price hit such zone and falls to our lower TF zone which we want to trade, what is your recommendation? Here is a picture. We want to trade D1 demand and bigger picture is with us. But price hit HTF (weekly) zone (peak, fresh, but it did not accomplished anything but just inherited its property from another zone) and falls to our D1 demand. What is your recommendation to do? - to buy - to buy with confirmation - miss the trade...
It's difficult to answer that question in a few sentences John. Inheritance is complex and tricky, if I start talking about it then you will probably get lost and I'll confuse others that have not yet grasped the basic supply and demand imbalances.

Cheers,
Alfonso
Set and Forget supply and demand trading community
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