Supply and demand in a nutshell by Alfonso Moreno | Page 359 | Forex Factory

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Supply and demand in a nutshell by Alfonso Moreno

  • #7,161
  • Mar 4, 2016 10:48am Mar 4, 2016 10:48am
Quoting panoramia
{quote} Antonio? Who is that Antonio? LOL
Sorry from me. Antonios
  • #7,162
  • Mar 4, 2016 11:08am Mar 4, 2016 11:08am
Quoting lakis071051
{quote} Thanks my friend for your kind answer. I understand all that you say about good and bad zones. My question was only this: If we estimate our R/R and our targets, must all zones been from the same TF or we need to take in consideration the S & D zones of the curve TF? Only this. Thanks
That's up to you to decide and add it to your trading plan. It all has to do with your monthly target, your entry TF, the curve. If you take a long on monthly demand with monthly uptrend, shouldn't your target be bigger and see how daily supply zones are taken out?Cheera
Set and Forget supply and demand trading community
  • #7,163
  • Mar 4, 2016 12:34pm Mar 4, 2016 12:34pm
Alfonso. You wrote here http://www.forexfactory.com/showthre...03#post6896403 that "Since it's the WK supply, we need confirmation on a H4 supply to confirm the area."

Why H4? Can we use D1 for confirmation?
  • #7,164
  • Mar 5, 2016 1:41am Mar 5, 2016 1:41am
Quoting franksonjr
USDSGD This is my USDSGD And i view it as price is currently in a MN Dmd zone, and i am waiting for the opposing WK Supply zone to be Taken Out. I will Really Appreciate constructive Criticism Thanks {image} {image} {image}
LOOK AT THE QUOTE for my initial view on this pair USDSGD since JAN 30TH

now price has brokem DMD, new supply level forming,
giving room for shorts
Attached Image(s) (click to enlarge)
Click to Enlarge Name: usdsgd-mn1-fbs-inc.png Size: 66 KB
Click to Enlarge Name: usdsgd-w1-fbs-inc.png Size: 73 KB
Click to Enlarge Name: usdsgd-d1-fbs-inc.png Size: 79 KB
FRK
  • #7,165
  • Mar 5, 2016 2:16am Mar 5, 2016 2:16am
Quoting conom589
Alfonso. You wrote here http://www.forexfactory.com/showthre...03#post6896403 that "Since it's the WK supply, we need confirmation on a H4 supply to confirm the area." Why H4? Can we use D1 for confirmation?
The bigger the timeframe in control the bigger the timeframe it's advisable to wait for confirmation. H4 is fine with Weekly imbalances, but wait for the opposing zone to be clearly taken out, nothing to the left and no Daily opposing imbalance in control.

Cheers,
Alfonso
Set and Forget supply and demand trading community
  • #7,166
  • Mar 5, 2016 2:17am Mar 5, 2016 2:17am
Quoting franksonjr
{quote} LOOK AT THE QUOTE for my initial view on this pair USDSGD since JAN 30TH now price has brokem DMD, new supply level forming, giving room for shorts {image} {image} {image}
Short short short on USD/SGD, nice analysis Daily trendline needs to be adjusted, there are 2 peaks. Similar analysis on other US cross pairs.

Cheers,
Alfonso
Set and Forget supply and demand trading community
  • #7,167
  • Mar 6, 2016 5:22am Mar 6, 2016 5:22am
Quoting panoramia
{quote} That's up to you to decide and add it to your trading plan. It all has to do with your monthly target, your entry TF, the curve. If you take a long on monthly demand with monthly uptrend, shouldn't your target be bigger and see how daily supply zones are taken out?Cheera
Thanks for the info
  • #7,168
  • Mar 6, 2016 10:23am Mar 6, 2016 10:23am
Quoting lakis071051
{quote} Thanks my friend for your kind answer. I understand all that you say about good and bad zones. My question was only this: If we estimate our R/R and our targets, must all zones been from the same TF or we need to take in consideration the S & D zones of the curve TF? Only this. Thanks
Hi Lakis, if i may please,

Usually the first target should be one your entry timeframe and be the next opposing level.
For other targets, it will depend on where you entered on the curve.

For example, if you entered a long position in a daily demand zone formed after price reached monthly demand in a monthly uptrend (ie automatically price would be low on the monthly curve since it is in a monthly demand zone in a monthly uptrend) - 1st target will be the nearest supply zone on the daily chart.
2nd target could be the nearest opposing weekly supply and a 3rd target could be the opposing monthly supply.

If you have enough of a position you may wish to hold some to see if the monthly SZ will be broken since you are in a monthly uptrend meaning SZs should be violated and demand respected. However this is not advisable as you should expect price to react downwards from the monthly SZ especially if it is a fresh zone.

A longer reply than I wanted to give but I hope it makes some sense to you

Best wishes
Be careful what you think because your thoughts run your life..Solomon
  • #7,169
  • Mar 6, 2016 10:03pm Mar 6, 2016 10:03pm
AUD/USD weekly supply has been taken out, brand new weekly demand has been created at 0.7180ish, nested D1 demand within. Long bias. Room to reach opposing supply

Attached Image (click to enlarge)
Click to Enlarge Name: audusd.png Size: 87 KB
Set and Forget supply and demand trading community
  • #7,170
  • Mar 6, 2016 10:04pm Mar 6, 2016 10:04pm
EURUSD weekly uptrend. Weekly demand zone in control at 1.0872, nested Daily demand in control, new H4 demand zones being created. Shorts not possible that low, long bias

Attached Image (click to enlarge)
Click to Enlarge Name: eurusd.png Size: 80 KB
Set and Forget supply and demand trading community
  • #7,171
  • Mar 6, 2016 10:05pm Mar 6, 2016 10:05pm
NZD/USD rallied strongly this week removing potential D1 supply bearish engulfing pattern. Brand new D1 demand being created. Approaching tested WK SZ, confirmation required for shorts with current price action.

If weekly supply is taken out, new demand levels will be formed. Long bias, waiting for removal of opposing zone as it happend on AUD/USD

Attached Image (click to enlarge)
Click to Enlarge Name: audusd.png Size: 87 KB
Set and Forget supply and demand trading community
  • #7,172
  • Mar 7, 2016 1:29am Mar 7, 2016 1:29am
Quoting Akt
{quote} Hi Lakis, if i may please, Usually the first target should be one your entry timeframe and be the next opposing level. For other targets, it will depend on where you entered on the curve. For example, if you entered a long position in a daily demand zone formed after price reached monthly demand in a monthly uptrend (ie automatically price would be low on the monthly curve since it is in a monthly demand zone in a monthly uptrend) - 1st target will be the nearest supply zone on the daily chart. 2nd target could be the nearest opposing weekly...
My dear friend,
I thank you very much for this valuable information and especially for your kind intention to clarify me this issue.
My Best Wishes too
  • #7,173
  • Edited 7:26am Mar 7, 2016 4:56am | Edited 7:26am
Hi Alfonso
Thanks for this great technique.
I have 1 questions.
Am I correct to draw daily supply zone of AUD/USD like this?
Thanks
Attached Image (click to enlarge)
Click to Enlarge Name: 1.png Size: 26 KB
  • #7,174
  • Mar 7, 2016 7:48am Mar 7, 2016 7:48am
Quoting paobig
Hi Alfonso Thanks for this great technique. I have 1 questions. Am I correct to draw daily supply zone of AUD/USD like this? Thanks {image}
That AUDUSD daily supply zone has a lot of trading in the zone, not good to draw such a zone, poor basing and departure. Weekly supply removed, look for strong daily supply zones nested within and monthly supply zones.

Cheers,
Alfonso
Set and Forget supply and demand trading community
  • #7,175
  • Mar 7, 2016 8:24am Mar 7, 2016 8:24am
Quoting panoramia
{quote} That AUDUSD daily supply zone has a lot of trading in the zone, not good to draw such a zone, poor basing and departure. Weekly supply removed, look for strong daily supply zones nested within and monthly supply zones. Cheers, Alfonso
Thanks a lot
  • #7,176
  • Mar 7, 2016 12:41pm Mar 7, 2016 12:41pm
Hey everybody!

I got a question about the supply and demand indicator. Is it correct that the indicator "miss" a few levels that I migth need to draw them manually?

Keep up the good work!
Thanks
  • #7,177
  • Mar 7, 2016 1:29pm Mar 7, 2016 1:29pm
Why is the Rectangle indicator drawing this Level as Demand?
Attached Image (click to enlarge)
Click to Enlarge Name: AUDCHFDaily.jpg Size: 92 KB
  • #7,178
  • Mar 7, 2016 2:22pm Mar 7, 2016 2:22pm
Quoting lakis071051
Why is the Rectangle indicator drawing this Level as Demand? {image}
The rectangle indicator does not draw any demand or supply zone. That zone you are pointing at is supply and not demand. If you are using an automatic indicator, you should know how it works You should know that is a supply zone for a simple reason, rules say it's supply zone.

Cheers,
Alfonso
Set and Forget supply and demand trading community
  • #7,179
  • Mar 7, 2016 2:24pm Mar 7, 2016 2:24pm
Quoting Johanfolet
Hey everybody! I got a question about the supply and demand indicator. Is it correct that the indicator "miss" a few levels that I migth need to draw them manually? Keep up the good work! Thanks
I don't use any automatic indicator, I draw all supply and demand imbalances manually. Automatic indicators will miss many levels, continuation patterns, etc. If you want to learn how to trade supply and demand, you must learn how to draw the imbalances yourself. You think you are going the fast way by using an automatic indicator, but you are hindering your progress if you do so. It's your decision, up to you my friend, it's just my recommendation. I don't support the automatic indicator, it does not draw the levels as per the rules.

Cheers,
Alfonso
Set and Forget supply and demand trading community
  • #7,180
  • Mar 7, 2016 7:08pm Mar 7, 2016 7:08pm
Quoting lakis071051
Why is the Rectangle indicator drawing this Level as Demand? {image}
Rectangle indicator is not intelligent as human, it simply takes levels below the current price as demand and above as supply, simple as that.
Trade what you see..
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