Supply and demand in a nutshell by Alfonso Moreno | Page 371 | Forex Factory

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Supply and demand in a nutshell by Alfonso Moreno

  • #7,401
  • Mar 24, 2016 11:27am Mar 24, 2016 11:27am
Quoting Akt
{quote} I couldn't agree more mrodrigues. A daily zone can hold price for a good while as well u know. it all depends on the order flow around that price level but you are correct, because monthly and weekly zones represent the picture of bigger stacks of orders they are stronger than daily charts by definition Best wishes {image}

Well Thank you AKT for the dialogue. I hope we can share more together!!!
Best

Mark
  • #7,402
  • Mar 24, 2016 11:37am Mar 24, 2016 11:37am
Quoting mrodrigues
{quote} Well Thank you AKT for the dialogue. I hope we can share more together!!! Best Mark
No worries Mark
Look forward to it.
Good to share ideas

Best wishes
Be careful what you think because your thoughts run your life..Solomon
  • #7,403
  • Mar 24, 2016 1:30pm Mar 24, 2016 1:30pm
Is my analysis correct? Daily of NZD/JPY!!
Attached Image (click to enlarge)
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  • #7,404
  • Mar 24, 2016 4:07pm Mar 24, 2016 4:07pm
Hy Guys!

I have a dilemma!

On the picture i add, you see thet h4 usd/cad currency.

On D1 we are in a Supply zone, or not.... :/

1. picture
The yelow marked area is my problem. There was lots of trading, and after that the price fall down like a rock. I'm practising ther rules, what tells me, that there was the price too many time, and the candels are more then 6.
BUT! It is a reaction to a previus level. To that zone the price will go for the first time.(if it goes there!) And that supply zone with the drop, removed a few demand zones.
Is that SZ tradeable?

2.picture
If the small candle is a base candel, and after that is a bull Rally (DBR) candle, then what is that 2 big candle? There was no base inside there. Is that a zone?

I hope you understand what i want to known!

Regards,
Andras B.
Attached Image(s) (click to enlarge)
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  • #7,405
  • Mar 24, 2016 4:58pm Mar 24, 2016 4:58pm
Quoting mrodrigues
Is my analysis correct? Daily of NZD/JPY!! {image}
Hello mrodrigues.
Thank you very much for bringing this topic up.
Here are my thoughts, not too different from yours

best wishes
Attached Image (click to enlarge)
Click to Enlarge Name: nzdjpy_zones_inter-related.png Size: 107 KB
Be careful what you think because your thoughts run your life..Solomon
  • #7,406
  • Mar 24, 2016 5:58pm Mar 24, 2016 5:58pm
Quoting projectaha
Hy Guys! I have a dilemma! On the picture i add, you see thet h4 usd/cad currency. On D1 we are in a Supply zone, or not.... :/ 1. picture The yelow marked area is my problem. There was lots of trading, and after that the price fall down like a rock. I'm practising ther rules, what tells me, that there was the price too many time, and the candels are more then 6. BUT! It is a reaction to a previus level. To that zone the price will go for the first time.(if it goes there!) And that supply zone with the drop, removed a few demand zones. Is that SZ...
Hello Andras, if i may please,

I hope this helps

best wishes

Picture 1
Attached Image (click to enlarge)
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Picture 2
Attached Image (click to enlarge)
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Be careful what you think because your thoughts run your life..Solomon
  • #7,407
  • Mar 25, 2016 6:57am Mar 25, 2016 6:57am
My thoughts on GBPCAD
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  • #7,408
  • Mar 25, 2016 8:00am Mar 25, 2016 8:00am
Quoting Akt
Hello everyone USDJPY Short into daily supply monthly has violated lows Weekly is down daily is down short inside daily supply zone {image}
Akt. I took it
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  • #7,409
  • Mar 25, 2016 9:09am Mar 25, 2016 9:09am
Quoting conom589
{quote} Akt. I took it {image}
Hello Conom, well done to you.

I know you remember this picture I posted several weeks ago. One of my first ever posts

Best wishes

Attached Image (click to enlarge)
Click to Enlarge Name: usdjpy_conom.png Size: 84 KB
Be careful what you think because your thoughts run your life..Solomon
  • #7,410
  • Mar 25, 2016 10:03am Mar 25, 2016 10:03am
I seem to be having slight difficulty with the correct interpretation of the GBP/USD Weekly chart. This is a plain chart. Price is currently in a monthly demand level that has a weekly demand level within it, which price currently is at the weekly level. Shorting is not the answer!! I think the doji's are what's confusing me. anyone please chime in!!! It's point 2 that calls my attention...
Attached Image (click to enlarge)
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  • #7,411
  • Mar 25, 2016 10:29am Mar 25, 2016 10:29am
Happy Easter holidays everyone.

Seeing we are all chilling and getting some well deserved R&R, I thought it a good time to raise the issue of confirmation entries.
Alfonso talks about them a lot in his videos, weekly reviews and posts.

It took me some time to get it but I eventually did.
Here are my thoughts on them.
I hope it helps

best wishes

CONFIRMATION ENTRIES


To start with, Confirmation entries are the opposite of Set and Forget trades.
They require the trader to be present at the computer when price returns to the level in order to take a trade using the confirmation method.

What are confirmation entries? - a type of entry used under certain scenarios, to enter a market long or short. They require drilling down price action and taking a closer X-Ray snapshot that we normally would. For example a trader who would normally use a daily chart for his entry would need to drill down to a lower time frame (4hr or 1 hr) in order to take a confirmation entry.

What is/are the scenarios when confirmation entries are needed? - There are a few ones but the only one I use and so can speak to is when the departure from a zone does not meet the minimum requirement of a 2:1 imbalance. I don't simply ignore the zone, i merely realize I can't set and forget a trade at that level.

Let me show a pictorial example

Attached Image (click to enlarge)
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Be careful what you think because your thoughts run your life..Solomon
  • #7,412
  • Mar 25, 2016 10:30am Mar 25, 2016 10:30am
Quoting mrodrigues
I seem to be having slight difficulty with the correct interpretation of the GBP/USD Weekly chart. This is a plain chart. Price is currently in a monthly demand level that has a weekly demand level within it, which price currently is at the weekly level. Shorting is not the answer!! I think the doji's are what's confusing me. anyone please chime in!!! It's point 2 that calls my attention... {image}
Hi Mark,

Can you clarify what your confusion is please?

best wishes
Be careful what you think because your thoughts run your life..Solomon
  • #7,413
  • Mar 25, 2016 10:40am Mar 25, 2016 10:40am
Quoting Akt
{quote} Hi Mark, Can you clarify what your confusion is please? best wishes
AKT, #2 the base is a single doji. Doji's do not make good bases correct? # 1 price only moves away for 1 candle, it doesn't remove anything and it doesn't make a new high. What would be the best approach to analyzing point # 2 in your opinion?
  • #7,414
  • Mar 25, 2016 10:59am Mar 25, 2016 10:59am
Quoting mrodrigues
{quote} AKT, #2 the base is a single doji. Doji's do not make good bases correct? # 1 price only moves away for 1 candle, it doesn't remove anything and it doesn't make a new high. What would be the best approach to analyzing point # 2 in your opinion?
Mark, please see my thoughts below.

Remember our conversation on eurusd and the use of fresh zones for curve delineation?
The same issue applies to this pair.

The monthly zone price is in currently has been tested prior to the most recent test so is not fresh and therefore can't be used to represent curve demand zone.
I don't know what broker you use but the one I use has those old monthly lows as the lowest point in the chart so I have to assume there is nothing to the left and below that already tested monthly DZ.
That automatically means that I have to make the assumption that price is in equilibrium and so the most appropriate action would be to follow the weekly trend which as you know, is down.

Best wishes

Attached Image (click to enlarge)
Click to Enlarge Name: GBPUSD_MRODRIGUES_RESPONSE.png Size: 82 KB
Be careful what you think because your thoughts run your life..Solomon
  • #7,415
  • Mar 26, 2016 1:56am Mar 26, 2016 1:56am
Quoting mrodrigues
Is my analysis correct? Daily of NZD/JPY!! {image}
In your NZDJPY supply and demand analysis, the last descending trendlines you've drawn is incorrect as per the rules. Can you please correct them and re-upload? Cheers, Alfonso
Set and Forget supply and demand trading community
  • #7,416
  • Mar 26, 2016 1:59am Mar 26, 2016 1:59am
Quoting Vsm
My thoughts on GBPCAD {image}
Why is the monthly trend on GBPCAD in bullish consolidation? We need a full OHCL closed for a trendline to be broken, it's the 26th of March, 5 days left, so it can't be. If you were to trade the monthly demand zone alone, that would have been a valid long. Hope it makes sense.

Cheers,
Alfonso
Set and Forget supply and demand trading community
  • #7,417
  • Mar 26, 2016 2:00am Mar 26, 2016 2:00am
Thanks Akt for useful info on confirmation entries.
Can u explain in same manner about set&forget entry. It will be very helpful for all.....
Thanks again.....
  • #7,418
  • Mar 26, 2016 2:46am Mar 26, 2016 2:46am
Quoting Akt
Happy Easter holidays everyone. Seeing we are all chilling and getting some well deserved R&R, I thought it a good time to raise the issue of confirmation entries. Alfonso talks about them a lot in his videos, weekly reviews and posts. It took me some time to get it but I eventually did. Here are my thoughts on them. I hope it helps best wishes CONFIRMATION ENTRIES To start with, Confirmation entries are the opposite of Set and Forget trades. They require the trader to be present at the computer when price returns to the level in order to take a...
Thanks for the explanation regarding confirmation trade.
I have only one doubt about H4 chart, that price when revisited the supply zone on 4 hour chart Trend line was broken it was a bearish consolidation trend.
The zone was also not nested in daily supply to ignore the change in trend on 4 hour chart.
Will it be ok to set & forget to that H4 supply zone.
( Yellow high lighted ellipse zone was not supply as it did not remove demand below)
Attached Image (click to enlarge)
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  • #7,419
  • Mar 26, 2016 9:39am Mar 26, 2016 9:39am
Quoting Vsm
{quote} Thanks for the explanation regarding confirmation trade. I have only one doubt about H4 chart, that price when revisited the supply zone on 4 hour chart Trend line was broken it was a bearish consolidation trend. The zone was also not nested in daily supply to ignore the change in trend on 4 hour chart. Will it be ok to set & forget to that H4 supply zone. ( Yellow high lighted ellipse zone was not supply as it did not remove demand below) {image}
Hi VSM,
Thank you for the question. The zone was nested in a daily DZ on my charts.
Please see picture

Best wishes

Attached Image (click to enlarge)
Click to Enlarge Name: NZDCAD_VSM_RESPONSE_.png Size: 189 KB
Be careful what you think because your thoughts run your life..Solomon
  • #7,420
  • Mar 26, 2016 10:12am Mar 26, 2016 10:12am
Quoting Akt
{quote} Hi VSM, Thank you for the question. The zone was nested in a daily DZ on my charts. Please see picture Best wishes {image}
Thanks AKT, I was missing that trend line break on daily.
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