Hi, group anyone can recommend some good reading about supply and demand? to lear wich levels are better? and how to find confluence with the fib? anyone knows why the 78.6 of fibo is a key level that a lot of videos of SyD recommend? i would appreciate your help
Supply and Demand trading with Fibs
- #1,842
- May 25, 2017 12:36pm May 25, 2017 12:36pm
Hi guys!
I just found out about this supply/demand system after i got f* up yesterday and not knowing why aside from risk management issues
Anyway, I have been reading and learning the system from page 1 up until page 10 currently and man! How i wish i knew about all this simple trade system since the beginning.
Anyway since i'm really new and usually people eventually will find the same problem when starting, I want to ask my first question here because up until page 10 i haven't seen/can't see where this leads to.. Please kindly give me feedbacks as to where i am wrong and loss..
So basically GBP/AUD is in BEAR state as on 1D Chart.
I found out that A is the Supply Area at that moment.
It hit once, twice then three times before it drops really far to C.
My first question is around the B area, can that also be considered a new Supply Area? I read that all the Supply/Demand area is suppose to be fresh so it means that A is no longer in progress and it changes to B?
2nd.. Can I consider C a Demand Area in a 1D bearish chart? or in a bearish state we can only use Supply Area?
If B is the new Supply Area (or if this ever happen to a Supply Area),
What happen when something breaks it and keep going?
Does that mean (in this case) it is not going to go down anymore? and how do we know where it will stop?
Thanks in advance!
I just found out about this supply/demand system after i got f* up yesterday and not knowing why aside from risk management issues
Anyway, I have been reading and learning the system from page 1 up until page 10 currently and man! How i wish i knew about all this simple trade system since the beginning.
Anyway since i'm really new and usually people eventually will find the same problem when starting, I want to ask my first question here because up until page 10 i haven't seen/can't see where this leads to.. Please kindly give me feedbacks as to where i am wrong and loss..
So basically GBP/AUD is in BEAR state as on 1D Chart.
I found out that A is the Supply Area at that moment.
It hit once, twice then three times before it drops really far to C.
My first question is around the B area, can that also be considered a new Supply Area? I read that all the Supply/Demand area is suppose to be fresh so it means that A is no longer in progress and it changes to B?
2nd.. Can I consider C a Demand Area in a 1D bearish chart? or in a bearish state we can only use Supply Area?
If B is the new Supply Area (or if this ever happen to a Supply Area),
What happen when something breaks it and keep going?
Does that mean (in this case) it is not going to go down anymore? and how do we know where it will stop?
Thanks in advance!
- #1,843
- May 25, 2017 12:57pm May 25, 2017 12:57pm
Oh and I also has question regardings this statement.. I know this is like REALLY OLDDDD but I think this might be related to what i asked before this
Page 3 post #43
^I can't see the image is there any good example of what is happening here? Is this similar to what's happening in A?
Page 9 post #173
^If it comes shooting back is like what is happening in the END of my image? That means it's a no trade? because now losing its way?
^This means selling before it falls after it went pass the supply/demand area like in B where it breaks?
Sorry for all this questions.. Thanks again!
now let me tell why i DO NOT USE SUPPORT AND RESISTENCE see chart below see the first 3 bounces, ppl would call this support, NO biggest mistake in trading this isnt support its demand, now look on the 4th touch price broke through!! ppl looking at support would be shouting everyone to go short, " ooo its closed below support go short go short" " its broken support signal to go short" NO NO NO NON NOONONO do not go short through supply and demand i know its in a demand area and i would go the opposite way, and I WOULD BE THE WINNER, not you support...
^I can't see the image is there any good example of what is happening here? Is this similar to what's happening in A?
no trade for me, price arrived back too early, remember rule number2 anyone in my room if price comes shooting back straight away no trade, a area needs to "MATURE" and be away from the area for a while. no trade for me, if you did trade it, still good for 4 pips. But didnt meet my rules, next one .
^If it comes shooting back is like what is happening in the END of my image? That means it's a no trade? because now losing its way?
{quote} yes you starting to get it, my supply zone is my sell, way up near the money, then that creates the pinbar and PA then creating "SENTIMENT" making more people sell, and then we get the bandwagon ppl joining the new trend and riding causing this price to fall, all while i got in virtually near the topim glad your seeing this way now, good work, keep it up
Sorry for all this questions.. Thanks again!
- #1,848
- Dec 31, 2017 12:10am Dec 31, 2017 12:10am
- Joined Jan 2011 | Status: Senior Member - Pro FX Trader | 2,736 Posts
Wow the feed looks very different on Forex ltd.
How was your blue rectangle's limit based on though? the lower side. Because on my chart, on the 4H it basically looks like that zone was consumed. (though it still ended up holding price). No pin bars on my feed. So you basically touch trade your entry? no confirmations then?
How to know if these zones will hold though? Do you look at the dollar index ? (if it's located at a supply or demand zone). Or do you simply accept the 50/50 chance of it failing?
I get that you're picky about the zones. Look at confluences with fibs. but how long do you let these trades run? Just to the next logical opposing zone of the same time frame? For ex, daily demand to daily supply. What if price violently turns against you before reaching your target? Simply trail stop from the start? (wait for daily candle to close, then if price still goes in your direction, move stop under or above next daily candle wick ?
Or is the trade management different at all?
Just another question. Why the daily ? Doesn't that reduce your trade opportunities? Or are there plenty of opportunities every week?
Do you just find the daily more reliable? Or is it too stressful to trade 5, 15 or 30 min time frames?
How was your blue rectangle's limit based on though? the lower side. Because on my chart, on the 4H it basically looks like that zone was consumed. (though it still ended up holding price). No pin bars on my feed. So you basically touch trade your entry? no confirmations then?
How to know if these zones will hold though? Do you look at the dollar index ? (if it's located at a supply or demand zone). Or do you simply accept the 50/50 chance of it failing?
I get that you're picky about the zones. Look at confluences with fibs. but how long do you let these trades run? Just to the next logical opposing zone of the same time frame? For ex, daily demand to daily supply. What if price violently turns against you before reaching your target? Simply trail stop from the start? (wait for daily candle to close, then if price still goes in your direction, move stop under or above next daily candle wick ?
Or is the trade management different at all?
Just another question. Why the daily ? Doesn't that reduce your trade opportunities? Or are there plenty of opportunities every week?
Do you just find the daily more reliable? Or is it too stressful to trade 5, 15 or 30 min time frames?
Good morning from asia session.
I am still paper trading and so far I have mixed results with indicators and better results with PA Support Resistance. I found this thread last Saturday and i've pummelled through until page 70-ish, some of rockys thread, read articles re: SD zones and couple of hours of youtubes vids. Tried to wrap my head around this concept but was unable to completely get it looking at the price histories last night. So I decided to sleep on it. This morning is saw a setup and took a trade. Made a good 16 pip out of it. Looks very promising indeed!
That is, of course assuming this is not a fluke and if I can replicate this trade consistently in the future
Therefore I appreciate forum member's advise if my logic was correct.
GBPUSD 5min, 01:50am MT5 time.
a. From candle 1 and 2 I identified the supply and demand zone. I was a bit skeptical about this setup since to the pull back occurred relatively quick and the fact that this is a 5min chart and those candles and the pullback occurred last Friday (would you consider these valid considerations?). Appreciate if you can adv if I have identified the zones correctly. The candle 2's super long upper wick confuses me, more on that in point c.
b. Until 02:05 MT time, things are shaping up nicely. Put a buy limit order just a hair above and SL below the demand zone. My order was filled shortly thereafter (candle 3).
c. I actually have put the TP above the supply zone, reasoning : the zone had been tested several times prior.
d. The ride north was smooth but I actually chickened out and closed the trade manually (candle 4) because I was unsure abt the boundaries of the supply zone. Eventually the price actually hit my initial TP. If I identified my supply zone correctly, can I say that the price have formed a new level of supply zone (3 candles after candle 4)?
Thank you for the OP for sharing this strategy and I appreciate fellow forum member's input on the above.
Brgds/Spot
I am still paper trading and so far I have mixed results with indicators and better results with PA Support Resistance. I found this thread last Saturday and i've pummelled through until page 70-ish, some of rockys thread, read articles re: SD zones and couple of hours of youtubes vids. Tried to wrap my head around this concept but was unable to completely get it looking at the price histories last night. So I decided to sleep on it. This morning is saw a setup and took a trade. Made a good 16 pip out of it. Looks very promising indeed!
That is, of course assuming this is not a fluke and if I can replicate this trade consistently in the future
Therefore I appreciate forum member's advise if my logic was correct.
GBPUSD 5min, 01:50am MT5 time.
a. From candle 1 and 2 I identified the supply and demand zone. I was a bit skeptical about this setup since to the pull back occurred relatively quick and the fact that this is a 5min chart and those candles and the pullback occurred last Friday (would you consider these valid considerations?). Appreciate if you can adv if I have identified the zones correctly. The candle 2's super long upper wick confuses me, more on that in point c.
b. Until 02:05 MT time, things are shaping up nicely. Put a buy limit order just a hair above and SL below the demand zone. My order was filled shortly thereafter (candle 3).
c. I actually have put the TP above the supply zone, reasoning : the zone had been tested several times prior.
d. The ride north was smooth but I actually chickened out and closed the trade manually (candle 4) because I was unsure abt the boundaries of the supply zone. Eventually the price actually hit my initial TP. If I identified my supply zone correctly, can I say that the price have formed a new level of supply zone (3 candles after candle 4)?
Thank you for the OP for sharing this strategy and I appreciate fellow forum member's input on the above.
Brgds/Spot
Hi to all in here, thanks to all for sharing all the information here (especially deankenny21). I am new to FX trading and want to learn trading by supply demand. I read sveral threads and watched some Sam Seiden videos. My first step is to learn how to define supply and demand, then later on I want to use fibs and maybe bollinger bands to improve trading success. So here is my first my first chart (I tried to combine higher (daily) and lower timeframe (H4)). In this case i would take a long trade in the higher H4 demand zone. What do you think...
- #1,856
- Edited 1:26pm Jan 23, 2018 8:09am | Edited 1:26pm
- | Joined Jan 2018 | Status: Trader | 34 Posts
{quote} I agree with you on the zone on the 12th Jan, not sure about below it, didnt have the oomph upwards. How about H1 chart? Tested twice before, lets see what happens when price visits that zone.{image}
i am also not sure about the second zone as the consolidation lasted quite long, this means that in this time many trades had been placed without moving the price. So there are not many trades left that have to be placed when the zone is touched again.
Do you mean the demand zone at around 0.79481 (i downloaded your screenshot and tried to mark the zone)?
I am also not sure about this one, as there is a black candle right after the takeoff. and I also think, that the candles are not big enough, for me there was not enough power (when you compare the red candles where the price dropped from about 0.80330 to about 0.79530, price did not take off that fast). And it is the second touch, so it is not a fresh zone.
Did you follow what happened when the zone has been touched, it would be very interesting (can not access Meta Trader right now)?
Edit: You would have made a nice profit on the mentioned demand zone (see new chart attached), very weill recognized I would say.
Greetings
Mike
Hi, I would need some advice on this one. Do you consider the marked zones als valid demand zones (they only consist of one big white candle)? Thanks for your help. Greetings Mike {image}
Sorry I was preoccupied with something else. I actually was referreing to the small bull bar (17 Jan, 0900hrs MT4 time) in my post earlier. Tested once but seems we wont see it tested again anytime soon now
Ref to your last post I would agree with you, however as you can see these zones are not reliable to make trading decisions. They were just 'somewhat' respected by price. From what I gather, the confluence of zones in one timeframe with another along with fibs and TL will greatly increase the reliability of an identified zone. Pls have a look at this :
https://www.forexfactory.com/showthr...309766&page=10
Post #193 onwards. TS was rocky which I believe also mentioned by deankenny21 himself.
Im still trying to wrap the idea around my head myself. Hope it helps.
Spot.
- #1,859
- Jan 30, 2018 3:49am Jan 30, 2018 3:49am
- Joined Sep 2006 | Status: Trader | 10,704 Posts
Answer to a question in PM "Hi Dean Kenny, thanks so much for that CADCHF trade, I have not taken any profits yet and unsure what to do. I see you have now taken full profits, can you tell me why you are not aiming any higher" I would prefer to answer this publicly as to not only help the PM but also all those that are following. If we move up to daily on the CADCHF we have entered a "DAILY" supply. Which I am not going to war against, so 3:1 trade will do me just fine
every Saint has a past. Every Sinner has a Future
