lt’s not W.H.A.T you do, but W.H.E.R.E. you do it that counts.
I prefer the bolder approach of entering via limit orders without looking for candlestick patterns, MA crosses, oscillator readings, etc.
lt just comes down to W.H.A.T you see and W.H.E.R.E. you see it.
Those Charts tell you everything you need to know about current positioning on the currency pairs. What can’t speak can’t lie. Just trade the flow. Your trailing profit or exit stop will take you safely out of the market if your timing is off.
Let the market flow tell you when it’s ready to turn over. What’s all the rush about trying to front run it?
Hi SanJ, good trades. When I was using supply/demand zones I noticed two important criteria for identifying the best zones.
First is to always look to the left of the zone. If the zone aligns with support turned resistance (or resistance turned support) it is a great zone. This is true of your first trade; you can clearly see that this level was resistance during 1st-2nd April.
Second criteria is to only take the first touch off a zone as every touch increases the probability that the zone might be breached. Your second trade was a second touch off the zone, so even though it worked this time, in the long run it might be better to only take first touches.
I don’t want you to take my word on this and change anything immediately. Just keep these points in mind and see if they make sense to you as you gain experience with using supply/demand. I’ve ended up customizing my zones so much that I don’t consider them the same as the usual SD zones anymore.
There’s no rush to enter early, but in my experience the benefits of seeking confirmation are dubious. You can still get stopped out after all kinds of confirmation. I place my orders at zones where price just needs to move a short distance to show me that I am wrong.
Thank you Pippatron, all good advise it sounds to me…
As i said ive only been trading with supply and demand concepts for a short term so i will definitely take any pieces of advice into consideration… I also quite like the idea of looking for areas of supply and demand which have a confluence of support and resistance within - something ill definitely start looking out for…
My work hours have been crazy lately so I am trying a new way of managing my orders. I will be breaking up my position and placing two orders with the same entry and stop loss but different profit targets. The first target will be conservative and will act as a break even if the second part of the position hits the stop loss. The second target will be more aggressive.
I got home at 10pm yesterday, took 15 mins to do a quick analysis and place a couple of orders.
Placed a total of four orders for NZDUSD (Order A and Order B are composed of two limit orders each):
Thanks for following EJ. I strongly believe that swing trading is the way to go if I want to turn this into a full time profession. Less effort, less stress and more clarity. I’ve tried lower time frames and didn’t like the fast pace and the vulnerability of stop losses to random noise.
I’ve set up my risk management principles so that they compel me to risk less on lower TFs so trading on higher TFs is more rewarding for me.
I took this trade also, As you know it stopped out. I gave a pretty wide stop for a breath. Now I see I should have put stop previous sing high. Anyway it’s a learning curve.
Hi Salim, you might have noticed that I have been tightening my stops lately. The reason is that once my entry zone is broken I consider my trade idea to be invalidated. If I give a wider stop loss I feel that I am depending on hope/luck rather than my analysis since the zone I was interested in is already broken.
I would rather absorb a small loss and re-enter at the next zone if my bias is unchanged. In this case I was aiming for an AUDUSD short if the GBPUSD zone failed. You can see above that the AUDUSD entry was missed by 3 pips but price did fall 85 pips after touching the zone.
hey pipatron! noticing lots of AUD/USD trades here… i like that a lot!! always 4H chart… moves pretty slow right? i get lots of trading on the 15 minutes chart, sometims the 1hour chart too. how do you wait that long, is it for bigger moves= more money? dont worry im “amateur chartist” too lol, your charts look better than mine though. thanx!
Neo wasn’t able to conquer the Matrix until he started seeing things in bullet time. I like slowing things down by trading off higher time frames.
I have taught myself to enjoy the analysis, and to suppress the thrill of the trade. I don’t feel the need to take a large number of trades and in fact limit my total risk exposure to 5% of account balance per week.
I like AUDUSD too, it is much less erratic than some of the other pairs and respects support and resistance zones very well.
I took some time off from the forums, but have been busy trading and improving my method nonetheless.
The core principles remain the same, however my system is not entirely manual anymore. The directional bias and zones are still set manually by me, but I’ve written an EA to manage the trade execution.
Rationale:
[ul]
[li]Retain advantage of manual analysis
[/li][li]Eliminate emotions from trade execution
[/li][li]Limit screen time to a bare minimum
[/li][li]Avoid missing good trades due to unfilled limit orders
[/li][li]Avoid entries against ongoing impulsive moves
[/li][/ul]
Hi Salim, the profitability will depend on how well I choose my zones, which I am still doing manually. The EA is just a tool that I am using to enter and exit trades according to the zones I draw and it doesn’t change the strategy I have been using in this thread.
There were certain disadvantages to using limit orders, mainly missing entries by a few pips on good trades, and vulnerability to news spikes which can just shoot through support/resistance. I’ve been using this EA in my live account to help deal with such scenarios.
