Hi, Andy,
Thanks for stopping by! I hope you get some benefit from this thread. Whenever you have questions, feel free to post. Also, feel free to post your charts (if they are S/D related) if you think it might benefit the other readers… Now, sorry for not posting recently, guys. I took a short trip to Paris last week, so I wasn’t online and didn’t trade either. I will do some more posts here soon.
Hope you all enjoy your trading!
Just to let you know that you are doing a great job. I am learning a lot from this!
Keenly watching from the sidelines, will post some charts when I get the hang of it!
Thanks a lot!
Greatj job boys…
Hey TL,
This thread is just great and gave me a chance to understand the market & the price action much more better. So keep on the great work !
I’ve identified areas of energy but needed to be sure that am doing it right in order to move on to the scoring step. Would you please tell me what do u think ? Sorry am not used to the attachments here so maybe it won’t be clear.
Thanks a lot.
M. Metwally
Hi, Masmito!
Thanks for the nice comment. Regarding your screenshot, the first level coming from the top is actually a test of a previous area (look to the prior high), so I would look to enter near the high of the area you marked, with a stop loss above the previous high (1.3598). The other supply level you marked is not easily identifiable on H1. If you go to M15, you will see it more clearly and you will also see why price broke through it (we had a consolidation right below it, then a break above.
The demand area is fine, but again it’s just a test of a wider H4 area, so it’s not very reliable. Also, the move up from it wasn’t that strong. The conclusion is: be careful with multiple timeframes and if you are trading retests, try to use a confirmation order (wait for price to get inside the area, then enter on a stop order as it gets out again).
Hope that helped 
Hi, guys,
Long time no chat! 
Here’s what I see today on the EURUSD.
Daily:
Hourly:
15 Minutes:
The daily chart shows that we’re just getting out of a demand area and nowhere near supply, so our bias is to the upside for now (as long as we don’t go down through the demand area).
On the hourly chart, I am waiting for 1.3122 to bust. We’re ranging between some temporary supply/demand areas. Once we break 1.3122, the next hurdle is around 1.3180-1.3200, but the final target I have in mind is at 1.3290.
We can see a better picture of this on the 15 minute chart. I would be waiting for some more tests on the 1.3100-1.3122 supply area, with fresh demand forming just before it breaks up through it. A fresh demand area would give me a structural place to put my stop at (just below).
Hope you guys will jump in and let me know how you’ve been doing and what’s your view of the market today.
Cheers!
Marian
Hi mate,
With regards to the EU would you take the huge bearish candle a couple of days ago into consideration when looking to take a long from that demand level?
I would take into consideration it’s big upper wick, which in most cases, when price hits demand, means “absorption of supply”. The wick cleared up the supply in that area, so that price can be free to move up. Also, if you have a good demand level, a “strong” candle right into it is usually a good sign (please refer to the “fresh obstacles” factor we discussed in the thread - a clean huge candle means “no obstacles” for price when it reverses). Hope that helps?
Thanks
Sorry for the late reply TL.
I’ve tried to identify energy areas in EURGBP Daily chart where the top supply area was formed on Jul 1st, 2011.
I’m trying to fully understand the energy area identification before moving to the scoring.
So are the areas marked in the attached screenshot right ?
Thanks
Hi, masmito,
Sure, those are areas of S/D. I don’t think you have a problem with identifying them right now (just pay attention to small consolidations followed by unidirectional movement out of them). The thing is, some of the levels you have in there are pretty weak, so you should get into the scoring
Thanks
Hey TL,
I’ve started scoring the energy areas in that EURGBP Daily chart (the supply areas), am sorry for the unclear images but am not authorized to attach IMGs so far.
This’s the 1st Supply Area with total scoring of 10 where:
The 2nd Supply Area with total scoring of 13 where:
The 3rd Supply Area with total scoring of 8 where:
The 4th Supply Area with total scoring of 14 where:
So what do u think so far ?
Hi, masmito,
Looks good. Sorry for the delay in my feedback. Be careful with “Fractality”. That should be based on the higher timeframe, so since you are on the daily chart, I will assume you looked at the weekly or monthly to determine that, correct?
Otherwise, your scoring seems fine. None of these levels score so well yet, but with the help of good “fresh obstacles” factor (determinable once price is near the levels), some of them could be worth a shot. Also, on your 4th level, I would give it some points on “bricks upon bricks” also, since you have another supply level just a bit above it.
Hope that helped. Good luck!
Hi Toplessons
I have a questions. Due to time differences and work commitments I can only really trade the daily charts or the much faster like 15 or 5 minute charts. If I look at hourly I only get to see about 3 bars a day between getting home and going to bed.
My question is this - If I am looking to trade S&D from say the 15 minute charts, would you still refer to the daily to see if price is moving away from supply or demand or would you look at the hourly instead and then drop down to the 15/5 minute? Unless we are right in daily S or D then the two time frames seem so far apart that using the hourly instead would seem to be more relevant.
Going to post some charts later, appreciate your help!
Hi, there.
Yes, for the 15 minute, the Daily is a little far off to measure the big picture. I wouldn’t go higher than an H4 chart for that. Trading the Daily chart (with weekly or monthly for big picture) is also problematic, unless you have a huge account. It will require large stop losses. What I do sometimes is use the 15 minute S/D areas but watch as price reacts to them on the 1 minute timeframe, then trade on certain patterns. For example, price enters an M15 demand area, makes a double bottom and I trade the breakout (buy) of the minor intermediate top inbetween the bottoms. That should allow you to take a few trades before going to work (or after you come back from work). I will try to post some examples.
Here’s an example of a scalp I just made on the EURUSD. It’s a LONG from an M15 demand area. One minute chart view:
M15 chart view:
It was only 1:1 risk/reward, because supply was also close. I just entered with a market order, then set an 8 pip stop loss (just below the little 1min consolidation that was formed while rejecting from the area) and 8 pip take profit.
Hope that helps, guys. This is a nice way to take some fast pips, if you have a busy schedule.
Yes that makes alot of sense thank you
Well, TL,
I’ve looked to the Weekly chart for Fractality and the price was moving from Supply to Demand but was closer to Supply.
I didn’t think that the 4th level can be considered as Bricks upon Bricks as there’s about 34 pips between the 3rd and the 4th level and didn’t seem the case to me to be honest but if we’ll consider it as Bricks upon bricks then the total score for this level will be 16 before measuring the Fresh Obstacles.
For the Fresh obstacles factor, i must say that am having some hard time understanding it … so would u plz help ?
Thanks
Mohamad
Hi, Mohamad,
Be aware of the fact that 34 pips on a Daily chart is very little. If it was on a 15 minute chart, then yes, you wouldn’t count that as “bricks upon bricks”, but on a daily chart you would.
For fresh obstacles, you are looking at the latest obstacles formed as price moves towards the level. For example, if you intend to trade a Supply area, you need to watch the newly formed demand areas, as price moves up into the supply area. If there’s a strong fresh demand area forming within your profit margin area, that is not a good sign, because when you go short, that fresh demand area will stand in your way and might support price to break through the supply area on the next touch. Does that make sense?
You’re right about the Bricks upon bricks note, i’ll pay more attention to it.
And actually Yeah ! that does make sense and the Fresh Obstacles factor is more clearer now. So what i got is that if a new strong demand area formed in my profit margin area the Fresh Obstacles’ scoring would be Zero and if not (like “clean sharp moves into our entry” as u said in the earlier post) then it would get score of 2 … Right ?
