BumaSoft's Market Model

Right!

Here’s a one minute chart trade I just took. Are you guys still trading or what? :smiley: (trade was based on an M15 demand level between 1.2993 and 1.2987 - check it out)

This is my winning trade for today on the 1 minute chart ( +26 pips ), based on the M15 demand zone 1.2927 - 1.2922.

I took another earlier trade today, which was a loser ( -10 pips ), so the overall was +16 pips for today. Here is the losing one. It was an attempt to get on the LONG train too early:

I am waiting for you guys to start contributing here. Except Mohammad, who has been trying to interact a little lately, all of you seem to have disappeared and I feel like talking to the walls. LOL

I suppose you guys are also making pips, since you are so silent :slight_smile:

I have another PA based strategy that I use consistently but am still trying to get my head around this. However I felle a bit like im going round in circles and just cant seem to get the hang of identifying areas that hold on on a consistent basis.

I will post some charts later today

What are your thought on these areas?



Hi there,

The one in your second screenshot doesn’t look good at all, because that area has been visited by price a lot in the past (look at that chop before the move up). There must be some level to the left, below this chop, that’s really triggering the demand. You have to be careful with these. They aren’t “fresh”, they are reactions to something else.

On your first screenshot, the one you marked is also a reaction from a previous demand area (just below, a bit to the left), so I would use that one instead and trade the second test. If you trade the one you marked out here, you risk being stopped out and then witnessing price go up again just to annoy you :slight_smile:

Hope that helps.

Good Morning TL,

I wanted to ask u if this can be considered as a demand area although it’s the start of the new week and there’s a GAP just above it (which is already have been absorbed earlier today as seen on the chart)

Hi, there,

Here is my view on H1:

And a more detailed view based on the 15 minute chart, where you can see what happened there:

Hope that helps. Basically, always pay attention to what’s on the left of the areas you pick. They might just be reactions to prior areas, so they won’t be very strong on a subsequent test. On the M15 (and then H1), you will also notice that the GAP created a little supply area at first, and as price broke up through it (with a nice big M15 candle), it acted as demand when price retested (area C). So, that was actually a better demand area for you (it’s actually the low of that big H1 candle).

This is super helpful and slowly is starting to click into place, I really appreciate your help

on this chart, would you class the initial supply area as fresh or is it not fresh becuase of the prior swing high which only had a small reaction (the arrow)?


How about this one? Is it a good RBD level, or is it a retest of the DBD level prior?


I would consider that one fresh, since it exceeded the previous high by a few pips, therefore signaling the possibility of further supply in the area. Also, the previous reaction was very small compared to the second one, so that also counts, plus the fact that this is a “swap” area (prior demand turning into supply). Of course, if we had more than two highs, I would most likely ignore it. It’s not 100% science, you have to read between the lines. It comes with watching many charts unfold :slight_smile:

This one I consider a test of the prior DBD area. If you do take the trade based on the area you marked out in blue (and price might just bounce from there), you should place your stop above the prior DBD though, to be safe. If you are not comfortable with the stop size, then try a higher entry (sell limit or market sell when price is near the middle of the area) or a confirmation entry (sell stop for when price dips below the area again).

Hows about this then? This seem to be the brick on bricks thing. Would you mind talking me through your thoughts for each zone and how you would play it…


I would be looking at those levels instead. I will get back to you with some comments later. Have to run and sort some things in town. Cheers!

Hi,

Sorry for the delay. Did you get the general picture or still need clarification? Basically, the differences between what I’ve marked and what you’ve marked are that I am paying a little more attention to the location of each consolidation area. You are right in saying you have bricks upon bricks there, that is why you would be giving more weight to areas that are nearer to the “foundation” of the bricks, like the one I marked with a circle on my chart. Those are stronger than the bricks that come closest to price, because when price hits a “foundation brick”, price will already be “weakened” by the previous bricks, thus giving more strength to the foundational one. Let me know if this is clear.

Happy Easter Everybody…

TL … I wanted to ask you if you can share your trades more often (whether successful or not) in order to help getting more experience with the strategy from you.

Thanks a lot.
Mohamad

This is starting to make sense I think. So you look at a bullish move from bottom to top, then find all the DBR and RBR in that move, and then look left to see if they are new zones or reactions to previous ones and off you go.

Right! That’s the way to go, but don’t “cut through candles”, i.e. only look at the latest price movement within an area to spot these levels, not in the far past. Makes sense?

Happy Easter, Mohamad!

Ok, I will post more often. The thing is, I don’t take trades daily (sometimes because of bank holidays, eur meetings, nfp or other nasty news, other times because I don’t find a decent trade setup, other times because I’m not near a computer; also, I mainly stick with just one pair now: EURUSD. Less stress involved). But when I do, I will post it here for you guys. They will be mostly based on M15 areas, traded from a 1 minute timeframe. I will give more details with the next trade.

Cheers!

ok speaking of 15 min eurusd, this looks like a good area to short from to me?