I have posted a 40 minute video on youtube over the weekend about the core concepts that make up what I have explained here so far. It just is so more complete in spoken word and video format that typed text and screenshots. Anyway I don’t know if I am allowed to post it here or not and I don’t want to get this thread in trouble because we are staying on point so far. It’s an easy youtube search for you to find
Awesome, I always preferred live narration over reading then scrolling up/down and applying it to the charts being referenced. Thank you for taking the time to put the video together. I plan on posting one or two setups i have taken/plan to take in the future. I hope you wouldnt mind scannin through them and giving me a few pointers/ideas if ya have time.
Success n nothing less,
RoP
No problem Rich, I’d be happy to give you my thoughts on whatever you post.
Here we go…
Can i get your opinion on how you might gauge the strength of these levels? Which levels/areas really catch your eye? Which ones would you most likely ignore? Its just a 4H chart of the USD/CAD at this moment if you’d like to get a different look at it.
Thanks in advance,
-RoP
Your levels/zones look good RoP for potential swing turn locations,
watch out for the recent swing low also though, it exists.
The only way you can gauge their strength is by waiting for price to return to them and react, or not.
Then you can observe short term market structure and following that candlestick proof as an entry trigger.
It depends how the wave structure looks at that time when price gets to a zone,
and also how the overlying long term wave momentum is looking at that time.
The trend line or channel approach to measuring momentum is handy,
with it you can see which horizontal areas will be most probable to react
There is no point looking further ahead than the very next potential buy and the very next potential sell,
then letting whichever of the two present enough evidence that convinces you, and with good risk:reward always.
This top area it is currently at looks to be trying to prove itself for a counter trend long term wave turn south.
What I see on this USDCAD chart is that a clear really fast wave flow is also quite prominent
and that last move up was quite forceful so to be comfy with this sell
I would like to see a real quick double tap to prove slowing and then a candlestick entry to follow that.
Just like it did when it made this latest swing low that you do not have a zone drawn on.
Ok, I guess a problem I have is applying both the longer term and short term market structure together. How would this look for examining the longer term structure?
So the blue triangles would be LT swings and the red would be ST swings within the last LT swing. I guess I’m not sure how far to look back to find where the LT trends begin. The blue and red triangles at the very top means that it is potential for longer and short term swings, would that be reasonable?
Long Term: Has made 2 up swings, 1 down swing. Thus, we are expecting an eventual strong downward move.
Short Term: Also made of 2 up swings, 1 down swing. Can also be looking for downward move.
Any snippets on this analysis would be appreciate.
Thanks
Hi RoP,
I wanted to introduce multiple timeframes after the concepts but now feels like a good time.
Doing everything on 1 chart is possible as a start point but using multiple charts I find is easier to keep your eye on the big picture and monitor 2 or 3 “scales” of movement.
Here is a picture of USDCAD monitoring 3 scales of wave.
If you wanted to stick to 2 then you would just use the D1 and H4.
When using multiple charts you are able to look for the same size swings on each chart
…but by default they are different “scales” all by themselves.
The faster chart at the bottom can be H1, M30
(it is possible with M15 too but requires skill and means a 4th scale)
As you can see in the USDCAD picture,
the trade today was counter-trend Green at a great location for it …
counter-trend blue but with a double tap trying to set up after a few waves up that are weakening…
red is counter-trend also so the safe trade that you can treat as a blue trade is when red sorts itself out.
You could have traded the sell today but only as a red counter-trend wave which means target had to reflect that fact. It already hit target at the time of this pic… the mirror flip of previous red high.
Let me know if that clears things up at all?
RoP,
Your USDCAD finally did set up as I had outlined as my preference on the evidence side.
Unfortunately it was also on NFP afternoon which would throw many off.
However, if you were able to use the 3 timeframes to view the 3 visible wave “scales” as I outlined in my previous post you could have entered much tighter with better risk:reward AND hours before NFP.
Note that watching these 3 scales you could have also traded that first sell wave down as was outlined in the previous post AND the buying wave back up to set up the sell outlined here.
So adding a 3rd scale adds complexity somewhat but is very beneficial to master.
Ok I’m starting to get it though its gonna take a bit of practice. Your charts dont seem that clear to me at first glance but the use of wave structure is still very new to me. Ive started settin all my pairs up with seperate charts for Daily, 4H, and 1H so well see how it goes for now.
In your core video I watched online I believe it said that there would be another video that dealt with methods/software for practicing this technique. Would you happen to know when I can expect this to be released?
Once again thanks for the explanations. Looking forward to any/all information you plan to keep postin here.
-RoP
Also, looking at your charts more, it doesnt seem like you like to mark areas where recent resistance has been broken in uptrends and where support has been broken in downtrends which create the potential for what I like to call flip zones (support turn resistance/resistance turned support). Rather it seems to me that you mark only proven support in uptrends for buying and proven resistance in downtrends for selling(when ur trend trading, not counter trend).
Am i wrong in saying this? If not is there a reason you tend to not mark the “flip zones.” I find they often have held relatively well in strong trending markets and with candlestick/trendline confirmation are quite accurate.
Couldn’t locate the video. Could you give the channel name or such ?
I had some family business to tend to this past weekend so I didn’t get around to the next videos yet. I will take care of them this week.
What is marked in on my charts is done automatically by an Indicator by looking below and to the left of price, or above and to the left of price. What I call mirror flips as outlined in my video is something you have to do manually. Personally I don’t feel the need to draw them in and just observe them manually but there is of course no harm in drawing them in if it helps you remember them.
you can check my BabyPips profile to find your way to the videos. I am still not sure of the rules here and don’t want to link to offsite material without asking first. I will email the Forum owners and ask because I do see an insert video button here when posting.
Hi efxpa,
nice thread… thanks for teaching us:-).
I have red marked 2 candles in the pic below . i find those candles marked are qualified for entry based on your core statergy. I don’t know why you skipped those and took a entry later.
Please clarify
Crazy how I still remember that trade even though it was 2 years ago 
My thoughts at that time were summarized in the post and I have included the quote.
That said though, I could have justified your first marker as an entry based on the Split Double Tap location but I would have had to talk myself in to it as I was waiting to use Point A originally… until Point B created itself and I had the new proof I needed to change my mind.
If your first entry was taken… it would have been a small loss followed by the larger win and all part of the job.
At the time of your second marker I see a smaller scale wave flow against me so waiting for the Point B creation and retest was still the way to go at that juncture.
Thank you for your answer, it makes sense for me
You are welcome Vijaim
I trade this way on the 1 HR charts have only been doing so since I ran into Sam Seiden’s stuff on-line just stripped my charts of everything and now just trading supply and demand zones off the hourly charts and sometimes I catch 2-3 trades a day at 50-70 pips a trade sometimes you only get one trade a day but hey 1 trade at 50 pips or so a day isn’t bad either. I use to do well trading daily hi and low rejections as well, but find I do better and have an easier time of it just trading the supply and demand zones because your profits come fast when you pick the right zones because all the instituational traders have eaten up all the orders and moved the market in direction of the next level. a lot of times the trades on the 1 hour charts only take 1-2 hours to complete then I go out and run or do lunch or workout for awhile and come back and look for another set-up. I fid if you work with the 1 hour or 15 minute charts using the supply and demand method that there are so many opportunities for trades on a daily basis that you couldn’t take them all if you tried so I pick 2-3 per day and i’m happy with the result .
you missed the very top level of supply that rally base drop on top of the chart is a level of supply that would have been an entry point as well remember look for rally base drop drop base rally and rally base rally and drop base drop. also remember look for only fresh areas of supply and demand meaning areas where price hasn’t came back to yet if your basing trade off previous areas price is liable to shoot right through that area because all orders may be swooped up by the instittuational traders .