Hey all…just in case you didn’t see the update on the first post… Something has come up, and I won’t be able to do much with the live trading or webinars for at least a month. I will be around from time to time, to answer questions posted here, and elsewhere at babypips.
Jay
Thanks for the update Jay, good to see you still around.
Thank you for spending time with me last week. Although I am no where near ready for what you were explaining, it was interesting and you took the time to include me in the group and for that I thank you. keep well, do what you gotta do and keep in the loop…
I hope everything works out.Good to hear your still around. Hopefully by the time you see me again in one of your sessions you will see dramatic improvement.
We missed you!
You take care 
Hey guys…thought I’d post up a chart of a Forex trade i’m looking at:
long USD/JPY
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Top Yellow broken line at 77.25: First Entry
Bottom Yellow broken line at 77.25: Second Entry
Red Line: Stop for both entries
1st Green Line: 0.50% of position closed, and stops to B/E
2nd Green Line: - position closed for profit
This is a trade taken on the basis of orderflow analysis… feel free to ask any questions!
Jay
<3, that is all.
looks like a good one, but you never mentioned that you enter upon price hitting both ends of the zone… if that makes sense. Anyways it looks like a good trade to me from what you showed me last time… and if u didnt see or read my previous posts, those levels you showed me on EUR/USD worked like a focking charm. 
Pip… I’m actually taking a more aggressive entry for the first entry… it’s a small level on a 5 min tf, but it was the origin of the explosive move up in USD/JPY last time… the lower entry is more conservative, as it is just about at the proper swing low on the 1hr TF.
Remember, I’m showing a trade that I am in, and how i’m managing it… so I will get more detailed and do things a bit different sometimes than what I showed. But, the basic idea is the same: find a level where price made a very fast move away from it… and put an order there.
Anyway… I remember one of the levels… the one you posted about. Do you remember the others? would like to post that up here if possible…
Thanks PIP.
Jay
Ok…USD/JPY… that was Fast! Was expecting a pretty fast move… but not that fast.
ANyway, closed half my position as we pulled back and hit 7760… the rest at 7745. Averge fill was about 7752.
cancelled 2nd entry order. Quick 27 pips. hope everyone else enjoyed the ride
Jay
i dont understand very well why you enter in 77,25 and the second entre would be in 77,25 too?i think you have entried in these points because they are near a strong movement but i dont know how you calculated them.The points in which you make profit dont understand…perhaps the first green line is the 50% of the candle?and the second target i havent idea,hehe…i would appreciate a clarification post.Thanks for sharing this usefull information jay
Jay or any others, I am trying to learn this system and thought I would post what I see and if that is why this trades levels were created. Or the reasoning behind them. I included an image (hopefully it will work) See if you can follow my thinking. Critique and Opinions are what i am looking for
1: This is our standard D-B-R and the creation of a demand level (D level 1)
2: This is the origin of the large move up which represent the point at which there is large demand in a short period of time. Demand level 2
3: This is TP1 because it is a clear shot to a Supply Level (S level 1). Which means it is easy to take profit here and the move to this point should be quick and easy with only 1 green candle in the way.
4: These are speed bumps that will cause resistance and make it more difficult for price to make it to TP2.
5: This looks like a gap to me. Which is a huge indicator if supply which creates a strong supply level 2. Also it is the origin of the move down to #3.
So now the thinking. The entry above #2 is aggressive but is also the start of the largest part of the move. Conservative thinking tells to take the distal level which is after the D-B-R at #1. The distance of the entire demand level is large so you can expect that the price will drop down into the level farther down. As compared to a shorter and defined level. Also there is no guarantee to have both entries be filled. SL is placed beyond the end of the entire demand ZONE as standard practice. #3 TP is because of the clean shot up and #4 TP2 because of the huge supply level and gap. Also there is more resistance or speed bumps between #3 to #4.
Derek…man… you got it. Very well done. I think you have the theory down… lemme post up another EUR/USD trade… this one in the futures market that I took earlier today:
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I really don’t have too much to add to your analysis. Do this yourself in whatever markets you want…and you will do very well.
Just send me a postcard from your private island 
Jay
Ya i think im starting to get it too, the above makes alot of sense. Also MeiHua’s explanation is on par with what i have in my head. Thx Jay
Sticking with usd/jpy, how about a short on a H1 chart from today?
R/B/D zone up top between 79.85 - 79.90 forms supply zone area
TP around 79.00 where it begins to hit that base zone.
I don’t have the required number of posts to link my image. sorry. Couple more and I’ll post my images too.
-Bill
Bill… I wouldn’t choose 79.85 - 79.90 for 2 simple reasons:
It is not clearly defined… If I look at different time frames…say a 4 hr chart, I can’t really see that level at all. It becomes irrelevent. Also…I like to pick a level at the absolute high or low of a move… so, lets look at a 15 minute chart. There, you can see there are 2 candles that create the absolute high of that swing… from about 80.00 - 80.25.
That’s where my short order is. Remember…the higher up you go in price, the fewer people will be interested in buying. Therefore, if i’m going to put an order somewhere, I want to see it near the absolute swing high or swing low of a move, unless it is CLEARLY defined (such as the extreme move up that created that high of 80.25 in the first place)
I’d take a 2:1 risk reward on this… entry at 80, stop around 80.40, target around 79.20ish
Here’s a pic of what I’m shorting… Draw those same two red lines on your chart… and make it a 4 hr chart. you will see that it is the absolute high of that wick on a 4 hr. Stop is 15 pips above the high. The supply zone is between both red lines.
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Should be a beautiful trade 
Jay
P.S. Only the top two horizontal lines are the supply zone. Ignore the lowest horizontal line…that is just from where my cursor was when I took the screen shot. In between top 2 lines = supply zone.
BTW… hit my target on the EUR/USD futures as pictured above at 1.Here is a potential long I’m looking at on the USD/JPY… look at the 1 hr chart…my entry is just a LITTLE bit ito the wick on a 1 hr chart…the absolute swing low before the gradual, and then explosive, move up.
As pictured below is an 8 hr chart
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Also, just went short on USD/CAD spot… here is a screen shot. My little arrow at 0.9830 is my short entry.
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Tell me what you guys think
P.S. Stop moved to BE now… probably will stop out…but it’s a free trade now…it’s all about risk management
ok, well seems like I’m close in my zones. Haven’t nailed it directly but getting close
What do you use as your starting time frame? That’s where I’m confused. Start with 15M then work back to higher and look for my levels to be confirmed on a higher frame?
NICE. I’ve got same long on USD/JPY too. Starting to get it man!
I think the more obvious supply is 100 pips farther back at 0.9920-0.9960.
Surely that’s the closer origin of this recent lower high drop from 1.0000
