Hello All,
My name is Nick and I am from Omaha. BabyPips is where I began. I was never an active participant in the Forums nor did I even really know what/how the market worked until I really started reading.
Let me start off by saying the School that the Fx-Men have put together is outstanding. They teach you the basics but also allow you to dig deeper for your OWN trading style, which everyone must have. I would not have the drive and the success I do today without those beginnings and I thank you.
I am here to introduce my trading plan. I will not be giving signals nor am I trying to sell anything, I just want everyone to be able to learn the things I have learned.
Big ups to redsword11 and emene at forexfactory for allowing me to follow their threads and to learn as much as I have. Im not saying hey everyone go to ForexFactory just saying thats how I learned 
As the title of my thread suggests I trade what I consider Supply and Demand zones with the help of divergences and price action. I dont trade too often, I try and limit it to my 4 pairs - EUR/USD, GBP/USD, EUR/JPY, and GBP/JPY. I dont trade huge money otherwise I would be all over Oil, Gold, and Silver.
This first post is my introduction so I will follow with example charts. I will post entries as they happen and show you if I win and why and vice versa.
My plan is relatively simple:
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Identify Supply and Demand zones with ENGULFING BARS. In my experience these are the most important candles in trading. You can SEE the imbalance with these bars. Go into your chart and look for this pattern.
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Use the same engulfing pattern to enter the trade. This is when I drop down to lower time frames - Find the zone on 4 or 1 hr and look for engulfing patterns in that zone on 5 or 15m depending on Cross.
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RSI Divergence backs up my trades but does not necessarily have to be there for entry.
Feel free to post any questions, Ill be back at Tokyo Open with some charts.
And I almost forgot. Please Please Please use charts to demonstrate points. I will NEVER post an entry without a chart. What kind of BS is “Went long at blah blah blah” who the hell cares?
Participation!!!
I encourage anyone and everyone to ask questions and have fun.
welcome to the forum. support and resistance/supply and demand are indeed crucial when it comes to trading, I give a lot of importance to them in my analysis. I’m curious, are you limiting all of your entries within these engulfing bar zones, or do you enter outside of these zones? if the latter, how important are these zones in your exit strategies? good luck
by the way, I couldn’t help but notice the zone highlighted in your chart looks like Bullish engulfing candles, yet you mark the zone as Bearish engulfing bar. can you clarify, since it looks like that zone favors long (bullish) price action?
Looks like you trade just like Jay (eremarket). supply demand really works. good luck to you
Hahaha, Sladha thank you for clarifying that is INDEED a bullish engulfing bar. I apologize.
And to address your questions I use these zones to enter exclusively. That limits my number of trades and limits my EXTREME FEELING of wanting to be in the market ALL the time. Also, it has been extremely reliable. There is R:R involved and I will cover that later.
Thank you for asking about exits as well! I will post more! Thanks for your interest.
Here is a setup I see on GY.
Here is an example of why Multiple Timeframe Analysis is crucial. You will see this setup on all time frames, you just have to look.
The 5 min chart doesnt show anything of interest other than past resistance. 1min however…gold mine.
One more before I post entries. I have 3 confirmations potentially RSI div, a zone, and a fib. (Cant remember what this is called)
Cheers.
Thanks Sweet Pip!!!
Heres the first entry. 61 fib plus engulfing off of 1 min. Im only looking for 10-15. I split my entries into 2. 1 secures 10-15 the next i leave to run. As soon as I hit my 10-15 Ill set my SL to BE.
An Explanation of TP and such.
Didnt expect this to work so well…
Edit : Out at close of 5 min candle.
There was another explosion this time on 5m eur/jpy. Will someone post a chart of the engulfing?
Nevermind, I shouldnt ask until I see frequent participation.
This is my last post until Tomorrow. If anyone is demoing check this out.
There are always multiple potential zones. The key is to WAIT FOR CONFIRMATION. This is where the engulfing bars come in. No limit orders, no guessing games.
Edit :: EXACTLY WHY WE DONT SET LIMIT ORDERS. See everyone around Tokyo Tomorrow. When I head back to work Ill be able to trade London which I love…my work schedule is weird. GOODNIGHT EVERYBODY
I like your strategy, seems quite simple and fits my style 
I have few questions…
first the silly one, I still did not manage to put the fibonacci levels on my MT4. how did you do this?
then the second, about the confirmation for entry, when do you enter? with the RSI, or with the end of the first bullish candle?
Perhaps someone who understood this can answer too.
Thank you for the inquiries.
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Fib is pretty subjective. It won’t always be clear. But the Fib tool in mt4 is right next to the trendlines. Wherever you begin the Fib is 100% so make sure you are aligning them correctly. You’re looking for the most recent swing high and swing low. Still the engulfing is the most important.
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As for entries I am very docile. Gotta have confirmation with an engulfing pattern. RSI is a lagging indicator but great for divergences. Engulfing patterns are the closest thing I have seen to a leading indicator.
If you never have Google Sam seiden. One of the best resources for suply and demand
Out of curiosity, why don’t you consider pinbars as well? I understand that sometimes 2 bars that make an engulfing pattern on one timeframe, can blend together and make one pinbar on a higher timeframe.
If I ever got around to explaining my strategy for S&R bouce-offs this is quite similar. Engulfing bars is a nice idea, I’ll have to see if I can apply it to my strategy. Keep us posted with your results, I’m very interested.
Sweet Pip I truly appreciate your interest.
Pins (I will refer to them as wicks and pins) can mean many different things. Both REJECTION and CONSUMPTION.
I will have a chart shortly to illustrate the difference.
It will explain my reliance on the engulfing pattern
These Big Market Makers must think we are stupid…1.4400 on a 50 fib with loads of previous rejection. Whos with me?
Ill post more as it develops.
