Supply / demand question

Hey everyone. I’ve been trading on and off for the past 2 years or so. So I wanted to ask if my analysis on EUR/USD is correct on this supply and demand method. I’ve seen pretty much every video you can imagine on YouTube on it and wanted to ask someone that’s more experienced than myself if Im understanding this correctly.

Thanks for any inputs or comments in advance.

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First of all, welcome!

There are different ways to determine SD areas, but it looks like you’re on the right track here.

I have a more relaxed approach. I use 4H candles and look for consolidation of at least 3 shorter candles before the breakout candle, which is usually a candle that gaps, or stands alone.

My zones are smaller because of the 4H candles, but your D zone is in the same area as mine, and your profit target 2 matches my S zone as well, which would also be my target if I was trading SD on this pair. I’m bearish on this pair, but this is definitely a play I’m watching.

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Thanks for the welcome and i really appreciate your reply.
I can see why your bearish on the 4 hour time frame because the structure of lower highs and lower lows. I think im starting to get a good grasp on this concept of SD along with Distribution (side ways movement). I understand your support and resistance channels as well. so from looking at it purely from a SD strategy if I would have caught this say 3 days ago, i would have been thinking something like the image below. I would have entered on the 4H and set my take profit on the demand zone on the daily.
I want to thank you again for your reply and your input. this site is great and I hope that I become good enough to contribute and help other people out on here as well.

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There’s good reason to be bearish on this pair, period. Just look at the current downtrend on the weekly chart. And you can’t ignore important SR levels either which could turn the whole thing around:

IMO, It’s important to look at the full picture, not just SD zones, simply because in a long-term uptrend Demand zones can sit idol for months, even years. Same goes for Supply zones in a long-term downtrend.

I don’t trade SD zone exclusively, I just use them as part of the bigger picture. Some of these guys who trade them exclusively can be complete Nazi’s when it comes to the rules, but for me I just take what makes sense and move on. So, trading SD on Daily charts is probably the best way to go since that gives you a better look at the bigger picture.

I was looking at Babypips Market Milk on the EURUSD pair earlier. I also been trading S & R and I am going to utilize it a lot more.

tabiuslee

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In the “Grand” scheme of things, all i see is bearish momentum for EURUSD on a daily chart. Once SUPPORT broken, DEMAND becomes SUPPLY .

Very nice chart :grinning:

tabiuslee

yeah i get what ur saying if support is broken then it becomes resistance. same for demand and supply. I see that price is going down, from what i been reading and seeing on youtube would i wait for price to enter my demand zone AND THEN flip to either the 4h or 1h chart and see if price for example begins to break structure and make higher highs / higher lows in that area OR like you said if it breaks support then just simply wait for a retouch and take it to the down side?

Great discussion. Following along.

so heres a trade i opened a few hours ago on eur/usd and my thought process. any opinions?