How I enter a trade using S&D
Step 1 - Clear all indicators.
Step 2 - Draw 20EMA and 50EMA. The sole purpose of this is to gauge the trend of the market
Step 3 - Open the 4HR TF and look for rapid price movement atleast worth 100 pips combined on 4 to 6 candles.Once you have identified these, you kind of have any idea where the price is bouncing off from which helps you identify your S&D zones
Step 4 - In order to draw a Supply zone, identify the highest price point where you saw the sudden burst of price moving downwards. Choose the Rectangle tool and start drawing the rectangle from this highpoint to nearest bar shoulder or feet of the current or the adjacent candles.
Step 5 - Pull this rectangle as far as you can to your right
Step 6 - I have hardly put in a a lot of Instant execution orders in this system. Most of my entries have been based on pending orders which went on to get executed. Here is how I put in a pending order in a supply zone: Once I have identified a Supply zone I calculate the price point at the highest and the lowest level on my rectangle and set a SELL Limit order right in the middle of these two points on the rectangle. I don’t remember if I read this entry strategy on some thread or came up with it by myself, but it surely has worked for me.
Step 7 - I generally enter 2 or 3 trades so that I can take some profits at various checkpoints in order to make sure I am atleast making some profits every now and then. Set SL a few pips above the highest point and TP1 at place on the chart where you saw the price facing opposite movement or Big round numbers. TP2, TP3 would have the same logic as TP1 but further away. Move SL to BE once TP1 has been hit in order to lock in $$$.
Here is one of the trades I am in right now which I had set a pending order on 11th jan but only got executed on 18th jan (Today).
I don’t think I am good at explaining stuff unless there are specific questions being asked so feel free to reply here and I will try my best answer them.
If others have suggestions for me in terms of how I can get better at this system, please feel free to share too.
Next up, I will post some of my other pending orders that I have in place. (Either today or tomorrow)