Where should i look for the Scruffy Trader?
I guess so, I’m just looking to leave this stage, I’ve grown tired of it, and I’m not actually talking about the profitability part of this stage, I’m just talking about getting the right concepts and knowledge part on the stage, it is what I’ve grown tired of. I’m sure once I can get all the concepts down and know which one I’m going to follow I can work harder and find an edge, but with all the information out there that sometimes contradict each other it’s really difficult to not get messed up in the head and overcomplicate things, which then leads to one not even knowing what to do at the end of the day
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It’s natural to feel like that ,you might hit an Eureka moment
Instead of supply and demand maybe think of it as buyers and sellers.
This is my understanding and @Lang15 and @tommor and others “in the know” can confirm or correct.
At different areas - price levels - on the chart are groups of pending sell and buy orders, once price hits these orders they are executed and price can move a lot depending on how many there are and which order type there are more of.
More buy orders price goes up, more sell orders the price goes down.
That’s my understanding but looking for confirmation from one the learned members!
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Youtube! His videos are great!!
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eveything in this world works on the suply and demand balance or inbalance, from groceries u buy to housing, sttocks forex and whatnot. supply in forex is meant to describe sellers, and demand buyers, ergo level of demand(support) and level of supply(resistance). the measuring tool for supply and demand in stocks and forex and everywhere is volume or activity in our case. that s how traders ussually recognise when large transactions are beeing met in the markets. i d suggest to look up volume and how it adheres to price, how to read price and volume to determine supply and demand (in any market). it s quite a large topic, so if interested look it up. there are here also threads that explain the hole concept, why does price move, why it bounces and reject a level or shoots straight thro and so on. as for the indicators, yes, i do agree that there is no such thing as oversold and overbought in forex, but they can be used, specially like ur using stochastick for divergences, that again can be used in any market. u have leading indicators such as volume and lagging indicators such as stochastic. both can be used for different informations and when u add all up u can create a confluence of events all pointing to the same thing(like a trade direction). again, very broad subject, there are lots to say and lots to explain… but if ur keen enough u can find all this infor online free of charge and study and draw ur own conclusions thro testing.
cheers
Hi xetatrader, Supply and Demand actually affect the Forex market, Here’s a quote from one of the topics in the school of pipsology https://www.babypips.com/learn/forex/market-players
1. The Super Banks
Since the forex spot market is decentralized, it is the largest banks in the world that determine the exchange rates.
Based on the supply and demand for currencies, they are generally the ones that make the bid/ask spread that we all love (or hate).
These large banks, collectively known as the interbank market, take on a ridonkulous amount of forex transactions each day for both their customers and themselves.
A couple of these super banks include Citi, JPMorgan, UBS, Barclays, Deutsche Bank, Goldman Sachs, HSBC, and Bank of America . You could say that the interbank market is THE foreign exchange market.
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SMA or EMA or Fractal lines, 
I think there is no such thing as getting all the right concepts. You can simply just trade trend lines only or just channels only or support and resistance only. What matters is how much trades you’ve put in this single trading method that you are using.
Let’s say that you are trend trading using trend lines and price action. To be successful what you have to do is only this.
In a demo account you have to put trades using your method. And journal each and every one of those trade. You do that to any strategy which is out there, by the time you reach your 1,000 trade you will most probably be profitable.
Issue is no one is willing to hit that 1,000 trades goal so they keep on trying to learn new stuff and jumping here and there.
It’s like what Bruce Lee says “I fear not the man who has practiced 10,000 kicks once, but I fear the man who has practiced one kick 10,000 times”
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@bizdons this is my point exactly why I agree with NNFX that there is no demand and supply factor in the forex market, because we don’t make prices move, we only watch prices move and his kind of renders the usual way of trading such as overbought and oversold useless in this market. Thanks @bizdons I’ve come to a conclusion now.
By the way what I mean by no demand and supply factor in forex is that the concept does not apply to us individual traders, only market makers such as these financial institutions you mentioned above, so even if everyone is going long on a pair, doesn’t guarantee it moving that way unlike other markets
But guys do you think trading pinbars can be a profitable strategy and I mean with context? I want to backtest it but I’d just like to hear from one or two people about this before I start.
Thanks
Don’t spend your energy on what can’t be done in Forex compared to other markets. It’s better to focus on the advantages of the Forex markets compared to others.
You will never want to trade any other market again. You have an edge in Forex that other markets could never offer. Go back to the basics, what is the currency market? You learnt it in your first lesson. One currency against another. That’s pretty unique, isn’t it? In Forex you trade assets in pairs, instead of alone in other markets.
So why don’t you just try to analyze which are acting stronger and which are weaker? This is the most valuable information that you can get in Forex, and you don’t get that in any other market. If you had done that this week, you would have known that you should have bought AUD, NZD, GBP, EUR and sold JPY, USD and CHF.
This is not only talk, these were my actual trades this week :
It’s not a lot yet, but I have never been a loser anymore since I have understood that. When people say keep it simple, they are pointing you in the direction.
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I can be completetly wrong, correct me so, but isnt VPVR able to identify the supply and demand areas?
I have listened to most all of VP (No Nonsense) videos and podcasts. He has some fantastic information and some that I bought it to wholeheartedly and some not so much but we are all different. The premise that the Forex markets are manipulated by big banks/governments etc. seems very real to me. The big boys have to create liquidity to get in and out of their trades (trading 20,000 single lots at the push of a key) Governments manipulate interest rates for self preservation and the list go on. I don’t think any of them care about supply and demand, only making money.
As retail traders we are best served by going with the flow of the major market makers. who cares about the reason, just be on the bus.
The posts here about keeping trading simple are real. Making trading complicated is a recipe for disaster, I know I’ve tried it. Focus on the price action, it will tell you all you need to know.
Do you want to make money or sound smart at a cocktail party?
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I don’t know in which context the videos you watched used it, but I can tell you now that there most definitely are supply and demand zones in forex trading.
I would know, because that is a fundamental part of my trading strategy. Reading the “footprints” of institutional traders is the equivalent of finding these support and resistance zones. And the proof is in the fact that when you identify these areas correctly, price touches and immediately reacts off of it - and STRONGLY.
Sometimes I am literally in a trade for a few minutes and it’s covered 50, 60, even a 100 pips. That’s how you know you got it 100% right.
Hi Xetatrader
I have also come to that same conclusion. I trade my favoured pair and when I throw in stochastic on the chart… I would see the oscillator showing me the pair clearly in ob range… but price still goes up? So how can a oscillator cap the range and say its overbought?? I have come to the conclusion that it is pure price action that speaks clearly to us
Hello @rolenn01, this is the same thing that happens to me, so I discard any signals from overbought or oversold from the stochastic, but even though it doesn’t work for that in forex it still helps to spot divergences and yes price action is also what I’m testing now and if it goes well hopefully it is what I’ll stick with long term while still investigating the indicator style of trading.
@AlbertFMF so how does now identify where the demand and supply zones on the chart are? Except you’re talking about demand and supply between financial institutions, which i believe exists and is what moves the markets, correct me if I’m wrong , but I believe the demand and supply doesn’t exist for individual traders. How would you read the banks footprint?
@k3v1n0s @ddarnett58 I think there are different ideas of keeping it simple and it may be miscontrued. I’m my own understanding keeping it simple means that you should follow price action, agreed but it doesn’t mean you shouldn’t bother about what happens behind the scenes. Knowing what happens behind the scenes and knowing the unique characteristics of the market I believe actually helps keep things simple because at the end of the day you’re trading with better informed context and it helps to know what to discard and what to keep to make things simple
This is why I listen to VP, he understands the context in which he is trading in and he developed a method specifically for it, which is indicator based only but I don’t like his style of trading still, I still prefer price action. Don’t forget that all the popular methods of analysis now such as trendlines and chart patterns were not developed for forex but for other markets which obviously have a very different context to forex and these methods have not been updated for the forex market, so understanding the differences between the markets helps you to update these methods and their meaning as you see fit for the forex market. An example I gave is how I’ve recently started using the stochastic oscillator, for divergences only.