Thanks Yunny! This makes sense and I will be taking this into consideration now in planning these trades.
Haha if there were fail proof methods of trading it wouldn’t be any fun right??
I appreciate your contribution to this thread!
Bronz
As promised, I do want complete transparency in the trading results of this method so here the first entry:
Babypips WV Trading Log.pdf (26.9 KB)
Please let me know if you have any suggestions on the formatting!
Bronz
i traded basically this system in my own blog more than a year ago. Its profitable. I used Supply demand concepts with PA and volume analysis. Only horizontal lines. I traded it live with analysis posted on the weekend before the open of trade so there was no question as to if it was legit or not. Good luck, be disciplined and keep learning the nuances your done searching for a entry/exit system. now its about refining yourself as a trader.
Yes, I was referring to supply/demand levels, but it’s good that you clarified the difference.
I’m trying to determine what are the rules for drawing a supply/demand level, like from the top of the wick to the bottom of the close, something along those lines. Do the number of candles make a difference, etc
By the way, what is your main timeframe? Those look like H1 charts, but do you use any higher timeframe analysis?
Thanks again for your patience, and for the good explanations.
Hi MeiHua,
I was actually a subscriber to your thread (running naked…) about a year ago and I made a post haha. I appreciate your words and would appreciate any feedback you could provide on future trade setups I post. Do you still trade with the same system you used in your thread? I also remember you mentioning you were moving over to full time trading. Are you a full time trader now? That’s my ultimate goal to move over to fulltime.
Thanks!
Bronz
Hi Pip,
Here’s a few ways in which I determine if there is a valid supply or demand level:
-3 or more candles, but if there are too many candles then its not a decent setup, 7 or 8 candles is the absolute tops.
-There needs to be a large move away from the level, rule of thumb is that price needs to move away quickly from the level at least the times the size of the level itself before retracing.
-When choosing the entry for a demand level, i usually cut off the wicks on the top of the level and for a supply level i usually cut off the wicks on the bottom of the candles. Logically, you want to be capturing more of the area from where the move originated since that is most likely where the bulk of the orders are. For demand levels, that is at the bottom of the zone and for supply levels that is near the top of the zone.
-For my particular method, I like to consider the resistance or support line in conjunction with the supply or demand level for choosing the entry (I will post a chart example in a separate post to help explain)
-For the stop loss i like to allow a decent amount of room. anywhere from 10-30 pips from above the top of the zone (for a supply zone) or the bottom of the zone (for a demand zone). This depends on the volatility of the particular pair. Some pairs are more volatile than others.
-Ideally you don’t want any candle wick or up spikes (down spikes) in price for a supply (demand) zone. This makes the area weaker as price has already eaten up some of the orders where the main demand or supply originated from. This also means that the origination of the support or demand could be spread out over a larger area, meaning that you would need to risk more pips in defining the demand or supply zone over a wider area. Or you would need to risk more pips if you take that trade.
-As mentioned before you ideally want to take the first retracement into the demand or supply or demand zone.
-I also prefer a flat area where price is trading sideways before the big move in price.
If i think of anything else then I will add to this post but that pretty much sums it up. Again,
hope this helps and please let me know if you have any other questions!
Bronz
I use the principles of what i trade in my thread and still take trades using that same system. But I have pretty much moved completely to futures now. I use supply and demand concepts on a daily basis though. Just futures are better for me and what i am currently doing. I do algo as well as manual discretionary trading. Yes I am completely full time now, been doing it for a while. Its totally different mentality. I enjoy it though, i really do believe in the concepts of Supply Demand. I started as a futures guy so i just went back into it, also i feel its safer (regulation and clearinghouse wise) considering that this is now my livelihood.
Congrats on going full time. Hope all works out for you. Also congrats on becoming a member of the fxmen 
Just wait till you get your super decoder ring (I am still waiting on mine lol)
Hi All!
Here is potential short setup on the 1 HR AUDSGD. Prior support is lining up with a recent supply zone. I will be placing pending orders in reference to the attached chart once the market opens tomorrow.
Please let me know if you have any comments!
Bronz
Was having some issues with posting the chart from the above post. Hopefully it will work here.
Feel free to comment!
Bronz
Hey All,
Here is another potential setup on the AUDUSD 4HR. I will be taking this one if price reaches entry and placing orders as referenced on the chart.
Piptronix,
If you see how the bottoms of the prior support levels and the top of the supply level lines up, that is what I was referring to in my prior post where I use both the supply and support in conjunction with each other.
Anyone, feel free to comment!
Bronz
Hi Bronz
This reminds me of SR players thread, except she uses waves in conjunction with support/resistance.
Waves are a bit too subjective for me though, this seems easier to grasp.
But the result seems the same, a sharp break of support which is tested as resistance later, I’m sure she’ll be watching that same trade.
My only problem with this is that the price needs to break that high to the right of the chart in order to get there. If it does that, then it looks bullish. If I took a trade like that I’ll be looking for a few confluences, or a headache tablet.
I see you will be taking first profit at that same high, so you are assuming resistance will become support, but I’m thinking maybe it could test the support before going up again.
I’ll be watching that level anyway.
I was a subscriber to SR Players thread for a while and traded her method with relative success. Her thread really showed me how powerful role reversals can be in support turning resistance or resistance turning support. Seems like after reading her thread i started seeing it everywhere (Forexschoolonline’s threads, Chris Capre’s thread, etc.) and realized i must be missing out on something. I see your issues with the trade that I posted and we’ll see how it turns out. Since I am using using support and resistance lines for entry I shouldn’t ignore them when considering the profit target or profit margin. I think it is probable that price may go against me once it hits that new SR level and the questions is of whether price will get to my profit target. Nonetheless, I am still keeping this trade on the books since it has been posted. I like to trade this method a bit loose, but you definitely have reminded of another part of the puzzle. Appreciate the comments!
Bronz
I’m short on the Aussie from 1.0242.
Previous support turned resistance, plus supply on the H1 chart.
I’m entered slightly lower because its near the the central pivot.
I should have entered around 1.0250, the lower end of my supply zone, but because of that central pivot I just entered at market.
Hey Banker
I just closed my trade a few minutes ago. (Before I saw your post, lol)
I looked at the early Asian price action and didn’t like what I saw, too bullish.
I closed it for 15 pips profit.
Anyway, I’m just trying out this method with a small account size, but thanks for the heads up.
Hi All,
I have edited my Trade parameters for this AUDSGD trade with reference to a possible Support line which has formed above my original take profit. I have tightened up my entry and therefore moved my Take Profit to just above this area where price could find support. Again, I am looking for 1:1 Risk Reward. (If I am seeing that I am consistently missing bigger moves then i will adjust RR)
Feel free to comment. Thanks!
Bronz
Thanks for the info Banker! I can already see the AUD moving up. Still will hold steady with my AUD short trades if entry hits =)
Bronz
Hey All,
Been pretty busy the last few days, but I plan to post some charts and update the trading results log soon. Looks like one of the Aussie trades worked out and the other didn’t. I also may be making some adjustments to to the risk reward setup and shooting for more than 1:1 on trades. I’ve been doing some back testing and see some room for improvement. I also may be only taking trades on the 1 hour time frame only for this thread. I seem to see the most setups occur on that timeframe and since I am tracking my results in pips, using higher time frames may really skew the results since you need to risk more on trades.
Again, anyone feel free to post charts and I will post comments!
Talk to you soon.
Bronz
Hey All,
Here are the updated charts of those two Aussie trades taken from earlier in the thread:
And here is the updated trading log:
Babypips WV Trading Log 10.17.12.pdf (28.7 KB)
Please let me know if the attachment for the trading log is viewable or not. I attached as a PDF.
So far 1 for 3 and down 38 pips. Looking back I still would have taken the AUDUSD and AUDSDG trades, and the EURUSD did look a little more iffy. Knowing what I know now from Yunny’s post I believe will assist in future trades.
There are some adjustments that I am looking to make for new trade posts. All will be on a 1 hr timeframe and I will be basing my profit target now on the most recent swing high or swing low, especially for trades with the trend. I am considering maybe an alternative profit target method for against the trend trades and maybe something more conservative. I will post some more charts in separate posts of any new trade setups I see. Thanks!
Bronz
Hi Bronz
It’s good that you are looking at the one hour charts, more opportunities for testing.
I’ve been trying this out myself, but I still need to refine my rules based on how I normally trade.
So far so good, I have been able to pick a few levels, but mostly scalps.
I started reading Meihua’s thread as well, there’s a lot of good information in there.
Keep it up, I was about to give you a wake up call, you were absent for too long 