Thank you kate25 and I will continue your subject If you need help, I will be happy to help you
Thank you Maryo I am sure there is a lot more to learn and appreciate the offer which I will have questions from time to time. Thank you again for your generous offer.
I just wanted to look at the US Dollar for a minute - momentum bars in play price attempting to recover them - there is a bar of interest and traditional supply at top - demand built on demand at bottom - price reacting to supply behind momentum bar - we do not usually trade bars behind. Ok, no conviction in our Vroc to move price up - price above daily pivot but below daily pivot trend line. Price should replenish on supply and fall back into our demand zones - however if the daily pivot is crossed first we will see how well our demand zones hold up. The pivot point and trend are merely tools what counts is the immediate price action to our supply and demand zones
Ok US Dollar landed in the top supply recovering the momentum bar then back into a bar of interest. Now we are looking to see if supply will hold price here and pick up demand below. On the 1 hr supply is found in the wicks with a bar of interest below.
This is how Aussie played out - off of the momentum bar we were able to create a plausible situation. We knew if price broke down out of our first demand then it would free fall into the next demand below as there was no demand built into the momentum bar from .7290 to .7250 - presently price is reacting off of the bar of interest. Just by breaking down your momentum bar we created supply and demand plus bars of interest before price even made a move down. This is a 5 min chart opposed to the 3 min I put up yesterday -
euro some conviction to move price up - notice how demand was built before moving price into our bar of interest just above - what we want to know will this small demand and bar of interest hold price
Yen the surge in our Vroc supported price almost into supply
kiwi follow up - price supported at bottom of demand
I going to move my charts back to higher time frames
Euraud - 4hr chart. Using the majors percentage moves in Volume roc starting with the first bar in the run - circled on oscillator. The bar of interest is 1.4780 to 1.4730 - 50 pip deep zone. Target is wick low at 1.4962 roughly 180 pips - traditional demand at bottom in red square.
Again lovely momentum bars down on cadchf. Same method 4hr chart - using first bar in Vroc to establish bar of interest. Looking to short at supply and bring price back down to wick high
Aussie at top of bar of interest - supply we have two demands below on the 4 hr - to find out if there is any additional demand in the momentum bar it will need to be broken further down. Top supply is fresh - price has not touched this price point. Same set up - 4hr chart - volume roc spikes using first bar in run to establish the candle bar of interest
Aussie should reach traditional demand at .7300. I have added one more thing to the chart from the oscillator the opposing red bars - they formed a zone, but behind bar. Remember as SD charts I am only currently concerned how price is reacting to the immediate left side of chart. The opposing bar comes in at .7311
As EurAud rises - it has roadblocks I will point out: The daily fib pivot point sits in the same place we have formed traditional supply at !.4834, pivot point at 1.4848. If price is rejected, it will be here. Goal remains wick low.
Hello Kate, thanks for your help.
I was wondering how did the supply zone at the right on the 2nd AUDUSD chart turn into a Traditional demand?
Regards
Hi forexguru, the bar of interest was created directly off of the volume roc I take the first bar in the run where the volume has changed significantly. Second we created traditional demand why - price exceeded the demand it created, I am using the overlapping wicks this is where buyers and sellers were in equilibrium. Price broke to supply where we had sell orders waiting. I teach the SD as I go. The demand was created and needed to be acknowledged and we can see it was useful now we know this is demand turned supply - why, because we now have price feeding off of this area but the area is not fresh meaning price has been there twice so what needs to happen is price fall to new levels - our next demand or price rises taking this area out. I will put up a chart to illustrate hope this helps
Here is the EurAud follow up - price was held at the bar of interest at bottom, we had roadblocks yesterday of supply and daily fib pivot. Presently price has broken above supply and price opened above the pivot so the target remains the wick low - recovery of the momentum bar
I apologize I lost this chart and had to recreate it to show where the wick took out SL on CadChf - so the zone did not hold price in to short
UsdChf looks interesting having landed in supply from left side of page .9876 to .9923. If we believe there are still sellers at this price as evident by the strong move away from this price point then I suspect we will test demand below at .9745. Bar of interest at .9805. As usual I want to recover that momentum bar
So hard to see these charts - top is daily then 8hr timeframe then finally 4hr timeframe which I took the bars of interest off the volume roc runs