Demand and Supply zone trading
- Thread starter nifty trade
- Start date
Tavnaz, great input! but pls can tell more where i was wrong?
by yr view, only untouched fresh area r s/d, right?
but lets see...
and
totally agree with u about zone flip. zone flip not s/d.
by yr view, only untouched fresh area r s/d, right?
but lets see...
and
totally agree with u about zone flip. zone flip not s/d.
My Zones for Magma
Your chart with my view on it.
The green box with three touches on britannia seemed more like a support then a demand zone,so i felt you marked them wrong,but maybe you were drawing a support not a demand.
Other then that a your charts are good,just try to remove older boxes from charts,mark the fresh ones when price makes new PA.
Your charts appear wrong,even when they are right because zones come from way out in the past when they should be fresh.
Take Rectangle tool then draw the zone from the most latest point of drop or rise it is that easy.
Finally How i marked the Zones on Britannia
Some more Examples of these zones,So you can see how they are drawn.
Reliance industries:
SBI:
Airtel:
Hope this was helpful.
;-)
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Hope my previous post clarified my point on how the zones are drawn.
The thread links i provided in previous posts,will be helpful to you in seeing how to better your Supply demand trading ability.
As you will learn you will reach the next stage where marking zones is just a puny step,but watching PA at these zones is done.
PA watch will be decisive factor on whether a zone is a zone or just an empty box drawn on a chart.
But all that will come when it is time.
It will be a big tread ahead for you,start by reading the threads.
Post charts here time to time,discuss with peers and share ideas,everything is going to be just fine.
Lots of fun awaiting for all of you guys,S/D zones will add a whole new powerful tool to your arsenal.
Have fun.
Take Care.
;-)
The thread links i provided in previous posts,will be helpful to you in seeing how to better your Supply demand trading ability.
As you will learn you will reach the next stage where marking zones is just a puny step,but watching PA at these zones is done.
PA watch will be decisive factor on whether a zone is a zone or just an empty box drawn on a chart.
But all that will come when it is time.
It will be a big tread ahead for you,start by reading the threads.
Post charts here time to time,discuss with peers and share ideas,everything is going to be just fine.
Lots of fun awaiting for all of you guys,S/D zones will add a whole new powerful tool to your arsenal.
Have fun.
Take Care.
;-)
Hope this helps.
My Zones for Magma
Your chart with my view on it.
The green box with three touches on britannia seemed more like a support then a demand zone,so i felt you marked them wrong,but maybe you were drawing a support not a demand.
Other then that a your charts are good,just try to remove older boxes from charts,mark the fresh ones when price makes new PA.
Your charts appear wrong,even when they are right because zones come from way out in the past when they should be fresh.
My Zones for Magma
Your chart with my view on it.
The green box with three touches on britannia seemed more like a support then a demand zone,so i felt you marked them wrong,but maybe you were drawing a support not a demand.
Other then that a your charts are good,just try to remove older boxes from charts,mark the fresh ones when price makes new PA.
Your charts appear wrong,even when they are right because zones come from way out in the past when they should be fresh.
i will back late evening to discuss more deeply.
and ya the Forexfactory group u mentioned was too good, they made 2/3 great Forexfactory thread on PA. i was regular visitor . but after all the fame they made there, they moved and a build a commercial site
the pdf u mentioned also removed, that is most sad part of it. but we still can have it ...
visit http://www.slideshare.net/chuyito365/acegazette-price-action-supply-and-demand
things getting interesting :clap:
The green box with three touches on britannia seemed more like a support then a demand zone,so i felt you marked them wrong,but maybe you were drawing a support not a demand.
Finally How i marked the Zones on Britannia
Finally How i marked the Zones on Britannia
lets have some discussion.
What is the difference between Support/Resistance and Supply/Demand?
i very much like a thread on ff on this very topic. i am quoting few posts from that thread..
1.keroro0o0o said :
Supply/Demand: A zone, where we assume there are sell/buy orders stacked.
Support/Resistance: A level, where price tested a few times and failed to breakthrough.( very similar what you are saying)
2.pjameslamar said :
supply/demand are real orders to sell and buy a particular commodity at a specified price. Large orders can sometimes be seen on our charts as consolidations. The consolidations are known to be an area of equilibrium as both buy orders and sell orders are easily matched there.
Support/resistance are simply the result of supply or demand. There is support at a particular price level simply because of the demand for the commodity at that price level. On the other hand there is resistance at a particular price level due to the available supply at that price level.
it is as simple as that. One is caused by the other and never the other way around. Without supply or demand there would never be any resistance or support on your price charts. ( very much logical )
3. eyesblack said :
To keep it simple, the context 'support/resistance' is generally used for Technical Analysis and provides a crucial idea of how next price movements of an asset will be, whereas the term 'supply/demand' is normally used in economic sense.
The main difference is that 'support/resistance' can be interchangeable, meaning that a support can become a new resistance once the support is breached. Similarly, a resistance can become a new support as well. ( no flip level for s/d)
|
Supply Demand Zones are areas which have had an effect,on price.
Support Resistance are for most traders like lines made from high lows
I feel Support Resistance, are the same as Supply demand,but its very subjective,and the answer you will get will depend on person to person.
When i did and do follow Support Resistance,I never pull out a chart and mark a line hoping it will work,because i know ,that no thin line on chart can do anything to price,for me support/Resistance is also an area.
The only difference for me when it does come to marking support and Resistances is,i would pay heed to any high or low back in the past be it 14 years ago ,which provided sufficient trouble to price movement.I would draw a line marking these high lows,zone flips.
But when marking supply and demand zone i only look at ,most recent move,where prices fell,and where it Rose.
As is the fact almost where the support and resistance are marked,most of the time supply and demand zone are also there.
Consider a big hedge fund that took position in an XYZ stock couple of years ago at YYY price.Now it did appear on the chart as zone flip,price stall or consolidation.
Now fast forward to present day the hedgefund could still be in the stock, maybe they were just holding it for dividend.
They may not have sold the stock,but there order lays dormant waiting to rock the market at YYY price.
Now there could be vast array of market participants from market makers to big banks that can have taken up a position in XYZ at YYY price but their orders are dormant.
Present day if price revisited the same price range within which YYY lies ,it did nothing at YYY does it mean,orders at YYY were not there at all???
Now Supply Demand zones are marked from the most fresh price moves,if present day price is dropping at some point ZZZ then we only consider that,for all we assume that ZZZ is the only place where orders are trapped,or taken up by some Commercial entity,according to supply demand YYY does not exist,if it does it will show up in most recent price move as a place of drop or stall every single time.
By looking at the most recent price move up or down from a supply zone or demand zone,we see the most recent areas of interest to market participants
But it does exclude the possibility that some order may still be in there laying dormant for quite some time,but for all we know those dormant orders were averaged down or up,that however is just a possibility,but believing in only what we see is the right approach,so if YYY level is not showing up in recent price move we just don't take interest in it in supply demand zone trading,But if in near future maybe that zone YYY will show up,it will indeed appear as PA,
And then we can make decision based on what we see.
Chart can hold enough information but sadly not all.
But yes price moves as they happen can clarify what is there at which level.
In supply demand zone,trading,what we can do is see what has happened recently and be sure of what kind of orders exist (other then what we cant see)in the market based on what we saw recently a big drop from zone or a rise.
We don't dwell on what we don't know
But rarely do past orders from way back not show up as supply demand zone in the present,they do still appear as ranges or consolidations,because funds and every participant actively manage their positions.
The thing is some levels are very commonly used so possibility is if YYY was in use back in past it still does appear today in Supply demand zone charts as well.
But still we only believe in what we see,in charts as fresh zones.
Going to what is Supply Zone and what is Resistance from an academic perspective not from trading point of view.
If you are marking resistance as a line i am sure you just marked the edge of supply,the highest point of supply,but if you just marked the zone a supply zone,you opened the possibility that not only that high marked by line but the entire area is responsible for cause a drop,which is mostly the case.
It is all about orders Supports are filled with orders so are demand zones.
I never consider support as a line i think it should be an area,i am not god that i know everything,that so and so line will cause drop.
Number of orders will show as an effect,and we can see the effect and utilize what we can from it.
Going to whether Supply Zones can be flipped to become demands.Yes they can.
Remember Zones are orders in the form of consolidations,they contain trapped orders or taken up positions,if some supply area appeared to have resolved up instead of down
we mark the most recent consolidation in that area as a rally base rally demand,but we only look at the recent move that happened there not the zone that existed there before,what has happened most recently interests us,nothing more.
These are academic discussions ,don't have any material worth unless we are trying to do some research.
People assume supply and demand zones are different from support or resistance ,because they mark them differently,and trade them differently.
Resistance is touch and short,supply is touch and short in whole area.
Difference is in peoples minds,and how they trade them,they however just signify orders.
Only reason i prompted you out in your marking was the same reason,i believed if you marked them as support you will have to use the method of support and resistance,
If you mark them like Zones of Supply and demand you can be closer to the heart of supply and demand zone trading and more in line with the method.
Rest Everything is okay about marking them in any way you like so long as you visualize them as orders and not boxes on charts.
About the FF ,why not join there as well,and ask the thread starter whose posts you find interesting,he will have his own opinion ,i am sure he will be happy to discuss.
As i said it is very subjective, what i say is ,what is my approach,but someone else may have another approach,but while you are learning supply demand,you must learn the proper method,and follow the right method and mark zones properly.
Hope this helps.....
God bless you
;-)
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