Demand and Supply zone trading

[amibrokerfans]

update :

all things r bullish for IDBI these days. but stilll back to back two days it cant cross 75.25. is 77.30 to 75.25 a supply zone?

all things r bearish for BRITANIA investors. but still cant cross 2814. back to back two days small body candle. is 2895 to 2814 a demand zone?

Made in India welspun towels for players at 2015 Rugby World Cup in England. great news for welspun. but can it cross 890 ? or 844 to 890 a supply zone?

UPDATE :

huge huge buyers on IDBI broke the 844 to 890 supply zone . now what?

BRITANIA fully respect the 2895 to 2814 demand zone. and bounced.

good news didnot effect much on WELPUN's price. still holding 844 to 890 supply zone.

 

[amandeep86]

UPDATE :

huge huge buyers on IDBI broke the 844 to 890 supply zone . now what?

BRITANIA fully respect the 2895 to 2814 demand zone. and bounced.

good news didnot effect much on WELPUN's price. still holding 844 to 890 supply zone.

These levels are auto generated by an AFL or manually drawn.

Please share the AFL

 

[Tavnaz]

The Demand and Supply Zone trading is a very effective way of trading,i am glad to see traders finally becoming acquainted with it here on TJ,this thread is the first i have come across here regarding this,maybe there are more, but anyways it is a welcome addition to the community.
Other forums are already teeming with threads on S/D trading.
Before people start using the supply and demand zone there are a few pointers one must know.
They are not support and resistance zone,don't draw them like lines/zones extended from the past,or behind existing price moves.
See image below
The below image also shows support resistance lines marked from past high lows,to show the difference.
While colored boxes show S/D zones.
@amibrokerfan had marked some zones wrongly,i want to point that out

;-)

 

[Tavnaz]

Next few posts will cover criteria for Marking supply demand zones.

I have learn't from experience few points that help mark,good zones.

1.The time the price spent in the zone before resolving up or down,did the move happen in short amount of time or it took long amount of time.

Image below shows historical supply demand zones in Nifty,see how they were categorized according to time spent in their resolution.

;-)

 

[Tavnaz]

2.The extent of the move from the zone after it had resolved.
This is simply how far the price went after zone had resolved,the more bigger the move the better.

;-)

 

[Tavnaz]

3.The Number of times the zone has been revisited,the less the better,you need completely fresh and untouched zones.
The Zone should not be spiked or touched partially before,it should be untouched and fresh,if it has been spiked into or been traded into partially it is bad zone.

See image below,in the image the zone marked by golden box is drawn from left where price has not been reached,but if you notice it has been,partially traded into,it is not as strong,as it was before.

4.You must always draw fresh zones,from most current PA.

Well this sums up the basic criteria for zone selection,there are more criterias as well, but they all depend on trader to trader,more better traders stack more odds in their favor,depending on their system, and hence better process of selection.

Marking Zones properly is essential to start trading the supply demand zones profitably,improper zones lead to inconsistent results.
Once you learn proper marking you sure get started on the profitable road.

;-)

 

[monkeybusiness]

3.The Number of times the zone has been revisited,the less the better,you need completely fresh and untouched zones.
The Zone should not be spiked or touched partially before,it should be untouched and fresh,if it has been spiked into or been traded into partially it is bad zone.

See image below,in the image the zone marked by golden box is drawn from left where price has not been reached,but if you notice it has been,partially traded into,it is not as strong,as it was before.

4.You must always draw fresh zones,from most current PA.

Well this sums up the basic criteria for zone selection,there are more criterias as well, but they all depend on trader to trader,more better traders stack more odds in their favor,depending on their system, and hence better process of selection.

Marking Zones properly is essential to start trading the supply demand zones profitably,improper zones lead to inconsistent results.
Once you learn proper marking you sure get started on the profitable road.

;-)

Tanvaz Sir,

Can you elaborate trading system based on the way you draw boxes, Supply Demand zones etc, if you can post it with charts, will be great learning material.
You can post any charts in whichever market you are trading.

 

[XRAY27]

@Tavnaz Bro !!!

Excellent posts !!!! thanks for making the concept more simple

:clapping::clapping:

 

[Tavnaz]

Tanvaz Sir,

Can you elaborate trading system based on the way you draw boxes, Supply Demand zones etc, if you can post it with charts, will be great learning material.
You can post any charts in whichever market you are trading.

I am not old enough to be a sir,my dear fellow trader.
No need for being formal.
And please guys get the spelling of the name right,the name is important.
:lol:

I am not going to try and reinvent the wheel.
There is 1500 page thread named Price is Everything at FF,You can read that thread at your leisure.

http://www.forexfactory.com/showthread.php?t=230888

Don't forget the TJ community when you get there,bring what you learn back here,the trades and charts in the thread at FF are for currencies,we need guys like you to build charts here on our domestic markets,learn there and apply it here,post S/D charts on Indian markets.

If 1500 pages is too much for you.

There was a guy named Kenny on FF he built a small PDF of Price is everything thread.
Here is the thread link
Hope you find the PDF there.

http://www.forexfactory.com/showthread.php?t=288142

If you did not find PDF,you can go through his thread he has compacted the thread by brining important concepts together.

Enjoy using the wheel :lol:
Have fun

Take care.
;-)

 

[amibrokerfans]

@amibrokerfan had marked some zones wrongly,i want to point that out

Tavnaz, great input! but pls can tell more where i was wrong?

3.The Number of times the zone has been revisited,the less the better,you need completely fresh and untouched zones.
The Zone should not be spiked or touched partially before,it should be untouched and fresh,if it has been spiked into or been traded into partially it is bad zone.

See image below,in the image the zone marked by golden box is drawn from left where price has not been reached,but if you notice it has been,partially traded into,it is not as strong,as it was before.

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.