Demand and Supply zone trading

amibrokerfans

Well-Known Member
#71
thanks for yr question.

1st i like to refer u to see the 3rd line - 3rd condition.
http://www.forexfactory.com/attachment.php?attachmentid=1447280&d=1402652572

Check this image which explains how to draw Supply and Demand levels..
so,
1. drawing supply/demand have to be only from a reversal zone - its not true.
2. Drop-Base-Drop: Low demand and high supply pushes prices down to a base of equilibrium. After which demand falls off even further and supply increases causing a continuation of the selloff.


The supply demand paradigm, in terms of price movements consists of four basic types – as follows, with a brief description:

Drop-Base-Rally: Low demand and high supply drops prices to a base of equilibrium. After which demand rises and supply falls causing a reversal rally.
Rally-Base-Drop: High demand and low supply pushes prices up to a base of equilibrium. After which demand falls and supply rises causing a reversal sell off.
Rally-Base-Rally: High demand and low supply pushes prices up to a base of equilibrium. After which demand increases and supply evaporates causing a continuation rally.
Drop-Base-Drop: Low demand and high supply pushes prices down to a base of equilibrium. After which demand falls off even further and supply increases causing a continuation of the selloff.
 

Dax Devil

Well-Known Member
#72
The supply demand paradigm, in terms of price movements consists of four basic types – as follows, with a brief description:

Drop-Base-Rally: Low demand and high supply drops prices to a base of equilibrium. After which demand rises and supply falls causing a reversal rally.
Rally-Base-Drop: High demand and low supply pushes prices up to a base of equilibrium. After which demand falls and supply rises causing a reversal sell off.
Rally-Base-Rally: High demand and low supply pushes prices up to a base of equilibrium. After which demand increases and supply evaporates causing a continuation rally.
Drop-Base-Drop: Low demand and high supply pushes prices down to a base of equilibrium. After which demand falls off even further and supply increases causing a continuation of the selloff.
Beautiful.
 

XRAY27

Well-Known Member
#73
Wisp, no disrespect. Aryabhatta is no friend of mine nor is Xray, but where in his post he insulted Xray that made you post such a disappointing reply?

Why is that that most of the members here somehow accept without question that all the trading expertise in the world is confined to a few senior members of traderji forum? Not only trading expertise but expetise in psychology, sociology, economics and what not! It gets very distressing, you know, as 'my way or the highway' kind of structure is not very conducive to any meaningful discussion.

Bottomline is, if I were a learner I would welcome such posts as they broaden the learning horizons. And I would show my heartfelt gratitude instead of being terse.
DD !!!

Perfect !!! not Aryabhatta nor wisp or yourself is of any friend/s ..your question of seniors are only expertise or this forum is confined only seniors is also not true...it is confined to few contributors and sad part is no one from so called juniors/newbie what ever you call, are adding to this and you know this part very well !!!

well,i just contributed my practical based study..which is nothing but repetition of past posts...

Bottom line is just contribute some thing which can add value to any given discussion rather putting one thanks or acting as lecher ----this is a humble request to all

Anyways closing this discussion here itself..so that it will not disturb the flow of this thread

Special thanks to Niftytrade for starting the thread and ,Aryabhata,Amibrokerfan.. for there contributions.
 
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XRAY27

Well-Known Member
#74
thanks for yr question.

1st i like to refer u to see the 3rd line - 3rd condition.


so,
1. drawing supply/demand have to be only from a reversal zone - its not true.
2. Drop-Base-Drop: Low demand and high supply pushes prices down to a base of equilibrium. After which demand falls off even further and supply increases causing a continuation of the selloff.


The supply demand paradigm, in terms of price movements consists of four basic types – as follows, with a brief description:

Drop-Base-Rally: Low demand and high supply drops prices to a base of equilibrium. After which demand rises and supply falls causing a reversal rally.
Rally-Base-Drop: High demand and low supply pushes prices up to a base of equilibrium. After which demand falls and supply rises causing a reversal sell off.
Rally-Base-Rally: High demand and low supply pushes prices up to a base of equilibrium. After which demand increases and supply evaporates causing a continuation rally.
Drop-Base-Drop: Low demand and high supply pushes prices down to a base of equilibrium. After which demand falls off even further and supply increases causing a continuation of the selloff.
Just adding images to this post for better understanding of this structure ...



Second step consists of mark the demand and supply with in the structure and lastly framing the price action to shift the zone in case of price flip
 
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wisp

Well-Known Member
#75
Wisp, no disrespect. Aryabhatta is no friend of mine nor is Xray, but where in his post he insulted Xray that made you post such a disappointing reply?

Why is that that most of the members here somehow accept without question that all the trading expertise in the world is confined to a few senior members of traderji forum?
.....
Bottomline is, if I were a learner I would welcome such posts as they broaden the learning horizons. And I would show my heartfelt gratitude instead of being terse.
Dax (Deep Space Nine fan by any chance?),

Well...As a learner, its a tough job to separate the wheat from the chaff, especially when chaff makers abound....

XRAY had already told elsewhere to check forex sites to learn more http://www.traderji.com/futures/99232-intraday-trading-structure-25.html#post1105093

I did not see a need for caveat emptor-ing...or posts like this http://www.traderji.com/technical-analysis/99967-demand-supply-zone-trading-6.html#post1107090 I hope you understand.

Best....
 

amandeep86

Well-Known Member
#76
Xray,

Mostly as soon as price crosses Demand area or supply area ,a rapid move starts ,without giving any clear pivot to form on TTF (1 TF ) in your case or some times clear pivot is formed at much later stage after a sufficient move has been completed.

How do you manage entries in such cases ?
 

XRAY27

Well-Known Member
#77
Xray,

Mostly as soon as price crosses Demand area or supply area ,a rapid move starts ,without giving any clear pivot to form on TTF (1 TF ) in your case or some times clear pivot is formed at much later stage after a sufficient move has been completed.

How do you manage entries in such cases ?
Amandeep,

I go with aggressive entry as well as regular pivots at that time,Anyways before coming to 1 MIN just trade with 3 MIN time frame as most of you in the forum use that for intra day..after some practice you can shift to to 1 MIN..Try to use the logic which i shared and apply it if you find useful.my edge is 1 min which i got to use of it after several hours of practice

Bottoms line is just define the edge both in trade setup as well as time scale
 
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amibrokerfans

Well-Known Member
#78
re-posting as relevant

1.Velocity and Magnitude

Magnitude in regards to analyzing price action simply refers to the length of price waves, relative to other price waves of consequence. If the price runs for a long way in one direction without a significant pullback, then that run has strong or large magnitude. Short waves have little or weak magnitude. The price is not moving aggressively in one direction. During a trend, pullbacks should have weak magnitude relative to the impulse waves of the trend.

Velocity is how fast price covers distance, and is used in conjunction with magnitude.A very fast price move which covers a significant distance (relative) shows greater conviction than a move that moves very slowly.

Having magnitude and velocity on the side of the market you are trading is ideal (ie. taking short positions when strong velocity and magnitude are to the downside).Velocity is most applicable when combined with magnitude. A short burst of velocity isn’t particularly important, since it could just be one or two big orders being filled in the market. A move of large magnitude which also has velocity shows a lot of power and conviction, and may either confirm the trend (if in the trending direction) or indicate a reversal (if moving against the trend)
.

lets have a look on today's nifty spot 5 min chart.


2. supply & demand zone by Velocity and Magnitude:

i am trying to find out supply & demand zone by Velocity and Magnitude.


3. now putting my favorite candle patterns (custom) :



4. filtering the entry with some over brought/sold zone indicator (custom):



5. exit, stop loss, trailing stop loss : Fibonacci?

to be honest, Fibonacci is only fancy numbers for me ( i am believing this after lots of testing, or may be i have to know more ), but good book to read-
"constance brown fibonacci analysis"




thanks.
LETS GO DEEPER..

HOW and WHY price move in that way (pattern)?



everyone know these moves. but WHY this type of moves?





after big buy/sell r over price create its own unique wave pattern , depend on the energy given by the big boys.



so like parallel support resistance,angular channel is also a support/resistance zone.
infact its most used support resistance tool as price hardly move horizontally.
 
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wisp

Well-Known Member
#79
.........................................................
 
#80
Wisp, no disrespect. Aryabhatta is no friend of mine nor is Xray, but where in his post he insulted Xray that made you post such a disappointing reply?

Why is that that most of the members here somehow accept without question that all the trading expertise in the world is confined to a few senior members of traderji forum? Not only trading expertise but expetise in psychology, sociology, economics and what not! It gets very distressing, you know, as 'my way or the highway' kind of structure is not very conducive to any meaningful discussion.

Bottomline is, if I were a learner I would welcome such posts as they broaden the learning horizons. And I would show my heartfelt gratitude instead of being terse.
Quite understandable Dax Devil however it is common for newbies to feel offended when valid external inputs are given.

This is a common reaction & tell tale sign of neophyte traders ....but hopefully they change as they mature from wanabe trader to profitable trader.

Its best just to nod in agreement with them ... for their sake more than ours.
 

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