Yes, over the course the past 6 months, this has proven to be a better strategy than to just rely on any lagging indicator. Again, I am just wondering if anyone else is using a similar setup and can give advice on perhaps what to watch out for?
Does anyone trade Supply/Demand Zones (RBR/DBD/RBD/DBR)?
- Thread starter jennywestwong
- Start date
Here's an example of my struggle. Note "HFT D" = demand zone drawn with higher timeframe and "HFT S" = supply zone drawn with higher timeframe.
Notice how it was bullish for 6h straight and never did it retrace back to any previous demand zone until the yellow circle.
I am also a trader that needs candlestick confirmation for an entry. So great, there appears an engulfing and 3 white knights pattern. At that specific moment, I should go long but
1. it is already close to supply zone with only a few pips to profit if I use supply zone as target
2. it had been bullish for too long already and could reverse anytime
3. high timeframe is still looking bullish but lower timeframe is starting to look bearish
Any suggestion is welcome.
Notice how it was bullish for 6h straight and never did it retrace back to any previous demand zone until the yellow circle.
I am also a trader that needs candlestick confirmation for an entry. So great, there appears an engulfing and 3 white knights pattern. At that specific moment, I should go long but
1. it is already close to supply zone with only a few pips to profit if I use supply zone as target
2. it had been bullish for too long already and could reverse anytime
3. high timeframe is still looking bullish but lower timeframe is starting to look bearish
Any suggestion is welcome.
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Hi Jenny,
1. it is already close to supply zone with only a few pips to profit if I use supply zone as target
You do not have to enter the market on the spot, you may use pending order and wait for the price come to you at a level which satisfies your target to stop ratio.
2. it had been bullish for too long already and could reverse anytime
There are momentum indicators (RSI, Stoch...etc) to check that.
3. high timeframe is still looking bullish but lower timeframe is starting to look bearish
In general slower timeframe prevails because trend is your friend until momentum stalls.
I think candlestick patterns are only useful on 1D and slower time frames.
They were invented for real markets with an opening and closing auction.
Forex is a continuous market and open/close price on one minute chart is meaningless.
Good Eye on your R:R in walking away from that 3WK deal.
Hopefully you caught that Hammer at HTF S on the way back down to the
Double Bottom measured move (and 3 white soldiers) that Did have a reason to
run and pay you at the 100% dbot target.
A 3WK pattern may not be an appropriate candle pattern to pair with your
current exploration, Supply/Demand Zones (RBR/DBD/RBD/DBR)?
As for candlestick patterns, maybe somethings more compact with less runway
requirement would test out much mo better.
If your 3WK's stats look good enough to keep 3WK in the toolbox, but can go
funky on ya, look back on your stats and screenshots, and Bin the 3WK examples by
20% 40% 60% 80% where they occur relative to the run of the Trend, and
note how the successes and failures shake out in to Bins.
You sure look at a lot of stuff.
Do you have a little pile of crumpled up notebook paper overflowing the
trashcan in the corner?
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i trade supply and demand with SMC
if you narrow down your pairs and time frame you trade on
you will find a certain patter in the market that works with a good RR and strike rate
and if you master those setup you can easily get consistency and % every month