Supply & Demand + Price Action

Bad_Badness said:
Below in red are areas that are problematic with this simple "strategy". Where are the "not the zones" or "not places to trade" is MORE important in this "example".

The Support-Resistance (supply-demand, by OP) does not take into account break outs, overshoots and multiple waves. Anyone who has traded ES, has tried this "method" and found it wanting for lack of details, too broad of strokes, low reliability and not integrated into order tactics.

The OP cherry picked zones AFTER THE FACT. That is trading course lesson 1A.
The OP does not know what "Action" is*. That is trading course 1B
The OP conflates signals and order placement. That is trading course lesson 1C.

If you actually try this with a tight stop, you would get chopped up. If you tried this with a wide stop, the losses would outweigh the gains, and you would miss enough profitable trades to make it a negative PL.

*Price Action, has "action", hence the name. How the bar fills is the action. This is historical price with NO action.

View attachment 304391
More...

The way I look at the zones: if they do not pop up nicely immediatelly, you can first search for big candles and then to search for the indecision zones that caused the move. It helps if while marking them you switch timeframes to get a nice area...
 
Tradess0610 said:
The way I look at the zones: if they do not pop up nicely immediatelly, you can first search for big candles and then to search for the indecision zones that caused the move. It helps if while marking them you switch timeframes to get a nice area...
More...
That's one of the best way to go about finding the right areas of volume for potential reversal or continuation of price with an impulsive move based on price momentum.
 
aberz said:
That's one of the best way to go about finding the right areas of volume for potential reversal or continuation of price with an impulsive move based on price momentum.
More...
Exactly - you are looking for an area that was the root of the strong move
 
aberz said:
That's one of the best way to go about finding the right areas of volume for potential reversal or continuation of price with an impulsive move based on price momentum.
More...

just curious, on average, how many trades did you do per day this week 1/23/23?
 
s trader said:
When you see a strong setup do you go heavy to punish the market or do you take mercy and just get your quota and call it a day.
More...
I guess this question is not easy but here is an answer from a book
gobig.GIF
 
s trader said:
I guess this question is not easy but here is an answer from a book
View attachment 305596
More...
I am not sure if I agree with the book.
You should enter trades when your conditions are fulfilled. Therefore, you should not risk more ("larger bet") if you feel the trade is extraordinary. Risk should stay the same. If the reward is higher (RR ratio), even better.
But I would not increase the risk.
 
Tradess0610 said:
I am not sure if I agree with the book.
You should enter trades when your conditions are fulfilled. Therefore, you should not risk more ("larger bet") if you feel the trade is extraordinary. Risk should stay the same. If the reward is higher (RR ratio), even better.
But I would not increase the risk.
More...
Bet bigger when you are running hot. I expect to make 80% of my money from 20% f my trades.
 
You must log in or register to reply here.
Back
Top