Supply & Demand + Price Action

[easymon1]

My main "concern" is how can Supply and Demand be the basis of this strategy
without the use of Volume?

Why not? What support is there for the theory that Volume is required to enable this strategy?
-
Here are a couple of links to extended discussions on this topic of Volume in trading.
The myth of volume as a leading indicator of price direction...
https://www.elitetrader.com/et/thre...-leading-indicator-of-price-direction.360779/

Help me understand volume/price relationship
https://www.elitetrader.com/et/threads/help-me-understand-volume-price-relationship.364321/

 

[easymon1]

with 4+ years in profitability by just trading indices - using Supply & Demand Zones along with Price Action.

Hey, aberz, I have a question.
Have you looked into the possibility of including Volume in your method?
What is your conclusion?

 

[tiddlywinks]

So you use VWAP and deviations for trading too as good volume indicator ?

I don't use VWAP/VWAP-ish indicators.

One tool I use, available on many platforms, is POCs and NPOCs ((Naked) Point of Control).
For me, POC/NPOC levels are excellent for targets and stops within a current "trend".
Of course, "trend" is something that is based on the type of trading and type of chart being used.

 

[tiddlywinks]

Another tool I use is something called Prorated Volume.

With PRV, you can determine an expectation of volume for an entire time-based bar within the first few seconds or minutes of the bar forming. On the inverse, armed with a PRV expectation, you gain "sight" of increasing or decreasing volume, again, way before the bar is completely formed.

As I mentioned...
Price can go up, price can go down, volume can increase, volume can decrease.
The work is to study those possible combinations and see what works for YOUR personality and style of trading. No volume = no price discovery.

 

[SunTrader]

I'm not a vendor, I am not a teacher, and I have zero interest in
explaining or persuading the merits, demerits, or usage of volume.
Volume is one of the 5 basic data points for many types of price charting... OHLCV

Price can go up, price can go down, volume can increase, volume can decrease.
The work is to study those possible combinations and see what works for YOUR personality and style of trading. No volume = no price discovery.

Well unless you are also looking at UpVolume% vs DnVol% (as is shown for $SPX daily) in blue and red histogram at bottom above total volume in black you still don't have total price discovery:-

 

[easymon1]

questions you may have can be asked and I will answer them all!

Aberz, can you mark up the S/D zones on Suntrader's chart?

 

[aberz]

I'm in the camp described by @Bad_Badness.

My main "concern" is how can Supply and Demand be the basis of this strategy
without the use of Volume? As presented, the strategy is merely ANOTHER SUPPOSED support/resistance price level, determined AFTER one or more (time based) price bars has completely formed.

I've studied WyKoff, VSA, and other Supply/Demand strategies.
What is being shown/touted in this thread is pure HINDSIGHT.

Myself, I use volume extensively in my trading...
My bread and butter is trading US index futures during the RTH session, flat EOD.

I get that you already have a ton of information that you use in trading so when I'm explaining how I trade - you will challenge it but it's not my job to convince you that this works the best in the market. Each their own. Good luck with your indicators.

 

[aberz]

OP lacks life trading experience.

He needs to trade couple of years first before preaching.

I've taught over 50 traders so far single handedly and def make more than you and your family put together in profits I have enough trading experience to preach because I know what works in the market. Cheers

 

[SunTrader]

Take your word for it, huh?

You and millions billions of others on the net.

 

[smallfil]

There is something to be said with support and resistance zones as they tend to repeat. Of course, you cannot use it by itself. Price action, trends, parabolic moves, candlesticks combined with support and resistance gives you confidence to take trade setups as they occur. Studying Oliver Kell and Kristian Kullamagi (I hope I got his name right), both use breakouts to get into trades. Never traded breakouts before. Now, I know to pay attention.