Supply & Demand + Price Action

[trend2009]

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.

Then for prorated volume to work, your bar is at least 15 min?

 

[aberz]

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.

You're right. Zones are meant to be used with other factors - confluences. I never just use one factor to trade. I always use something like - Supply zone + price rejection at zone + bearish momentum + retest + NY market open = 5 confluences. High probability trade. That's what does it for me.

 

[deaddog]

So we are through the supply zone. What's the plan now?

 

[tiddlywinks]

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:-
View attachment 304411

For me, volume down % and volume up % confirms the color of a closed price bar. IOW, for me, serves no purpose.

Of more interest, and more akin to PRV, would be the rate of change of the percentage changes as a bar is forming.

Then for prorated volume to work, your bar is at least 15 min?

I use a 3 minute trading chart. My PRV monitoring interval is 20 seconds, 9 readings per bar.
The time frame is not important. The monitoring interval generates/updates the PRV expectation for trading purposes. Obviously, I have this automated... it's relatively simple code, at least for me.

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.

No intent to hijack your thread... merely voiced MY opinion about what YOU presented and the words YOU used to describe it. I (still) think that's what ET and other social media are for. Anyway...

All the best in your endeavors.

 

[SunTrader]

For me, volume down % and volume up % confirms the color of a closed price bar. IOW, for me, serves no purpose...

Does much more than just that.

 

[Darc]

So we are through the supply zone. What's the plan now?

Hold, keeping a close eye on momentum looking for signs of Reversal (including Volume if trading longer term Charts)?

 

[deaddog]

Hold, keeping a close eye on momentum looking for signs of Reversal (including Volume if trading longer term Charts)?

But hold wasn't the plan.
I was kind of hoping to get the OP to work off the right side of the chart.

 

[Darc]

Supply and Demand zones are a bit like RSI, great when they work, but when the Fundamentals change they give bad signals.

 

[easymon1]

Anyone with any questions regarding with Supply and Demand zones or with price action questions can ask me.

Would you please take an old chart that's already marked up with S/D zones and overlay 200, 50ma's and an 8ema along with floor pivots? Curious whether coincidences occur where impulse moves emerge.

 

[easymon1]

Anyone with any questions regarding with Supply and Demand zones

A question if I may, aberz.
What are the guidelines for drawing supply demand zones?
Maybe post up a few more examples?
Here's one that lasted all day today.