Classroom Trading supply demand price action readthemarket

Well Here's the Dax trade, with its RR and PA Remember, the return to origin has the strongest chance of a bounce

And EJ was just easy peasy Sure, a touch of the cap would've been better, but a sensible entry later was still pretty stress free

have a Q regarding Fx.sniffer and Mel's "Candle PA" and "key Levels". When drawing key levels on HTF, it will not always be present on lower TF, for example a 4H key level is not always playable on a 5M TF. Will u Draw the major key levels on the TF you are Trading on everytime (or at least eyeball them)? Thanks Lehmann

Ifmyante Personally, I like to have an FTR on the LTF to work with to take a key level trade. It makes it so much safer

I'll get something together on it in the morning. Most of my charts show it all however As an aside (still very relevant however!), I was having a chat earlier, explaining something to friends I drew a sketch which I think should be imprinted on everybody's mind. For now I'll leave it open to your interpretation

Here's a rule to live by in trading mid range, if you can't abide by the golden rule, which is "Don't do it!"

Well, as you know, I see price either in flags or poles. Trading within the confines of a pole is, to me, midrange, as is trading within the confines of a flag

Here's the one that got away. What a time to be on holiday!!!!! I had for some time only one thin buy zone marked on the chart, but was I around when it hit? Hell no! Why was this zone so important to me?

This is what I see IF, dont know if this is what you are looking for! Weekly chart showing nice demand out of this zone.

H4 showing zoomed in demand area!

extending the H4 demand box all the way from november to April, we have it why price reacted as it did.

Harry

my view is very similar to Sunny's

Ifmyante

Yup. With a 4 pip SL on that entry, even a trip to the next supply offered massive returns

Whatever TF you're trading, price will travel from the last zone defined to the next last zone defined It's always best to be very aware of the HTFs too, as the PA forming in your LTF zone may also be at the edge of an HTF zone, potentially offering much greater rewards than your TG in this TF. Here's an example of simple, no-brainer trading on recent zones

I like your first reasoning very much The drop signal came on an engulf of the original FTR For now I'll be keeping that FL as the edge of my PAZ

For me these levels get used again and again as the edges of PAZ's

Why did I buy gold? Was there a confirmed entry? What trouble may lie ahead? How will I know if I'm onto a real winner? If it runs, where could it run to? If it's a loser, how will I know? What would be my best escape? How do I make sure I can't lose?

Infest Just a question: Why are you looking for long entries if there are great opportunities to flow with the trend on selling the pair? I think there is lots of room for profit on selling the pair. I will wait for long entries until we take out HTF-resistance areas, until now we react to every lower timeframe flip area which proves lots of bears I dont want to stand in the way... M5 2x possible entry at S/R flip, first retest and second retest of confirmed retest

Hi Infest I took the trade for the reasons the guys stated above. It was a lovely FTR on every TF, and a beautiful cap (see the m15 from the past). It had every possibility of retracing price deeply. As it went though, there were decent returns to be made on it, but nothing massive Here's how I managed it

When so much of what we've learned is aligned, we can trade without fear

A FL is where a PAZ gets broken and price FTRs This is a perfect example of it

I let PA take me out

Ifmyante wrote: When so much of what we've learned is aligned, we can trade without fear

ttfreitas Hi, IF Thanks again for posting your trades. They are really eye-openers. I can see the similarities between this trade and the PA around your target, where you said that you let PA take you out. Your entry setup had a FO but you couldn't trade it because you didn't have recent history to tell you where supply was. What you call an FTR on your entry is similar to your "Exit on rejection from cap". (At least that's what the rejection from cap looks like, an FTR). May I ask you a few questions?

1. Is a rejection from cap the same as an FTR? If not, how are they different? 2. Did you take another trade at the "rejection from cap"?Why or why not? (I would think so because price is at

demand and, before the FO, supply was engulfed)

Thanks in advance once again, IF. Cheers

I'm really impressed with what you got from that! To answer you questions: 1: Is a rejection from cap the same as an FTR? If not, how are they different? It sure is. Well noted! 2: Did you take another trade at the "rejection from cap"?Why or why not? (I would think so because price is at demand and, before the FO, supply was engulfed) I truly would've loved to have had the time to take it, especially as the whole formation had become such a lovely BUFL. Anybody who was there should've been in that trade though, sure 3: I noticed how it's good to trade smaller time frames when there is no recent history to the left, like the EURJPY pair, for example. There is no interference from higher TF PA. Would you agree with this statement? There usually is something to the left, even if it's from years ago, but yes, I agree with that

With time, patience and experience, what once seemed very complex becomes ver

And in my own words :) , "The level at which price leaves a zone and fails to get back into the zone is the FTR (FL). So we now have a PAZ above the FTR and another PAZ below the FTR, and we can operate within these individual zones". EDIT: oh, and the FTR (FL) level is the DP between the PAZs. GR8 stuff DrSwing Ifmyante Shhhhhhhhhhhhhh...... Don't tell anyone

Simple explanation of Compression formation

Sorry to interrupt, but it's test time I drew up 7 charts explaining to a private student of mine why I took this trade. It absolutely needed 7 charts! So now it's your turn to put together all the reasons to take this trade Also, please explain what can be expected of the trade Best If

Oedipus I don't have the full pcture but I'd love to try. Me too, sorry I didn't see others were posting. You guys are fast.

The green arrow points to the moment I planned this trade Why? Also, how did I pick my entry?

Oz

Once the FL has been broken, a deep retrace to the source will follow to reload sell orders

Pedini Hey guys, its great to see you all working out these problems. I marked up my own for you. Understand this type of PA and you're on your way to understanding every turning point in the market.