SUPPLY AND DEMAND
readthemarket
, Price Reading
In order to be able to trade the markets, we need to be able to understand why price is where it is, and where it will go to next. The best indicator for all this is Price itself.
It holds all the clues you'll ever need to work the market out. We do our trading at levels called Supply and Demand Zones (Video), and we watch Price Action there to give
us signs as to the intentions of the big money.
Here‟s what we look for on the charts:
General: HTF. Know where price is coming from and going to, and the PA past and present in all the TFs, from the Monthly down.
Specific: At the zones you want to trade, look to
Past. study the zone in all TFs, down to M1
ask yourself
Where were the decisions made? Clean S/D? Mark these lines. No clean S/D? – compressed zone
Did price really shoot away form the zone, or did it cp away?
Did the zone itself react at the right place? Look beyond the zone further into the past. See what it reacted to. Was there a better S/D nearby that price wants to visit? This
explains many fakeouts. Did price originally react to the RS of a Flag Limit? It can fakeout to true SD of the FL.
Present.
Approach.
How is price returning to the zone?
Where‟s the nearest flag in the TF you want to trade? This is your tg1 in this TF. Flags in the LTFs? What does PA tell you?
Has price tested the last flag on approach? (good sign)
Has price compressed into the zone in this TF or LTFs? (good sign)
Is there big news on the way? Has there just been big news?
Reaction
In LTF, does price react violently to the first decision point? Does it quickly engulf the nearest S/D? (good sign)
Does price simply CP away? Maybe it wants to go to the next decision point
If the first decision point breaks, watch the signs on approach to the next, and, of course, reaction.
Chew this over for now. Apply it to your chart history. Apply it to as many failed setups as successful ones. Millions of them if possible! Capture and file them all. This will
help make it instinctive
,Technical Analysis
1)Trends
Technical Analysis contains lots of different aspects and subjects . One of the Topics that we are going to cover
here is “Trends”.
What is a Trend?
To keep it simple, say that a trend is really nothing more than a “direction” in wich a currency pair is trading.
Type of trends?
If you would ask the majority of the traders what they know about trends, they would probably tell you that
there are 3 types of trends; an Uptrend, Downtrend and a Sideways trend. However, there are in reality only 2
types of trends.
There is an Uptrend and a Downtrend. A “Sideways Trend” really doesn't exist, because even if price moves in a
“sideways” range, price is still trading up and down....Also there are only 2 types of orders that can be placed,
either a Buy order or a Sell order. There is no sideways order :-)
, We can see that on the left side of the picture, price is trending down and that it is trending up on
the right side of the picture. When price is trending in either a down or uptrend , it is not trading in
a straight line.
If you observe how price tends to move, you will certainly recognize a “repetitive pattern”.
In a Downtrend, price will tend to move down while making Lower Highs (LH) and Lower Lows (LL)
and in an Uptrend price will tend to move up while making a serie of Higher Highs (HH) and
Higher Lows (HL). So in other words, price would have to make new highs or new lows in order to
remain in an up or down trend.
readthemarket
, Price Reading
In order to be able to trade the markets, we need to be able to understand why price is where it is, and where it will go to next. The best indicator for all this is Price itself.
It holds all the clues you'll ever need to work the market out. We do our trading at levels called Supply and Demand Zones (Video), and we watch Price Action there to give
us signs as to the intentions of the big money.
Here‟s what we look for on the charts:
General: HTF. Know where price is coming from and going to, and the PA past and present in all the TFs, from the Monthly down.
Specific: At the zones you want to trade, look to
Past. study the zone in all TFs, down to M1
ask yourself
Where were the decisions made? Clean S/D? Mark these lines. No clean S/D? – compressed zone
Did price really shoot away form the zone, or did it cp away?
Did the zone itself react at the right place? Look beyond the zone further into the past. See what it reacted to. Was there a better S/D nearby that price wants to visit? This
explains many fakeouts. Did price originally react to the RS of a Flag Limit? It can fakeout to true SD of the FL.
Present.
Approach.
How is price returning to the zone?
Where‟s the nearest flag in the TF you want to trade? This is your tg1 in this TF. Flags in the LTFs? What does PA tell you?
Has price tested the last flag on approach? (good sign)
Has price compressed into the zone in this TF or LTFs? (good sign)
Is there big news on the way? Has there just been big news?
Reaction
In LTF, does price react violently to the first decision point? Does it quickly engulf the nearest S/D? (good sign)
Does price simply CP away? Maybe it wants to go to the next decision point
If the first decision point breaks, watch the signs on approach to the next, and, of course, reaction.
Chew this over for now. Apply it to your chart history. Apply it to as many failed setups as successful ones. Millions of them if possible! Capture and file them all. This will
help make it instinctive
,Technical Analysis
1)Trends
Technical Analysis contains lots of different aspects and subjects . One of the Topics that we are going to cover
here is “Trends”.
What is a Trend?
To keep it simple, say that a trend is really nothing more than a “direction” in wich a currency pair is trading.
Type of trends?
If you would ask the majority of the traders what they know about trends, they would probably tell you that
there are 3 types of trends; an Uptrend, Downtrend and a Sideways trend. However, there are in reality only 2
types of trends.
There is an Uptrend and a Downtrend. A “Sideways Trend” really doesn't exist, because even if price moves in a
“sideways” range, price is still trading up and down....Also there are only 2 types of orders that can be placed,
either a Buy order or a Sell order. There is no sideways order :-)
, We can see that on the left side of the picture, price is trending down and that it is trending up on
the right side of the picture. When price is trending in either a down or uptrend , it is not trading in
a straight line.
If you observe how price tends to move, you will certainly recognize a “repetitive pattern”.
In a Downtrend, price will tend to move down while making Lower Highs (LH) and Lower Lows (LL)
and in an Uptrend price will tend to move up while making a serie of Higher Highs (HH) and
Higher Lows (HL). So in other words, price would have to make new highs or new lows in order to
remain in an up or down trend.
