I hope everyone had a good week in their trading, while the one who had a bad week, I am sorry to tell you this but it is simply that your money was being transferred from your mistake or inexperience action to a skill full astute trader that is better than you. That’s how the life cycle of trading.
If you had learn with due diligence the concept and the art of Trading by quantifying Demand and Supply , you probably had the best edge over every trader that uses conventional mechanical indicator or even so trade in tandem with the Big players institution or banks that always win.
Having the ability to identify where their orders are , you will not just snatch every traders money but also inline with the banks order flow .
Below is a chart of a 2 day trading simply Day trading. Intraday short swings on almost every move. Ignore the CCI indicator as this is not what I focus on while trading. That is just a means of a tool, to confirm my levels. More like an additional Odd enhancer other the Odd enhancer it self.
Here are the details of this trade:
1. The price drops into a demand level. As all we know that when Demand exceed supply Price will rally. Additional confirmation using the CCI tell’s me that a bullish divergence is also at the same time formed as soon as it touch that demand. SO here I long the EURUSD untill at the resistance or when the CCI is at Overbought. This end up a 58 pip Profit.
2. At this level. I know that the price has entered deeply into the supply level. Knowing that when price hits inside that level, it either cut through orr cannot maintain its move as We know that Supply exceed demand from that top and will drop. Small bearish divergence is seen as a confirmation and then sell until that pin bar showing me we have started receiving some serious buyers. Hence close the trade to avoid clinging too long. This profited for 38 pips.
3. After waiting for the price to react at the demand level, I then look at the CCI to confirm that , it turn out the next lower leg move created another bullish divergence. So I took this one towards the nearest fresh small supply formed during those drop. This bagged for 21.9 pips.
4. This is a classic Supply level formed after a drop base drop. This Trade I took for my favourite 10 pip trade.
5. At this level, another confirmation at the supply tells me the price is ready to go short again. CCI also at the same time inside the overbought Knowing that the level below is unfresh and possible for a least path resistance, hence short again. This end up for 49 pip profit.
6. Once the price reach the demand level and at the same time CCI is below the oversold, Close the short and BUy back towards the supply. This bagged 44.8 pips.
How much did I earn from that trade ? A total of 222.7 pip in 2 days. Imagine that doing it everyday from MOnday till Friday. This show us that there is limitless opportunities in the Forex market everyday. Never chase a trade but wait till an opportunity present it self!
Day trading is a highly demanding job for the one who can maintain hours in front of a computer and make quick decision while the mindset is strong and willed to maintain its discipline. If you are unable to cope that, then best of all do swing trade where you have the time to plan, analyse and even set and forget your trade.
Happy Hunting everyone!!