Sorry my late post lately. I have been busy with the new SD group new uplift website. It will be done hopefully by march. It showuld provide a good presentation of learning materials in quantifying supply and demand with price actions. Speaking of supply and demand, I manage 3 good intraday trades this week. The AUDUSD, GBPUSD and USDCAD.
THe GBPUSD trade was very classic Demand bounce. It actually timed on a news release. As soon as the news release it drop down to attract novice sellers thinking that it was a short term bearish but in fact it was the opposite. Clearly it was demand exceeding supply area.
A Strong approach arrival, leaving an area of unfilled orders for the buyers to match. That trade was completely a set and forget. While on the AUDUSD, I trade it with price action. ON the H1 higher time frame for intraday, it was giving out 2 Pin bars at an already visited supply. Communicating there is still a fair amount of supply and not enough demand. SO I took a market order adding 2 position as it retrace back into the supply. The total risk for that trade on the pair was 1%. And the SL are just quite small, so nothing to bother about even I get it wrong.
As soon as the price to follow what is right, it drop and hit my TP for the day. Both position profit for 56 pip and from the GBPUSD trade was a 50 pip profit, giving me a total of 106 pip for the day.
Over a while, I look back on other pairs and also had given me opportunity to trade. The USDCAD had rallied massively from the demand on the 4h chart.
As soon as it arrive at the supply level ( which I only score it for 7 which means I wait a confirmation of a price action or else dump ). I look at the 15 min chart, it broker on a new low telling me it could go for further bearish during NY session. It also react at the supply during news release. It rejects and showing a large engulfing on the 15 minute chart. SO I wait for the retracement on the nearest area where the order flow was inefficient. In this case 1.11514, as soon as the price corrected after the impulsive move, I enter my trade on market order putting my SL above the 20 EMA as a trailing stop guide.
Knowingly it was Friday, NY session on friday tends to slow down early after their lunch time, I decided to snooze off and let it carry away over the weekend. Though this was suppose to be an intraday setup, but end up carried forward on the weekend.
It did fall and almost touching the TP area. It even close below a resistance , supposing that area is respected, it should continue to fall on Monday closing my USD cad trade.
Can you do what I do ? I doubt that because this is me. I may shown a lot of people on trading demand and supply, people might want to follow and do what I do, but they won’t become like me. They will be them. The importance in trading does not lie on the system they use but each individual mindset.
Using demand and supply in trading in fact the very core in price equation. The imbalance between buyers and sellers in the market.
Further more about price action, behaviour and market process will be posted on my new fx group website. It will aid on members to further more enhance their knowledge and application. All previous members will be transfered into the new website. New members can enroll now in order to join the membership program. Once the new website is up and running in march, There will be a new price revision. The new ebook also be publish at the same time in march, so the previous people who had purchase will receive a free copy of it!!
Thank you stay tune and