Anybody Discuss Supply and Demand Strategy???

Are there people discuss SUpply and Demand Strategy here?
let me know please.
let's learn together

what is supply and demand strategy?

munchiedude said:

what is supply and demand strategy?

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Supply and Demand strategy is a strategy based on very basic knowledge of economoy wihtin buyer and sellers.
buyer > seller -> price go up
seller < buyer-> price go down
buyer=seller -> sideways

this strategy is using a very high winning probability and also low risk and high reward.
you can place buy entry at the demand zone and sell entry at supply zone.
with 1:3 (risk : reward)

here I upload a picture of how this area work. this strategy is not always right. you know there are no certains in the market. everything can happend and possible. but if you win you win 3 and if you lose you only lose 1.



you can see that's the supply and demand zone of GU in D1 timeframe.
from the orange rectangle you can look to the left, you see that price was there in the past, and couldn't stay long, price couldn't make many sideways candle there. it means there in that area, there were a huge amount of sellers dominated the zone. with very little buyer, and the price is go down indicates with the big body of red candle it means there are no more buyer instead of sellers were dorpping the price down.

ur picture doesnt show?

munchiedude said:

ur picture doesnt show?

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Do you distinguish between what you're talking about and support and resistance? Looks like the same thing to me. It would be interesting if you could expand upon your rationale for the lower zones. They don't look like obvious support areas.

Adamus said:

Do you distinguish between what you're talking about and support and resistance? Looks like the same thing to me. It would be interesting if you could expand upon your rationale for the lower zones. They don't look like obvious support areas.

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S n D is not a S n R area. both of them is totally different. sometimes people say S1 @ 123, S2 @ 234, S3 @ 456. S n R is aiming to a singgle point directly. but S n D is talking about areas, the areas between this price and that price, the area between 400 to 500.
underestand what I mean?
technically SnD is also different with SnR. if you don't mind. please just draw the S n R at the same chart and timeframe as I've draw my SnD at GU or EU.
I'll show you the differences.

That's the support that I see on the chart.

I agree with you that support and resistance shouldn't just be a single line. That's just not the way the markets work. It's a zone. The markets don't respect accuracy.

Adamus said:

That's the support that I see on the chart.

I agree with you that support and resistance shouldn't just be a single line. That's just not the way the markets work. It's a zone. The markets don't respect accuracy.

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yes, you drew a demand area, not a support. support is a singgle line. but demand refer to area. that's the point.
for further you can check it at sam seiden's webinars.
I am just a newbie and only want to share with anybody who using S n D area strategy in this forum.
the definition is depend on our own mindset.
hehehe
thank's for sharing

If you put first things first, supply and demand are what it's all about. We're both looking for the place where the market is going to stop and turn around, or carry on as the case maybe. If it doesn't stop there, it's no use and I was wrong, but I won't have lost any money. It's when it stops there that you know there's an opportunity in the pipeline, either one way or the other.

What you call it doesn't matter too much until you start talking about it with other people.

I've heard of Sam Seiden and he seems to have a good reputation, but I haven't checked him out. What's the main idea then, is it simple or complex?

Adamus said:

If you put first things first, supply and demand are what it's all about. We're both looking for the place where the market is going to stop and turn around, or carry on as the case maybe. If it doesn't stop there, it's no use and I was wrong, but I won't have lost any money. It's when it stops there that you know there's an opportunity in the pipeline, either one way or the other.

What you call it doesn't matter too much until you start talking about it with other people.

I've heard of Sam Seiden and he seems to have a good reputation, but I haven't checked him out. What's the main idea then, is it simple or complex?

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yes I agree with you...

you can watch sam seiden's video/webinars in fxstreet.

Enjoy....

Sure, I'll check out Sam Seiden when it works its way up to the top of my list of 'must-read' sources.

I don't want to sound pedantic but I didn't actually get anything from this thread, and it doesn't seem much like you got anything out of it either. So with all due respect, what was the point? Did I miss something between the lines back there?

Adamus said:

Sure, I'll check out Sam Seiden when it works its way up to the top of my list of 'must-read' sources.

I don't want to sound pedantic but I didn't actually get anything from this thread, and it doesn't seem much like you got anything out of it either. So with all due respect, what was the point? Did I miss something between the lines back there?

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owh, you're totally do not sound pedantic. therefore I want to other member to share with what they know about this.

thanks fo updating ur charts, im not very experienced in this so cannot provide further feedback regarding this form of trading.

good luck with your search for info!

Adamus said:

Sure, I'll check out Sam Seiden when it works its way up to the top of my list of 'must-read' sources.

I don't want to sound pedantic but I didn't actually get anything from this thread, and it doesn't seem much like you got anything out of it either. So with all due respect, what was the point? Did I miss something between the lines back there?

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Supply and Demand
Did not cut through candles.
Only take the fresh supply and demand levels.
Level become weaker when price revisit or go into the supply and demand zone more than 50%
Too many candles = not a high quality level
High probability.
Low Risk High Reward.
Rally base Rally in a price chart could be a demand level also and also for the Drop base Drop.

Support and Resistance
Cut through candles.
Only take the Support and Resistance when it is tested several times.
Level become stronger when price revisit the level.
Low Probability.
Low Risk High Reward.
No such thing with Rally base Rally for Support and Resistance.

You may not take the Supply and Demand into your trading strategy, but you may lost a good profitable trading strategy.
Although you have your own trading strategy, remember to use Supply and Demand level as a base for your strategy in any market.
So far as I see, every long term and successful trader have their own trading strategy, own indicators, but they do use supply and demand level in their strategy. But not all of them will tell u that they include S&D for their strategy. Those who do not like to share.

Adamus said:

Do you distinguish between what you're talking about and support and resistance? Looks like the same thing to me. It would be interesting if you could expand upon your rationale for the lower zones. They don't look like obvious support areas.

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They are almost the same thing.

I think of S/R as being the edges of the S/D areas, and are thought of as 'a line that price may touch but not close over'

G.

I trade off S/D exclusively. I use no indicators at all.
I am not saying that to sound cool, its just that there arent many indicators out there that help to see S/D on a chart, and if It not helping me to see S/D then its of no use at all.



This is the reason that I have changed from timebased charting to point and figure. P&F shows supply and demand.

While P&F is almost universally used in breakout trading, It is of much more use and power when used with S/D. It becomes very easy to use the 'close over (or not close over) a line' method that is used with S/R trading.



This is from this week, and shows how well behaved AU has been price gapped above the line drawn at about 0.9780 and immediately got rejected off it. Easy pips.

G.

With apologies, that AU got cut off



G.

bredin, v. interesting. I never used point and figure, still learning to use candlesticks properly! Anyway, what do you do with your levels then? Do you trade break-outs from them, reversals? Do you enter on stops etc?

In P&F a new column is only drawn when a large enough reversal has happened. With this in mind it should be seen that every close is either support or resistance to some degree. From there you can see the swing extremes and the local S/R.

They give an idea of direction in the same way as usual: we're looking for resistance to become support (or vise versa), or resistance to hold. I am looking to exploit rejection from these events.
(please excuse some notation for what follows)

The general pattern is
Extreme (Daily or higher)
R->S
Retrace to S
Go Long.

The breakout itself cannot be trusted, since after this there is almost always a retrace as the breakout guys move their stops to 0 and have their trades taken off them (getting 'zeroed') or a 'false break' aims to take the breakouts guys at their stops.

Anyway, by removing time and concentrating on price S/D areas and S/R lines immediately stick out.
So we can go short just inside R and bail just on the other side, while targeting S that is many times further away than our stop... Its almost impossible to trade at low R:R

Sometimes I think this way of trading is too easy and that soon everyone will do it. Then I remember that most people believe in complexity and will try to 'improve' it by adding something useless to it in a vain attempt to 'make it better.' Like all those people who spend their life looking for the shortcut instead of just getting the job done in the first place In trading they're the easy ones to spot.

Anyway Adamus, a question for you:
Which part of the timed candles assists you in seeing S/D?

G.