Article It’s on the Chart Right in Front of You, Open Your Eyes

[T2W Bot]

I have always found it very interesting, how many different ways people look at charts and all the different pieces of information people try to attain from a price chart. How could so many people look at the same chart and have so many different opinions? Fascinating.
With all the different schools of thought on money, markets, charts and so on, what should we really be looking for on a price chart? I mean, conventional technical analysis books have hundreds of pages in them with information on so many indicators, oscillators, chart patterns and more. With all this, there must be some edge to be gathered, right? I speak with thousands of traders around the world and everyone is trying to make something “work”. This is where I see most people get it very wrong. They spend more time trying to make the latest strategy or indicator “work” instead of taking a moment and thinking about how money is made and lost in the markets, because after all, isn’t that what everyone is really...

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[tomorton]

I like an approach that gives absolute weight to what's important, and ruthlessly ignores everything else.

Sam's article has inspired me to spend a bit of time drawing boxes on my forex charts.

 

[tomorton]

Now I've got rectangles all over the ferkin' place. I've got fat ones, thin ones, rectangles in rectangles.....

I haven't yet found a price high or low that can't be a supply zone or a demand zone. Maybe that's the point?

 

[foroom lluzers]

Is there any statistical evidence to support this on fx?

 

[tomorton]

Not that I've seen/heard quoted. Sam Seiden and his OTA colleagues, also other commentators, do a fine good job of rationalising why it works - in any market and all time-frames. As ever, much hindsight charting is in evidence but I may pick up something more applied as I keep searching.

 

[kalott]

the most important thing is to identify the trend

if its trending upwards you can buy low or you can buy high or you can buy when the sun goes up and sell with profit

if the uptrend is stalling and starting to go sideways, its of course better to buy low and sell high

as long as you dont do it in a downtrend..

 

[tomorton]

the most important thing is to identify the trend

if its trending upwards you can buy low or you can buy high or you can buy when the sun goes up and sell with profit

if the uptrend is stalling and starting to go sideways, its of course better to buy low and sell high

as long as you dont do it in a downtrend..

At the moment every single trade I take is a trend-follower. But forex pairs etc. only spend a fraction of the time trending strongly. I hope that using supply & demand zones might help for non-trending trades.

 

[barjon]

At the moment every single trade I take is a trend-follower. But forex pairs etc. only spend a fraction of the time trending strongly. I hope that using supply & demand zones might help for non-trending trades.

Then stick to your last, don't trade FOREX it's a death trap

 

[wackypete2]

Then stick to your last, don't trade FOREX it's a death trap

I haven't died yet and I've been trading forex since 2006. (before that I traded US equities for many years) :smart:

Peter

 

[tomorton]

Then stick to your last, don't trade FOREX it's a death trap

There's no reason that forex should have the bad reputation for destroying traders' accounts as it has - apart from the leverage available specifically to forex traders. But that's more down to the individual trader surely? After that, its just price going up and down.

 

[foroom lluzers]

Then stick to your last, don't trade FOREX it's a death trap

forex make me very patient 10 pip trader , 10 pips in and out several times a day.It is gold mine.

 

[foroom lluzers]

I haven't died yet and I've been trading forex since 2006. (before that I traded US equities for many years) :smart:

Peter

My pipe dream on forex is real now!

 

[aag100]

How simple educators make it look in hindsight.
Where the price went up was your demand zone,where you should have bought.
Where the price went down was your supply zone,where you should have sold.
Simplez isn't it.got it?

 

[barjon]

There's no reason that forex should have the bad reputation for destroying traders' accounts as it has - apart from the leverage available specifically to forex traders. But that's more down to the individual trader surely? After that, its just price going up and down.

Tomo (and peter and fl)

Bit like your "double up" button and the 5 min default chart, SB companies point people at FOREX so I'd guess that's where they garner good profits on the other side of the trades.

Sure, price just goes up and down but maybe with different motivations than other intstruments - export/import companies getting lock-in hedging for example. I always think Gamma Jammer's http://www.trade2win.com/articles/752-day-life-forex-spot-desk-trader-part-1-a a good and telling read about what's moving price.

'Course, my view is probably coloured by my getting burnt when I tried it. All too fast and furious for me

 

[foroom lluzers]

'Course, my view is probably coloured by my getting burnt when I tried it. All too fast and furious for me

If you use this thread article ideas , add a tick chart market timing strategy at the supply zones and demand zones , you have a forex holy grail strategy of 5 trades of 10 ticks each daily .

I knew Pete cracked the code in 2006.

 

[darktone]

I cant run a sub 9.7 second 100, therefore noone can!

 

[Plebtrader]

One dumb question

Hi there, I am new to trading, you dont have to reply me if my question is too stupid.
Is there any chance that the chart has been manipulated? People in those huge banks and hedge funds (they are those who able to consistently beating the market), are they trading by just look at the supply and demand curve as well? I know that some people in hedge funds they even laugh at S&D theory (my heart broke when I talk to them). They only use fundamental and technical analysis to create a trading algo. Hence, is it possible that we can make profit with simple steps? If yes, would mind tell me how can we outperform those people or at the same level as them.

 

[Lúidín]

the most important thing is to identify the trend

if its trending upwards you can buy low or you can buy high or you can buy when the sun goes up and sell with profit

if the uptrend is stalling and starting to go sideways, its of course better to buy low and sell high

as long as you dont do it in a downtrend..

So how do you identify the trend?

 

[foroom lluzers]

the most important thing is to identify the trend

if its trending upwards you can buy low or you can buy high or you can buy when the sun goes up and sell with profit

if the uptrend is stalling and starting to go sideways, its of course better to buy low and sell high

as long as you dont do it in a downtrend..

you know what is going to happen next .great .you will make a killing in trading.

 

[Lúidín]

Hi there, I am new to trading, you dont have to reply me if my question is too stupid.
Is there any chance that the chart has been manipulated? People in those huge banks and hedge funds (they are those who able to consistently beating the market), are they trading by just look at the supply and demand curve as well? I know that some people in hedge funds they even laugh at S&D theory (my heart broke when I talk to them). They only use fundamental and technical analysis to create a trading algo. Hence, is it possible that we can make profit with simple steps? If yes, would mind tell me how can we outperform those people or at the same level as them.

i am not the author..but as you got no reply I will give my opinion..it all depends on what market you are trading..and who else is trading it..it is easier to see manipulation in some markets compared to others

while i do agree with a lot of what the author wrote..it is not that simple..as again..depending on what you trade..and when you trade it..there can be a big difference in how the price behaves..which can be a lot to do with your manipulation question

the author is correct when he says to keep it simple..and the simpler the better..providing of course you fully understand your instrument..it's characteristics..it's key times..and what ever other information is relative..successful trading requires much more than using a box..but a box can be a great starting point to get you focused..as without focus you will not see anything