STRTRADA
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Hi,
I have had a lot of e-mails aksing me how identify zones on buying zones and selling zones. Supply and demand in a nutshell is how the markets work and once you have seen how the markets work, there is really one way of learning how to trade and that is only done by learning the fundementals of the market process of why there are supply and demand imbalances at different prices.
It baffles me that some traders do not even know what supply and demand is. Why should this market be any different?
On the side of each trade there is always a buyer and seller. Trading is really just trying to find which side has the most power.
Now as I'm sure you know retail traders do not account for much of the trading volume...Meaning if you tell your buddy that you and him are going to go long the chances are the volume generated by your trade really won't have any sort of affect on the market whatsoever. The real big boys in the banks at the end of the day control EVERYTHING so why would you want to attempt to go against them...?
So now we have identified what sort of group we want to trade with...we want to make sure almost every trade we go with our bank friends are on the SAME side of the trade. With this we have the momentum and just follow where the big boys take us.
Now we come on to something new...The big boys can see the their orders written down at an exact price. Now we do not have access to this data, we only have access to a chart but it is just as easy to see it on a chart. This combined with PA confirmation or confluence can result easily in a highly accurate win rate.
Over the weeks I wish to post some trades that I see and the reasoning behind them.
Anywho this is a chart to get us started
EUR/GBP trade Around the 11th of Jan
The Blue box is the area of hevay supply and the Red box shows one candle shoot up becuase of the buying power. But the candle was not able to maintain the bullish candle becuase of the heavy area of supply and teh sellers came and pushed the candle to a pinbar formation.
I have had a lot of e-mails aksing me how identify zones on buying zones and selling zones. Supply and demand in a nutshell is how the markets work and once you have seen how the markets work, there is really one way of learning how to trade and that is only done by learning the fundementals of the market process of why there are supply and demand imbalances at different prices.
It baffles me that some traders do not even know what supply and demand is. Why should this market be any different?
On the side of each trade there is always a buyer and seller. Trading is really just trying to find which side has the most power.
Now as I'm sure you know retail traders do not account for much of the trading volume...Meaning if you tell your buddy that you and him are going to go long the chances are the volume generated by your trade really won't have any sort of affect on the market whatsoever. The real big boys in the banks at the end of the day control EVERYTHING so why would you want to attempt to go against them...?
So now we have identified what sort of group we want to trade with...we want to make sure almost every trade we go with our bank friends are on the SAME side of the trade. With this we have the momentum and just follow where the big boys take us.
Now we come on to something new...The big boys can see the their orders written down at an exact price. Now we do not have access to this data, we only have access to a chart but it is just as easy to see it on a chart. This combined with PA confirmation or confluence can result easily in a highly accurate win rate.
Over the weeks I wish to post some trades that I see and the reasoning behind them.
Anywho this is a chart to get us started
EUR/GBP trade Around the 11th of Jan
The Blue box is the area of hevay supply and the Red box shows one candle shoot up becuase of the buying power. But the candle was not able to maintain the bullish candle becuase of the heavy area of supply and teh sellers came and pushed the candle to a pinbar formation.
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