Ok, makes sense..thanks.
You last ibook was heavy heavy reading. I may need to re-read in a few days to absorb it. 😳 Im a visual pictures person so when reading long documents i tend to only take in 30%.
I understand the concepts you’re discussing but wonder if it’s possible to give more actual trade examples of when you find trade setups that meet your entry criteria (ie. Do you totally ignore swing low/highs and only focus on bank demand & supply levels etc..). How do you determine TP level and is the SL > 40 pips above the S/r level? Which TF do you look for buying? H1 or varies. Do you use TL’s at all in your trading? I do but not to follow the trend.
Your concepts are clear, i would like to understand how you apply this knowledge to your trading.
Trading wise Im in Perth Aus, so try and trade some of the london open after work. Ive been doing s/d trading for abt 5yrs and as you said, couldnt understand why price often ran straight thru “perfect” setups. Im still on demo “serving my apprenticeship” till i have a repeatable process that gives a higher level of positive outcomes. My S/d trading to date has been too hit and miss. I havent been reading PA and have been relying on levels working that i now realise were probably stale.
Thanks.
Ucad weekly looks very bearish. Lots of sell orders placed around 1.31s to 1.32s (as seen by wicks on weekly) at point of initial swing high after the drop..and now a bearish engulfing candle last week.
Similar outlook?
Im a bit confused cos AU also looks bearish and i thought they worked in reverse.
Sorry another question..
Nzd/cad daily….see attached
I would have typically taken that short when price first revisited supply zone and daily candle then had a big engulfing red candle…only to have been stopped out a few days later due to the 2nd last daily pin bar candle hitting my SL.
Is there any way i should’ve known the short was a bad trade or was it just “bad luck” the 2nd last candle stopped me out?
Thanks.
My Response:
Regarding USD/CAD, I think we’ll see a small retracement take place on the daily chart at some point during the week… This will cause AUD/USD to continue to drop lower.
When the USD/CAD retracement has come to an end, AUD/USD will start to retrace—probably back up to the highs made by the current drop.
The drop has created a supply zone, where I would look for entries short if the retracement manages to move inside the area. This could possibly be because the banks want to get more of their sell trades placed before the reversal gets underway.
Once these trades are placed, the price will drop again, and we’ll see another retracement or consolidation take place on USD/CAD.
To be honest, I really think you were just unlucky with the NZD/CAD trade.
I can’t see anything which would have suggested the market was going to break the highs before falling.
The news that caused the bearish pin to form could have easily made the market fall straight away, instead of causing the spike higher. It’s really difficult to tell what effect the news is going to have on the market, as I’m sure you already know.
Currently, there are still a few books which I need to complete, along with some more articles to be posted onto the site itself. Once I have finished doing all this, I’ll have more time available to maybe do a Skype room or maybe have a forum or something where people can discuss setups throughout the day.
If you can send me an email detailing the trading method you currently use, I’m sure I’ll be able to give you some tips and rules to help improve it.
I know it’s supply and demand zones, but what time-frame do you trade?
Do you always use engulf for entry?
And which time-frame do you use to determine the trend?
Daily chart? Weekly chart?
Send me an email answering these questions, and I’ll see what I can do.
Hope to hear back from you soon.
PAN.