Hi Mentor,
Thank you very much for your reply. I think you are doing a very good job on your articles, especially for a Supply/Demand trader because I can totally understand what you meant (except for swings which is new to me.)
Just three last questions…
May I use the swings to analyse the banks’ action and use S&D zones to be the main locations for Entry and Stops?
Sad to know the “max distance” for swings is not easy to learn. But will there be any issues if I keep to ranges of 35 – 50 pips on 60 Mins?
You mentioned before banks don’t leave pending orders. But will trading works if I were to use Set and forget? Just abit worried because I read your article on “Stop hunts”Because of my Job, and my time Zone (SIngapore), I need to tackle the timings.
Enjoy your evening there
My Response:
You can use swing analysis to understand the actions of the banks and apply Supply and Demand (S+D) zones for entries and stops. Keep in mind: Every swing low and high in the market is a result of banks either placing trades or taking profits.
So, whenever you spot these swings… try to decipher which action caused them.
That way, you’ll gain a clearer understanding of what’s unfolding in the market…
If you notice a swing breaking another swing by around 50 pips on the 1-hour chart, it’s a strong sign the market might continue moving in the direction of the break.
This is true, irrespective of the currency you’re trading.
Moving on to the “set and forget” strategy—yes, it can be effective for trade entries…
The key is to be adept at identifying zones likely to be successful.
As you can’t rely on price action to confirm a potential move out of the zone, zone selection becomes super important.
My advice: Trade the rally-base-drop and drop-base-rally zones.
These zones always form due to either bank traders securing a substantial amount of profits from their trades or because of a large number of trades placed to instigate a market reversal. Hence, they carry a higher probability of triggering a reversal upon the market’s return.
Hope you find this helpful…
PAN.