Hi,
I’m in the process of trying to document my approach to trading (using screenshots)
Before I do though, I would like to share this custom made indi I had built which I cannot live without whilst trading using s/d levels.
I wanted a way to know when price had touched, gone above or gone below the s/d level.
I couldn’t find an indi that did this so I got one built.
The attached indi will do just that and mean you can be alerted whenever price touches, goes above or below a rectangle or line marked on your charts.
After you attach the indi to an MT4 chart, edit the properties and if you want an alert to be emailed/sounded/box popup when price touches the rectangle, simply put the letter tin the description.
If you want to be alerted if price goes above the rectangle/horiz line/TL and closes above that object on a particular TF simply type a followed by the timeframe you want to be alerted if price closes above. eg. a1 (alert if price closes above box on M1 chart), a5, a15, a60, a240, ad, aw, am.
If you want to be alerted if price goes below the rectangle/horiz line/TL and closes below that object on a particular TF simply type b followed by the timeframe you want to be alerted if price closes above. eg. b1 (alert if price closes above box on M1 chart), b5, b15, b60, b240, bd, bw, bm.
This indi is very useful for alerting when price touches, goes above or below your supply/demand rectangles.
Let me know if you have any questions re. it’s use.
Please don’t share this indi with anybody.
thanks.
Hi, Please see attached for my method. I see things happening repeatedly but I guess I don’t know why.
View attachments in order of 1. 2. 3. as I go from daily and drill down.
Does any of this make sense to you?
My Response:
Thank you for sharing your indicator. I’ll certainly dive into it tonight.
I believe I’m starting to grasp your strategy.
However, there are a few elements, such as the inclusion of these channels, that seem to complicate the analysis.
I’m struggling to identify their significance in the market context.
In your first image, you mentioned that these channels tend to emerge where significant upward or downward movements have taken place. You’ve also marked where a swing low has formed.
This retracement point becomes significant because it’s where banks first initiated their buy orders, propelling the upward movement from your highlighted demand zone.
The subsequent revisits to this point are essentially the banks filling the rest of their buy orders, leading to an upward market movement.
The supply zone you drew in the first image deserves some scrutiny too.
It doesn’t seem to be the primary trigger for the market’s downward trajectory upon reentry. This supply zone was initially formed when banks were placing their sell orders in the market.
Given the substantial shift in market structure since then, it’s unlikely these sell orders were still open when the market revisited the zone.
Hence, the drop upon reentry into the supply zone was not due to additional sell orders from the banks, especially as the market was no longer trending downward.
Other than these points, your analysis appears solid.
Your zone marking is commendable – an area where many traders stumble.
However, I believe attributing too much importance to the channels might be a misstep.
In the third image, you mentioned that if the price breaks the channel and passes straight through, it’s likely to revisit. What you’re witnessing here isn’t a channel revisit, but rather a return to the supply zone established by the drop below the green rectangle you’ve marked.
The banks, unable to fill all their sell orders at once, nudged the market back up to the point where their sell orders were initially placed to complete their positions. The channel’s presence seems incidental here.
As for the GBP/USD, I predict a rise from the current demand zone on the daily chart. However, speculating the magnitude or endpoint of this move seems premature at this stage.
I hope my feedback doesn’t come across as overly critical.
My goal is to enhance your trading acumen through sharing my perspective. For now, I’d recommend eliminating the channels from your charts and analysis.
Concentrate on trading zones in isolation and constantly consider why a particular zone formed. I’ll consider some new rules for your zone-based trading and share them in my forthcoming email.