How I mark supply and demand zones as best trading Zones on a Forex Chart

I always use to find trade locations first and then I mark the areas which can be traded. By this, I means that whenever a level is breached and that area is of high impact zone, then I usually watch the approach to that zone. Usually price usually spend time to the high order area, which is also know as price Action zone, but when these levels are usually ignored or there are short term bounces, I always marked these type of zones & then I watch the approach to that level.

Price Action zone as support and resistance in Forex or future trading

I always use to trade supply and demand in Forex and Future trading because there is never too much sideways price as there is demand and supply always there on a Currency and commodity chart. Recent Examples are of Eur & Aussie Chart which is quite rare, that you get entries on two chart on a same day. But this has happens once in a while and reward was as good as 10 times specially in Euro Chart.

Synchronization of engulf and retest zones is the concept you need to used in Forex

Best thing I love about Forex and commodity trading is that there are strong engulfs and retest of the zone, leaving some areas to be retest after ignoring. When an area is engulfed and retest, then we should look for the areas above or below which has strong moves and looking for fakeouts around that zone or MPL level. Euro chart is so neat and clear above that tell us the reason, why you should jump into the trade without being thinking twice. Risk was calculated but rewards is around the area of 1.1020 area, I wish that would be reached soon next week.

Best thing when you trade Forex Chart, is the bearish price action which has to be strong before testing any QM zone or even MPL level, which is why I suppose to take the trade and I often don't take two trades at a time, but this price action forces me to take the trade and take profits at 1.1090 zone & Now I'm trailing another entry around 1.1135 to check the test of strong zone around 1.1020, If you're presented with an opportunity to retest the 1.1125 area, then I would open another entry with 8 pips stops & look to take profits around 1.1020 area.
Chart will be updated again next to see if we manage to bag the big move from 1.1172 & If and when this happen, then this trade would be of highest risk reward in last three months, because stops were around 1.1182 area & initial target is still 1.1020 area.
Stay tune for more
Raat chanda ki rahi ya phir sitaron ki... Koi Aankho se kahein to koi Tarano se....

Pounding stalling ahead of 1.3020 area, looking for shorts to trigger around 1.3040

I have decide to let you know how to trade top down analysis from higher time frames to lower time frames.

We all have seen pound is looking for resistance around 1.3010 area, & I think this area is going to hold ahead of vote count & any pressure on this area will trigger shorts soon & that is no longer away from as we are already seen breach of 1.2950 area.

Trade plan to trade pound

My trade plan would be limit around 1.3040. I would put a sell limit around 1.3040 area & would put my stops just above 1.3080 area & look to target 1.2710 & 1.2550 respectively.

Pound is showing headwinds followed by strong momentum from lows but as we have seen news about brexit giving pounds strong bullish momentum , but that news is already fading and we can see no buying interest ahead of 1.3020 area, so I've seen strong momentum break through 1.3050 area and now price flagging the area already as we have seen strong bullish breakout is much awaited but that breakout could or should turn out to be just a Fakeout (FO)

Trade Forex Like the banks course Build strategies & Trade price Action Course

I've been listening too much about how to trade Forex like banks & there are various courses that are available on net and various experience traders trade forex to new comers and experience to sight trading activity done by banks .

How to spot trading Activity by banks on charts

It is not easy to learn Forex Trading strategies specially price Action strategy used by banks and institutions but with time and practice, one can always learn to trade like pro & spot activities that has been done by central banks, institutions & hedge funds. Specially, banks enters market to absorb orders & then take the price to where it should. If the price is very high then it will get to the area of imbalnace, where it will be equal to supply and demand & that is what we need to learn and that is what banks have been doing for years.

Forex Breakout Strategy

By Breakout, I never ever focus on consolidation breakouts or breakout to the high or multi year high and multi year low & then continuing the pattern. This has never been easy to see traps and breakouts. Difference can be seen if you apply simply price actions strategy used by banks & you need to learn these type of activity to spot on charts & need to go through Forex trading like banks Course which tells us how to easily spot activities. I would post a link here soon where one can get a glimpse at how banks trade in forex market with simple supply and demand zones.

Forex trading course covers the patters like supply and demand zones

In this course, you'll learn intraday strategy, swing trading, scalp trading strategy for day trading and for long term profit booking. That won't take too much of time, when you take next step to your profitable journey to forex & there is no need to spend money on courses & indicators to trade forex. Just get your hands on this free forex book & take your trading to next. Your question answers based on book will be covered on the blog & on daily basis for next couple of monhts.

Trade banks traps by marking supply demand zones on Chart

I've started to being more aggressive on education portion of the blog & recent price action in Pound Dollar patterns signifies the power of market zones. We really need to concentrate the risk we can manage & this chart below signifies the risk involved was way too low than we usually try to pick tops and bottoms or trading any other breakout strategy.

Pattern you need to see in the chart below is :-

Breakout of the Support

Price went into the zone again & then continue going down and made a new low and the break was significant

Price attempt to went into the zone again but that time with rally and then base and rally which was rejected at previous swing high.

Price went into base of earlier rally and small spike and then engulf of demand

Price action was very low but QM was established at previous attempt to rise of the support & it was just above the S/R flip.

Entry was figured out and stops was just few pips above that candle high . & price fall 150 pips after that attempt to break again.

Stay tuned for the link on how to trade Forex like banks

Forex and Stock trading is all about Timing and Decisions Guide

Who have involved in stock trading or Forex Trading for a while must have known the fact that trading is all about entering and exit at right time at right junctures and know how to trade crucial events and time their trade for best and potential profit targets.

But it all has been not as easy as it is told to be because how we plan a complete trading strategy and our Stock and Currency trading decisions are all based on that, but we still need some experience to gain all the knowledge and execute our plans successfully at crucial stages. We all need to be precise with out decision making approach because not only Forex Trading involve high risk but it is risk-oriented and because of high liquidate market, it react almost instantly to any news as compare to stocks which takes time to respond as buying and selling stocks means taking money off from another to put it in some other stock and it involves late reaction.

Some of the new traders thinks, News trading is best way to make profits and make them on consistent basis but still they need to re-evaluate their plans and think if such trading offers certain opportunities

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Spotting Opportunity in Comex Gold

I have manage to spot an opportunity to Comex Gold to kick start new opportunity for my blog readers and help understand why I have taken this opportunity If this sums up well and because of the fact this is medium term reverse trade so the impact would remain for next two to four days and targets can be reached in the stipulated period and stops can be hit today or tomorrow but usually I expect reversals to happen immediately as I believe in bulk orders left in strong movements known as ignore supply and demand areas, and when price returning to those areas it use to pick up those bulk orders and reach the next supply/demand or decision making areas.

Recent Gold Trade tell us "How you need to time your Forex Trade", because recent price action from low is quite hesitated and compressing to this 1284 mark which is the crucial decision point after price make new lows after making new high post NFP data at the start of the Month.

**** Sell Comex Gold at 1284.00 (Executed)
Stop 1291.00 (Strict Rules while applying Stops)
Target 1275, 1264

We use to enter two orders of the same lots e.g I would enter here with two lots and put the stops for both trades around the level 1291 as recommended and look to close first trade around 1275 area, and trail the rest position which means If I manage to close the one lot around 1275, then I will probably move the stop of second order at break-even, which is recent entry at 1284.00, and close the rest of the order at second level 1264. ,

Financial planning and Financial Decisions

Trading is or always be about building strong system mentally and logically which you can rely on making investment decisions and hence willing to test those strategies in any market conditions and hence Forex or any other financial market battles are won with not only willing to succeed but doing what others avoid or never even think of.
We all are human and we tend to hesitate even for a bit, while taking crucial decision because they are already experienced in some manner or because of the fact we have left so much behind we should always take a leap out of those bad decisions.

Build Finance portfolio with Proper Financial Planning

Basic Trading Rules For Supply Demand Traders

In order to be able to trade the markets, we need to be able to understand why price is where it is, and where it will go to next. The best indicator for all this is Price itself. It holds all the clues you'll ever need to work the market out. We do our trading at levels called Supply and Demand Zones (Video), and we watch Price Action there to give us signs as to the intentions of the big money. 

 Here’s what we look for on the charts:

General: HTF. Know where price is coming from and going to, and the PA past and present in all the TFs, from the Monthly down.

Specific: At the zones you want to trade, look to
Past. study the zone in all TFs, down to M1
ask yourself

Where were the decisions made? Clean S/D? Mark these lines. No clean S/D? – compressed zone

Did price really shoot away form the zone, or did it cp away?

Did the zone itself react at the right place? Look beyond the zone further into the past. See what it reacted to. Was there a better S/D nearby that price wants to visit? This explains many fakeouts. Did price originally react to the RS of a Flag Limit? It can fakeout to true SD of the FL. 

Present.
Approach.

How is price returning to the zone?

Where’s the nearest flag in the TF you want to trade? This is your tg1 in this TF. Flags in the LTFs? What does PA tell you?

Has price tested the last flag on approach? (good sign)

Has price compressed into the zone in this TF or LTFs? (good sign)

Is there big news on the way? Has there just been big news?
Reaction
In LTF, does price react violently to the first decision point? Does it quickly engulf the nearest S/D? (good sign)

Does price simply CP away? Maybe it wants to go to the next decision point

If the first decision point breaks, watch the signs on approach to the next, and, of course, reaction.
Chew this over for now. Apply it to your chart history. Apply it to as many failed setups as successful ones. Millions of them if possible! Capture and file them all. This will help make it instinctive

When to take a retracement Signal

You’ll learn so much from those articles that will change the way you see and trade the market, so please make sure to give them a quick read.

What is Retracement/pullback signal?

I’m sure you have heard traders say something like:

I’ll wait for a pullback, then I’ll trade it!

Well, a retracement or pullback trade happens when the market breaks through an important range or level, then it comes back to “test” that level again (or the breakout).

The market goes like this:



It breaks through an important level, then it comes back to test that level again… if the market breaks that level back, it would be a false breakout, and the market will trade again inside the range.

But if the market gets rejected from that level, it will confirm the breakout and it could give us a retracement signal.

Now, let me ask you this question:

Are you supposed to take every retracement signal?

Not at all.

In fact, you should only take a handful of them.

And that’s that this article is about, how to know what retracement signals to take.

In order to be valid signal we need three things:

Pressure

At an important level
Significance
Here is what I mean by each aspect of the signal.

Pressure

There are two types of pressure: upward and downward pressure. We have upward pressure when bulls take control over the market after bear dominance and downward pressure when bears take control over the market over the market after a period of bull dominance.

Try to picture this “pressure” on your head, what would it look like? It would look like a “v” shaped pattern as upward pressure or an “inverted v” as downward pressure. Let’s take a look at some images to make sure this is clear.



The first candlestick moves down (bear dominance – red arrow), but at some point, bulls gain confidence and take control over the market (i.e. bulls felt comfortable trading at those levels) pushing the market back up (bull dominance – blue arrow).

If we combine both arrows, we end up with a v shaped pattern (green arrow) with upward pressure.

Does it mean that only known candlestick patters (such as piercings, hammers, shooting stars, etc.) have either upward or downward pressure? NO. In fact, most patterns that have either upward or downward pressure aren’t known candlestick patterns. Take a look at the next image.



This pattern is not known in the candlestick literature, but it still has upward pressure. You still see the “v” market movement. Next time you see a candlestick pattern, try to picture it in your mind as “v” or “inverted v” pattern, this way you will train your brain to see them as price action, not just as a candlestick pattern. At an important Level

Another important concept that describes Forex Price Action, is how the market behaves at a place it already traded before.

I suspect the reader already knows what we are talking about, if the market was rejected from an important level, the next time it comes close to that level, it is likely to get rejected again. And yes, we are talking about regular support and resistance levels.

This is the reason why we always need to pay attention on where the market has been rejected, specially the short term Support & Resistance levels, because at those levels we always should be ready to open our trades (in the direction of the long term market condition). Please take a look at the next chart:



In this chart, where would you open your trades? If I was to trade this chart, I would look for long opportunities around the bottom of the range, because the market gets rejected every time it gets near that level. And short opportunities around the top of the range, again, because every time the market gets close to this level the market gets rejected.

Significance

Due to the nature of the Forex market (OTC: over the counter), it’s impossible to get an exact reading of the volume of the market at any given moment. But there are certain measures that can be used as a “proxy variable”, one of them is the significance of the “pattern”.

The significance of the pattern refers to the size of the pattern that triggered the upward/downward pressure compared to the previous candlesticks.

If we are tracking a “long” signal, we need to compare the size of the pattern that triggered our long signal to the bear candlesticks that formed the previous downward movement.

And vice versa, of we are tracking a “short” signal, we need to compare the size of the pattern that triggered our short signal to the bull candlestick that formed the previous upward movement. Let’s take a look at some images.



The trigger signal in the image above is clearly larger than any of the 3 previous candlesticks that formed the upward movement; therefore it is a significant pattern.

Putting it all together

Please take a look at the next chart:



The pattern (orange square) with downward pressure is formed at an important short term resistance level (green line) and it is also significant (pattern larger than the previous candlesticks). This is considered to be a Forex price action signal to go short.

- See more at: Protradingnow.com

Trader's Checklist

In this postI’ve decided to make a small check-list, that I use in my own trading, and that may be useful for you as well. In other words, what do we do step by step when we come to the market with the intention to find a good trade?

We go top-down, from analysis of bigger timeframes to lower timeframes and finally, tick-by-tick action. Of course, our thinking in calm environment, when we do our homework, is different from thinking when we are acting at the «heat of the moment». But prepared trader has more odds of making good decision rather than unprepared one. The only group of traders that can make absolutely no preparation, are pure scalpers.

But now there really a few pure successful scalpers in the world – this trading style has become very tough with the popularity of mechanical trading, HFT algorithms.

1. Important extremes.

Check whether market has violated recently any important extreme – 1 month, 2 moths, 6-months or more. It can be an indication of something significant happening in the market. Short-term traders often avoid trading near such zones, and they of course are not responsible for driving the price against important extremes. They prefer to wait for confirmation and only act after that. I’m saying that if any trading setup has occurred after price had violated any important extreme, this setup can be more valuable and lead to more significant changes in price.

Activity on NZDUSD. Breakout to the downside has occurred after violation of multi-months highs.

2. New announcements and holidays.

Does market expect any news announcements today, what will be the time of news releases? You don’t have to analyze numbers in most cases, but it’s recommended to at least know when news will be released.

3. Wave-like activity

By wave-like activity I assume breakouts initiated in a wave-like style. So, if you have breakout and it is performed in the form of double, or, which is better, triple initiative, it can be a sign of a «new business» entering the market. In most cases, such movements are to be continued in a short-term period.

4. Volatility – low or high?

Has volatility been low or high recently? In markets that are ready to break out, volatility tends to be small. Market prepares for the move, sort of accumulates power, and after that goes in pretty rapid way.

If you Like this blog then Check more information On Supply and demand Imbalance IN FOREX

Update of the chart Australian dollar Intraday

First of all welcome to my new blog, Those who have visited my earlier blog are aware of what imbalance is, And this blog I have created for Intraday trades, as Earlier blog I have kept for education purpose.

This post is a continuation of earlier post from Friday where I have seen Australian dollar reversal in larger trend and few hints were provided where we look to sell the rallies and Expected rejection of from supply areas give me much confidence that test of lows or continuation with more bearish price will follow through.

Update chart Australian dollar

I will try and add more to my trade if we saw any further attempt to rise from here because I don't want this opportunity go by and I would rather stay with my strengths to add few more trades if I saw any attempt after the opening trading session on Monday.

Intraday udates

As I have mentioned in my previous blog posts that We just indeed need one clue of rejection in ultra motion strong trends to trigger the entry with the trend, Even though the past rallies are strong enough, Which could be a part of "Exhaustion".

Currently I have tracked as such activity in Recent Intra day setup which is worth watching as I have seen Institutions or Strong Money selling it right from the top till pause and then selling activity resume.

That's a fact that at the time of writing this post price had already rallied 30 pips from 0.8860 to 0.8830 and that is how consciousness has a part to play in Intraday trading.