Past & Approch

PAST & APPROACH, ROADMAP 

(Red) On approach towards a supply zone (good FTR): Notice how bulls got larger towards zone. This is the market trying to put the trader in doubt to short.

(Aran): CPLQ towards the zone is good sign for zone reversal strength, because CPLQ is to make us afraid. Price shoot hard into your zone it will make you afraid and get out of a good trade or trade the wrong way. On the other hand, flagging before touching the zone, as you know, means that they are putting orders into the market so it might be orders against your zone (more likelihood the zone is exhausted before getting hit).

                 

Jurij: About bif FL box: yeah important stuff, each FL/FTR (box) has lower time frame nested FLs/FTRs, usually when price bounces from an FL it does so from a LTF FL within that box... Swapped FLs are also key because they revisit a previous decision (by breaking a previous decision a new decision is made).

Events (Red) NFP is designed to give new price structure for us to trade and for the market makers to place buy and sell limits against retail, nothing to do with the actual figures.

Look left, understand the left - trade to the hard right with conviction It doesn't matter what you look at, what matters is - what you see

Let prices tell u it’s bearish pattern (wait for engulf back).

l don't trade news, rather - let the news move prices to levels of interest, then trade the levels that exisit between supply and demand

l regard news as simply a means of moving price to key levels where the instutions have already placed their limit orders ahead of the news etc

l simply trade the price reaction @ those levels, should be clear by now .

Correlation: (red) The books tell us to focus on the majors - they respect tech least off all - the brokers offer the lowest spreads on the majors so that you lose your money quicker.
The truth you think you know/believe is inverted to the actual truth.

Choosing zones: (red) yes, when zones are stack like that – keep you guessing huh – is it this one – is it the next one? …… that is the common way this marke traps us. Safe thing to do is take the MOST EXTREME.

(red) the market knows we are watching this level - therefore l expect spike action for early short entries and then a possible turn.

(red) only the ITs can engulf.

(Red) l always wait for engulfing - it’s the only conformation l know that works best, why........... engulfing represents institutional order flow, its what the other side of retail looks like in the bars! The patterns come in many shapes and twisted patterns. So, l have to enter after the engulfing pattern presents its self. l will switch tfs in a demand or supply zone until l see something l recognize and thats pretty much it . missing trades is annoying but l would rather be on the right side and confirming it, thats my plan and so far its served me well

I have no other material that l could recommend but there isn't much more to the strategy than what you have seen - wait for prices to reach YOUR PREDETERMINED ZONES and study the reaction and pick your moment. How you you pick your moment? ...........that just comes with experience and screen time, no magic flashing lights and EA required - read price, know what is doing and why its reacting.

l rarely use limits because how do you know a level is going to be respected or not?

Answer - you don't - therefore let prices sink or rally into zone, then identify entry based on price reactions. bearish enguilfing @ supply.
bullish enguilfing @ demand.
and thats it, nothing else needs to be said about it

How do you know an uptrend is going to swing south?: When bullflag turn into bearish flagpoles.

Momentum & Trend: pole is momentum, check the length of the candles and compare them to the length of the pullback candles. in general - trends are defined in momentum candles, trend is momentum and pullbacks are weak in momentum and can take a long time to reach there level to then return to the trend . in a downtrend, strong bears - pullbacks are weak and messy - sell @ supply uptrend - strong bulls - pullbacks are weak and messy - buy @ demand

the trend is your friend, why? Momentum candles DEFINE THE TREND, so read them and it all makes sense - when the momentum changes, let it change and we then go with the new momentum candles - agreed?

for example............momentum candles can be hard to catch because news does it fast and crazy - but they then create levels for us to trade, we miss nothing with the news BS - it gives us the levels or rather makes levels for us

read all you want about rumours and predictions by the PROFESSIONAL ECONOMISTS, never seen one of those guys/girls who can trade even thou they study all this BS - but levels are made and broken, trade them

Just remember that higher timeframe supply and demand zones have greater weight than the lower timeframes! You should always keep in mind the higher timeframe demand and supply zones when working off the lower timeframes. bbakker

Although a level, at first sight, looks like supply, it may be consumed by the drop because it’s been spiked. This is where and when levels do fail because although they look like textbook the level has already been consumed. In other words, if the spike was not there I would have more confidence in the short – get it?

ALL LEVELS ON ANY TF ARE SUBJECTIVE, SO INSTEAD OF USING LIMITS, WAIT FOR PA TO GIVE YOU REASONING TO ENTER

exactly. Trading is a mixture of simplicity and ease almost.  everything outside of those two things happens when we don't follow our plan - staying in a losing position, close winning positions too early, etc. otherwise hardest part is believing in what you do, your method, execution, expectancy - when they are all in line, we trade in tandem with the markets, entering when invited and exiting quickly when told.  the market is your friend. believe, execute, expect. great thread Red! - Dropped Onion

ou cannot have a fire without a spark. PA @ supply/demand is that spark. people are simple. charts show peoples reaction and behavior over time. news/speculation/whatever pushes prices to these predetermined levels. we watch prices at levels we understand and trade according to a Plan. prices reflect simple and predictable behavior. focus on the process not the finish line. if we execute trades at prices we understand, we have done our job

metals might correct and slv will be leading the way as ITS closer to its historic high than gold is - if slv corrects after testing its highest supply zone then gold will follow, but l do not sell metals, l only buy @ demand

commodities or consumables - the fact that they are consumables means that they are constantly in demand, for example wheat, corn and soya, crude, brent etc ......... therefore buy @ demand is the safest means of trading them - Red

lets say we get a daily hammer and break of daily hammer north - chances are its rejection .......... lets say we get a daily hammer but the high isn't taken and a bear moves south through the underwick of the hammer and broke the low of the wick ...... now - thats the thing, then the HAMMER WAS CONSUMPTION clearing the path south for a bear ........ you can't tell until further PA and if futher PA is respected as it appears or engulfed the other way - Red

PAST

https://readthemarket.com/index.php/en/forum/homework-rooms/2524-supply-demand-and-price-reading#51913
supply/demand are often reactions to the Flag Limit(a RBD or DBR after break of a high or low)
it is these levels that are the important ones, the ones that contain price in a range,
and give you the heads up when price is going to change direction

sure there are other areas and reasons supply/demand forms, but these are less important levels,
ones that are much more subjected to breaks and fake moves

a fresh zone is somewhere that you have "Broken and Engulfed supply/demand" that is called a Swap or SR/RS Flip
for example fresh supply can only exists if the demand was cleared and vice versa
look at it this way: there is a supply zone and then there is a decision to break the supply, so supply is gone and there is only demand left, so we have fresh demand as long as it doesn't get retested

i think we can call it a FL==FTR: it's a failure to get back into an important PA zones, these ones are especial
as the word suggest, when price decides to break something important, a new decision is made (the asset is cheap or expensive)
usually when this area is re-visited, price reacts because decision has already been made there

usually we can find them when a SR happen
they are in all the TFs

ROADMAP

Articles overview:

S/D Article:
Prologue/why this article is here: Although the article briefly discusses Supply & Demand, what we are most interested in, is when it breaks.
What you should learn by practicing: After finishing your homework you should now be able to answer the question “what are the supply/demand levels themselves reactions to?”

S/R Article:
P: A S/R level holding so many times in the past must be strong, right? Well.. think again.
W: Again our interest here is to train the eye for where these “infamous” S/R levels break. Later on, in the BSZ article you will see how to take advantage of these stop-loss stacked places.

PAZ
P: The PAZ article is about getting an idea of where price is going to go so you will be able to pick a trade direction with a higher probability of success.
W: By practicing and doing your PAZ homework you will be able to identify the direction of price with a much higher success rate. Once you are able to identify the direction you can then focus on the best spot to enter.

Caps:
P: A good practice learning to mark your charts and extend your drawing further to the right. Observe what happens after they get engulfed and price returns.
W: Traditional S/D teachings use these as places to gamble blindly. But after doing your homework, you will know better ;)

Flag Limits:
P: The basis of our trading. Flag Limits define areas of price imbalance (further on the left). Based on other conditions we look to trade in these places.
W: By studying Flag Limits you will learn, how they form, how they break and how new Flag Limits are created when the old ones break.

FTRs:
P: The charts are full of FTRs, learn what it is and how to identify it.
W: Flag limits and FTRs are the same, but not every FTR is a Flag Limit. Practice and learn how to use them in your trading.

Remember that all these below will have to have prior PA (engulf) to be worth trading.

Compression:

P: Often a sign of reversal, compression is used by ITs to pave the way while hiding their true intentions.

W: Combined with a valid entry place, it can be a powerful “indicator” for our trade result. You will also see how it is often used as a trap for S/D traders, especially in CPLQ form.

3Drive:
P: As “classical trading” teaches, “the Trend is your friend”. But what if it is heading towards a valid entry place?
W: By finding examples, you will see how it lures trend traders with nice looking HHs&HLs (or LLs&LHs) right into a trap. Could be combined with BSZ while it’s heading straight into QMs, iQMs and FLs.

BSZ:
P: Supply and Demand work great right? Well how about a bunch of them stacked together?
W: BSZ is easy to identify, but your study will also help you spot the right places to trade beyond them, when every retailer is trapped and the IT can now reverse price.

Ignored Levels:
P: This article provides an explanation to members of what constitutes an ignored level and why these levels are important when planning a trade, awaiting PA or locating a target. Members should understand FTR and FL concepts. 
W: Undertaking the homework in relation to this article is strongly encouraged, as it will reinforce the concepts and allow members to better locate ignored levels in real time.

Engulf:
P: "There is no Price Action without an Engulf" and it is what defines our trading. It is our leading "indicator" regarding price intentions.
W: Forget about candle engulfs/engulfing patterns. What we look for is Flag Limit Engulfs. Through homework and experience you will learn which FL engulfs are real PA. Once a FL is engulfed price will want to go to the next, but we always have to be mindful of how much it can retrace.

QM:
P: One of the most common forms of PA we look for before entering a trade.
W: Practice will build good understanding where to expect them but also patience before entering a trade.

DM:
P: The other most common form of reaction we want to see from price entering a valid trade place. Shows heavy manipulations from "ITs", trying to fool both SD and breakout traders.
W: Practice will help you anticipate this structure, and avoid handling your SL to the ITs like the rest of the herd. Always remember that your stop loss will have to be beyond the FL we are reacting to. Knowing how far that is, will help you determine correct position size for your entry according to your risk profile.

Both QM and DM will have to be accounted for in your risk calculations, always based on the MPL of the FL we are reacting to.

Can-Can:
P: Just another fancy name for price returning to take the last set of orders with CP or CPLQ style.
W: Through practice you will be able to anticipate the CP/CPLQ trip back to the MPL.