SUPPLY & DEMAND!!!

[Mr. Hyde]

If anyone wants to follow along, lets do some homework. Lets use GU, EJ, GJ, EA, EN, GN, GA, ES, GChf, silver. Pull up a four hour chart. Place BB 50/2 for settings. Then mark off any possible SD. Then look for retracements further then 50% and look for any price extensions. See if you have any of these 3 that overlap. If so, then these will be on our watchlist. we then will look for any other confluence and we will see if price is outside the BB when it gets there. If needed, you can drop to the 1hr to refine the zone.

Also. Im going to through up the crash zone indy if i still have it. If price makes it to one of the zones on a tues or wed, there should be a good chance we can hold the trade for a few days or until the opposite of the crash zone.

I've always been interested in the Crash Zone but had no clue as to how to actually use it, so this will be one for me to watch! Cheers.

TRO001.png

Thank you TRO. Quick question while i got you here. Over the years, have you ever made a daily ATR indy that kinda operates like the crash zone. In where it uses like a percent of the daily ATR to make the zones and then plots it each day. That would be a badass indy, especially for daytraders.

[Mr. Hyde]

If anyone wants to follow along, lets do some homework. Lets use GU, EJ, GJ, EA, EN, GN, GA, ES, GChf, silver. Pull up a four hour chart. Place BB 50/2 for settings. Then mark off any possible SD. Then look for retracements further then 50% and look for any price extensions. See if you have any of these 3 that overlap. If so, then these will be on our watchlist. we then will look for any other confluence and we will see if price is outside the BB when it gets there. If needed, you can drop to the 1hr to refine the zone.

Also. Im going to through up the crash zone indy if i still have it. If price makes it to one of the zones on a tues or wed, there should be a good chance we can hold the trade for a few days or until the opposite of the crash zone.

I've always been interested in the Crash Zone but had no clue as to how to actually use it, so this will be one for me to watch! Cheers.

Crash zone is super easy. To me its just a weekly ATR indy. So it gives you a clue how far price could move this week. Then there was a topic of discussion that i believe Bredin did, in which he showed that there is a 90% chance that price will always make the opposite extreme first, then move to the other pivot. That really didnt make sense. But pretty much, price should set a weekly pivot, then cross the open and set the opposite next. MO had also mentioned this concept when talking about trading yearly extremes. I beleive he said price has a habit of setting one extreme around March give or take a month and then setting the opposite extreme around sept give or take a month. I still trade using this concept. You can easily load 30 pairs and then just start looking for a setup that just screams out at you. I will post a few that i have taken a little later.

So lets use GbpChf. Im bearish on it. It just triggered my short entry. Now if my SL is beyond a pivot, I could try to hold for the whole week. So normally if you can get in with a 30 or 40 pip stop and then target a 200 to 300 pip move, it offers a nice little RR. Hopefully that kinda made some sense.

gbpchf-h4-hugo-s-way (1).png (90.8 KiB) Viewed 1619 times

[Mr. Hyde]

Forgot its a US bank holiday today. Be safe

[Mr. Hyde]

a term you will hear me use a lot, is Quassimodo pattern (QM). For those who dont know, its just a head and shoulder pattern that the right shoulder has broken the extreme of the left shoulder. Then you can place a limit order on the last up/down candle in the pattern. I also look for any S/D zones to refine my entry. Now remember. We just dont trade these blindly. These have to be at HTF levels, S/D. Targets are left shoulder extreme, right shoulder extreme, new high/low or a fib extension/next S/D. This is a pattern i use a lot in my trading now a days.

Here is one on AU 1hr currently. And then when you drop down to the 5 min, you can see there is even another one, but kinda ugly.

[Mr. Hyde]

So here is a perfect example of what i look for. You have a demand zone (keep in mind that huge ass wick behind it. But then price retraces to between the 61.8 and 78.6 level. Its also at the 1.27 extension. Price is also outside the BB. You could easily have placed a limit order just to get in, but the stop would have been pretty big. And it could still retrace deeper. So i would only put a partial on if i was doing that. So then what i would do is drop down to the 5m or 15m chart and either look for a QM pattern to form or a S/D zone to enter in. Just like i showed with Etherum yesterday.

[Mr. Hyde]

Live trade i did today while marking up the charts for you guys.

ethusd-h4-hugo-s-way.pngethusd-m5-hugo-s-wayentry.png

Always keep in mind. If there are multiple zones, that there is a good chance price will come back and wick it.
Off the orginal chart, first trade could have gotten you 3 to 1. 2nd trade would be a loser. 3rd trade on the new chart you can see profit targets.

ethusd-m5-hugo-s-way.png

Just barely missed the 3rd target. But if you look. Price just retraced to wick the lower demand zone. Always keep this in mind. Only hold trades if your stop is beyond the extreme. Otherwise its in and out. Took me forever to beat this into my head.

[Mr. Hyde]

So here it is again. We have price at a S/D zone. We have the retrace. We have the extension. We have price outside the BB. Even have the trendline.
Then you can use that zone for scalping on the lower time frame. Your first possible trade was the QM zone drawn. Then the second possible entry is the demand zone.

euraud-h4-hugo-s-way.png (88.67 KiB) Viewed 1605 times

euraud-m5-hugo-s-way.png (101.24 KiB) Viewed 1605 times

[Mr. Hyde]

You have a 4hr supply zone above you. Then price forms a QM pattern on the 1hr. Then you can refine your entry even more and drop to the 15m and find another QM zone. 10 pip stop. Already up 2 to 1. Took half off. Letting the other run.

[Mr. Hyde]

Here was the trade of the week for last week. You can see we have everything we are looking for. S/D zone, trendline, retrace, extension and outside BB. 2nd trade was just a QM pattern at supply. Good for 9 to 1. Required almost no effort.

[Mr. Hyde]

Supply above. Retrace. Extension. QM pattern. Trendline touch. Price outside BB (almost) Then we throw on the crash zone and look for confluence with the exits. 7105 and 7065 look good. Entry was 7215, stop at 7230. 15 pip stop. 1st target is 7 to 1. 2nd target is 10 to 1. Lets look for one more add on and maybe a day trade or 2.