Hello Traders, here's an educational post about a supply zone. You don't need to overcomplicate the things a valid supply area is found in trending markets with a sell Order Flow volume very strong. price is making higher lows and lower lows. as you can see at some point price will push the price down.
An area with a large amount of sell-orders is called a Sell-Zone, and it has very specific boundaries as we will see. This zone can be considered an area where a large of Sell-OFV was transacted at the origin. The only way the downwards move that occurred could have been created is by the triggering of a large amount of Sell-OFV at the origin of the movement. Somebody important decided that it was EXPENSIVE TO THEM, so they transacted huge volumes of sell-orders. This is area is a great deal for a seller and a terrible deal for a buyer.
If the price come back to that level , be sure that they can continue pushing the price down.
Good general guidance to fade at POC within a trend structure.
Can you please clarify what volume data your are utilizing??? No data provider within Tradingview provides volume data from the genuine interbank market. The data provided is from "brokers" such as FXCM , Oanda & etc. The most accurate volume data within Tradingview, I have found to be is from CME but only for dollar pairs. Crosses are not included. However, CME volume is not representative of the genuine FX spot market. How do you deal with this dilemma if one is serious about volume and order flow professional grade tools are required? Any info you can provide would be much appreciated!
Cheers,
Adam
AIRFOREXONE_
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@Adamned31, I don't use any indicator to see the volume. Is not about watching what is inside an accumulation before a rally or a drop . When it comes to FX you must understand that the volume is showed by the degree of aggressiveness of the price action you don't new any fancy indicator to understand the volume you just need to understand what happen after to have an idea about what can happen further . check this post
Adam11177
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@airforexoneJAVIER, Thank you taking the time to reply. I agree strongly with the things you are saying regarding no indicators and the willingness of buyers or sellers to aggressively participate. However, volume data is not necessarily defined as fancy indicator. Most professional futures/ equities intraday traders rely heavily on such data. There are inherent issues when developing systems that utilize a parameter of aggressiveness of price. A strong M15 candle may not indicate aggressiveness on a M5 or less. A strong M5 may not indicate aggressiveness on M1. A weak M5 may indicate strong aggressiveness on M1 or tick charts. Aggressiveness requires a robust mathematical formula. However, regardless of the inherent issues I mentioned what principles you mentioned are genuine and represent how the market functions.
HollyDary
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Great work as always. Thanks
AIRFOREXONE_
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@HollyDary, many thanks I appreciate your support !
MultiAssetX
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good job
AIRFOREXONE_
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@multiassetxplorations, thanks bro
Mayfair_Ventures
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Love the educational posts - this community needs more posts like this, the issue at the moment is it's all crypto and all about "picking winners" So good work on the content! thank you for sharing & enjoy the remainder of your weekend!
Can you please clarify what volume data your are utilizing??? No data provider within Tradingview provides volume data from the genuine interbank market. The data provided is from "brokers" such as FXCM , Oanda & etc. The most accurate volume data within Tradingview, I have found to be is from CME but only for dollar pairs. Crosses are not included. However, CME volume is not representative of the genuine FX spot market. How do you deal with this dilemma if one is serious about volume and order flow professional grade tools are required? Any info you can provide would be much appreciated!
Cheers,
Adam