baderocks2
Long

USDCAD - Comparing Supply and demand with Support and resistance

FX:USDCAD   U.S. Dollar / Canadian Dollar
Most people are support and resistance traders, but they fail to understand why their setups fail. Because institutions know where the majority of people are trading, and will attack these areas when appropriate.
Are you a support and resistance trader, or supply and demand? And which do you prefer?
Interesting, but where do you get that Demand zone from, you take strong buy candles to the left, instead of where price been bouncing from recently?
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baderocks2 ANLIT10
@ANLIT10, It is difficult to explain what supply and demand because its a much more advanced concept than the rest like support and resistance where you just look at areas of rejection. With supply and demand, we are looking for areas of unfilled orders, which are nested within zones such as the above. There are strict rules for choosing your zone such as the number of base candles, the strength of the move, the profit margin, the curve, trend, and finally the formation of the zone. (Rally-base-rally, Rally-base,drop, Drop-base,rally, Drop-base,drop)

You can find some free resources on google and youtube to get started. I also share my strategy and trades in private.
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yes people often think S/D and S/R are both the same concept but very different.
With S/R traders every time a zone or S/R line is respected the stronger it is and has a higher probability of working.
As for S/D traders the concept for them is that the more times a zone is tested so weaker it is because S/D traders believe the unfilled orders of the institutions are getting filled.
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baderocks2 MoneyballAustin
@MoneyballAustin, Some s/r traders believe that the more times a structure is tested, the stronger it is, but others including myself believe the opposite. If price keeps coming to a level over and over again, doesn't it make more sense that there will be less orders than the first and second time? Soon enough there won't be any orders left and a breakout will happen. This is why you notice that the first one or two bounces usually have the largest moves than the future ones that end up acting as minor retracements.

My group members were having a discussion on this yesterday, and this is what one of them had to say about this: https://imgur.com/a/zqqJtIC

Which is the best interpretation of the two I have seen so far.
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@baderocks2, teaching them well baderocks good job!
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