kate25

In the past three charts I talked about relationships between bars, then groups of bars and finally base of legs up and down. To build a trade set up we need all three concepts. We do not long when price is breaking supply lines, we wait for a retrace and identify areas of interest. Im going to contradict myself here because if we only take trades in the direction...

In the first two charts I talked about the relationship between bars then the relationship of a group of bars. This chart looks at how we play the base of the leg up or down and what occurs when a base of the leg is crossed under or over.

Expanding the idea of how price action develops on individual bars to a group of bars starts to paint a picture of what trend is doing. When price is breaking below buy orders we had to have more sell orders to do this. So we can say where we had buy orders is now sell orders. Look left is a common phrase in supply and demand, it refers to an area of orders where...

For interest I thought I might do a series of charts explaining how price action develops and why we see what we see on the chart.

Price has built supply above which needs to hold to send price lower into demand

Price is at the point where if we close below demand then we expect that demand to turn to supply when tested

Supply needs to hold to send price lower - if supply fails then price will head higher

price is in supply to reach the lower demand at .9911 the two smaller demands in the swing need to fail to hold price up - if they hold there are supply targets higher up.

The base at the top failed to hold price up turning it to supply. The base at the bottom remains intact and as long as it remains intact it is demand and should send price higher if we lose demand then price will decline further

Price has formed demand below which needs to hold to send it higher into supply

Price is in supply which needs to hold to send price further down into demand

Price is in supply demand below - for price to fall supply needs to hold. Falling price will be against trend, this should be a retracement

Small time frame - price has built supply above which needs to hold to send price lower into demand. Price has suggested that with the lower low we should see a lower high, again supply needs to hold

Price broke through the base of the move up which we suspect should be supply now. It has held price below earlier see if it holds again and sends price lower

Price has built demand, supply above. For price to advance demand needs to hold. The play is against trend playing a retracement

Price is at base of move up - small zone of 8 pips with a possible second demand below it. Price remains bearish as the swing highs remain unbroken. If the base holds price should challenge the swing high

Price is at demand which needs to hold to send price higher to supply

Price is in supply which needs to hold to send price lower into demand - euro session will be the test for supply