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Demand Zone

Real levels: pivot highs & lowsThis is the main method of locating the levels that is used everywhere, it's robust & general. Instead of using the actual volumes we infer volumes from prices, the prices that include all the information about everything, prices that consider all the correlated volume. I think many may know how to find these levels, these are simply pivot highs & lows (aka PHLs). But aside of understanding the positioning and clearing, the trick is to choose the right resolution. Btw, an obvious thing I haven't mentioned before: the levels are located, positioned and cleared on the same resolution. Only this way. So, about choosing the correct resolution, basically you need the lowest resolution possible where a level origin (a PHL) can be found: 1) Choose a unique color for every resolution, start with the lowest resolution possible, like 1Y chart, mark all the positioned levels there, optionally mark the back levels as well, and maybe non-positioned level as well with a dash line. Now repeat the process on every resolution until you hit your target resolution. So if you decide to stop at 1D chart, you'll need to consider 1Y, 1Q, 1M, 1W and ofc 1D resolutions; 2) Don't forget to periodically check and delete the cleared levels. To be efficient you need to develop a habit of scrolling through all the resolutions you use when you have a question about what's happening. Clearing by volume with PHLs happens this way: 1) We consider volume to be uniformly distributed along the bar, so at every price inside each bar there's N volume; 2) Consequently, we can simply count the number of bars during positioning, and add 1 to it (PHL is always one bar by definition); 3) Then we count the number of bars during testing, when this number becomes equal to the number of bars during positioning plus one, the level is considered cleared. On the chart you see I got (almost xd) all the positioned levels from 1M in red, yellow from 1W and gray from 1D. Live Long and Prosper
CME_MINI:ES1!
by gorx1
3
Real levels: pivot volume modesA fully serious disclaimer from the beginning: every analysis based on volumes is very unstable and unreliable on most of the assets, hence this way of locating levels is very specific and should be used with care. It can be used if: 1) you trade an asset that concentrates most of the volume (+80%) of all its "correlees", maybe traded only on one exchange, doesn't have liquid option market and OTC volume is not there. Examples are "standalone" stocks that are not part of any indexes, don't correlate with anything & and traded only on on exchange; 2) you trade all correlees together. Example: you trade both Crude and Brent futures, monitoring several active expiration, not only the front contract. Another example: you trade Gold & monitor the ETFs. Or you trade all the bond futures together (with EU as well). So, if you trade ES futures looking at volumes, and unless you also monitor SPY, NQ futures, QQQ, all the sector ETFs, individual leading stocks like AMZN & APPL etc etc, all the option markets, darkpools & OTC trades. Unless you trade all of em together (prolly at least 100 assets), you need a reality check in terms of relying on volumes. Not gonna talk a lot about these PVM levels, but anyways: 1) Instead of bar chart you use a footprint/clusters/whatever you call it, and locate volume modes of every bar; 2) A mode that is lower than the previous one and lower than the next one is a level; 3) A mode that is higher than the previous one and higher than the next one is a level; 4) Positioning happens as explained in "Real levels: positioning and clearing"; 5) Clearing by volume happens this way: first you need to check the amount of volume that was built at the level since it's origin till the end of positioning. Second, you monitor how much volume builds at the level during the tests. When second volume exceeds first volume, the level is considered cleared by volume.
COMEX:GC1!
by gorx1
2
Real levels: positioning and clearingFrom where the levels originate & about the proper resolutions we'll discuss later. Soz again for the order xD, but I decided to do that in order to highlight 2 of the most important concepts most people seem to miss for centuries. A level can not be broken, switch direction or suddenly stop working. A level: 1) Can be positioned first as support / resistance; 2) Then it will be cleared. Positioning After a level finishes it's formation (it's origin becomes well defined and confirmed), regardless of it's type, at this point of time this level is just a level, it's only a potential support/resistance or supply/demand, whatever you call it. In order to become a confirmed support/resistance, a level must be positioned . In other words, a level becomes supply & demand only after its positioning is over, until that it's only a potential supply/demand. So: Price comes back to the not yet positioned level for the first time. The first bar that touches a level initiates positioning, which ends with the first bar that doesn't touch the level (a free bar). One free bar above the level means your level just got positioned as supply/support. One free bar below the level means your level just got positioned as resistance/demand. A positioned level has two prices: front and back. If it's a supply level, the front level will be the original level, the back level will be the lowest low of all the bars participated in positioning. If it's a demand level, the front level will be the original level, the back level will be the highest high of all the bars participated in positioning. All the pictures show literally the same - positioning of levels as supports/resistances. Dash lines are level themselves, which will become front levels after positioning, dot lines are theirs back levels. Circles are the hypothetical origins of the levels. Case 1: after completion of the 5th bar the level got positioned as demand, high of the 2nd bar is the back level. Case 2: after completion of the 3rd bar the level got positioned as supply, low of the 2nd bar is the back level. Process the other cases yourself just to get a feel. Clearing After a level got positioned, later it might be tested or not, regardless, eventually it will be cleared either by: 1) Time. Can be elaborated further, but as an "ok" general rule, when the distance in bars between the level's origin and the current bar is higher than 256 bars, almost surely the level has expired some time ago; 2) Price. When price tests the positioned level deep and touches the back level, or a new free bar forms past the front level. Chances the level got cleared; 3) Volume. Depends on the type of a level, gonna explain later. In essence, clearing of a level means removing the responsive activity from it: limit orders, MIT orders etc.
COMEX:GC1!
by gorx1
How To Choose High Probability OBHello traders - In this example, we will explain how to choose a high probability OB for your entry. And what you need to pay attention to. - If you want to choose a good OB, you must read every detail on the chart and take into account everything you see so that you can determine whether your OB is the high probability or not. - One of the most important things we need to have with a high probability OB is the present momentum. When we see momentum, we know that the price has the potential to continue in the same direction. - Here you can see 2 examples. In one example, we have high probability OB, and in the other, low probability OB. - High probability example: On the left, we see a high probability example. Momentum is present, and the price is making strong BOS. When the price impulsively breaks through the high, as in this case, we know that the price has a great potential to continue in that direction. In the end, we see a good closing of the candle, the price did not leave a big wick and filled the entire bullish candle. In this situation, we have a high probability OB. - Low probability example: On the right side, we see a low probability example. Momentum is not present, and the price makes BOS weak. When the price weakly breaks through the high with wick, we know that the price no longer has momentum and will most likely change direction. We see a low candle close and a large wick which tells us that the price has no momentum. In this situation, we have low probability OB. If this example helped you better understand low probability and high probability OB, leave a like and follow us for more content like this.
Education
by hybridtradingfx
1
DONT SWIM AGAINST THE CURRENTTHIS IS INSANE - Technically speaking the market in general is in a downtrend. a recession or correction. it should not matter. what is insane is am taking a Long trade on such a downtrend market. As any trading Guru would say " dont swim against the Current " dont trade against the trend. But I did. well I make exceptions. let me explain. The Long-term(M) is in a downtrend. the price is coming strongly overselling into a fresh DZ. I set my ENTR at 27.xx with STP-LOSS below the DZ; small risk with plenty room for profit to run. my risk to reward ratio adds up. I always calculate my estimates Rs (risk) before I calculate my estimated Rw (Reward) When price enters the DZ: there are three possible outcomes; - Trend Reversal - The DZ will hold & trend changes. Big win & small Loss - Correction - The DZ will hold for sometime, giving small win and small Loss - Breakthrough - The DZ does not hold at all, giving a small loss; I am OK taking that small loss; it is within my trade plan What I was looking for was a correction, happy to take this small Long profit in such a downtrend market. to do this type of trade & swim against the current one much be very vigilant; tight STP loss is key. What I did here, price entered the DZ, the correction began; I covered 1/2 of my position; I took $3 of each share, & let the rest (other 1/2) run; sadly but predictably, the correction lost momentum in a heavily bearish market. I readjusted my STP LOSS to exit trade at breaking even.
NASDAQ:INTCLong
by greatful-me
USDJPY - Potential Bullish Reversal!Hello TradingView Family / Fellow Traders. This is Richard, as known as theSignalyst. on MONTHLY: Left Chart USDJPY is sitting around a demand zone in blue so we will be looking for buy setups on lower timeframes. on H4: Right Chart For the bulls to take over, we need a momentum candle close above the orange neckline. Meanwhile, until the buy is activated, USDJPY can still trade lower. Always follow your trading plan regarding entry, risk management, and trade management. Good luck! All Strategies Are Good; If Managed Properly! ~Rich
Long
by TheSignalyst
6
WBT - Approaching A Strong Demand!Hello TradingView Family / Fellow Traders. This is Richard, as known as theSignalyst. on DAILY: Left Chart WBT is approaching a strong demand zone so we will be looking for buy setups. on H1: Right Chart WBT is forming a channel in red but it is not ready to go yet. Trigger => for the bulls to take over, we need a new major swing high to form and then a break above it and above the upper red trendline. Meanwhile, until the buy is activated, WBT can still trade lower till the daily demand zone where we will be looking for new buy setups. Always follow your trading plan regarding entry, risk management, and trade management. Good luck! All Strategies Are Good; If Managed Properly! ~Rich
by TheSignalyst
9
DXY - To Be Continued... 🎬Hello TradingView Family / Fellow Traders. This is Richard, as known as theSignalyst. For those who know me, I always keep an eye on DXY to feel the overall market (stock, crypto, forex) As per my last analysis (attached on the chart), DXY is approaching a strong support / demand zone in blue (102 - 103.5) And we can clearly see that the bears are getting exhausted as they the bearish impulse movements are getting smaller. As per my trading style: As DXY approaches the blue zone, I will be looking for bullish reversal setups on lower timeframes (like a double bottom pattern, trendline break , and so on...) For now, we are still bearish trading inside the orange channel. For the bulls to take over, we need a break above the last high in orange and the upper orange trendline. Meanwhile, DXY can still trade lower inside the blue support before forming a new swing high and break it upward. In brief, wait for a break above a major high AND upper orange trendline for the bulls to take over. Always follow your trading plan regarding entry, risk management, and trade management. Good luck! All Strategies Are Good; If Managed Properly! ~Rich
TVC:DXY
by TheSignalyst
4
NWC - Wait For The Correction!Hello TradingView Family / Fellow Traders. This is Richard, also known as theSignalyst. NWC is overall bearish trading inside the red channel. However, it is now approaching a strong demand zone in green and the lower trendline in red so we will be looking for buy setups. For the bulls to take over, and start a correction, we need a break above the gray zone. Meanwhile, until the buy is activated, NWC would be overall bearish and can still trade lower inside the green demand zone where we will be looking for new buy setups. Which scenario do you think is more probable and why? Always follow your trading plan regarding entry, risk management, and trade management. Good luck! All Strategies Are Good; If Managed Properly! ~Rich
by TheSignalyst
9
Nifty 50 Support & Resistance Levels for Friday (10/12/2022)Here are the levels for NSE:NIFTY . One can trade with these support and resistance levels. These levels are for intraday trading only and valid only for one day. This does not mean that I'm telling traders to buy on support and sell on resistance; this simply means you can trade on your own setups, and these levels are just for convenience and might help you in the trade. If you like these levels, you can boost me, tell me about it below in the comments section, and share it with other traders as well. Follow for more. Thanks!
NSE:NIFTY
by Pranjal147
1
Volatility Rally | Major Demand ZoneThe Volatility Index (VIX) has been in a historical downtrend the past weeks / 2 months! VIX has also been moving abnormal in relation to the S&P 500 Index which it tracks Volatility in. The Volatility Index has sunk to a major demand zone, and is now breaking back out of the area. After hitting Lows of around $19 the VIX is breaking out upwards. We are seeing a dump in the markets from major S&P Bear Market Trendline as well. Bears are stepping in at these levels in the markets, and the volatility index is rising, signaling further downward movement coming in the market. Simply put, the Volatility index is breaking out from its Major Demand Zone, and generally if history repeats will rally up to the supply zone up around the $30 level. This has been a typical swing move in the index since the beginning of 2022. Reasons VIX looks bullish : - TTM Squeeze (Daily & Weekly) - Reclaimed Daily EMA Cloud - Market Rejecting Major Trendline (S&P) - Cup & Handle on VIX (1hr / 1D) - Double Bottom - Market Greed - CPI & FOMC coming up How to play : $UVIX commons $VIX option calls etc. There are multiple reasons Volatility is rising currently, and Technicals back this thesis up strongly. I hope you liked the though!
TVC:VIXLong
by ZachSap
SP500 Correction Alert: Supply&Demand, Ichimoku & Trend AnalysisHello friends, SP500 is going to experience a rough patch in 1H timeframe. as shown in the chart, two long term and short term upward trend lines are broken . also from an Ichimoku point of view, conversion and baseline have crossed downward with a red Kumo cloud switch and the price is below the kumo cloud. this is one the most powerful Ichimoku signals. so its probably very wise to close all speculative long positions if you have any, meanwhile I suggest opening a short position with stop loss at: 4020, and take profit at 3730 which is the next demand zone and is marked by an order block . this short position has the risk to reward ratio of 2.6 . Please manage your risk responsibly and make informed decisions. Good luck!
SP:SPXShort
by Shamshiri_Investments