Rrrracer 

Very nice John. Loved your post about supply/demand/fear/greed over on the M6E thread; I'm currently learning about this approach. When you get a chance would you mind going a little further in depth about this? How do you personally go about determining these areas of interest? Any study resources you'd care to share? Thanks Shane

Thanks Shane, when I get a chance I'll try and explain what I mean by Supply/Demand, Fear and Greed and how this helps me determine the direction of the market. But I have to admit that I don't have a trade plan, never did.

I just build charts based on structure and take trades where I think there might be a large block of traders in trouble and then trade against them. I'll try and show this in a well drawn out structured chart. Today I have appointments but will be back later, JP.

JMP3 

Thanks Shane, when I get a chance I'll try and explain what I mean by Supply/Demand, Fear and Greed and how this helps me determine the direction of the market. But I have to admit that I don't have a trade plan, never did. I just build charts based on structure and take trades where I think there might be a large block of traders in trouble and then trade against them. I'll try and show this in a well drawn out structured chart. Today I have appointments but will be back later, JP.

Sounds like structure is your plan. If you manage risk then you have a trade plan. Trade plans don't have to be just one setup. My opinion.

Sent using the https://nexusfi.com/NexusFi mobile app

TradeTheLevel 

Sounds like structure is your plan. If you manage risk then you have a trade plan. Trade plans don't have to be just one setup. My opinion. Sent using the NexusFi mobile app

Your correct Rob, what I should have said is I have nothing in writing

@JMP3, I see that you're trading the YM as well as ES. Are you using anything on YM for divergence similar to how you are using the $TICK on ES?

Also, can you show an example of inverted divergence using MACD or stochastics? Thanks.

Sk8ter 

@JMP3, I see that you're trading the YM as well as ES. Are you using anything on YM for divergence similar to how you are using the $TICK on ES? Also, can you show an example of inverted divergence using MACD or stochastics? Thanks.

Hi @JMP3

Could you talk a little about your supply level that I circled on your chart.

1. How did you determine that it was a supply level?
2. The boundaries of your supply zone don't appear to correlate with any opens, closes, highs, or lows for the area so how do you determine the boundaries of your supply and demand zones?

Thanks in advance and great trading by the way.

Sazon 

Hi @JMP3 Could you talk a little about your supply level that I circled on your chart. How did you determine that it was a supply level? The boundaries of your supply zone don't appear to correlate with any opens, closes, highs, or lows for the area so how do you determine the boundaries of your supply and demand zones? Thanks in advance and great trading by the way.

Good Morning Sazon, the green bar was a fast upthrust bar. It's my opinion that the initial move was caused by Institutions looking to fill resting sell side liquidity. During this upthrust other buyers joined in on the feeding (buying) freenzy.

Once price started to absorb the sell side liquidity the big institutions with their large bank rolls started to push price back down stopping out those buyers and at the same time, other traders then started to sell on the coat tails of these large players causing a further decline in price (domino effect).

Now since this was a fast drop it's my belief that there is more unfilled sell side liquidity at the supply level. So I draw a rectangle and wait for price to retrace back into my supply area. Each time it retraces back into supply absorbing the liquidity, the weaker the level will get until all side side orders are dried up. Price should start moving up again trapping a lot of sellers below that level. That's when I look for a long trade.

If you look at my last trade the 7:33 AM EST, that candle was a fast upthrust candle. Because of this I had a feeling that it was a sell side liquidity grab so I exited my trade for 24 ticks. Price then started to drop as expected.

This is all only my opinion and I could be completely wrong but it works for me, JP

Shane, this might answer the question you had for me yesterday