Support and Resistance with Supply and Demand Order Flow
Support and Resistance is very common terminology that is used throughout the trading industry. Many traders believe support and resistance to be the same as supply and demand. In this article we will discuss how they are different and how to use support and resistance areas to add probability to your upcoming trades.
Trading on a remote server / virtual private server is a great way to allow your trading software to continuously run. This has become more and more popular among retail traders. There are always issues of your local pc crashing, loosing your power, internet connection and more. Using a remote server can help alleviate those worries and allow you to leave your custom trading strategy, automated trading system, trading platform, overnight trades and more running 24/7. This is a great option for many traders who either run software, or choose to trade from multiple locations. You can place a trade from home and continue to manage it when you get to the office all from one server.
We get many emails and questions regarding servers that can be used for this purpose. They are VPS servers otherwise known as Virtual Private Servers. There are different levels of disk space, ram and cpu that you can choose from and the cost will vary per company. Below is a link that offers very affordable remote servers for trading and all other purposes. The servers are located in the USA, and they have amazing support 24/7 to always assist you. When choosing the plan be sure to choose the Windows server which is fully compatible with both NinjaTrader and MultiCharts as well as most other Windows applications.
View our SD Model and see some of the capabilities in this full length webinar as well as live trading and analysis of multiple markets for swing and position trades. You will see how we use our supply and demand / institutional order flow trading techniques to pre define each trade.
View how we enter at levels of extreme order flow produced by institutions and large money on the Nasdaq. You will see how I used a limit order to place my entry on the Nasdaq for the day. Per the analysis on the market, it was determined there was an abundance of sell orders at a level of interest which concluded that the probability was in favor of the sellers for the day IF we reached that level. The trade is pre determined and mapped out for maximum profit potential.
I look at how to pre define your breakout and reversal trades using supply and demand levels with technical analysis. Regardless of what I think the markets are going to do, following a rule set keeps me on the right side of the trade. In the video you will see each step of technical analysis throughout the day and even a trade placed in the overnight. I always look to see what price is closer to; supply or demand which tells me how far price has to move in any given direction. This analysis is combined with other elements such as trend, altitude etc.... to give the highest probability trades. As a short term trader I am offered many more trades due to smaller time frame analysis, however each trade is carefully thought out in advance and placed according to supply and demand levels in any given market.
One of the most sought after questions in the trading world What is the best time frame to trade futures and forex? This is a very complex question and will take some detail which will be covered in this article.
To begin I will answer a question with a question, what is your style of trading? The time frame you choose will be heavily dependant on you as an individual. Below we will look at specifics. If you prefer to place intra day trades and scalp the market you will look to a much different time frame than a trader that wishes to place one trade per day or even less. Another few question, what is your trading method, do you play breakouts or reversals or both?
Get a preview of our live trading and analysis webinar of multiple markets using our supply and demand trading strategy. I would like to thank you all for the great feedback and emails we have gotten. If for any reason you missed the session be sure you sign up for our Free Newsletter to be sure you do not miss the next one! To sign up simply visit our home page and type in your name and email in the left hand column.
We have been talking a lot in the live trading room about specific rules to engage in supply and demand based trades. We have been showing extreme weakness in the S&P futures, so the majority of traders step into the market with selling opportunities. In this video I will look at how it is equally as important to know where we are most likely to stop traveling lower on the smaller time frame and produce intra day trades based on demand. Looking to the larger time frame we come into demand which allows us a long opportunity for an intraday trade. The trade is exited at the next opposing area of supply.
In the video below I will explain how to use a very defined IF THEN thought process in combination with a Fibonacci Trading Strategy to create your own method. A trading strategy can help to remove unnecessary decision making as well as emotions that take place due to over thinking a trade. Im sure we have all been in the situation where we hesitate to take a trade because we are unsure. It is crucial to remove this from our trading! I will introduce what it takes to create your own trading strategy using rule based fibonacci methods. No matter the method you choose to trade, understanding how to apply the IF THEN thought process will benefit you. We use this same process in our Supply and Demand Trading!
Join Us for a fun & exciting event with Mirus Futures Thursday November 1st at 9am ET. Many questions will be covered in this webinar. This event is FREE to the public.
Topics Covered:
Forex and Futures markets offer excellent trend following opportunities for income on a daily basis. These opportunities occur most often at areas of "confluence" (an area that multiple trading methods agree with one another) which increases the probability of each trade's outcome. Some of these probabilites would include: supply and demand zones, fibonacci retracements / fibonacci extensions, trendline, support and resistance and many others including trading indicators like stochastics, bollinger bands, keltner channel, RSI and MACD to name a few. Supply and Demand Zones in combination with Fibonacci Retracements are among the best and statistically hold a very high profitability factor for both futures and forex markets.
Trading With the Trend is a very important factor for every trade. Trend following will allow for larger profit margins and statistically have a higher win to loose ratio. Often traders get confused as to what the trend direction is, and which time frame they should be analyzing to determine if they are trading with the trend (trend following), or trading against the trend (counter trend trading). The direction should be determined dependant upon your style of trading including intraday, swing to long term. If you are looking for scalp intraday trades perhaps a 5min chart is sufficient. If you are looking to hold your positions throughout the day and/or overnight you would want to analyze the 60min chart for trend direction. The longer you plan to hold the trade the higher the time frame you should analyze for trend direction, supply and demand zones, and fibonacci retracements. It is good practice to remain consistent with the time frame you choose, otherwise confusion will once again become a factor.
In the video above we discuss an outlook or forecast on the S&P Futures Contract. See our technical analysis for the upcoming weeks. We use trend following techniques to help determine the future moves in any given futures, forex or equities markets. At this time we have a bearish outlook on the short term trading, however we must remain bullish on the S&P in the long term trading until we are proven otherwise. The S&P Futures contract is approaching some very crucial levels which will give us further confirmation of the overall direction.....
Using Trading Software
When you are new to the world of investing, you may want to consider buying a trading system. A trading system is a way for you to understand the statistics behind futures. You can learn
about the important characteristics that you should seek in valuable investments. By using Emini Trading Systems, you can learn how to invest in a consistent way. Here are some other reasons you should consider
using trading software to invest in futures.
When you make the decision to invest in futures, forex, or stocks you are making a decision that will forever benefit you. Instead of losing some of your income to purchases that you truly do not need, you can invest your funds in stocks, futures or forex that offer you a consistent return. You are actually able to value your time in a much greater way when you decide to invest your money. Investing gives you the opportunity to get the most out of your money and time. Before you dive into investing, you should take some time to pick a strategy that works for you. It is important for you to consider an investment strategy that best suits your comfort with risk. Here are some of the investment strategies that you can choose from in creating your own investment plan.
Automated Trading System
Top trading apps for your phone
Phones are becoming more and more powerful; not only can we call and text our friends, but we can now upload pictures to the internet, do some online shopping and even manage our finances. Plus, traders can now even check their stocks and shares or even trade directly from their phone. This means we no longer need to launch a huge platform on our computer or be at the office to start trading.
Supply and Demand Trading is a method used to determine where the majority of buyers and sellers will take place. Today I want to look at trading supply and demand zones in combination with two other elements that will help you become much more consistent in your trading. When analyzing the markets it is important to get a "big picture" outlook so that you have an understanding of what the overall direction of the market is. After we determine the direction, we simply need to know where to get on board, and lastly where is it going to end. To determine this information we need to know the following three points:
1. (Big Picture Trend/ Direction) Depending on your style of trading you will want to choose a paticular chart that suits your trading time frame. For example we can look to a 60min chart to get an intraday "big picture" trend, or a daily chart for a swing trading outlook. Choose one and be consistent with it.
Today we are going to look at our trading and analysis. We are also going to look at our performance of the SD Model Trading Strategy. We're looking at the S&P Futures because we are reaching high levels of Altitude as well as some important swing point highs....
When you are using a trading strategy, it goes without saying that you should test its capabilities before diving in head first. This can be done by backtesting as well as forward testing or demo accounts. However it is not just enough to test your strategy in order to find the greatest success. You must go to further optimizations to make the most out of it. Some things you can do are testing the days of each week to be sure of which days are out performing and which are underperforming. If you come to find that you are consistently underperforming on Fridays, then you may determine that you could take that day off and make a greater income. I dont think any of us will complain about getting paid more to take a day off!!! You should then look at the time of day to determine if it is wise to trade the full day or minimize your time to only a few hours. Trading is one of the few jobs in life that you can get paid more for working less. It is also one of the few jobs that people actually want to do more and more, which makes taking more time off difficult but extremely wise. Remember it is not just about the winning strategy, you must know when to use your strategy to capitalize on its winning abilities.
God Bless,
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