Supply & demand zones: What went wrong on this trade?! - futures io
futures io futures trading

Supply & demand zones: What went wrong on this trade?!

Discussion in Emini and Emicro Index

Updated by LorraineP
      Top Posters
    1. looks_one Croni with 6 posts (1 thanks)
    2. looks_two switchtrading with 3 posts (8 thanks)
    3. looks_3 trendisyourfriend with 2 posts (5 thanks)
    4. looks_4 supermht with 2 posts (3 thanks)
      Best Posters
    1. looks_one patidar with 5.0 thanks per post
    2. looks_two shodson with 4.0 thanks per post
    3. looks_3 switchtrading with 2.7 thanks per post
    4. looks_4 trendisyourfriend with 2.5 thanks per post
    1. trending_up 9,330 views
    2. thumb_up 39 thanks given
    3. group 18 followers
    1. forum 27 replies
    2. attach_file 4 attachments

Welcome to futures io: the largest futures trading community on the planet, with well over 100,000 members
  • Genuine reviews from real traders, not fake reviews from stealth vendors
  • Quality education from leading professional traders
  • We are a friendly, helpful, and positive community
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts
  • We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

(If you already have an account, login at the top of the page)

Search this Thread

Supply & demand zones: What went wrong on this trade?!

(login for full post details)
  #21 (permalink)
Legendary Market Wizard
Experience: Intermediate
Platform: Investor/RT
Broker: IB / DTN
Trading: Futures
Posts: 5,103 since Feb 2012
Thanks: 5,132 given, 10,670 received

Croni View Post
What patterns do you use? I just learnt the hard way that trading a zone without confirmation can be painful :-)

Hi Croni

To deepen the understanding of the price moves I am using a volume profile. This helps to "see" the zones where
rotating points are (usually at the low volume nodes).


Follow me on Twitter Visit my futures io Trade Journal Reply With Quote
The following user says Thank You to GFIs1 for this post:

Can you help answer these questions
from other members on futures io?
Price Down, Volume Up, Open Interest Down
Traders Hideout
Where is the link to download GomiRecorder?
Looking freelancer for MT4 Indicator
Platforms and Indicators
is there an easy way to obtain by code the price variation percentual
DLL with webrequest function for MC
(login for full post details)
  #22 (permalink)
New Bern North Carolina
Posts: 2 since Jan 2014
Thanks: 0 given, 1 received

Learn Wyckoff methods to learn about supply and demand.

This chart does not contain a volume plot. Volume is the most important factor.

That high range up bar just prior to your short entry shows high demand in the absence of volume figures. Even without volume information, that high range up bar wiped out most of the quick down move which is a good signal that prices are going higher.

Another concept: If you want a really good dinner, do you go for fast food or to a sit down restaurant where time is taken to prepare your meal?

High price range moves in a short amount of time are not quality price directions, they are meant to suck you in. In fact, high price range moves in a short period of time are more climactic than anything and washouts.

Anyhow, learn to use volume, supply and demand to get a fuller picture of what's happening. Read the tape !

Reply With Quote
(login for full post details)
  #23 (permalink)
Portland, USA
Experience: Intermediate
Platform: Ninjatrader
Trading: ZS
YertleTurtle's Avatar
Posts: 211 since May 2011
Thanks: 42 given, 354 received

If it hasn't been said the markets are probablistic in nature. If you have done homework on this setup you should arrive at a rough win percentage. Nothing works 100% so get the idea of right and wrong out of your vocabulary. Most likely you haven't done homework on this setup in which case you shouldn't be trading it unless you like to gamble. Homework includes developing an exit plan.

Reply With Quote
The following user says Thank You to YertleTurtle for this post:
(login for full post details)
  #24 (permalink)
Tampa, FL
Posts: 51 since Feb 2013
Thanks: 3 given, 20 received

Sometimes s/d levels don't work, nothing is 100%

I will say that marking highest closes of resistance and lowest closes of support on higher time frame charts will help when deciding on the higher probability setups

When a s/d zone lines up w/ a HTF hcr or lcs, your probabilities greatly increase

Reply With Quote
The following 3 users say Thank You to 1zach4 for this post:
(login for full post details)
  #25 (permalink)
London + UK
Experience: Advanced
Platform: Proprietary Analytics
Broker: Multiple broker + Multiple feed
Trading: Currently European and US equities
sands's Avatar
Posts: 443 since Dec 2013
Thanks: 249 given, 227 received

This is the risk of trading lagging indicators, if I were trading this, I'd look for price action to confirm or reject the zone you've identified, you'll clearly earn less by waiting but most critically you won't be caught on the wrong side.

After getting burnt in similar situations in the past, ask yourself would you rather miss the move or get it wrong and be down capital.

Good luck.


Reply With Quote
The following user says Thank You to sands for this post:
(login for full post details)
  #26 (permalink)
Hamburg + Germany
Experience: Intermediate
Platform: Motive Wave, Oanda
Posts: 18 since Mar 2010
Thanks: 13 given, 15 received

The situation from a little bit bigger perspective.

"A chap who speculates- let this be said-
Is very like a beast on moorland dry,
That by some evil spirit round and round is led,
While fair, green pastures round about him lie."
v. Goethe (Faust)
Reply With Quote
(login for full post details)
  #27 (permalink)
Vancouver Washington United State of America
Posts: 11 since Nov 2013
Thanks: 2 given, 4 received

I agree that you just follow your rules. Some trades work out and others don't. You really did trade a valid supply zone (Sz). You had what was called a level on a level. There was a supply zone formed on 12/31/14 (1819 to 1824) that had only one touch with a wick. You can see that that was the one the market reacted to and dropped for a good potential profit. Usually the more distal level of a level on a level is the one to trade for a more conservative approach. But an aggressive trader might well have taken the trade you did and swallowed the loss and moved on. Few would had had the patience to hold on after entering the upper supply zone on 1/15/14 and waiting until 1/23/14 for the big move down. But that is position trading. The low of the move was 1700.75 on 2/05/14. 1778.75 which is 50% of the previous swing would have been a conservative target. You could have taken some profit there and then held a portion (assuming you had a multiple contract position) using technical stops of previous swing highs and got out at 1766. Even then you would have left a lot on money on the table. The only way to have captured anymore on a disciplined basis would have to use a ballistic stop on a lower time frame for the large leg down on 2/03/14. That is 20/20 hindsight and I don't think I would have thought of it/seen the opportunity/or done it.

Reply With Quote
(login for full post details)
  #28 (permalink)
Vidor, TX/USA
Posts: 15 since Jan 2015

Croni View Post
Hello traders

I am getting my feet wet with trading the ES using supply & demand zones. And I got punished badly yesterday... Please advise: why didn't the supply zone in the attached screenshot hold, but price instead passed right through it? Because at the point of entry it seemed like a super trade coming my way... The chart is on 240min.

Thanks for your help!

That zone had been tested/visited numerous times so they already picked up all the sellers orders. That is what let it go bullish from that zone. Fresh zones are more likely to hold true through another touch.

Reply With Quote

futures io Trading Community Traders Hideout Emini and Emicro Index > Supply & demand zones: What went wrong on this trade?!

August 16, 2015

Upcoming Webinars and Events

Getting Comfortable with Price Action Patterns w/Earn2Trade

Aug 4

Live Video Panel: Ask Me Anything w/Ironbeam Brokerage

Aug 6

Copyright © 2020 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432,
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts