Support & Resistance Zones!

alexander.n.fedorov
05 May 2019, 12:53 ( Updated at: 21 Dec 2023, 09:21 )

RE:

alexander.n.fedorov said:

To all the community

I was thinking a lot why traditional Bots, based on indicatoros are not working as Holy Grail

After I purchased NinijaTrader 8 withe order Profile Volmetrics, it became crysayl clear:

No matter what your indicators will say, a big fat instittution (BFI) looking at SuperDOM will place a number of contracts (not necesseraly thousands, sometimes it is needed like 10 contracts to move a price 10 ticks - if there is nobody on the other side, equally big and aggressive).  And you can "farewell" to all you indicators.

So? what is working? I think the same thing what is working for BFIs. Buy low and sell high. And that is the essense of Supply and Demand Zones.

So, these are the Zones where BFIs bying, selling or fighting with each other (and I litterally watched that)

Another thing I noticed -  almost a direct correlation between futures and spot. The thing is that the futures volume is real - the data feed comes directly from CME (Chicago Merchantile Exchange).So, if you watch those graphs, you could draw Zones by hand.

I did try to trade according to the principle "sell at supply and buy at demand". So far, I have limited succes.
How to automate it? I decided to use a percentatge of price (like 0.13% is my favorite). I also show the beaten zones (when a bar closes in zone but does not break it). Ticks being very fast in and out would not change the color of the Zone

Then, when the price come close to a zone I put a contertrend order, stop loss - above the Supply or below the Demand, somehow (always different ) Profit Target and wait.

Cause in futures I am a day trader (because intraday margins are small), my favorit timeframe is one hour.

Of course there are a lot of questions left. What should the Profit Target be? Why a zone is good if a depature from Zone is Coming in fast manner? How to predict if a Zone is going to stand? Why the manner of a second approach to the Zone is important? Should the new high (like Russel on Friday) be considered as a Zone. I tend to think "no", cause there is no depature.

The other question: Why would not the Spotware make an arrangement with CME and offer the real futures and options trading?

Anyway. The topic for me seem to be the most promissing, and the most important part of it that you get the real volumes from CME, and use a correlation to build Zones.

Everybody is welcomed to ask questions, but more importantly, contribute to the system.If you serious about working the topic you can mail me at alexander.n.fedorov@gmail.com. Please, put in subject "Supply & Demand" and your message will not go to spam. Leave you direct contacts -like Skype, I will do the same if start working on that together

Best regards,

Alexander

 

 

Sorry for misprints :)

alexander.n.fedorov
05 May 2019, 13:00

Supply and Demand

Of course, at the beginning, we could discuss everything on the forum

Regards

Alexander

projeto3darte
20 Jan 2020, 23:21

supply and demand indicator

Hello Sir Alexander Fedorov

How do I get this supply and demand zone indicator?

I'm new to the community, could you help me?

thank you!