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GBP/JPY Dealing with Supply and Demand

Posted by Fetor 21 Comments

This video discusses how the market sets prices and where to find that price and how to think about trading those areas.

Related posts:

  1. GBP/AUD Analysis – Follow Up To Video Course
  2. GBP/JPY Analysis of Break and Congestion
  3. Identifying Changes In Sentiment – Part 2
  4. Time Frame and Targets
  5. Identifying Changes In Sentiment
  • zj

    Great video Fetor. After going through your video course at the weekend, I made an analysis of various pairs and set pending orders for a few trades for the opening of the week. At London close on Monday I had a 75% success with 3 out of 4 trades successfull and a total of 300 pips. Your explanation of supply, demand and these congestion areas seems to have helped me a lot with my analysis of the market. Just hope that this is a turning point for me.

    • http://www.forex4noobs.com/blogfet/ Fetor

      ZJ,

      Great job. Those are great gains. I’m sure this will be the turning point for you. A huge part of that turning point will be patience built on the ability to know when to stay out. That alone will save you thousands! Again, great job!

  • greg

    very helpful and informative

    but more important in a sea of sharks your genuine approach is a breath of fresh air

    god bless from ireland…………may you be in heaven 20 minutes
    before the devil knows your dead

    • http://www.forex4noobs.com/blogfet/ Fetor

      Thanks Greg. And thanks for the greeting from Ireland. My grandfather was Irish. He immigrated here in 1917 so I got some of that fire rolling around in my blood. Take care and good luck trading.

  • keef b

    Nice work Fetor, very clearly explained and invaluable to the new guys at this web site.

  • Joe D

    Fetor, you’re teachings are priceless.

  • Hawki66

    As a new trader, I really appreciate your analysis. Your blog has taught me more in the last two days than all the reading I’ve been doing the past 3 months. Thank you!

  • heks

    Great video Fetor, as usual!

  • scott

    Great video! Would you take the trades off the 15M or go back to the 1H or 4H? This tends to get a little confusing for me for what time frame to use. I also have a tough time placing correct entry points. I got stopped out when it broke 141.76. I placed an order to go long at 141.82, it got filled then went south for a loss. I sure this happened to alot of us. But I saw how the price was sticking around 141.76 so I felt it was going to break it so I placed another order to go long at 141.95 and managed to get some pips back.

  • http://www.forex4noobs.com/blogfet/ Fetor

    Scott,
    The time frame you are using is connected with your areas of support and resistance. If you follow the instructions I give in my blog and as it is explained in the course you’ll have lines that will originate on your H4 frame. These lines are not going to be the same lines you will find on an M15 frame because they originated on an H4 frame. You should carry these lines over literally or at least mentally to your M15 chart so you know where these areas are on your lower frames so if you are taking a trade off a short term frame you are not trading into a more significant area that originated on your longer term frames. If you are trading off a H4 line then you can use the lower frame to help with entry because on a lower frame you are getting more information since you have more candles to work with and you can better see the price movement.

  • scott

    I understand what you are saying. One question, how did you handle this trade? Did you get stopped out intially on the 4H scalp line of 141.76? Off the 15M it looked like it had good momentum, the candle that broke the line gained 85 pips.

    By the way, I purchased your video course yesterday but I was not directed to the download page. I am waiting on a response from Paypal reguarding this.

    • http://www.forex4noobs.com/blogfet/ Fetor

      Scott,

      On the move higher over 141.76 H4 time frame was not optimal. If you look at your H1 chart and your M15 chart right before it broke higher you will see that area of congestion as it faced the pressure of trend support. If you look at an M15 chart and you draw your trend line marking the higher lows up to the 141.70 area you will see what I’m talking about. If there was no demand there we could use that M15 chart to trade the reversal off the break of the trend line and the a move lower below the last higher low. But, the demand was there at 141.70 and a higher price in this area meant buyers were in for the move higher.

      If you are having trouble with the course go to the Contact Us page at forex4noobs.com. Fill out the form and choose Video Course Problem for your subject line. Then in the message portion you need to add your name, your receipt number, and your forum name so Nick can properly identify you. Nick will handle your technical issues and get you up and running. Once you submit your form give him about 24 hours.

      -Fetor

  • scott

    Fetor,

    thanks for the help with the video course, I’ll wait for a reply from Nick.

    Are you talking about the congestion after the 1st break of 141.76? Or is that not considered a break? Thats the point I first entered into, I see the congestion after that candle and was able to make some pips back. But I don’t see anything before this point except around 140.00. Forgive my lack of experience, Thanks for all your help.

    • http://www.forex4noobs.com/blogfet/ Fetor

      Scott,

      No need to apologize. Glad to help. Make a post in Newbie Land in the forums with a picture (needs to be big enough) and show me on your chart what area you are talking about. That would help me in answering your question, and I can answer it publicly as it may help others also. Thanks!

  • 4XEagle

    Fetor,

    I have always enjoyed your simple, clear and precise explanation. Unfortunately, I’m still struggling trying to draw trend line and grasp the concepts provided by Nick.
    I’ve been reading your blogs and as soon as i get a handle on Nick’s stuff will get your videos.
    Be grateful if you have any suggestions about drawing “Trendlines” FXCM does not have the 4H charts in the demo and with MetaTrader 4 I’m still working my way around.
    Thanks for your time and effort.
    Kev.

    • http://www.forex4noobs.com/blogfet/ Fetor

      Kev,
      Remember that the primary component of a trend is higher highs and higher lows for a buying trend and lower highs and lower lows on a selling trend. At first, try not to make it more complicated than that. Trend lines sit on top of your S/R and guide the price through the levels of S/R. They will also help you see the shift in sentiment of the market.

  • Chukk

    Hello Fetor,
    Thanks for your great help here. Do you have an e-book like Nick?
    Please, I would really love to have your method on paper.
    Thanks

    • http://www.forex4noobs.com/blogfet/ Fetor

      Chukk,
      Sorry, I do not have an ebook. Only thing I have on paper is what I’ve posted in the forums and in my blog.

  • dylan

    Fetor,
    Very nice video. I think you do better in a lecture style format than interactively, with a bunch of questions being thrown at you while your trying to think and talk. Clearly your are a deliberative speaker. My only comment is that you might want to put more discussion on using a trendline along with S/R. From what I can see in this example is the the trendline was moving up and you would expect upward movement as each support line was broken. But as we know that’s not always so. I found your approach pretty intuitive at least from the Supply and Demand approach. Well done.

  • danie

    Hi Fetor
    I just bought your course and can’t find a way to download it. Thanks

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