Whoops, realised I glossed over your charts too quickly - ignore everything I said these are good examples of demand and supply consumption (demand in the first supply in the 2nd) without compression being present (rather than breakout setups).

LJ Forex Group

As per DaGrizlyBull's response.

LJ Forex Group

Analysis behind the trade on the chart below (FxPro feed)

LJ Forex Group

First trade of the week for me short GCAD based on the clear demand consumption in this channel (it's more of a wedge on FxPro feed - chart below is Oanda feed) combined with strong M15, M130 rejection from supply.

LJ Forex Group

We expect a stronger move because those previous moves consumed the supply in between the demand and Area 3. With regards expecting a bounce there - we wouldn't ordinarily as it's the 4th touch - but a) the source had not been tested yet so we ...

LJ Forex Group

What FXS was showing in his charts was what I term 'location history' - can we conclude from the previous price action at a specific supply/demand zone that the supply/demand has most likely been consumed - i.e. in this case pre-empting a breakout ...

LJ Forex Group

I'm not sure at the moment. I've had no spare time to do anything in the public domain as been too busy with Forum+Trading Room members. I'm also re-thinking if I want to release more material in the public domain and if I do the most efficient ...

LJ Forex Group

Both your examples show correct analysis of the 'edge' DP and the 'source' and you are correct in terms of where I place my entries - the first DP that price could react at. In terms of SL it of course should go beyond the source as price moving ...

LJ Forex Group

Compression is the squeezing of price (relative to preceding price movements) - this often occurs in a converging wedge or a channel. Compression MUST have supply / demand consumption within the wedge/channel for it to be valid. Supply / demand ...

LJ Forex Group

I beat you to it! Good to see we said the same thing though lol. As always thanks for your input.

LJ Forex Group

Here is an example of a trade I took Friday on EU which is a good example of compression (made 1.95R on this) - don't worry about the M1 PA comments - this is just from my PF - the CP is what I'm trying to get across - no clear untested supply ...

LJ Forex Group

What you said above is exactly right, but in the example you gave this is not occurring. We have to remember that CP is just the squeezing of price, often in a converging wedge. The only question we need to be asking ourselves is whether (in this ...

LJ Forex Group

Lot's of text on that chart but the one key thing that explains what actually is happening is missing. Search this thread for 'accumulation or distribution' and you'll find an explanation on what that 'pattern' is. If you know what is happening ...

LJ Forex Group

I cut mine as it lost momentum and it hasn't done anything since apart from hit the H1 RBR. No real clue as to what it's going to do next.

LJ Forex Group

It's a demand zone, not one for an FTB for me (if that's what you're asking) as it's too far in the past for me to be interested. But what I'll do is mark the DP's and then watch for PA - especially those upper 2 DP's marked (H4 and M5 charts below). ...

LJ Forex Group

It doesn't strike me as a very clear daily SR, but you can see the demand on H1, H4 that caused the move higher. I agree with Xmzhang's comment regarding the impulsive move into the area.

LJ Forex Group

Yes these are zones where price found supply or demand previously. As mentioned before the most important point is finding the DP's...so for example why did AU fall from where it did ...the M5 and M1 chart from when price left this supply zone ...

LJ Forex Group

Nice one but don't you think AU was more logical given how bullish UJ was and how much upside potential it had?

LJ Forex Group

No, this was not one on my watch list for an FTB. The reason being that the SR was just not concise enough for me - those materially different lows marked on the chart below (which were reactions to demand to the left) meant that there is a lack of ...

LJ Forex Group