Hey Spec -
WARNING - BIG OPINION PIECE
Talking about Liquidity zones, I have had many discussions with a few "outside the box type traders" over the past six months in regard to price movement and Liquidity. For the past 10 years, I have always thought that price seeks areas where high liquidity exists AFTER the price breaks through strong resistance areas. I like many traders call them Demand and Supply zones and would take trades away from these Resistance areas but towards the high Liquidity zones. It has worked for me pretty well and average between 5-10% equity rise per month.
BUT I NOW BELIEVE I WAS TOTALLY WRONG
I have come to realise that supply and demand DO NOT EXIST.
They are just pot holes of liquidity and we should just focus on the Larger Liquidity Zones as a TARGET, being patience for price to get there.
Its just noise in the way of the main target zone.
I have been trading M1 Chart in the last few months focussing with a directional Bias towards the nearest major Liquidity Zone that's relative to the 1 Minute Chart. So I have been placing orders in micro liquidity zones on the 1 minute chart but in the direction of a high Liquidity zone based on the 15 minute chart.
To put it another way on a H4 chart, it may be like placing a Limit order in a pullback area of likely liquidity zone in the direction of a likely High liquidity Zone that the seen on a Weekly Chart. This would probably explain my concept about my H4 Kings Box Strategy Targeting Monthly Close lines is possibility far better than I realised. Time to dust that strategy off again and make a few changes I feel.
So am I wrong ?
Trading with this concept is currently giving me a 95% win rate on the 1 minute chart ( small micro trades only) and when I was trading the Kings Box strategy, I did get 85% win rate for three months before I had a average 6 week period and moved on to trading the M5 Chart.
So - Does Supply and Demand zones exist and tradable or is it just Herd behaviour caused by other traders and it should be ignored.
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Hey Spec - WARNING - BIG OPINION PIECETalking about Liquidity...
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