A picture of how markets work. Above we have very little trading in the area marked Supply.There is too many sellers in comparison to buyers at that price. Its too expensive at that price. Below in the area marked Demand, if you look left you'll see the same thing but vise versa. Prices are cheap at that lower level, so there's more willing buyers there compared to sellers. In the middle, we can see there is a lot of trading activity, price should quick move through after testing either demand or supply.
Bigger picture, we have been trending down. I'm looking to enter this market short to have the most odds in my favor. Either Targets work, it depends on your rules.
Bigger picture, we have been trending down. I'm looking to enter this market short to have the most odds in my favor. Either Targets work, it depends on your rules.