Another example of: 1) Drop- Base- Rally 2) Rally-Base-Drop 3) Rally-Base-Rally 4) Drop-Base-Drop Supply and demand levels work the same in point and figure as they do in other styles of charts. Look for an area where trend reversed strongly. Your typical rally-base-drop or drop-base-rally would do just fine. You should look to buy or sell when you receive...
Price Structure There are four common structures that are used to identify supply & demand levels on forex charts: 1) Drop- Base- Rally 2) Rally-Base-Drop 3) Rally-Base-Rally 4) Drop-Base-Drop
We now know that supply and demand are fundamental driver of price. Now lets look it into simple context to better understand how supply exceeds demand.
Its worth considering what market cycles can tell us about when this run will end. I won't (can't) explain the logic behind cycles, but they appear in every aspect of nature, which includes human behaviour. Seasonality is a well known example. Using the Dow Jones as a barometer, its clear that there were 7 years between the 2002 and 2009 lows. We can't...
Explanation of my strategy.
Supply & demand that exceed stongly support and resistance lines, are always stronger than supply& demand zones between support and resistance.
Hello, traders. I see many people still draw suply and demand uncorrectly. I hope this post will help you. Good luck
“95% of traders, trades the opposite direction of supply and demand, because of their emotions”
Determining the strength of the fresh zones. Every time the trend changes direction, it is because of a change in the balance of supply and demand, but to use this to our advantage we need to know the likelihood of that imbalance being there the next time price returns to that zone. Supply and demand zones are similar to support and resistance lines in that...
1) We have to find the strong impulse move ( At least three impulse move, I like the big bars). Lets say a rally or a drop. 2) Right underneath we have to find a consolidation area where we will mark the zones from the body to the wicks. 3) Drawing the zones is an art, so make sure you have a good look at them, Ignore the wicks at the top if you are buying and...