Price is ALWAYS going to be drawn towards the path of least resistance. I did not make this up. For a more academic explanation please refer to Tom Williams free text titled "Master the markets" on page 40... here is the exert:
"The following points represent the path of least resistance:
• If selling has decreased on any down-move, the market will then want to...
You can see the demand spikes where you would expect them. i have two areas circled on the left that are very important target areas.
Previous no supply test can sometimes cause a complete change in direction. Not saying that is the case at this moment but you can even see how it got slammed with stopping volume at this price level.
Below in the second circle...
look to the left there and the green volume spikes. Took about 74 days before it was cleared and able to mark up...
It took about 75-100 days to shake people out. Something to keep in mind when price is ranging. It can be a while. Trading within these ranges is possible but very stressful and very risky, especially if you are clueless.
These are just targets....
Hitting some large demand spikes at a previous demand zone and near previous support.
At the very least I would expect a bounce here this low so that it can clear out the orders and maybe continue to the downside.
But the volume conveys that there was a very large effort with very little result... stopping volume... sign of strength.
Careful short. Take some...
Hung up in a previous demand zone. If you look to the left at the colored volume you will notice some large sell spikes.
I would expect a counter trend play at this level and at this target area. Possible trend reversal here.
If not confirmed, will look forf weakness at a supply zone to possible take lower and top teh next lower demand zone.
Right up against a fb retrace. Doesnt look like a large sell reaction here but it could pop above and find enough supply to push it down.
If it can come down and find DEMAND, then I would look for a no supply situation/signal and take it long up to the next supply zone....
Looks like re-accumulation with some high demand in teh background.
Looks like SM is positioned long.
Lets see if we can catch the confirmation into mark-up. (schematics provided)
Dont just wing it. Wait for that candle to at least close above the AR
The lower the better. Where does SM accumulate (buy)? Where does SM distribute (sell)?
Buy low Sell high.... There are zero exceptions. Do what smart money/professionals do. Do exactly what those who are trained in finance do. Do exactly what the automation does.
Looking for demand at previous demand zones. Use volume. Volume will show you exactly where they...