Beginner Supply & Demand $SPY Chart
Hey Guys, feel free to copy me,
This chart is for beginners and new traders who're trying to understand supply and demand a little better! This shows an up-to-date picture of
SPY as of 1:00pm EST 8/24/2023.
You'll notice the green and red rectangles across the screen. I color coordinated them for psychology reasons for you (personally I have all my zones white/gray). Think of the green boxes as BUYERS/SUPPORT and the red boxes as SELLERS/RESISTANCE.
Supply = Resistance = Sell
Demand = Support = Buy
The terms aren't identical from a definition standpoint but for simplicities sake, you can use them interchangeably and associate them with each other.
When drawing a demand/supply zone you want to look for LOW extremes and it strongly reverses to the upside (demand) or vice versa look for HIGH extremes and it strongly reverse to the downside (supply).
There's ALOT more to it you can easily find reputable resources on youtube for free but as a quick 5 minute rundown, I hope this helps, and happy trading !!
This chart is for beginners and new traders who're trying to understand supply and demand a little better! This shows an up-to-date picture of
SPY as of 1:00pm EST 8/24/2023. You'll notice the green and red rectangles across the screen. I color coordinated them for psychology reasons for you (personally I have all my zones white/gray). Think of the green boxes as BUYERS/SUPPORT and the red boxes as SELLERS/RESISTANCE.
Supply = Resistance = Sell
Demand = Support = Buy
The terms aren't identical from a definition standpoint but for simplicities sake, you can use them interchangeably and associate them with each other.
When drawing a demand/supply zone you want to look for LOW extremes and it strongly reverses to the upside (demand) or vice versa look for HIGH extremes and it strongly reverse to the downside (supply).
There's ALOT more to it you can easily find reputable resources on youtube for free but as a quick 5 minute rundown, I hope this helps, and happy trading !!
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