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Demand Zone

Trading concept- Absorption of DemandMyth: If the price approaches a level repeatedly, and gets rejected from it, this means that the level is very strong. Reality: After each touch, the level becomes weaker and weaker due to the absorption of the residual orders. Underlying logic: 1. Whenever the price keeps approaching a certain level, there are pending buy orders which are waiting to be filled. 2. Every time the price comes back to this level, a certain amount of orders gets absorbed. 3. More the price approaches that level, the lesser unfilled order remains. 4. Hence, ultimately all the orders get absorbed and we see a breakout/breakdown of that level. Disclaimer: This is NOT investment advice. This post is meant for learning purposes only. Invest your capital at your own risk. Happy learning. Cheers! @johntradingwick
NSE:BANKNIFTYEducation
by johntradingwick
11
ARCHIES LTD. long (Swing)Price has tapped into a monthly level and has reacted to it quite nicely. On the daily two equal lows had been taken out on the way to a demand zone. as price started to break structure upside, an untapped zone at 11rs could be a potential buy. the zone above is too risky given how much liquidity lies below it. the zone below is already tapped as price gapped up and came back down (seen as a tail). this leaves 11rs as the only viable one. Target can be whatever. GG not financial advice.
NSE:ARCHIESLong
by BotheredBull
BRITANNIA Swing Opportunity!!NIFTY50 stock BRITANNIA is at Demand Zone. As we can see, BRITANNIA is taking resistance from a trendline since 12 April 2021. Currently, it is trading near its demand zone at 3423.45. Looking at recent day's deliverable quantity, we can say buyers are taking interest in this zone. RSI is also moving above 40. We can consider BRITANNIA for a swing trade if it breaks the trendline with high volume. Buying Range- 3400-3460 Stoploss- 3348 (Below recent swing) Target- 3760 Risk to Reward- More than 1:2 Duration of trade- Near 1 month It can also take some resistance near 3550. But I believe it will break that too. What are your views? Do let me know in the comments. Take it as an educational purpose. I am not Sebi registered or any Stock market expert. Always do your own research before taking trades.
NSE:BRITANNIALong
by Anni_S