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Honaut: Strong Daily Demand Zone & 44,000 Weekly SupportHonaut is currently trading entering a strong daily demand zone between 44,275 and 43,060, which could offer significant support if price stays within this range. Additionally, we observe a key weekly support line at 44,000 (also aligns with a psychological level). This makes it an even more significant area for potential price action. Key Levels: Daily Demand Zone: 44,275 and 43,060 Weekly resistance turned support Line: 44,000 (previous resistance now acting as support) If the price remains within the demand zone, this could be an ideal area for potential reversals, especially with the added confluence of the 44,000 psychological level. Watch for price action confirmation and the possibility of an uptrend continuation or reversal as the price approaches this zone.
NSE:HONAUTLong
by JS_Trading_Tradingmadesimple
Reliance in confluence of demand zones- Long OpportunityReliance is currently sitting in the weekly and daily demand zones, providing strong support. weekly zone Daily zone: However, the price has yet to reach the 4-hour and 2-hour demand zones, which are located near the bottom of the weekly and daily zones, adding further strength to this area. For an ideal long entry, wait for the price to touch the 4-hour and 2-hour demand zones, as this will reinforce the potential reversal. Once these zones are tested, a breakout above the key trendline could signal a bullish move. Monitor the trendline breakout as confirmation to take a long position.
NSE:RELIANCELong
by JS_Trading_Tradingmadesimple
Rally Base Drop – Supply ZoneUnlike conventional Price Action Analysis, which relies on countless chart patterns, Supply Demand Strategy focuses only on four high-probability price formations. Rally Base Drop (RBD) is one of the four price formations which lay the foundation of the Supply Demand Trading Strategy. Rally Base Drop Pattern RBD is a reversal price pattern, which one can generally locate at market turning points. At areas where uptrends get exhausted and begin a new downward move. RBD occurs when prices have been rising, and peaking, followed by a sharp drop. This indicates that the sellers are now more aggressive and have overwhelmed the buyers to form a Supply Zone. Components of a Rally Base Drop Pattern This formation comprises three parts: 1. Leg-In Candle - Bullish Candle to the left-hand side of the base structure. It need not be an explosive candle. 2. Base Candles - Narrow range small-bodied candles which indicate that orders are potentially being accumulated by the institutions. 3. Leg-Out Candle – Huge Explosive Red candle with a sharp drop in price, which indicates the footprint of Institutional Selling activity. Steps to Identify a Rally Base Drop Pattern 1. Start with the Current Price on the Chart and go from Right to left 2. Look up and left until you find a strong Drop in the Price 3. Identify whether the formation is an RBD 4. Mark the Zone When marking the Zone, we need to watch for freshness and the strength of the Leg-Out Candle. Fresh Supply Zones are those where the price has never retraced after formation, they have the highest probability of having unfilled sell orders. Strong Explosive Red Leg-Out Candle indicates that supply and demand are totally out of balance and institutions have been aggressive sellers at that price zone. Trade Action at a Rally Base Drop Supply Zone RBD pattern is the footprint of Institutional selling activity, formed due to the sheer size of their sell orders. This implies that, when prices retrace back to the area, there is a strong likelihood that there will be a large number of pending sell orders. After identifying the supply zone, we as retail traders must wait for the price to retrace to the zone. The first retracement to the RBD supply zone is a high-probability sell opportunity. We can initiate a short trade on the pullback to the zone and in doing so participate along with the Institutions to the short side. Some past examples: Although RBD is a very powerful supply zone formation, it is highly recommended that one mustn’t trade it in isolation. Combining it with factors like a trend, trend exhaustion and location will improve the odds of the zones working in our favour.
NSE:POLYCABEducation
by MAKTradingSchool
Price Action Trading Using Supply & Demand ZonesSupply and Demand Trading Strategy is a price action strategy that focuses on identifying Institutional Buying & Selling Footprints on a Price Chart. This strategy doesn’t rely on any indicators or oscillators; entire focus is on Price Action. Owing to the sheer large size of their orders, Institutional buying or selling leaves behind certain footprints which create specific chart patterns. Price Action Trading Methodology relies on a vast number of Price Patterns, however Supply Demand Trading Methodology focuses only 4 Specific Price Formations. These are classified as Supply & Demand Zones. Supply & Demand Zones These zones are areas on a price chart where price in the past had spent very little time and had moved in an explosive manner. Such sharp moves in price is possible only because of Institutional buying or selling. Owing to the structure of these zones, there is a very high likelihood of having unfilled institutional orders in any zone. Demand Zone Formations Rally-Base-Rally (RBR) A Rally- Base- Rally is a price action pattern that represents the formation of a Demand Zone. It is generally found in strong uptrends, indicating a continuation of the uptrend. This type of pattern is characterized by a leg-in candle followed by a basing of candlesticks and then another Big Explosive leg-out candle. If you look at the leg out candle created in the chart below, it shows a strong vertical rally which is very likely due to institutional buying activity. Drop-Base-Rally (DBR) A Drop-Base-Rally is a formation that represents another Demand Zone pattern. It is a reversal formation, in which a drop is followed by a sideways price movement and then a strong bullish rally. The leg out candle ideally should be a big explosive move which will depict institutional buying activity. Supply Zone Formations Drop-Base-Drop (DBD) Drop-Base-Drop is a price action pattern that represents a Supply zone. A bearish drop followed by a basing or sideways price movement and then an explosive bearish continuation downwards. It is a continuation pattern which can be used to trade & participate in the down trend. Rally-Base-Drop (RBD) Rally-Base -Drop is a price action pattern that represents another supply zone. This formation is characterized by an upward move then a basing of candles and a strong explosive move downwards. Explosive drop after basing indicates the footprint of institutional selling activity. This formation is generally found at the end of an Uptrend signalling a reversal. Trade Action at Zones Supply & Demand trading methodology is a retracement strategy. Long trades can be initiated when price retraces to a Demand Zone & Short trades can be initiated when price retraces to a Supply Zone. However, all zone formations aren’t alike, one must qualify the zones based on factors like how Explosive was the move from the zone, how much time price spent in the zone & most importantly what Reward to Risk Ratios do they zones provide. These zone formations combined with Trend, Location & Multiple Time Frame Analysis lays down the ground rules for Supply Demand Trading.
NSE:ASHOKLEYEducation
by MAKTradingSchool
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