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Supply and Demand

Action & Reaction move Analysis in simple way.Simplicity Is the Key to Success . The simpler we keep things, the more successful we will be. It's as simple as that. Therefore, Action & Reaction is very simple to understand and act. Let's move ahead. Two types of movement in the market: Consider an uptrend and, bulls are in charge. The first major move in trend is the Actionary move . when finally pause to catch their breath, the bears take over and send the price lower. The lower is counter to the over uptrend and what we call a Reactionary move . Typically, the reactionary move can be weak(1/3) or deeper(2/3). Sometimes a reactionary move can sideway and, some people call it a pullback also which is part of a larger trend. when it could end up and new actionary move in the opposite direction. Trade and Trend is your friend, so we can say here take a position in direction of actionary move. 1 to 2 is an actionary move 2 to 3 is the reaction of 1 actionary move. 3 to 4 is the subsequent actionary move. 4 to 5 is a new reaction. 5 to 6 is unclear which has not still made a lower low. It could be bottoming out. No one really knows what will happen next. In this case, we will think about both sides. The first side, seems to be a new actionary move up and if 5 to 6 actionary move is exists, the price remains actionary for looking lower low. What will be your trade action? 1. Up (long) 2. Down (short) Type in the comment section. TimeCycle Analysis is looking for the up move on weekly timeframe:
Editors' picks
NSE:NIFTY1!Education
by Trade-Technique
13
HOW BIG PLAYERS FOOLS USon this chart you can clearly see a triangle pattern and a crucial support zone. This chart pattern is visible to all public what can you anticipate where the major stop losses would probably be place or when the buyers will panic. It is obvious around the support zone . The big players manages to make a small move in direction to the probable stop losses and a series of stop losses start to trigger then a sharp selling starts and what happen after that price reverse and most of the traders are out of the game they get frustrated seeing prices going into there favour after hitting their stop losses. In this situation the Stop loss are more predictable so the big players use this opportunity.
UEducation
by TRADEWITHFUN247
2
How to trade like a PRO on the basis of Technical Analysis. In this analysis we'll look how the Professional Trader explore the chart before executing their Trade. Demand Zone - Fib Retracement - Candlesticks - Divergence - Divergence warns that the current trend is getting weakening and it might possible that the trend get changed in up coming session. Volume Profile - POC - Point Of Control It's the Big guys who moves and manipulate the market, The Retail Traders can't. This is Not investment advice. It's just for learning purpose. Invest your capital at your own risk. Please like, share & follow.
Editors' picks
NSE:METROPOLISEducation
by TheGopal
32
Role of Support Resistance in Breakout tradingWhat is Breakout Trading ? A breakout is a potential trading opportunity that occurs when a share price moves above a resistance zone or moves below a support zone on increasing volume . For trading breakouts one should be aware of support and resistance . It acts as the backbone of Price Action trading. What is Support & Resistance ? Support is a place where a stock price stop moving downwards. It is a horizontal area on a chart, where price experience buying pressure and tends to move up. Resistance is a place where a stock price stop moving upwards. It is a horizontal area on a chart, where price experience selling pressure and tends to move down Why are these support and resistance formed? Support and resistance are formed only due to our own emotions at points around high supply or demand zone . For instance, if a price falls from high 100 to 50 then in and around that price (50) there will be lots of buyers ready to buy assuming it to be very cheap price and same goes for resistance where lot of traders would like to offload their positions considering that price to be too high for the stock and good time to book profit. Why do we need Support and Resistance? Support and Resistance often helps to set 1)Target, 2)Entry and 3)Stop loss. Guidelines for Drawing Support and Resistance: For the same chart if we ask 10 traders to draw support and resistance area, we will get 10 different result. So, what are the important things to consider ? I always prefer drawing rectangular zone instead of drawing single line to make chart look clean and easy to understand the area of supply and demand . *Always Use Higher Time frame to draw Support and resistance area. * Draw a zone using rectangle which shows multiple touches. While, this zone act as great support and resistance area compare to few touches which was due to volatility . * While drawing zone make sure to cover shadows in all previous touches Things to know: * The more times the S&R zones are tested in a short period of time, the weaker they become & the greater the likelihood it will break. Rules for Positional breakout : 1)Candle closing is mandatory to trade breakouts. 2)Wait for the retest, if the price closes too far from the breakout level. 3)There should not be HTF support/resistance near the breakout level. Types of breakout Patterns : 1)Rising & Falling Trendline 2)Rising & Falling Channel 3)Rectangular Channel 4)Ascending , Descending & Symmetrical Triangle 5)Head & Shoulder 6)Support & Resistance Breakout Hope it was helpful to you, Happy Learning & Profit making :) Thanks & Regards Divyaapugal
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NSE:NIFTYEducation
by Divyaapugal
77
TRENDLINES & S/R ZONES WORKS VERY WELL (EDUCATIONAL)Hello Friends, Trendlines are one of the best part of technical analysis, see how resistances turns into supports, and supports turns into resistances. One can start with practicing with Trendlines...! 1) Trendline is the base for all the technical patterns. So pls start practicing drawing trendline charts and then slowly move to next patterns. 2) Practice only few patterns and master in it rather than trying to learn all the patterns and techniques. 3) I would like to mention the quote of Bruce Lee here. "I fear not the man who has practiced 10,000 kicks once, but I fear the man who has practiced one kick 10,000 times". 4) Do more and more practice on charts, more time you spend on charts, more friendship they made with you, you'll be able to understand the language of charts, because chart says everything...! 5)Best learning comes out of practice you do everyday and then you apply it in real market. 6) Books knowledge will not be use full, if you don't practice it particularly in real market, because it involves lots of emotions. 7) Spend at least one hour per day in identifying chart patterns and preparing your own charts. 8) Track your charts, Understand how the price moves once the support or resistance is broken. 9) Understand which method gives you better success rate and focus on it more to improve further. 10) Believe me, Nobody can stop you. some examples are shared below nifty spot chart example gold chart example silver chart example techm chart example
Editors' picks
NSE:NIFTYEducation
by RK_Chaarts
34
Think & Trade Like Banks / Institutions / HNIYes it is possible. We have been taught many things but not the basics so that the 5% of the whole trading community remains profitable. The key to producing trading income in the stock markets is having a strategy that anticipates market turns and market moves with a very high degree of accuracy. To do this, you must be able to identify where banks and institutions are buying and selling in the market by looking at a price chart. This means training your eye to identify institution and bank demand and supply by looking at a price chart.
NSE:NIFTYEducation
by Shruti_Advisory
RSI Divergence + Demand Zone + Volume SpikeTo identify any divergence, first of all look at the current structure that the price is forming like the above case, Price is consolidating at the same place and when we look at RSI it is forming up Higher highs and Higher lows. Therefore RSI contradicts the price and this tells us that RSI doesn't support what the price is doing & is not inline with the price, so it's a bullish RSI Divergence. Also, if we look at the stock in higher time frame then the consolidation was happening at the key support level, which was another sign that the price was getting ready for breakout. Breakout with the volume is the sign to go long on the trade keeping SL below the consolidation line. This is an example of Bullish RSI divergence. Now for spotting Bearish RSI divergence the price must be forming higher highs or distributing at the same place whereas the RSI will be forming Lower highs which is an early signal that price is going against the RSI and hence we should short. That's how RSI divergence works, hope I made it simple! Enjoy Trading...
AEducation
by Vinay227
Bullish RSI Divergence -A case study and future recommendationRSI Divergence refers to the deviation of RSI with respect to price. Even though the price may be going in a set direction (say making lower lows), the RSI could go in a completely different direction (higher lows). RSI is a clearcut indicator of buyer strength or buyer accumulation at a specific given time and price. An RSI Divergence generally is strongly related to change in trend. RSI Divergence can be of 2 types: Bullish and Bearish. Here I shall discuss about Bullish RSI Divergence. In case of Bullish RSI Divergence, the price makes a lower low (in a downtrend) while the RSI makes higher lows (a sort of W formation). This shows that even though the price is dropping, the buyer strength and accumulation is increasing. Please refer the image above for visual example. How to trade? In case of bullish divergence, one should go long with a SL below the low of the present price. In the present case, one can go long in Amaraja with a SL of 660 and for a target of 800-850
Editors' picks
AEducation
by tksthathachari
35
How to draw in Support and Resistance - Education1. What is support and resistance? Support - Area on your chart with potential buying pressure Support - Area on your chart with potential buying pressure Most of the text books says the more times support and resistance is tested, it become stronger. But the truth is the more time it tested it becomes weaker. ( Refer the Image). 2. Support and Resistance is not Line in Chart: Most of think support and resistance is line in the chart, where they face 2 problems, a. Price undershoot and you miss the trade or b. Price overshoot and assume Resistance is broken it's become false breakout. How to address this problem? Simple, Treat support and resistance as area on your chart not lines. Why S&R are area on your chart? Because of 2 groups of traders i Traders with fears of missing ii Traders who want to get possible price I will explain in detail: traders with fear of missing out would enter their trades the moment price comes close to support and if there's enough buying pressure the market reverse at the location on other way, there are traders who want to get best possible price so they place orders at the low of support and if enough traders do it the market will reverse near the lows of support. But one thing for sure: We have no idea which group of traders will be in control, whether its FOMO or Cheapo traders. Hence, S&R are areas on our chart not lines. 3. Dynamic Support and Resistance: What we have seen before are Horizontal S&R ( Where the areas are fixed). Now we are going to see Dynamic S&R There are 2 ways to identify Dynamic S&R A. Moving Average B. Trendline How to use Moving Average as Dynamic S&R I here use EMA50 and EMA79 to identify my dynamic SR. But any moving average you can use. (Either SMA, WMA, DMA any number too. Do not blindly follow others) Trendline: Trendlines are diagonal lines on chart to identify the dynamic S&R Notes: Treat S&R as areas on your chart not lines. This is how we can draw a support and resistance . From now we can understand how to draw a support and resistance. If you like our thought press the thumb button and for more learn how contact us undersigned.
NSE:BANDHANBNKEducation
by Caapinves
How to enter a trade after a breakout 1) After breakout price comes near the previous supply zone and now it should act as demand zone which is support obviously 2) We should see the volumes at the time of retracing volumes are always low which is a good indication that means some profile booking is happening 3) If the price is not supported by volumes it kind of reverse that exactly happening now in this stock. 4) For entry we should look for any big green candle supported by volumes that's a indication that buyers are active now. 5)Now go for smaller time frame like 1 hour 30min for good entry
NSE:XCHANGINGEducation
by Tauqueer
Let us analyze recent fall and rise events in BTCBitcoin had a fantastic rally this year but also had seen the worst of the falls due to China’s crackdown. Let’s analyze the BTC chart and find out the critical signs we have observed during the fall and also analyze what’s the current situation. In this analysis, we will be using Trendlines, Supply and Demand Zones, and RSI. We shall understand them briefly. Trendlines can be ascending or descending lines. The trendlines are formed using at least 2 tops or bottoms. Ascending lines are formed by joining at least 2 higher highs or 2 higher lows which act as support. Descending lines are formed by joining at least 2 lower lows or 2 lower highs which act as resistance. Applications of Trendline s: 1. They indicate the prevailing trend in the particular duration. 2. They act as support and resistance lines. 3. If ascending trendlines are broken to the downside and the immediate low of the rally is broken then the stock may have a new downtrend. 4. Similarly breaking the descending trendlines to the upside and an immediate high of the prevailing fall indicates the new uptrend. Supply and Demand Zones are the zones where the price is failing to break out multiple times. Supply zones are the areas of interest for the bears and demand zones are the areas of interest for the bulls. Applications of Zone s: 1. They represent the critical areas in the chart where the traders or investors are interested. 2. Breakouts in either direction will add momentum in that direction. Interesting Interpretation of Trendlines and Zones : 1. Ascending trendlines are joined by the points where bulls are interested to go long. 2. Descending trendlines are joined by the points where bears are interested to go short. 3. Similarly demand and supply zones are zones where bulls and bears are interested in long and short respectively. 4. Giving up trendlines and prices going below or above immediate level indicate that the bulls or bears have given up on the stock for a while. Important Note : The breakout should be confirmed by checking higher volumes or pull backtest or waiting for the price to take out immediate high or low. This confirmation gives us a confluence between the different schools of thought. Some traders may only follow trendlines for breakouts, some may follow zones, these checks ensure you have more participation towards your position. Once the trendline or a zone is broken the nature becomes opposite. For example, if a supply zone or a descending line is broken, the price rises and then comes back to test the zone, this time it must act as a demand zone or support line, else it is said to be failed in the pull backtest. Relative Strength Index (RSI) It is a momentum indicator of the price in a particular duration. For detailed definition and formula, please check in the indicators section in TradingView. It is generally used to determine whether the stock is oversold or overbought. Applications of RSI: 1. Oversold if the price reaches 20 or 30. 2. Overbought if the price reaches 80 or 70. 3. Reversal signs based on divergences. If price is making higher highs or higher lows but on contrary RSI is making lower highs or lower lows. Then it is a sign of bulls giving up and a bearish reversal is on its way. Let us these concepts and apply to our chart. You can see supply and demand zones and the trendlines on the chart. FALL The supply zone had been tested four times and then took a great fall. You can have a doubt that actually once the price had managed to breakout supply zone with good volumes and crossed immediate higher high but even failed. Yes, here it failed the pullback test. It received resistance from the purple trendline 1 and came back for the pullback test and failed. We can see a bearish divergence by checking corresponding highs trendline 1 connected in RSI. RSI was also indicating overbought signs. After a certain fall, it rose again to test the zone which now turned to supply zone and couldn’t break. This gave confirmation for the participants of different schools of thought, hence with huge volumes price fell. RISE The price reached another critical area called the demand zone. Before falling into the demand zone, the purple trendline 2 gave support to the fall. The corresponding trendline 2 in RSI confirms the bullish divergence and showing oversold signs. This reversal was confirmed by huge volumes, taking out the 40k mark and breaking a strong trendline which resisted price to rise during the fall. The price also took a pullback test and succeeded. CURRENT SITUATION After a pullback, BTC made a high of 48k and then formed an intermediate demand zone. The blue trendline is supporting the rise. If the BTC breaks 48k, it can go to test the supply zone. If it breaks the blue trendlines and the intermediate trendline, it can test the 37k level. If the 37k level fails it may test the demand zone again. We have a minor bearish divergence in RSI and RSI is in the overbought zone. As we analyzed the fall and rise of BTC, we understood before considering any position, confirmation is necessary. This is just an education post and not investment advice.
COINBASE:BTCUSDEducation
by Sanjan91
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
Trading concept- Absorption of Supply Myth: 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 concept: 1. Whenever the price keeps approaching a certain level, there are pending sell orders that are waiting to be filled. 2. Every time the price comes back to this level, a certain amount of orders gets filled. This is called absorption. 3. The more the price approaches that level, the lesser the unfilled order remains. 4. Ultimately all the orders get absorbed and we see a breakout from that level. Example: 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
10