Excellent post, very well written, I will be following, thank you.
Quick question for you, is the supply / demand zones different to the support / resistance levels? How do you differentiate between them if they are different? Do you use confluence with indicators such as volume?
Thanks :)
RE: The most important technical analysis - SUPPLY AND DEMAND
You are viewing a single comment's thread from:
The most important technical analysis - SUPPLY AND DEMAND
Hello mate.
Support and resistance shows us an area where price has tested a few times and failed to break through.
Supply and demand goes a bit deeper. S/D shows us an area where buyers and sellers are met at a sort of equilibrium and then due to an imbalance in the order books, we see a huge reaction one way or the other. If we rally, can get a good idea that there isn't much selling pressure at that level, and vice versa. S/R can't offer the same sort of depth of insight.
With S/D we look for areas of strong price movement which usually react in the same direction when price revisits
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Thanks for the reply, I'm definitely going to explore this more. Look forward to more of your posts.
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit