Main Types of Supply and Demand Zones that have taken my wins from $100โs to $1,000โs
The Easiest way to Find them and Trade them
$SPY $SPX $QQQ $TSLA
๐งต๐
The Easiest way to Find them and Trade them
$SPY $SPX $QQQ $TSLA
๐งต๐
It's important to know the patterns involved in supply and demand zones.
Like traditional price pattern analysis, supply and demand zones also have reversal and continuations patterns.
Like traditional price pattern analysis, supply and demand zones also have reversal and continuations patterns.
Reversal Patterns
These patterns simply refer to the situation when the price trend reverses from either up to down or down to up. Reversal patterns are strong and are followed by the price. To understand these patterns clearly, we will take the example of two structures: ๐
These patterns simply refer to the situation when the price trend reverses from either up to down or down to up. Reversal patterns are strong and are followed by the price. To understand these patterns clearly, we will take the example of two structures: ๐
Drop-Base-Rally: In this structure, the price moves downward (referring to price drop), waits for some time to create a base structure, and finally rallies upward (referring to price raise).
Rally-Base-Drop: In this structure, the price rallies upward, waits for some time to create a base structure, and then moves downward to show a big price drop.
On the below price chart, you can identify the supply zone on the extreme left side, and the demand zones are represented by the next two structures.
In the supply zone, you can see the price rallying up, pausing and then dropping significantly, following the rally-base-drop structure. Notice the way price leaves the base structure. The long candles representing the drop show the intensity of the imbalance at that price level.
In the other supply zones, you can see price dropping significantly, waiting to create the base, and then continuing to move downward, following the drop-base-drop structure.
Reversal patterns have more chances of success than continuation patterns due to their high strength.
Reversal patterns have more chances of success than continuation patterns due to their high strength.
All I ask is that you RT and Like this post for others to learn ๐
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Keep notifications on as this is part 2 of a 7 part thread on Supply and Demand $SPY
Follow @RealJGBanks for more tips
Keep notifications on as this is part 2 of a 7 part thread on Supply and Demand $SPY
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