When You Hear Demand And Supply Or Support And Resistance What Comes Into Your Mind ?
Do you think they’re the same thing and how do they work?
🧠THE CHAIN ⛓️
PART 1
A Thread 🧵……
Do you think they’re the same thing and how do they work?
🧠THE CHAIN ⛓️
PART 1
A Thread 🧵……
⛓️What is Support?
▪️Support is a price level where the market tends to reverse from a bearish move. The more times a support is verified, the more credibility it has.
▪️Support is a price level where the market tends to reverse from a bearish move. The more times a support is verified, the more credibility it has.
▪️Resistance is the opposite of support. It is a price level where the market tends to reverse from a bullish move. The more times a resistance is verified, the more credibility it has.
When a support level is broken, the same support can be used as a resistance level,
When a support level is broken, the same support can be used as a resistance level,
and if a resistance level is broken, the same resistance level then becomes a support level.
▪️Supply zones work in the same vein as resistance, and demand zones as support.
How does Investors use supply and demand?
Investors often use technical and fundamental analysis
▪️Supply zones work in the same vein as resistance, and demand zones as support.
How does Investors use supply and demand?
Investors often use technical and fundamental analysis
to determine which currency will rise in value
to identify supply and demand zones, one must first understand basic market structure
Two general ways a market can move; a reversal or a continuation.
to identify supply and demand zones, one must first understand basic market structure
Two general ways a market can move; a reversal or a continuation.
REVERSAL
(1) Rally-base-Drop: in this structure price rallied up and creates a base structure followed by a big drop in price to the downside.
(1) Rally-base-Drop: in this structure price rallied up and creates a base structure followed by a big drop in price to the downside.
⛓️(2) Rally-base-Drop: in this structure price rallied up and creates a base structure followed by a big drop in price to the downside.
⛓️ CONTINUATION PATTERNS:
Rally-base-Rally: price rallies up and forms a base structure then continues moving up.
Rally-base-Rally: price rallies up and forms a base structure then continues moving up.
⛓️ Drop-base-Drop: price drops and forms a base structure then continues moving down.
These consolidations are important because they serve as either supply or demand zones that traders can use.
⛓️Study the chart 📉📈
A rally base rally will always form a demand zone in the market.
while a drop base drop will always form a supply zones during a downtrend market.
A rally base rally will always form a demand zone in the market.
while a drop base drop will always form a supply zones during a downtrend market.
Time to reflect, Learn and execute.
Take notes. 📚 🖊️
Preparation begins now.
Like & Retweet to share the insight to others out there
let's get 100 RETWEET
Then I'll drop Part two The Chain⛓️
Take notes. 📚 🖊️
Preparation begins now.
Like & Retweet to share the insight to others out there
let's get 100 RETWEET
Then I'll drop Part two The Chain⛓️
Tagging top O.Gs to this, do give a Rt
@kelvinbillions_
@Kelvintalent_
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i hope you enjoyed going through it, help RT 😊🙌🧠⛓️
@kelvinbillions_
@Kelvintalent_
@Crypt_Therapist
@OsmondSabby
@ProsperoApril
@dnatechbro
@Starr_gael
@Kelvintalent_
@_Krypto_Khan
@TradeWithThanos
i hope you enjoyed going through it, help RT 😊🙌🧠⛓️
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