Supply and demand question

SanMiguel

Experienced member
Messages
1,136
Likes
25
Just wondering about the theory of bounces...what is going on in the market/traders' minds?
1 Sellers get in
2 Rejection off support
3 Who is selling here and why?
4 Bounce off support (classic time to buy)
5 Profit taking from buyers?
6 Some buyers stay in and bounce of recent resistance turned support line.
7 Profit taking buyers close turning into sells.

supplydemand.gif
 
Just an observation, and sorry not to answer your question directly, but you sound like the type of person that could get a lot from Market Profile / Auction Market Theory.... Look into "Mind over Markets" by Dalton if you haven't already.. I had the same questions and found a great deal of insight in his and Steidlmayers books. Its not a system.
 
(1) Trend line violated at third touich, traders traopped inlosing trades, when nprice retutrns latyer on at (2) tradwer gets out at break even and those that got the market directin right earlier want another piece of pie ansd jump back in again so it becimes resistive.

I think the actual high of that reversal at R was pip perfect to the weekly high of two weekd ago.

So0rry i.ve had a sleeping pill and it's just bkicked in, tomorrow dudes

dd
 

Attachments

  • what's going on.jpg
    what's going on.jpg
    54.3 KB · Views: 245
Tells me that more highs are being tested than lows.
That all the people who jumped ship into euro (major players) are trying hard keep their portfolios valued at the current level by offloading positions slowly (into god knows where) which is responsible for the channel.
Tells me there's likely to be another topside move to smash through that narrowing channel to either test highs again or maybe find support which is daft because if cable and this "recovery" the indices is showing continues for the next couple of weeks are anything to go by euro is going to flop because its not needed.

This is all subject to employment figures and interest announcement though so who knows what will happen
 
Ok, so then what are you going to do, using that infomation?
 
You can paper trade though? TBH what I was getting at is, it doesn't really matter if your chart is meaningful to others, as long as it is to you. If it is meaningful to you, you can form a plan- if X happens I will do Y.
 
mr.marcus
''...actually the complete opposite is true...how else could you profit?''



I disagree, who cares what everyone else is seeing on there charts? I don't, otherwise I may as well go over to the guy trading behind me and put on a trade based upon his views of areas he believes could influence the future direction of the market. If I did this then I wouldn't have the same conviction of the trade. Look at it from another way, if I put on a trade for one reason and 100,000 people put on the same trade for a different reason does that make my reasoning invalid? I don't think so.
 
Top