Friday, February 12, 2016

Price Action Supply and Demand How to Mark demand zones

How Marking correct supply and demand zones change the way you trade Hi, Traders Trading week is about to end and by far the most volatile week I have seen in past few years with stocks and Indices Futures tumbles most since the 2009 for few countries. This is not going to end anytime soon, so prepare yourself with the more to come and use tight stop loss because price rally off without correcting too much and that is why Marking Correct supply and demand zones really help.

Why I emphasis lot of marking zones, because this is a technique that professionals use to panic traders and run after their stops, specially day traders and scalpers. Rallies which engulfs the previous false break zones and traders expect another false breakouts, which never arrive the usual way as it should be as there is often hurdle that joins the party and If there is profit taking price usually take a reverse path and hence we caught in the zone of trading false breakouts.

How To Mark correct supply demand Zones


yesterday price action was key for me as we see Euro rally quite sharply this week as it is completely negatively synchronized with Usd/jpy and sharp sell-off in usd/jpy really puts bulls on tops of their game and they buy everything but usually there is profit-taking and test of demand and supply zones if there are unfilled orders left in the market and this technique is used more often than not to run after stops or punch in some new cash to build and gain more profits.

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