It has been quite a while since new updates because I had a very busy schedule and today I have decided to update everyone once again about what is price history in real words, and what approach one should use when it is tested in strong moves and what is the reaction and that whole price action unfolds around these scenarios.
Basic of balance and Imbalance
Usually, Price moves in a structure and does not move randomly in one direction and that is why we usually see pause after a strong move and whole buying and selling moves around this pause and if there are not enough buyers or sellers price won't drop or rally and In order to price to move or rally there should be more one type of order (buying or selling) and it that point a base is confirmed and a decision that price is either too cheap of expensive has been made. When price moves away from base there is obvious unfilled orders which remain unfilled so when price returns to the base in future we can expect remaining orders to be filled causing a reacting in price and that is what supply and demand is all about history, approach and decision.
When Supply/Demand breaks
When a level is tested many times during a strong move, Supply and demand levels finally break. This can be done due to once remaining orders being filled and those unfilled orders got consumed or there could be price looking to reverse when significant amount of orders in opposite direction filled which cause breaking of level.
Broken supply/demand level holds some significance. Where once sell orders earlier now became orders and they exist, with the referred as demand levels. This mean upon return to those broken level, we could see a reaction in price, these levels are often referred to as "Swap" levels and this is termed as supply and demand and no one know whether there is supply or demand until we see approach and reaction while price tests those levels.
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