In the first part of the supply and demand webinars series, we were discussing the forces and causes that drives price changing. While imbalance of the two forces supply vs demand determine where price is heading, defining which side had the greater force determines what direction we ought to trade. In general we wish to trade with the greater force side against the weaker side, To do so, we anlyse where we can spot a strong level of supply or demand.
In the second part of the series, we extend this idea, and learn how to analyse areas where there is a definite lack of demand or lack of supply in the market. This will help us as traders to plan our trades with higher probability for success, where we actually look to trade strong demand vs weak or no supply, or to short by strong supply vs weak or no demand.
In this video we learn how to read the order flow from the charts and have a deep understanding of what’s going on “under the hood of the market”.
The video is about the story of the market, it’s a practice of how we can read information from the charts in a way that we can really understand what’s going on behind the scenes of the market. The market is a real enviroment where real people and companies and organizations and politics blend in into a specific place and it moves price because of all kinds of Motivations and what we’re trying to read from the market is what will be the next motivation of the market . What will be the collective desicion, the democratic desicion that will be made in the market, and when we understand that we can predict how would like to expose ourselves in an investment in the market at the level that we predict has the most possible odds for us to make a profit.
The thing that we’re looking for is where buyers or sellers are waiting, on what levels they are parking their orders and waiting to enter the market.
It is a very possible and very accurate way to do it by just reading the charts. This concept works on every market that has a lot of liquidity.