Market Structures The Series, Let’s discuss Demand in the market.

In the series before it, I have already discussed one of the most important components of the market structure is supply.

You can read the first series explanation of supply here.

In this series of posts, I will comment on demand, what it is, how to use it as an opportunity, and how to identify good demand and poor demand as points of interest.

Demand is the same as supply, which is an area of significant movement characterized by bullish engulfing and covering one or more candles behind it.

As seen in the picture below, the demand and price drop to the demand area, and then there is a reaction.

Then how to determine a good demand, which can be used as an opportunity in trading, getting involved in the derivative market.

You can see clear bullish engulfing with a nice break and covering the candle before.

If you see the candle pattern in the picture, then it is a good demand.

Then it can be assured that when the price has already climbed up.
When there is a correction, it will look for a good demand as a point of interest to continue its rise.

This is the momentum that many traders use to find positions on the spot market and the derivatives market.

Once we can find and identify a good demand, what about an invalid demand or a less good demand?

Well, as you can see in the picture below, there is a candle that forms the demand, but the price at the time of touching the demand instead drops and penetrates the demand.

In the area of demand that has been mitigated,or in other words, the demand is no longer fresh.

However, at the time the price moves towards the demand, the price cannot hold, pull back up, and penetrate the demand area.

So in this second series, we’ve learned about one of the most important things about the market structure, the demand area.

Thank you for reading and waiting for the next series on the topic Market Structure The Series.