Supply and Demand are important parts of the market structure. Study the Market Structure, Series 1.
A lot of people get caught up with us the first time we start trading. Like understanding support and resistance, but very much applying them, sometimes we still suffer losses.
Learning from my personal experience over these 3 years, I have learned a lot of trading methods that use both indicators and chart patterns.
However, I found that the market structure is king.
In this article, we will discuss the key aspects of the market structure, namely supply and demand.
Supply, literally, in digital asset trading is a price area that becomes a saturation point for continued rise.
When the price is in the supply area, the seller will act to sell.
Area supply is also often used as a take-profit area or a short market for derivative traders like me.
To find out the supply area, identify bearish engulfing candles.
The condition for determining whether the supply is valid is the presence of one or more candles before the bearish engulfing candle.
In the image above, you can see a clear arm. There are several candles that are broken by one candle's bearish engulfing and make the price immediately drop.
Well, the area I marked yellow is a good supply area to be used as an entry point in the short market or a take-profit area on the spot market.
In the market structure, where there is a valid supply, there are also those that are not, as in the explanation above for identifying a good supply.
Then this is what you should understand when looking at an invalid supply.
How to define it is also dependent on whether its candle bearish engulfing is one or several previous candles.
In the image above, you can see the supply area that succeeds at the top.
This is an example of a non-valid or non-fresh supply that is commonly listed by traders.
If we look at the gel on the yellow picture that I marked, there was a mitigation of the candle, although only the end of the engulfing candle was bearish.
Well, by knowing which supply is valid and which is not, we are so much more likely to do a deal on the derivative market in particular.
The conclusion of this article is that supply and demand are important parts of the market structure and become crucial when we are wrong in identifying them, resulting in losses.
Since I make this writing into a series on market structure, in series 2 I will discuss demand, the opposite of supply.
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thanks for the positive feedback bro.
the market always forms its structure and will seek liquidity to move the market according to the direction of the price structure.
And supply is one of the points of interest that can boost prices to fluctuate.
Ok then, thanks for the response
sure, may u want to entry the Dodge coin?
Do you have a platform where you guide users on Trading the Financial market?
My Telegram Channel @PengangguranBerduitJurnal
Thank you, friend!
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Supply and demand are the key aspects of business and trading. Understanding these two terms will help one know when to buy at a cheaper price and sell at a higher price. Nice review.
thank you for giving positive feedback.
By being able to identify supply and demand, we can find out the right potential areas and can be used as points to look for opportunities to trade.
Bahasa yang paling mudah, simplifikasi. Apa suplai dan demand ini bisa dilihat dari lilin yang penuh gitu? Lilin ijo penuh sebagai tanda permintaan melonjak. Sedangkan merah yang penuh adalah penjualan yang signifikan?
terimakasih sir feedback positif nya.
tapi itu candle stick nya warna biru sama abu abu hehe
semangat balajar sir.
Ha ha ha. Iyaa. Pokok warna itu deh, biru dan abu abu 🙈
https://www.tradingview.com/x/KKRGc2Fz/
Pusing. Sama sekali ga paham 🙈
hahah
nantinya kamu akan paham kim seiring akumulasi ilmu dan terus belajar. semangat.....
ex : price rijection supply at my trading plan pari EUR/USD
Hello friend, a piece of advice to improve your publication.
use at the beginning in the markdown editor this command.
<div class"text- justify">and at the end of the post put
</ div>This is so that the words are ordered and the publication looks more beautiful.
hello bro
i think there is no problem.
encoding that I use is also sufficient.
I will appreciate it more if you comment according to the topic.
but your suggestion is also quite good.