Advance Price Action Trading with Demand Supply & More
- Thread starter AlphaT
- Start date
- Tags demand supply nifty price action trading
It should head towards the next daily SZ now. Let's see what has transpired since the last time me took stock of HDFCAMC.
Weekly: The first DZ has been violated but the second one has'nt been touched yet but price is moving up. When this kind of PA takes place, one must look at LTF's to see if any trap was laid that we had overlooked.
Daily: Similar picture, the DZ has been violated, next DZ not touched but since the previous DZ was violated, the above SZ now assumes importance. I hope this answers the question as to why previously the SZ around 3200 was not called out as imp then. Now it has assumed imp after this PA.
15 min: This LFT shows the trap that was laid But before looking at that let us see if there was any PA that suggested a reversal or buying by institutions. None! There was no conf PA at all, right from the time price entered the Weekly/Daily DZ till the time it broke the zone! Every SZ created since arrival and during it's onward penetration through the DZ was created and respected suggesting seller insti(s)'s dominance and lack of interest from buyer insti(s), the minor buying at the lower region of the zone was also pushed back by the seller's DBD SZs. Look at the chart below. In the next chart we will look at why this kind of behaviour was displayed by the buyer insti(s).
Now let us see why price reversed from below the Daily/Weekly DZ after breaking it. It was due to a trap zone laid below the Daily/Wk DZ where Stop Losses are supposed to be placed by traders who are going long at this Daily/Wk DZ. Insti(s) just love it because they get host of Sell orders(SL orders) to get their own Buy orders to be filled against them. Such zones become high liquidity(plenty of orders) areas which they love. Retail traders who get Stopped out and then see the price move up in the desired direction curse their luck, but unfortunately the market often works this way, this has nothing to do with luck!
Now do we understand why price broke the Daily/Weekly DZ while the buyer insti(s) did not fight back as it penetrated the DZ, as they were waiting for price to arrive at the trap 15 min DZ below, so that they can not only get their buy orders filled there but also fill much of their buy orders against the SL sell orders placed there at a lower/better buy price!
So as we advance in our journey of adv. Demand Supply trading these are one of the things that we must be cognizant of. For those who are dedicated in this path and make it to the Circle, there are some more similar/different concepts like this that they will learn inside it. The cost for that as you already know, is your dedication, practice to this path/method alone!
Weekly: The first DZ has been violated but the second one has'nt been touched yet but price is moving up. When this kind of PA takes place, one must look at LTF's to see if any trap was laid that we had overlooked.
Daily: Similar picture, the DZ has been violated, next DZ not touched but since the previous DZ was violated, the above SZ now assumes importance. I hope this answers the question as to why previously the SZ around 3200 was not called out as imp then. Now it has assumed imp after this PA.
15 min: This LFT shows the trap that was laid But before looking at that let us see if there was any PA that suggested a reversal or buying by institutions. None! There was no conf PA at all, right from the time price entered the Weekly/Daily DZ till the time it broke the zone! Every SZ created since arrival and during it's onward penetration through the DZ was created and respected suggesting seller insti(s)'s dominance and lack of interest from buyer insti(s), the minor buying at the lower region of the zone was also pushed back by the seller's DBD SZs. Look at the chart below. In the next chart we will look at why this kind of behaviour was displayed by the buyer insti(s).
Now let us see why price reversed from below the Daily/Weekly DZ after breaking it. It was due to a trap zone laid below the Daily/Wk DZ where Stop Losses are supposed to be placed by traders who are going long at this Daily/Wk DZ. Insti(s) just love it because they get host of Sell orders(SL orders) to get their own Buy orders to be filled against them. Such zones become high liquidity(plenty of orders) areas which they love. Retail traders who get Stopped out and then see the price move up in the desired direction curse their luck, but unfortunately the market often works this way, this has nothing to do with luck!
Now do we understand why price broke the Daily/Weekly DZ while the buyer insti(s) did not fight back as it penetrated the DZ, as they were waiting for price to arrive at the trap 15 min DZ below, so that they can not only get their buy orders filled there but also fill much of their buy orders against the SL sell orders placed there at a lower/better buy price!
So as we advance in our journey of adv. Demand Supply trading these are one of the things that we must be cognizant of. For those who are dedicated in this path and make it to the Circle, there are some more similar/different concepts like this that they will learn inside it. The cost for that as you already know, is your dedication, practice to this path/method alone!
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