Thank you Kat for all the charts, with notations, helps a lot. I’ll watch some of Sam’s Youtube.
O as I thought it’s a price action, i.e. working yet another type of it called "balance&supply"
Thanks for clarification!
There are many ways, thousands of different ways to assess price action but it always boils down to buy orders and sell orders
No worries, Sam has tons of videos
Kate, this is a great vid! I reviewed it a number of times would recommend all new traders to watch it.
This is also a great video from Proact “Trade the Wide Open Spaces”
I’ve been following along, thanks for all your posts!
FR&L (KC)
This sounds interesting already…the wide spaces I will watch it. Thank you
We had buyers once price engulfed. The chart for trading only required 5 lines on it and an understanding that the bottom of a bar when advancing up is bar support/bar demand. I do annotate my charts, as supply demand is not easy to grasp, as retailers think of your first encounter with charts. How did you learn, probably using indicators oscillators. Maybe you picked up a a book or two on charting and again it discussed indicators and oscillators maybe convergence and divergence with price. I do not believe you will find a book that purely discusses price action based on buy and sell orders and how that appears on your chart. You cannot trade supply and demand/order imbalance/buy sell orders - what ever name you wish to tag to naked trading untill you understand price action. I can even narrow it to understanding just what one bar is saying - bar supply on top, bar demand on bottom if your next bar opens and it falls below the bar demand then we know we have more sellers then buyers. Its that easy.
very worthwhile, I have a few times and still trying to up my trading to that level.
@kate25, you’re amazing, simple as I posted elsewhere. I love your stuff you and I are in tune with trading. I use regular candles not bar charts, why do you prefer a bar chart?
When trading S&D or S&R I have used a line chart and found on the lower time frames I gain much information using candles. What is the advantage to bar charts?
I see but what’s your preferred one?
@kate25 , on the annotation “we are playing the the engulfer above” are you referring to the first black candle to the left of the first red dot or are you referring to the second blue candle to the left of the first red dot?
It was my understanding that an engulfer would cover the majority/90% of the previous candle. Do you consider an engulfer as engulfing the H&L or O&C or just the C?
tx,
KC
In a scenario where price is falling I like to see the bar close lower then the nearest up bar and engulfers may not be the right name for that but in supply and demand it tells us those buy orders in the up bar were wiped out by the sell orders when price closed lower, had to be - if we had buy orders then our down bar would not have been able to close lower.
AudUsd is at an interesting point as it made a higher high and is now coming down into demand - with the higher high we are looking for a higher low. If we get the higher low it will switch price from breaking demand to breaking supply as it moves higher
S&R is nothing more than a channel that stops for a pause and then breaks out. Its what we do trend follow or trade the volatile breakout avoid the hook and go and maybe find the next trend.
@kate25 it sounds/seems like a such a simple step by step process in hindsight!
There are moments where it is completely crystal clear and then the fog seems to roll in!
I have been spinning charts back a few months or couple of years and then reading them candle by candle using the information you have posted in this thread. Practice, practice, practice.
It seems to be coming together in my head now.
KC
Consider price is falling and we are viewing a down bar. That bar stops going higher as it hit sell orders, if it did not hit sell orders it would have continued higher, At the low price stops as it hit buy orders and stops as it hit buy orders if it did not price would continue down till it found buyers. This is bar theory and with that knowledge we can say the top of our bars are bar supply and the bottom of our bars are bar demand. When price is falling we are breaking bar demand and sparing supply and when price is rising we are breaking bar supply and sparing bar demand
