@ontario, on Youtube a company called ProAct Traders example How to find the Big Boys targets, they have some good free videos.
That said their program is expensive and designed to suck a trader into long-term monthly expenses.
All things being relative; it’s not for me.
Sam Seiden was the founder for Supply and Demand and you can find many of his videos. Everything you can access in the way of systems, indicators, oscillators address price action but you will very rarely find information on how price moves based on buy and sell orders; and the best way to think in buy and sell is engulfers. It is the very basic idea that if a bar stops going lower we ran into buy orders, the next bar goes up and stops - it ran into sell orders; the third bar breaks low and goes below the first bar - sellers are in controll we have more sellers then buyers and this is where the imbalance lies
When we say imbalance what that means is are there any sellers left at that level before price plunged downwards - as it falls it is using its sell orders to absorb buyers and those sell orders are depleting, they will need more sell orders to continue further down - so we expect price to return to this level looking for sell orders
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.
