pariah wrote:Hi Legend,
Man, you guys posted alot in the last 8 hrs.
The basis for my trading is understanding Supply and Demand levels/zones. I don't really understand what a zline is, but in my experience, I believe now that they are the same. The tasks for me is:
1. Where to find these zones
2. How price reacts when they reach these zones.
ie. This is my understanding of s d. S D zones are created where there is an imbalance of buyers or sellers.
a) These can be identified on a chart by looking for momo. Momo tells you that we have arrived at an s d area. This is an area where you draw lines (zlines, S/R, SD etc...)
b) Price will do one of two things, at these levels 1. Price will move away, or 2. Cross these levels. Again, momo will give you this information.
- Bodies in the direction of profit, wicks in the direction of loss.
Thanks pariah