The Law of Cause and Effect

The Law of Cause and Effect

The Law of Cause and Effect: “The effect realized by a cause will be in
direct proportion to that cause.

Consequently to get an important move there must be an important cause. that takes time to developeie if we trade within a range .. we are building a cause for the next effect! ,we may absorb supply while demand gets stronger then supply
(building a cause)we then breakout of that range to the upside (effect)
or we see that supply exceeds demand and demand gets exhausted within the
range .. then we see a down move ie break to the downside


so there has to be significant action to take place within that range in
order to break out or down.. and that effect is underlying of what
happened within that range..

here is a example of a breakdown (effect) after a range(cause) and what
happened within that range wich lead to the breakdown

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The Path Of Least Resistance

the path of least resistance can come in many ways .. but nevertheless
it tells us where the markets wants to go.. and its represented by
strong moves in one direction and weak corrections/pullbacks..

u will notice that the size of the trades are bigger aswell as the frequency
while the size/frequency of the trades in the correction are weak..
basically u will look out where price has an easy time to move to..
and a hard time to move to...

however u need to judge the quality of those moves.. remember lack of
supply or demand are not as vital as if we have equalish situations for
both sides. but one side .is fairly stronger! thats two different
situations..

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Lack Of Supply

we can clearly see that the layside is way heavier then the
backside.. wich even has gaps.. so a lack of supply is iminent



we see a print on 4,0 on the layside wich happen on good vol
and tsill some gaps on the backside



we see follow thru on the layside .. backside still looks weak



and now we even moved up without a fsacilitated trade.. someone pulled
the back order @4,1 .. and we have wittnmesd a follow thru from the layside
wich still looks healthier.. while the backside.. lacks of money

therefore lack of supply and we move up but its not a vital move as demand has it easy to controll the market caused by the lack or absinence of supply..
however we move up ..

but caution is advised as supply can enter anytime..! and force demand to
either stop.. or even swamp demand.. this pulling and pushing is used also on manipulations as there are manny games been played on the ladder..
but that will be a nother article ;)

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Demand Exceeds Supply

we have a balanced situation here in terms of money
its kinda equal on both sides

now we see a print of 236 @5,5 executed on the lay side
somone is lifting the backside, the volume is compared to
the resitin sizte big.. and therfore the fisrtt indication
of rising demand

aswell as the layside on 5,4 has increased to from 200 to 400

we have follow thru , wich means teh backside on 5,5 has been removed
and a nice amount hast taken its place on 5,5 on the layside

this is a first vital sign of strenght

the amount increases from 100 to 400 on the layside

wich supports the asumption of strenght and demand rising

however we are now again kinda equalish on both sides..
the backside is a lil heavier atm..

but then again.. the markets tend to trade torwards size
more often then not .. (in search of liquidity)

we see 90 prints on the backside , lets see how that affects
the amount @5,5 (lay)

as we see the amount on 5,5 lay ,even increased
despite the 90 wich has been traded there. with a heavier backside
in front uf us...

so this with the action in the recent past .. is clearly a sign of strenght and .. a sign that u rather should think of laying first..

but deffenetly dont lean on does 800 and 600 amount on the backside..

the amount on 5,5 increases again

we see a rather big amount print on the backside.. @5,5
lets see what happens this time

well the layside increases again.. despite the big amounts(relative) tarded there..
ie. supply gets absorbed.. this is a strong market

another nice print on 5,5 ..

the prints increases.. now some selling is going on..
lets see if the level of 5,5 holds..

the level of 5,5 holds for know.. even tho we saw nice big prints on the backside , but we didnt go backside on 5,5 even thou the nice prints
wich is a sign of strenght
we also see now a nice amount printing on the layside

5,5 sees another increase in volume..

5,6 sees prints of 30 and 90 ..

and we have follow thru.. ie we go layside on that odds..

we increase in volume on the resting orders
while we see another big print going off at the layside


so we have seen an increase in demand , and several signs of strenght
like, follow tru,big amounts (volume) traded on the layside (hitting the backside), backside has been eaten up frequently, and if we saw prints on the backside (hitting layside) we stood stroing ie. know follow thru we even saw an increase on the layside..

this is is a vital move up on imncreasing demand ie demadn exceeded supply ...
however what u dont see on those pictures is another vital information.. and that is in what frequency or pace. those prints come in.. on the layside ... the faster the better.


all this can bee applied to supply exceeding demand.. but in reverse
i guess i dont have to draw pictures or do i? ;)

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The Law Of Supply and Demand

THE LAW OF SUPPLY(backside) AND DEMAND(layside)

The law of supply and demand is not an actual law but it is well confirmed and understood realization that if you have a lot of one item, the price for that item should go down. At the same time you need to understand the interaction; even if you have a high supply, if the demand is also high, the price could also be high.


so as in all markets .. supply and demand are the number one reason price moves.. supply and demand can be in balance for some time and stay within a range
till we have an imbalance . ie .. supply demand outweighs the other.. and we move either down(supply is in control) or up (demand is in control) till we meet balance again.. etc..


so if demand is stronger than supply we move up

if supply is stronger than demand we move down.. its that simple ! ;)

in contradiction.. if there is lack of supply we move up till we meet at least the same amount of supply to keep demand in place.. and find balance agin
also if there is lack of demand we move down till we find demand wich keeps previntening the price going down further.. and we are in balance again...


you cant judge all the participants thoughts and intends in order to know why they buy here or why they sell there.. etc..
nut you can judge the markets by its own action , by simply observing it..

we can simply say that price takes the path of least resistance! in wich direction does price has it easier to go.. up or down?

example the path of least resistance is up when.. we have a significant change in price accompanied with high volume to the upside while on reactions (corrections) volume tends to drie out and price doesnt make a significant move down

example the path of least resistance is down when.. we have a significant change in price accompanied with high volume to the down side while on reactions (corrections) volume tends to drie out and price doesnt make a significant move up



so price moves up when demand exceeds supply (buying pressure)
and price moves down when supply exceeds demand (selling pressure)

these two examples are vital moves.

where if we have lack of supply and price moves up.. we cant speak of healthy move up.. sure we move up but on a lack of supply not on heavy buying ie strong demand .. so caution here is advised

the opposite is true for a lack of demand where price moves down.. but not because of an increase of supply but a lack of demand... caution heretoo , as price is know on the look out for fresh demand..!

stay tuned for examples!

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Market Mechanics

In this post i will explain you the underlying market mechanics and what drives price.

The Main purpose of the markets no mather what market it is , is simply to fascilitate a trade between to participants , where in the case of a
trade both the buyer and seller agreed on a certain price , wich for whaterver the reason may be value for them..

as we know no that in order to fascilitate a trade we need boht a buyer and a seller and for that the market and price is alwasys looking to attract them both
so the price is looking for liquidity , the price is advertising itself all the time to attract a buyer and a seller..

we can also think of it as a two way auction where the auctionator first screams out for ex. 10 and declines the price till a buyer is found..
9,8,7. at 7 a buyer steps up... now the auctionator increases the price as the buyer may have attracted new buyers.. ie created demand....

Thats it! Demand and Supply DRive the markets! (PreOff) its that simple! ;)

Stay Tuned!

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Introduction

HI

On this Blog you will find alot of information and material on how to approach the markets (PreOff) and what to look out for.
in order to understand the markets behaviour and how to judge its sentiment and actions and where and in wich direction you should position yourself ,all for free!

I will show you the door into the *zone* but you have to walk thru it on your own!

this is not your average blog , here you will find many usefull informations on what really drives the markets (PreOff)

I know it can be a pain in the arse if u ask a question on a forum and all u get as a reply is watch the ladder! yea sure , but what to look out for? how to approach it and where should I start?
I will answers most of the questions and show you where to start .

What?
Where?
How?

so from the 10.000 hours of screen time wich is often told to put in, in order to get an understanding and trade profitable I will cut that number atleast in half for you!

the beeing Profitable issue can only be achieved by you and your gain in confidence as u gain more and more expirience and knowledge about the markets and about you!..

confidence comes from totally understanding the markets and know how to judge its action correctly and act accordingly ,think of it as if you dont know what u do and dont know what the markets drive or how they work .. are you confident?

i dont think so! so with this blog full of information about the underlying market mechanics and how to judge and read them correctly ..
u will get confident as u know what u do and know how the markets work!

what u wont find on this Blog is a magic bullet system as ther is None period.u cant force a mechanical simple stupid system on an ever-changing market
it wont fit.. the markets have their own logic and mechanics...
u will learn how to read an interpret the markets to position yourself
in the most favourable way, I will teach and show u what are the important information bits and where and how to find/spot them.

all in its purest form of reading the price action on the ladder. however i wont promise u that u will be profitable right from the start
u have to do your own due diligence and put in alot of screen time and hard work in order to get the edge.. I will show u the door , but u have to walk thru it by urself..

nothing works best as self experienced situations, u will learn much faster and from your own mindset.. wich is worth more than anything else

dont worry I have done the most work for you , I show you where u have to look for what , u then simply have to adapt and study the stuff i show u on this blog on your own ,take your time and dont rush , it will all sink together when time has come i promise..

u first need to know the underlying mechanics behind a market and its logic. u need to understand what drives the market, who participates and most importantly ,what there intentions are and why the markets are there in first place, then u need to know where u have to look at and what is rather a important information and what is just a distraction

then u need to make yourself a plan, dont worry it doesnt need to be a complex one ,but u need to know and layout where u want to do business in
at wich odds, where is it interesting to take a trade from ,ie u draw a map..

then u need to watch the markets and get a feel of where price is heading much likely (path of least resistance) ,want the market wants! , how price approaches your level of interest and how price acts at your level...

when u are in a trade u need to watch how price reacts while your position is open.. either when to take profit.. or scratch the trade or even reverse the position
if the markets dictates it...


all the above mentioned points will be presented within this blog along with videos,pictures and more!

u need to know that the markets arent black and white but if u start to watch the markets as i describe it here ,u will be closer to the zone
and eventually be in the zone !

u have to be flexible with your initial thoughts about the market, a trade or even an open position. as things can change fast and then u have to adapt to the new market conditions ,in order to prevent a bad position,to get out of one,to take a different trade or simply skip it. this u will see and witness with your own eyes as u practice and therefore will get more and more confident as u will get one/nsync with the markets and understand them

the emotional aspect is one of the most stressed things out there but why?
well of course as u probably dont know what u have to look out for and dont know why markets do what they do ie. u dont understand the markets..!
that s why your emotions will over run you.. especially fear, aniexity and the hope that a red position will turn green... hope is reserved for the ones who dont know!

dont worry u will get confident as u will understand the markets and its behaviour it really isnt that hard.. but deffenitley work on your side has to be done..!

stay tuned! and enjoy my blog.

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Welcome!

Welcome to my Blog!

this Blog should be your number one source if you are one of those lost souls out there who desperately look for answers when it comes to how to read the markets in sports trading, and how filter the important and usefull information to make trading decisions ,wich arent guessed or by simply flipping a coin ie. randomly thrown in
cause of some dull assumptions!

this blog should serve u as a map or lantern in the dark and smokey mirror markets out there.. as most of u guys ,if any! dont know what really drives the market and what to look out for ..

this blog will guide you and serve u with what u have to look at
and how to approach the markets , u will find many starting points..
in order to add the odds in your favour!

enjoy the upcoming posts and read,read, watch,watch.. and learn, adapt and hopefully trade profitable or at least get some information and new views from a new direction . (if these insights are new to you)

however i will be honest as i dont guarantee you that u will be profitable , but u will have gained deeper knowledge! how to apply or implement You and your character into this , is totally up to you! ;)

so take this Blog as a Source of Information or Road Map for those bumpy and rough roads wich we call the markets....

Enjoy The Blog

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