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? ;)

Posted in: demand,exceeds,supply