1. BigSize but No Front Running :
on this scenario it looks like there is some serious size
on the layside an ready to buy.ie this pictuer looks strong
but remember the prints are more important then just size on resiting orders...
if u see such size right @ reistance , but we dont see anyone jumping infront of them (at least with significant size) then there is something foul, or simply put
the market isnt ready to move up or thru this level.. no one is following the market up any further ie, no buying.. so be rather sure that price will bounce
as the saing goes no demand leads to supply
and be quick! as if that big size is one guy, it may get pulled fast and that will result mostlikely in drastic drop in price.
so in this case the order @3,65 got pulled and immediately
we see 200 at the backside.so there is supply vs. no demand
therfore u should position ursfelf for a bounce..
Scenario 2 : Supply Swamping Demand
in this scenario , we see that a big number prints @ 3.70 on the layside.
so a good sign of demand and buying but look @ the backside and how it reacts to such a buying instead of a decrease or a removing of the order ,its still standing with 600.. so there is more size on the backside and its getting ready to swamp demand at this stage and level
a bounce would be more likely, as if the layers and backers fight both with good and big size.. but one is clearly stronger u dont want to be on the weaker one .. right ?
and it gets clear on the next pic, as we see an increase on the backside
where we have previously traded ie. bought, wich is a good sign ,
as imaging u see big hits on one side but instead of the amount decraesing it even increases! now that tells us that there is more supply then anything else..
we even see a big number print on the backside @ 3,65 this just addsto the allreday told story .. that A supply is swamping demand and selling pressure increases..
therefore bounce should be anticiptaed and played
Scenario 3: No Demand
when u notice that price trades torwards our level on low volume and we have a lack of follow thru , then we can speak of no demand and no demand at a key level in this case resistance is deadly..
we see weak prints and low amounts on the layside
on the other hand we see size on the backside..no chance for price to break that level.. with such weak actions and no size to support any move up..
and no size to sustain at this level
Scenario 4: Effort vs Result
on this scenario u can see that when huge effort is taken in action
but the level still holds, then it rather bounces then breaks..
as in somecase demand will loose its firepower and the resting supplywall will still hold and therfore outnumber demand
we see a big print @ 3,70 but we still stand with 600
(ice berg) order ... a sign that there is more size then u first whitnessed
another big print of 400 , but we still stand back with 550
it just decreas a lil.. but it witholds the attacks. that level will mostlikely hold
an after a some big attacks we even increase in size at backside..
thats a sign that u rather should think about that the level will hold and u should play a bounce
Remember! nothing is Black and White! and these are just some of manny scenarios out there
but now u know what and how too look at the markets and tades that take place.. etc..
stay Tuned for more to come ;)
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