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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