A lesson in Demand & Supply
The move higher seems to have stop. Why?
Knowing D&S and how it affect price movement is important. But many of us do forget about this when we enter the realm of trading.
As you may all know, the logic is actually quite simple, if price is aggressively moving up without a pause, where would buyers find supply in sufficient quantity and the right price? Potential sellers would rather sit back and wait for price to move up higher before selling.
So now we have sort of a retracement or price moving horizontally. In such situation, there is only one thing we need to know - Who is in control of the current situation? Buyers or Sellers?
At this point in time, you can see heavy volume being transacted with selling slightly higher than buying. For me, I think the Bulls are playing this nicely. As a trader, it might be better to be patient and wait till things clear up. Trade wisely. Trade once you see the facts.
Happy trading.
P/S As always, do not just believe what I say. Use your common sense.
Knowing D&S and how it affect price movement is important. But many of us do forget about this when we enter the realm of trading.
As you may all know, the logic is actually quite simple, if price is aggressively moving up without a pause, where would buyers find supply in sufficient quantity and the right price? Potential sellers would rather sit back and wait for price to move up higher before selling.
So now we have sort of a retracement or price moving horizontally. In such situation, there is only one thing we need to know - Who is in control of the current situation? Buyers or Sellers?
At this point in time, you can see heavy volume being transacted with selling slightly higher than buying. For me, I think the Bulls are playing this nicely. As a trader, it might be better to be patient and wait till things clear up. Trade wisely. Trade once you see the facts.
Happy trading.
P/S As always, do not just believe what I say. Use your common sense.
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