SND

Back to basic
Perhaps you remember the two people whose names figure often mentioned in the discipline of
economics and physical. The first was Adam Smith, the pioneer of modern economics and a pioneer of
economic system of capitalism. He has stated hundreds of years ago that if supply exceeds demand at a
certain price level, prices will fall, and vice versa. While the second is Sir Isaac Newton's law of motion
states that an object will remain in action motion (motion) to obtain reaction force (force) is equal to or
greater. More often called the Action and Reaction only. Both examples are simple but wise of all timetested and directly was a major factor in price movements in the market that we are trading and
engaging in it at this time. The focus of this paper is on what is called the conventional technical analysis
as a support (demand) and resistance (supply). We will examine more in what support and resistance
are, how we identify and quantification on the chart, and how to use them in making objective decisions
so as to produce profitable trading.
A trader should understand that the market mechanism is no more and no with other market we know.
We have seen how the law of supply demand to work with human factors involved. This is the main
staple driving prices, and opportunities arise when these simple relationships become unbalanced. If
only we are willing to observe the interaction of supply and demand is always there every time, should
the identification process will reverse the direction the price is not too difficult.

Here let me show you what i mean. These trades was some of the most kickass ones i ever made. Most days
looks a lot worse then this, but this is the quality im working on, and im getting better and better for each day.
Why did i take em? I have no idea. It looked nice, what kind of answer is that, i cant answer that either,
doesnt make things any the more clear. Does a hockeyplayer know why his team won the game? Does a fly
know why its buzzing around? Does the thunder know why it is the thunder and why its making that noise? We
can try to answer but we dont "know". To know something is to "know" that the fork is on the table, that we
can "know".
I WISH i knew why i took those trades so i could tell you, i bet you are a good person, but i dont, id be
bullshiting you if i told you something different. And id be REALLY bullshiting you if i told you i know why they
worked out like they did. Mostly i suck a lot more then that, mostly i get annoyed by something, i feel lonely, i
didnt drink enough water, i didnt sleep enough, life feels pointless and boring and i havent been outside
enough lately. And i get really angry about what im doing with my life and why im chasing some make believe
pretend money! Then im NOT trading well, i DONT hear a slight wisper tingling feeling of when to get out,
because im only human. And it sometimes it works BECAUSE i am only human.

Demand and Supply(Support And Resistance)

(Demand) is the level at which more buyers than sellers are willing to buy at a certain price level. Resistance (supply) is
where the available supply more than buyers are willing to buy supplies at a certain price level. Note the chart below for
the identification of what is meant by Demand and vice versa.
Areas A show at the level where there is equilibrium relative or equilibrium between Demand and supply. Every person
you want to sell and buy at the price level is still within the bounds of balance, and prices were relatively stable. At the
closing candle (B), the relationship of supply and Demand has shifted and is no longer balanced. Now we know that more
Demand at a price level compared to the available supply. From which we know is true? The only thing that causes prices
to move up as who exemplified the shift in the relationship because supply / Demand. Candle B In closing, we can also
conclude that there are buyers willing-buyer who bought at the A level, but left because the price has moved up. Area A
is now to what we call in the objective Demand (support) area. Label C shows the decrease in the price level back to this
Demand. And here we have the opportunity of low risk high reward trade as prices return to areas that previously showed
the dominance of the buyer. Later we discuss how to take advantage of this opportunity.
Then we can identify the supply (resistance) by turning the logic of the example below.

Example of Resistance/Supply.

In a previous post that I could touch the "identification of the true price level of demand (support) and supply
(resistance) is probably the most complex trading decisions (complicated). In particular, where
where the calculation of prices
may be behind the (turning point) and why the reverse direction .
How to identify the entry area of low risk / high opportunity as simple as possible? we are trying to do the following
simple steps:
1. Go to chart what the time frame and should be Daily or Hourly second lowest. Look at the left side of the chart, and
find whether there are areas where there is a row of candle / bar, the more closely cluster. This shows a balance /
equilibrium relative to the price movement seen in the distance is limited.
2. Put a horizontal line between the distance before, you should use only candle body.
3. Observe if there is a candle / bar closing his reply through this area, the higher the better of his body. Area between

two lines is
s a reference we will use as a base (base) to the results of buy / sell if the price back in / near this area again.
Laying horizontal lines just do not have 100% perfect, as your accuracy will be trained over time and trading hours. With
practice and repetition
tition to continue, you will be more easy identification. The example I present will be repeated and the
repetition of the other senior trader. Examples of image S / D area below:

Selling Setup
We use a chart like the one below, where the Daily chart
chart shows that price increases to move into the area and supply
(resistance).
Simple Strategies:
1. S / D areas are identified on the daily TF (H1 minimal).
2. When candle making high (A) on the daily chart, moving to the intra-day
intra
time frame (M15 or M5) to seek opportunities
for Sell / Short entry.
3. In a small TF is looking up the last candle is followed by a down candle. (picture below)
4. Entry is on the candle down, and do not have to wait for her close (picture below)

5. SL better placement on the horizontal

izontal line area S / D daily, if your typical day at the intra-hourly
intra hourly horizontal lines.
6. TP stationed in the area of demand (support) the next, or the use of at least 2:1 reward risk ratio
What caused the reversal candle? certainly not the work of professional traders.
First offense: Action buying a beginner trader is generally done after the price moves up far enough, at high risk.
Second offense: buy at a level close to the supply area where more sellers willing to sell, as the TF is shown on the daily,
which means less opportunity for success. As a trader, we are not looking for certainty, but just looking for a better
probability.
Note that the closing candle (A) on the daily chart is a reversal candle to invite more traders to
to go short the next day.
Confirmation of reversal is usually daily-awaited
awaited by most traders to be valid, and generally they will feel comfortable
short / sell at this point. This is what we want, and has shown at the candle (B) indicates that they are in ffull force (full
force). In other words, we are part of the Invitee to go, not as an invited guest. Moreover, the entry that we did a lower
risk than those who are short the next day (B). In conclusion, we use the trading action short / sell at point B to c
confirm
that the decisions we make are true. Even if one, we exit with a small risk of loss.