Supply and demand in the trading markets

 Supply and demand in the trading markets

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In this article, we will put before you simple examples to explain what happens and is repeated periodically on the trading chart.

Wyckoff said more than 50 years ago that the markets repeat in a stereotyped manner, but what changes are the forms of movement, for one reason, trying to deceive traders and hide the smart money of his deals.

In the figure we can see .

which is for the Nasdaq index, the hourly frame is an upward trend, the bulls dominated the bears.

But the bulls reached saturation and decided to take profits and catch a breath after a long rally of buying operations.

1 - an uptrend (bulls control)

2 - A bearish engulfing candle (order block) appeared, with bears entering strongly

3 - Then the price continued to fall until the last support of the bulls was breached.

4 - After that, we notice a sideways movement (a sideways range with candles with small bodies) (balance)

5 - The price returns to the order block area in an attempt to camouflage and deceive

6 - A quick move and an outburst of selling after occasional trading for a long period, and the bears were freed from the control of the bulls, and there was no longer any imbalance, and the price was freed from the stagnation that dominated it

This is one of the simple ways to understand the chart