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question on Supply?Demand method

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Thessaloniki
 
 
Posts: 26 since Jun 2010
Thanks: 3 given, 1 received

question on Supply?Demand method

Hi

I was reading (again) the supply/demand theory. I want to ask some of the guys that trade with it.

A great place of demand is located where price abruptly rose, with big long bullish candles, right? This indicates that at that area there are very big pending orders, waiting to buy whatever is thrown at them, right?

Question: How can pending (possibly unfilled) buy orders, help the price move up so abruptly?

I can understand if the form a very solid support, where the price will stop and cannot go lower. But how can the price shoot up?

My only thought is that other traders have realized the existence of those big buy orders, and rushed to buy at higher levels.

What do you think?

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