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question on Supply?Demand method

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bgeorge View Post

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?
The fact that there were big long bullish candles does not necessarily mean that there were big pending orders.

In fact, it may also mean that there was low liquidity, hence fewer pending orders than usual. This would be the norm in the minutes and seconds preceding an important data release.

Also, if you're talking about a bullish candles, the pending orders would be waiting to sell, not to buy.

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?

Hi. Please see above.

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