question on Supply?Demand method | Traders Hideout - futures trading strategies, market news, trading charts and platforms

Traders Hideout

Discuss day trading practices and futures trading strategies on this forum for all markets. This forum is also for discussing and reviews for brokers, data feeds, and commercial or third party add-ons


question on Supply?Demand method

  #4 (permalink)

Trading Experience: Intermediate
Platform: Other
Favorite Futures: ES, YM, 6E
Posts: 2,664 since Feb 2013
Thanks: 5,092 given, 6,535 received

bgeorge View Post
A great place of demand is located where price abruptly rose, with big long bullish candles, right?

From market and/or volume profiles you can easily see that this assumption is completely wrong - at least
for assets with (theoretically) infinite supply and demand like futures.

Quite the opposite: Between balance areas ("support", "resistance") where the big volume is traded and DOM is
deep, prices rise or fall through a thin/empty DOM. In the profiles you can derive that from low volume nodes that
show the "move" (which realiter isn't in terms of supply and demand).

I.e.: Your candles basically show the jump (thin DOM = absence of supply and/or demand) - starting from a higher
volume node and ending at another higher volume node (area of vast supply and demand).

Reply With Quote
The following 2 users say Thank You to choke35 for this post: