[Simple Price Action With Supply and Demand]

[Soultrader 12]

Quick premarket trading video on price action and tape.

 

CLICK HERE TO VIEW VIDEO

 

 

Charts created by Tradestation

[walterw 10]

Superb trading Soul ¡¡ , want to ask what are your settings (filter) for the heavier right hand tape.... very nice stuff here Soul, learning very powerfull strategy here cheers Walter.

[Soultrader 12]

The right column is 10 lots or more on the YM. I think its the best settings to filter out bigger lots.

[Happyguy 10]

Hi Soul,

 

What do you mean by 'multi-pivot (your upper resistance line ?

 

The video is great. Thanks .

[Soultrader 12]

Notice how the premarket resistance was at 12300? Price tested it multiple times and we saw sell volume at that level. The lower range was the value low pivot indicated by the red dotted line. Did I say multi-pivot?

[keymoo 10]

Another great video Soul. Thanks for taking the time to do these videos, I much appreciate it.

[neustaju 10]

Do you have any tips on how to tell the difference between buyers and short covering?

[Soultrader 12]

Do you have any tips on how to tell the difference between buyers and short covering?

 

Good question. I will make a new thread on this.

[Soultrader 12]

neustaju,

 

Check this thread I just made: http://www.traderslaboratory.com/forums/f34/identifying-short-covering-day-traders-perspective-1329.html

[Reaver 10]

Excellent video. The videos are helping me out big time with my new studies in AMT.

[drlicks 10]

hey Soul,

 

great video-- i have been using this supply demand idea a lot recently. one question, how do you differentiate short covering from new buyers? are there certain price targets or levels that short sellers would look for? thanks!

[Soultrader 12]

hey Soul,

 

great video-- i have been using this supply demand idea a lot recently. one question, how do you differentiate short covering from new buyers? are there certain price targets or levels that short sellers would look for? thanks!

 

Its not exact science but I tend to memorize the lot sizes and the approx big lot traders that came across the tape on the decline. I am also looking to see orders getting hit at the ask towards the end of an decline or around a key support level. This will be the first sign of short covering. You will then see people scattering to cover as the tape which as all getting hit at the bid now is getting hit at the ask.

 

This takes time and experience to feel the tape and to recognize such behavior. Also ask yourself, if you were short from above where would you most likely cover?

[Reaver 10]

I imagine this technique would be best suited to one who was focusing on a specific market, as appropriate lot sizes for each category would vary significantly with each market...ie a large lot size in the S&P 500 has a very different definition than in, say Corn.

Good info James.