Wednesday, December 7, 2011

Demand and Supply–For Excellence in Trading


Demand and Supply:-

Trading is nothing but trapping imbalance in Demand and Supply of the underlying product. Traders use many systems to find out where Demand comes and Where Supply comes. It depends skill, knowledge and experience of a Trader to catch Demand and Supply Zones to initiate the trade.

How to find Demand and Supply?

Now this becomes bit tricky. One can use ‘N’ number of systems to find Demand and Supply. If one become good in finding the Demand and Supply Zones then one can make a lot of money with markets.

Today’s Example:-

See Chart No 1 below:-

  • Where I have marked Demand and Supply Zones on yesterday’s chart ( I am still learning may be wrong)
  • Yellow lines as Supply Zone and Orange lines as Demand Zone.

Nifty_Intraday_Demand_Supply_Trading System

 

Now See how today’s movement happened and how we could have utilized these Demand and Supply Zones for Intraday Trades in Nifty Future for today.

See Chart No 2 below:-

  • When yesterday’s Supply Zone is broken then it gave very good move and made New High (which afterwards became New Supply Zone)
  • Now yesterday’s Supply Zone became Demand Zone for today and you can see when second time prices came there it bounced back to our Supply Zone and gave handsome returns.
  • And From Second time Nifty fallen from our New Supply Zone for today.

Nifty_Intraday_Demand_Supply_Trading System1

This is the one of the ways I do my little analysis for Intraday Trading. Hope this may be of little use to you.


For Further Reading,
Demand and Supply, Intraday Trading System, Nifty Trading System

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