There are many great trading strategies and types of methodology around the financial industry. Each and every one of them are based on the simple concept of supply and demand equilibrium. A trader using fibonacci ratios, moving average crossovers or over-bought/over-sold indicators may not use any form of zones, whereas a support and resistance trader may use many zones. However both of them are directly related to the direction that price will move next, while the direction itself is solely based on an imbalance between the buyers and sellers.
Locating each "imbalance" is a huge part of determining where the institutions and other large money have and will place their orders for up coming price movement. This gives an extensive probability factor for pre-determining market turns.
How do you determine where the supply and or demand imbalances are? While there is much more to trading, this alone can be most beneficial for adding major confluence to your current trading strategy.
Steps for locating out of balance areas:
In the image you will find an example of the steps taken above to determine a high probability imbalance. Please click the image at the top for a much more detailed video recording.
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Trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing one's financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results. All Software provided or purchased is strictly for educational purposes only. Any presentation (live or recorded) is for educational purposes only and the opinions expressed are those of the presenter only. Testimonials may not be representative of the experience of other clients or customers and is not a guarantee of future performance or success.
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