How to trade the Dow Jones and Medtecs Intl using Supply/Demand zones? Study the illustrated screenshot on how I drew my supply/demand lines first. The Dow was very bullish last night and at one point, it shot up neat 420 points where everyone taught the market was going to go higher. Upon seeing this Fake Breakout, I realized that the quality of supply was strong and hence shorted near peak and soon when woke up in the morning, it crashed and tumbled. The supply was right there with so much bearish signals to short sell. The temporary demand was strong and hence the market might ave more downside.
As for Medtecs Intl, it was the same selling fate. The stock gap up yesterday, many retail traders were thinking that it was still bullish to only realized that the sellers emerged so huge that the buyers retreated. Why is it so? It's because it touched the supply zone with a gap down after lunch and soon, the selling force came in to whack down the stock. Today it continued to gap down near a temp demand zone before rebounding a little. Of course, The Top 30 Volume aided in reading the chart more effectively but the supply/demand lines I drew was the key to open the door.
Use it in your next trade. Draw the correct lines and see the aftermath results. It has aided me so good for many years and I will continue to hone these lines.
Ronald K - Market Psychologist - A Stock Market Opportunist
