I am constantly being approached on how to the read the fine lines between supply and demand. Well, i would say it is not an easy task because you would need to read the volume transactions to determine whether the buyers bought more or sellers managed to sell more. There are a lot of different types of volume indicators, like volume weighted average price, price and volume trend, volume oscillator, volume STD, etc, so which one is the best? Well it really depends on individual but i use none of those indicators for intraday trading or position trading. The one that i find it effective is the trade summary and the total transacted volume per day. These two tools are sufficient for me for my analysis. I used to draw trendlines, however i think it is very subjective. One could draw many lines but that doesn't mean he/she is accurate. So the question is which trendline is correct and which trendline is wrong. There is no answer for it and only the amount of money you made by those trendlines will determine its accuracy. I decided to give up everything and the best tool to beat the market is by understanding supply and demand and what the big operators are trying to do. Don't limit yourself to any one tool if you are taught to use that tool before. No limitation is the best limitation.
See the Genting chart above. These are the phases of supply and demand. I had not included any psychology aspect in it, but this is the way how market works.As for the specific details on the buy/sell call, i will not be posting here as that will induce much more controversy. As for how i know there is hidden selling, weak rally, etc, that's based on understand the minds of the big operators and how they operate this market. For those who knows me personally, they know i am accurate in my forecasting about 70-80% of the time.
Ronald K
