What are demand zones in stock market ?
$NASDAQ(.IXIC)$$Meta Platforms, Inc.(FB)$$Amazon.com(AMZN)$
Supply & Demand
IF anyone really wants to know about stock market ,then it is must to know about demand and supply. once you master this there is no need to know anything else.
There are two kinds of investors in stock market
- Big institutes
- Retail investor.
Big institutes are the one who drive the stock market . so as a retail investors it becomes our duty to follow their footprints.
These footprints in technical analysis is known as the demand and supply.
In this Post we will focus on Demand zones .
Demand zones: When a large institues buys any stock ,they create a demand zone in a stock .This is the zone where it is believed to have pending orders . Once the stock reaches this zone , pending orders are triggered which results in the fast moving of the stock .
IF you want to catch high probability trades then you must know where are the demand and supply zones.
Let us see this in detail
Few days back FB was trading near its demand zone.
From the demand zone of 189-163 , price tested this zone ,pending orders got triggered and you can see with 10-15 trading sessions stock almost gave 30-40 % returns.This is the power of demand zone.
A lot of time goes in writing such posts ,if this adds value consider following and stay tuned for next post
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link to part 2 is below.
Part 2 -how to mark demand zones?
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Good starting point, probably should elaborate further how this demand was determined... Looking forward to more posts and clarity...
Retail investor aka the Anchovy/David
[Surprised]
[Grin]