Supply and Demand

General Supply and demand info

• Supply and demand work best for Futures, indexes, and major stocks
• Use after-hours data as well for support and demand.
• Identify demand and supply clusters on various time frames
• Higher time frame levels are important for S & D identification and entries are timed on the lower time frame like 3,5,10,15mins

What time frames to use?

• Monthly : Monthly are good for long-term investments, use this for day trading when necessary
• Weekly : Weekly levels are essential, mark weekly highs and lows.
• Daily : Daily levels are essential for swing and intraday trades
• Intraday : 4hrs 1hrs and 30 mins for intraday trades
• Gaps : Identify the gaps.

Important events:Make note price of previous all-time high, ER high/lows(regular and after hrs) and gaps, IPO high/lows, S&P additions, Splits, any other events.

How to Speed up S&D routine?

• Speed up the drawings using the weekly high-low tools on 4hr or 1hr time frames.
  • Adjust/ confirm the zones after using the weekly high/low tool, sometimes the levels could be little off.
• Add lower time frame levels based on ATR, if the price between zones larger

Add PIVOT for the day, this is generally the midpoint or the price cluster between the zones of the current price action.

• Identify intraday levels for day trades
• Use trend tool to identify trends- Color code to identify trends by time frames

Additional use cases

• Some charts are hard to chart because of volatility, and dependency on other markets(chines stocks), if these cases take a larger dataset and a higher time frame like 5 yrs. wkly/Monthly
• Some stocks are new to the market and won’t have historical data, these are generally hard to rely on the S & D
• If we are struggling to find the levels and zone, the stocks are hard to trade, assuming are good at S & D levels.