Info!! Making Feel Of The Market's Auction Process

Here's an admittedly odd nautical chart taken from final week's stock marketplace action.  The cerise lines stand upward for the total of full upticks inwards the marketplace on a one-minute basis.  I role this every bit a mensurate of buying pressure.  The blueish line of piece of job represents one-minute closing prices inwards SPY.  The nautical chart is arranged then that the week's high cost for SPY is at the left as well as moves toward the depression cost at the right.  Time is non a variable here.  We are looking at buying line per unit of measurement area at each cost degree of SPY during the by week.

What nosotros come across is that buyers were quite active every bit nosotros crossed the 227 degree inwards SPY.  We besides come across real depression levels of buying as well as inwards fact cyberspace negative buying from some 226.75 to 226.87.

It's a agency of smoking out where the buyers as well as sellers are located.  I've constitute this to hold upward a real useful agency of thinking virtually "support" as well as "resistance"--and an peculiarly effective agency of identifying points where fresh buying or selling are entering the market.  

It's besides an event of how looking at marketplace information inwards novel ways tin dismiss provide fresh perspectives that aid marketplace understanding.  If a cost degree has held sellers this by calendar week precisely cannot concur sellers early on this week, it's a real useful indication of a shift inwards provide vs. demand.

I uncovering my most effective trading captures an agreement of who is inwards the marketplace as well as what they've been doing.  Too many traders endeavour to forecast what prices *will* create earlier they really sympathise what they've been doing.  The marketplace is an auction, as well as you're watching the demeanour of buyers as well as sellers to decide whether the cost of the goods is probable to ascent or fall.  It's amazing what nosotros tin dismiss come across when nosotros house marketplace demeanour inwards proper context.

Further Reading:  The Most Powerful Step We Can Take Toward Becoming Solution Focused
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