Support/resistance levels. How do I identify them? - page 15
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We have liquidity, for example 100 lots at 1.1000, begin to redeem the level, let's call it "the wall". 10 people have redeemed 5 lots each, 2 people 8 lots each, in the end 68 lots are redeemed. The price was 1.1000, and it will stay that way until the remaining 32 lots are bought, and the next orders are placed.
It is not guaranteed that the Seller will not remove this volume and move it to a better price. It could also happen that the 32 lots will be left, but a second seller will add another 50 lots on top of them - the wall will be stronger and the price will be harder to move higher because there might not be a buyer for this volume.
The same is true for buy-limit orders, a buyer can buy 100 lots, and there will not be so many sellers to make the price go lower.
As a matter of fact: we have traded, we have traded some volume, but the price has not moved down, which makes sense.
Without a common forex market, we do not see the full picture.
Thank you, enlightening).
Is the indicator yours? Commercial?
The volume profile can be found in various variations.
The volume profile can be found in various variations.
The profile, yes, there is. I meant channels.
Does the tail wag the dog?
We have liquidity, for example 100 lots at price 1.1000, begin to redeem the level, so it will be called - "the wall", so 10 people have bought 5 lots, 2 people - 8 lots, in the end 68 lots are redeemed. The price was 1.1000, and it will stay that way until the remaining 32 lots are bought, and the next orders are placed.
It is not guaranteed that the Seller will not remove this volume and move it to a better price. It could also happen that the 32 lots will be left, but a second seller will add another 50 lots on top of them - the wall will be stronger and the price will be harder to move higher because there might not be a buyer for this volume.
The same is true for buy-limit orders, a buyer can buy 100 lots, and there will not be so many sellers to make the price go lower.
As a matter of fact: we have traded, we have traded some volume, but the price has not moved down, which makes sense.
Without a common forex book, we do not see the full picture.
very clear.
Yes, he's an expert on levels too, he has a video somewhere on levels, how to trade.
These are hidden gaps. The price comes back sooner or later and closes them.
Today is a great day to understand how "gaps close sooner or later". The ruble, for example... And indeed the gap will close at some point.
Today is a great day to understand how "gaps close sooner or later". The ruble, for example... And indeed the gap will close at some point.
At least, I want to believe that it will).
"Everyone comes back, except for the best of friends,
Except the most beloved and devoted women.
All return, except those who are most needed.
I don't believe in fate, and even less in myself."
(V. Vysotsky).
Unfortunately and the price may not come back or come back when we are no longer there, the coronovirus will do its black work).
A level is the place where there has been the most pro-trading at any given time.
A level is a price (or a range) that has a better chance of becoming a support/resistance in the future than the nearby prices.
now the question is: why is the highest level a level? where's the logic in that?