Supply and Demand Questions

[chrundle]

Hello, I'm currently working through lesson 4.3 supply and demand and most of it is making perfect sense and I'm learning a lot!
I do have a couple questions though.

1. During the lesson you go over a few charts marking some of the key horizontal areas. For the supply and demand zones, are there more on the chart than what are marked?
I just want to make sure I'm understanding it correctly. I've attached a chart with numbers marked for different areas.
2. Would numbers 1-4 also be supply and demand areas?
3. For #5 there's a huge doji bar right after the marked supply area. Would that be considered a test of the supply area and if so
does that mean that area is no longer imbalanced, or less so?

Thank you!

supply_and_demand.png (910.06 KiB) Viewed 2833 times

[eric-pal]

Hello, I'm currently working through lesson 4.3 supply and demand and most of it is making perfect sense and I'm learning a lot!
I do have a couple questions though.

1. During the lesson you go over a few charts marking some of the key horizontal areas. For the supply and demand zones, are there more on the chart than what are marked? YES . From the concept and the homework you will refine your vision even more. These areas are where prices have often moved away from sharply. They also may stack up with other areas over time (2nd tests).
I just want to make sure I'm understanding it correctly. I've attached a chart with numbers marked for different areas.
2. Would numbers 1-4 also be supply and demand areas? Reference comments in item 1
3. For #5 there's a huge doji bar right after the marked supply area. Would that be considered a test of the supply area and if so
does that mean that area is no longer imbalanced, or less so?
This is a bit trickier. The bar appears to be a news item by its size and volatility. The doji is indicating much indecision over a wide range. The return to this area and the PA from 3pm+ actually confirms this. However, you do not need to see 3pm+ to expect that behavior . Seeing this example time and again in the 2019 charts will refine your focus to appreciate doji bars and their pre-indication of future price containment within ranges.

Thank you!

supply_and_demand.png

Nice work!!! Keep moving forward!

[chrundle]

That's very helpful, thank you!