I was thinking about this comment from last friday and I came up with a new question, perhaps I have already answer it myself but I want to be sure.
What is the first thing that should pop into your mind when that original demand line is broken? 17 people want to know
Not yet. As long as price was moving up, the demand/supply imbalance was on the demand side. When price broke that line, the imbalance switched to the other side. So, supply now has/then had the upper hand. What do you look for to determine just how much the balance has shifted?
Speed of the decline, by looking at the slope or SL? Gringo Edit: These questions are not only for Niko to answer. They are open to participation for those who seek to find out what the Matrix is.
At the time price breaks the demand line, there is no supply line, not yet. Looking back is self-defeating. One must start with the break at the right edge and determine at that point what he looks for. If he has not made that determination in advance, then he will of course not recognize it when he sees it, if he sees it at all. This is not a big mystery nor a trick question. What does one want to know when that line is broken? Incidentally, the fearful are already out, but both the fearful and the brave are going to be, or should be, looking for the same things, the fearful to determine when to re-enter and the brave to determine whether or not he should hold.
I would check for a higher low and see if the supply line is broken if we break the last swing low then a short on a retracement would be appropriate
In reality I look for whether a S/R is somewhere on the left. But for this thread I am assuming we're disregarding all that and focusing only on supply and demand lines. In this case I might look for a re-emergence of demand, and a subsequent rise?