supply and demand

Discussion in 'Technical Analysis' started by pyro, May 22, 2005.

  1. pyro

    pyro

    Hi there

    this two forces are the ones that can move the market, up or down


    my question is, ways to measure them from a daily chart

    if today's close is lower than the open and lower than the previous close and the volume is higher, we can say that supply was higher than demand , we saw more sellers than buyers

    there's another thing that makes my head goes around

    if we bid below the market and that bid is hit so the stock will run downwards, this is the way to hit lower stop losses and if we ask above the market and that ask is hit, the stock could rum upwards as stops are taken one by one, is this correct?

    thank you
    pyro
     
  2. no, you may have "desperate" sellers where the buyers are happy to let the market come to them


    no. if you bid then you want to buy at that price, any stop losses that run into your bid or are below your bid will be selling stops

    good luck