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Chapter 2.

Understanding Supply and Demand

The principal issue that must be understood by every trader

1. Why Mobile price

2. Who Move Market

3. How to Follow Big Trader

2.1 Order candlestick behind ... Order Book


CTrader showed Order placed by the Client. This Order will only be seen through Tier 2 only
Price 2.2 How to move

What happens when the Order Instant Buy it at 50 Million described video

conclusion

1. Price moves because Demand and Supply

2. When Supply Demand Higher than the price UP

3. When the supply is higher than demand, the price is down

4. Price is always looking LIQUIDITY and stability. Supply and demand always find demand
always looking Supply (seller must find buyer..dan buyer must find a seller that the transaction met)

5. When Demand want to sell or want to purchase (Order Gets FILLED) it will be
EMPTY.

6. When that happens Supply High Demand Kosong..maka price TERJUN but keep looking
The next demand until supply met. Vice versa when demand is high but the supply Empty Price will seek Next
supply..inilah Concept Fly Compression

2.3 Open High Low Close and Candlestick Formation

Candlestick is representative of a transaction or a representation of Supply and Demand HAS happened in a


time (Time Frame) Daily / H4 / H1 to the M1

It is a reaction that occurs EFFECT. But what happens is Supply and Demand Deal

Because the transaction is too fast then it becomes our problem to enter the market with a view Order Book

We need to learn to use Candlestick (IMPACT) to enter the market


But we must not forget that behind every transaction disebaliknya..Adanya Candlestick STORY has
happened and will give CLUE us to enter the market.

2.4 Candlestick Pattern

To learn Candlestick Pattern pattern with more details can visit the website below Pip baby

http://www.babypips.com/school/elementary/japanese-candle-sticks/what-is-a-japanesecandlestick.html

In AM every candlestick form 3 types of movement

1. REVERSAL

- Candlestick which gives an indication that a trend will reverse or turn back.

2. Continuation

- Candlestick who guided that it will continue the trend sir trip

3. indecision

- Candlestick which indicates that Sideway has occurred or there is no strong DECISION price would
be either up or down
In studying supply and demand I note that there are only 3 types of Candlestick is important.

1. Bearish Engulfing Bullish Engulfing

Engulfing Bullish and Bearish engulfing BASIC and BASIC is the most important in the study of Supply and Demand
Bearish Engulfing Pattern.

CS Note that both are red. Price makes Higher High and the Lower Low

It is called the upper and lower ENGULFING..makan

This is a form of BASIC or Basic to create a market Maniulasi Higher quality and lower low

It is used in the analysis of supply and demand in the next chapter of RBD and also Quasimodo

This is a form of BASIC or market manipulation Hgher Basic to lower high low
2. Doji.

the doji is a commonly found Footer in a candlestick chart of financially traded assets ( stocks , bonds , futures , Etc.) in technical
analysis , It is characterized by being small in length- meaning a small trading range, with an opening and closing price
that are virtually equal.

The doji represents indecision in the market .... (No DECISION)

It also marks a Strong Rejection of a Price


3. Dabel Maru

Name Dabel Maru Candlestick Pattern This invention tends myself through my observation for 2 years in the
Supply and Demand

We will learn and use Dabel Maru in Chapter 4 for more details
2.5 Support and Resistance

Support and Resistance

Often times you will see a support or resistance level that appears broken, but soon after find out that the market was just testing it. with candlestick
charts , These "tests" of support and resistance are

usually represented by the Highest LOWEST candlestick or shadows.


Draw Support and Resistance: Remember our keyword is "Shadow"
2.5.1 SIGNIFICANT Support and Resistance Line RS or SR Flip Flip Line

Significant support and resistance is the line where the Resistance and support are always met. The meeting in this line
usually occurs 2-3 times.

The Line will typically occur FLIP or reversal function Support the Resistance becomes support and so on
We will learn more about in Chapter Significant SNR SR Flip Next

Typically Resistance in the chart marked with the symbol of the Red Arrows indicate the direction of down

Support marked as green arrows indicate the direction of and Over


2.6 TREND

uptrend:

Describes the price movement of a financial asset when the overall direction is upward. A formal uptrend is when each
successive peak and trough is higher than the ones found earlier in the trend.

Note: Current Market Uptrend dominate demand.

Resistance is always resolved to make New High and New Demand always formed. Find Buy opportunity
downtrend:

This means that when the price of an asset moves in a particular direction, it does not move in a straight line. There
may be small peaks and troughs, highs and lows within the trend. A downtrend can therefore be identified by
continuously lower highs and lower lows.

Current downtrend Supply dominate the market.

New supply is always formed. Find opportunities Sell

Note: During Downtrend Market Supply dominate.

Support is always resolved to make New High and New Supply always formed. Find opportunities Sell
Exchange Rates:

Hints: To change the trend of Market Uptrend to a Downtrend usually will make the Head and Shoulders or Quasimodo
(chapter 7)

Hints: The Trend switch from downtrend to uptrend typically Market will create a BUY Compression (Chapter 5)
2.7 Setting the Chart

To use the Supply and Demand Trade please use any broker who has

1. Five Digit Broker

2. ECN account ... for the purpose of analysis can go where even broker ECN Demo accounts
ECN will provide a more appropriate price.

2.5.1 Template 5 digits

Chart 2.5.2 Min size- up and enlarge 2kali

2.5.3 Indi- TBST Clock, Countdown News, Pips Caculator, Watermark Indi

2.5.4 Basic MT4

Box (Pale Turqoisse)

Trendline (putus2)

Arrows (Up = support) Down = Resistance 1 north of Green

Pink circles

Writing style, size 8, Caps

Watermark- personnel (name)

* * * 1. Draw assigment Flag Arrow Child Support and Resistance,

2. Locate Dabel Maru, Bearish / Bullish Engulfing mark with Box

3. Doji (CEP)

4. Mark Line Significant Support and Resistance Line)

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