supply and demand

[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

 

[thewoodcutter]

Quote from 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

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

Quote from pyro:

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

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