As far as identifying supply and demand, I use a proprietary method that I developed and coded. Sorry, but I am not willing to throw it out here on the internet.
You can use any effective method, it is not rocket science. I am certainly not a scientist.
I watch several time frames for clues, like the 144M chart today, but I generally keep my eye on the 15M cycles. Mostly because all the maniacs are scalping them in the pits, etc. and they are traded by many.
There are 2 charts below. One is a clean version showing the cycle signals and where they formed. The other is a chart with many months of past cycle swing levels extended to the right. (aka, supply and demand)
The green lines on the busy chart are key points that I (think) are good reference for directional change. These signals are generally generated out of congestion. The lines on the chart go back many months in some cases. What will happen in many cases is that price will move out of an area and then check back to the cycle level before the real move begins. It requires great flexibility and I use it like a pivot point. Long above, short below to the next level.
For instance, when I look at the recent action chart I think there is an above average chance that we will move back to the 11600 level tommorrow. Then up ? Who knows. When I combine this with what I saw at the top on the volume chart, it leads me to believe we need to auction back down to find buyers first.
Here is the clean version
Here is the messy one. It looks a lot better on my 30" monitor.
You can use any effective method, it is not rocket science. I am certainly not a scientist.
I watch several time frames for clues, like the 144M chart today, but I generally keep my eye on the 15M cycles. Mostly because all the maniacs are scalping them in the pits, etc. and they are traded by many.
There are 2 charts below. One is a clean version showing the cycle signals and where they formed. The other is a chart with many months of past cycle swing levels extended to the right. (aka, supply and demand)
The green lines on the busy chart are key points that I (think) are good reference for directional change. These signals are generally generated out of congestion. The lines on the chart go back many months in some cases. What will happen in many cases is that price will move out of an area and then check back to the cycle level before the real move begins. It requires great flexibility and I use it like a pivot point. Long above, short below to the next level.
For instance, when I look at the recent action chart I think there is an above average chance that we will move back to the 11600 level tommorrow. Then up ? Who knows. When I combine this with what I saw at the top on the volume chart, it leads me to believe we need to auction back down to find buyers first.
Here is the clean version
Here is the messy one. It looks a lot better on my 30" monitor.
