Hi to all,
I am a new member to this site. This is my first post on a trading forum, so I hope those who understand supply demand zones (style) can help me with a some clarification on several issues. Before I ask, I can say I have seen Sam Seidens articles/webinars, seen other brief articles etc (including pure financial academy). **I will use example of demand zones***
Thanks to all in advance.
1. When a demand zone is found whether it be RBD/RBR/DBR/DBD, I understand that instutions may have deemed it a good price and place orders, however why do proponents of S/D Zones say the longer the fall from a zone the better? Does the price fall because everyone else who was looking to buy is now displaced and therefore has to chase the market higher to get their ordr filled?
2. I have heard some mention when price moves away, it is drawn back to the demand zone like a magnent. How does this work (If their orders are waiting to be filled upon a retest) Do Institutions and market makers somehow try and get the price lower so their orders can be filled?(after a distance travelled from the demand zone in the first place)
3. Many sites and articles advise its market makers and institutions that direct price (ie: create and sustain trends after accum or dist) . Is this done by enticing the crowd to jump in and chase the market (such as a trend) after they have gone through accum or dist, and can the end of a pullback in a uptrend be seen as a demand level (where institutions push another impulse move of trend) than the masses than jump in .
4. can S/D zones act as swap levels like S/R
5. Does a demand zone become invalidated if on the first retest it pushes through (false break) the bottom of the zone (like a spring or downthrust) than moves back in the anticipated direction. does it now mean all the pending orders have now been filled?
and finally.......................
6. Regarding fresh or orginal zones, I have heard that some people scroll way back even years (if daily/weekly chart) to see if a level is fresh/orginal. Which leads me to ask do institutions wait that long for orders to be filled? and If not shouldnt we be able to treat it like a new demand zone.
Sorry for the length of this post and number of questions. Any thoughts would be greatly appreciated. Or any links to articles, books etc that are specific to the issues I raised !!! Thanks Yall!!
