Bank of AmericaUpdated Supply+Demand Lines
Demand Line: I draw a demand line at any significant bullish candle. The demand line is created by drawing a horizontal line at the open of the bullish candle. I label it a demand line because this is the value where price opens up and begins to drive the market to a higher value, representing demand in the market. Therefore in the future this value may create a similar area of demand, buying pressure, or act as a pivot point when price begins to trade near it again.
Supply Line: I draw a supply line at any significant bearish candle. The supply line is created by drawing a horizontal line at the open of the bearish candle. I label it a supply line because this is the value where price opens up and begins to drive the market to a lower value, representing supply in the market. Therefore in the future this value may create a similar area of resistance, selling pressure, or act as a pivot point when price begins to trade near it again.
If there are multiple opens at the same value it creates an even strong line of supply or demand.
These concepts can be applied on any time frame.
My Demand lines can typically be seen as dotted green lines.
My Supply lines can typically be seen as dotted red lines.
Supply Line: I draw a supply line at any significant bearish candle. The supply line is created by drawing a horizontal line at the open of the bearish candle. I label it a supply line because this is the value where price opens up and begins to drive the market to a lower value, representing supply in the market. Therefore in the future this value may create a similar area of resistance, selling pressure, or act as a pivot point when price begins to trade near it again.
If there are multiple opens at the same value it creates an even strong line of supply or demand.
These concepts can be applied on any time frame.
My Demand lines can typically be seen as dotted green lines.
My Supply lines can typically be seen as dotted red lines.
Note
Note
One way to easily label all the Demand lines is by coloring the Bearish Candles white, leaving only the Bullish candles visible on the chart.Note
and Vice Versa.Note
as seen above the Supply lines can be found quickly and efficiently with only the Bearish candles visible on the chart.Note
Thank You, God Bless.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.