Friday, July 4, 2014

Trading Environments

Keep an eye on supply and demand levels by watching the volume, traders can specifically talking about the size of buy and sell orders from willing buyers and sellers. Thus “willing” because they have not bought all they wanted to buy yet. Let’s say your looking at the actual buy and sell orders, specifically the sell orders as you will reference that later in your trading. You are looking to short the market as you see a price level a little higher where there is a significant amount of unfilled supply and you see no significant buy orders  demand  until much further down in price. Thus you are expecting price to turn lower from supply and fall down to demand.
In that scenario, things are very set and there is almost a profit guaranteed barring any good news event where a huge set of new orders come into the market which does not take place often. This is a big reason traders paid so much money for seats on the exchange years ago, it’s all about visibility to the significant orders. Ok let’s focus on the supply where we are expecting price to turn lower at. What if just above that supply area, there was an even larger amount of supply? Would you now feel even better about shorting at that level? This would be a safer trade.
Trading Environments Bitcoin News