Page 2 - Module 5 - Key_Players_in_the_financial_game

Module 5 – Understanding the game between the bulls and bears

Contents
abbreviations used in this module .................................................................................................. 3
understanding the game between bulls and bears ........................................................................ 4
identifying a high and a low using japanese candlesticks .............................................................. 5

Identifying a high ................................................................................................................................ 5
Identifying a low.................................................................................................................................. 6
what is resistance? .......................................................................................................................... 8

finding and drawing resistance ....................................................................................................... 9
what is a support? ........................................................................................................................... 9

finding and drawing support ........................................................................................................ 10
support and resistance vs supply and demand ............................................................................ 10
supply and demand ...................................................................................................................... 11
what is liquidity? ........................................................................................................................... 12

supply & demand imbalances ...................................................................................................... 12
Why do imbalances occur? ............................................................................................................... 12
the law that governs supply and demand .................................................................................... 13

What is the 'Law of Supply and Demand' ......................................................................................... 13
how do supply and demand create an equilibrium price?........................................................... 13
what factors affect supply? .......................................................................................................... 13

what factors affect demand? ........................................................................................................ 14
how to draw supply and demand levels ....................................................................................... 15
picasso or trader? ......................................................................................................................... 21

type of supply and demand levels ................................................................................................ 22
Peaks and Valleys .............................................................................................................................. 22
Valleys ........................................................................................................................................... 22

Peaks ............................................................................................................................................. 23
Continuation Pattern .................................................................................................................... 24

fresh levels vs original levels ........................................................................................................ 25
How do we know if we have an original level of supply? (opposite for original levels of demand)
.................................................................................................................................................. 25
how do we know if we have a fresh level of supply? (opposite for fresh levels of demand) ..... 26
when is a supply or demand imbalance confirmed as a level? .................................................... 27

when is an imbalance confirmed as a level? ................................................................................ 28
how to draw imbalances? what patterns can we see? ................................................................ 28
how to draw imbalances? proximal and distal lines ..................................................................... 28

buy low, sell high. the supply and demand range ........................................................................ 29
multiple timeframe top down analysis ......................................................................................... 30

1