WY-01-03 / 07
Testing Supply-and-Demand Judgments with Subsequent Price Action
First Principles
Lesson / WY-01-03
Supply-and-demand analysis derives expected subsequent behavior from current facts. If a downward test at the range’s lower boundary is shorter than the previous decline, with less trading activity and a close back inside, supply is producing a weaker decline. Only subsequent upward demand crossing local resistance makes this change sufficient to support a long scenario.
Course content is for learning and research only. It is not investment advice.
Read the Chapter ↗Timestamps
9 lessons · Chapter contents
01Supply and Demand↗02Matched Trades and Relative Supply-and-Demand Strength↗03The Continuous Double Auction: How Orders Form Prices↗04Judging Relative Strength through Progress and Obstruction↗05Location and Comparisons over Time↗06A Single Bar and a Single Breakout↗07Testing Supply-and-Demand Judgments with Subsequent Price Action↗08Stronger Demand and Reduced Supply Are Different Processes↗09Balance Is Not Stillness↗Observe the market: start with context and place price within its structure.
Understand structure: compare supply and demand, and let evidence support or revise your hypothesis.
Form a view: define risk limits and know when to reassess.
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What the Wyckoff Method Studies
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