WY-01-03 / 08
Stronger Demand and Reduced Supply Are Different Processes
First Principles
Lesson / WY-01-03
Price can rise through stronger aggressive demand or reduced overhead supply. The first often combines increased activity with a wider advance; the second may move smoothly higher on low volume. Both support higher prices but imply different subsequent tests. A demand-driven breakout must hold above its breakout area; an advance caused by sparse supply must still progress when it encounters new selling.
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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