Newer traders sometimes struggle when trying to identify supply and demand zones. My best advice is to practice and see if your zones are lining up with those identified by your instructors in the Extended Learning Track.
There is also an additional method to identify potential turning points in the markets. This method is not to replace identifying supply and demand, but is rather a way to supplement and perhaps to confirm those levels. This is not a magical tool that will work all the time. The tool/method I am talking about is floor trader pivot points.
The pivot points were created to give professional floor traders at exchanges a way to determine possible support and resistance without having to refer to charts. The pivot point itself is simply the previous day’s high + the previous day’s low + the previous day’s close divided by three. This pivot point can act as… Continue Reading
