Establish Zero-Gravity Zones With Supply And Demand
Heading at 17,000 mph in outer space is enough to make anyone a little lightheaded. That, along with thin skin, floppy muscles, misshaped eyeballs and a weak heart. They all go with the territory when dealing with zero gravity.
When price is ripping or dipping in either direction, many traders can’t get to the barf bag fast enough. Clutching their chest as they attempt to figure out if they should get in, or worse yet – bail on a position that’s being decimated – they’re lost.
Fortunately, there’s a way for you to evaluate price and see if it’s going to thumb its nose at gravity – or continue to fall like a rock. You just need to know where there’s been institutional supply and/or demand.
The falling elevators everyone ignores
Zero gravity isn’t just for astronauts. If you found yourself in a falling elevator in a 100-story building – you’d be weightless. For a few seconds anyway, before you hit the ground. Regardless of how it’s achieved, it’s impossible to miss.
Yet, that’s exactly what 95% of retail traders miss when price is plummeting or rocketing in their market. They have no idea where zero gravity is. Instead, they just react alongside price as it floats, contorts and changes.
This, in part, is because they have no idea where the supply and demand zones are on their chart. They simply don’t know at which point things will become too expensive or when price will begin to float up – along with their trade.
Like gravity, supply and demand dynamics are the realities of what drive the market – not simple price action (that’s a byproduct). Know the levels you’re dealing with – and you have a shot at making a consistent entry.
Levels you should watch in rip or dip conditions
If you’re keeping score at home, zero gravity is the state or condition where there is no apparent force of gravity. Either because the force is locally weak, or because both the body and its surroundings are equally accelerating – like being in a falling elevator.
Zero gravity in your market? It’s the point at which price is moving so fast your stomach is turning. You need to know the point at which it will level off and the buyers or sellers will step in. This is where Real Time Supply and Demand Zones can save your account.
These are the institutional levels that have historically seen support or resistance. When the bottom has fallen out of price, this is the ground that it will eventually hit. When the rocket boosters have kicked in – these are the levels when they run out of fuel.
You want to keep an eye on these zones for reversal conditions.
Entry points you can count on
How do astronauts prepare for zero gravity? They hop in a pool. That’s right, the natural buoyancy simulates the weightless environment. For as uncomfortable as it may seem – they throw on their space suits and practice underwater for hours at a time.
No need for a space suit or underwater drills – just add Real Time Supply and Demand to your chart and keep track of the zones that it offers you. When massive news hits, or starts to hit every hour, and even a market as easy going as the ES starts to freak out – watch Real Time Supply and Demand.
Take the last week, for instance. When the news cycle lost its mind, it eventually caught up with the ES. In one day, the ES got on an elevator and cut the cables for a zero gravity fall. The levels you wanted to watch? Real Time Supply and Demand.
Note our ES example here and the extent to which they’re respected. The light green zones have been tested, same for the red zones. The darker zones have been established based on supply and demand performance – but have yet to be tested.
Best to know where these zones are when price decides to head for zero gravity.
Trade gravity for consistency in any market
Spending your days floating around the International Space Station may seem like fun – but it’s actually horrible for your bones. Because there’s no pressure applied from walking (thanks to gravity) – the legs and the spine are actually affected – they become weaker.
Not the case with Real Time Supply and Demand. You can trade with a strong footing knowing that when price is either rocketing or plummeting – you’ll have levels where natural institutional force will take over.
During these moments, quickly take a step back and evaluate the supply or demand zones that price is heading towards. Reference Institutional Trade Levels within those zones as possible entry points to monitor for a reversal. Lean on Order Flow Sequence Tracking to tell you if the buyers (or sellers) fueling the move are starting to back off.
Thumb your nose at gravity with confidence as you make your move with institutional Supply and Demand.