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Demand Zone

An elusive quest for a silver liningSilver is underperforming gold. The gold-to-silver ratio is over 1 standard deviation above the historic average since 1990. In fact, the gold-to-silver ratio has not been close to its historic average since August 2021. Silver falling more than gold Gold prices in February 2023 gave back almost all its gains (-5.2%) from January 2023 (+5.8%) as the US dollar resumed an appreciation path and bond yields rose sharply1. However, silver fared even worse in February (-11.7%), after falling in January as well (-0.9%)2. As gold is often seen as a hedge for economic and financial uncertainty, it is receiving greater support than silver. Silver, as a precious metal with more industrial uses than gold, is weighed by the uncertainty in the global economy as developed central banks are tightening monetary policy at a pace we have not witnessed in decades. Good news is bad news Complicating matters, today good economic news is often interpreted as bad news because markets are pricing in a reaction from central bankers that could sap economic growth from the future. Take the last Global Manufacturing Purchasing Managers Output index reading for example. The February 2023 reading rose to above 50 (50.8) for the first time since July 20223. A reading of 50 and above should be interpreted as manufacturing in expansion. Other things being equal that report should have been positive for industrial sentiment and silver prices. However, because markets interpreted this as cue for central banks to raise rates further and delay monetary loosening, silver prices reacted negatively. This could be a sticking point for silver this year: being flanked by falling gold prices when Dollar and bond yields rise, being hurt by expectations of a delayed pivot by central banks, but not sharing enough of the upside for gold when markets are looking for defensive hedges. Mixed picture in physical markets Macroeconomic considerations aside, some silver fundamentals look strong. Photovoltaic (solar panel) installations are expected to grow by more than 25% this year according to Metals Focus. In 2022, photovoltaic demand accounted for 11.5% of total silver demand (up from 5.6% in 2012)4. Meanwhile jewellery demand is likely to be sluggish as silver in Rupee terms remain elevated (India is a large silver jewellery market). Most silver supplies come as a by-product of mining for other metals. MMG Ltd’s Las Bambas copper mine in Peru was put on maintenance in February 2023, following violent protests in the country. A short-lived truce allowed for production to resume, but Andean communities in Peru restarted blockades this week5. The mine produces an estimated 5.7 million ounces of silver as a by-product annually. Lower silver supplies could support prices. Conclusions Macroeconomic headwinds have set silver prices back this year and may continue to do so as markets price in tighter monetary policy for longer. Silver may have a hard time catching the same defensive bid gold enjoys. Despite strength in photovoltaic demand, jewellery demand may be soft. Tighter mine supply may be price supportive but overcoming the macro headwinds will be key to silver breaking out of its current lull.
COMEX:SI1!
by aneekaguptaWTE
40R EURUSD Long Swing Trade (Smart Money Concepts)Testing one of my smart money concepts swing trading strategies using an early entry based on day trading setup. The setup normally involves a sweep of a 4h choch/MSS deep in premium/discount, then a daily pin bar or hammer, or a 4h choch. Previous Day Opening Gap has been filled on DXY as well as three months of liquidity swept. This early entry utilizes a long from a trendline following another strategy of mine. If successful, will take the majority of the position off after daily FVG fills and leave some on to run as a swing trade.
Long
by SmartMoneyConceptsOnYouTube
1
GBP AUD - Buying imbalance in playG'day, This is the first video analysis upload, so the length is something I would like to scale down being more concise in future, however in order to appeal to the broader market, Technicals need to be simplified. A note before reading - this is a forecast analysis - based upon a long term trading strategy looking for Fresh Demand/Supply zones. This is tagged Neutral to the overall monthly demand in control and active long trades. Until the opportunity of a rejection of the PCP has occurred or a long opportunity from a break and retest of the trend. Overall, where an imbalance is formed and sellers have completed the changing of hands due to purchasing further increments the exhaustive sellers. Until this criteria is met - no trade is taken until reactive, break or curve is confirmed. Long term investment strategy will be looking for buys as part of the next cycle. This is an investment and not a quick move based on lower time frames. Master Key for zones Red = Three Month Blue = Monthly Purple = weekly Pink = Three, Four Day Orange = Daily Risk Warning Trading leveraged products such as Forex, commodities and CFDs, carries with it a high level of risk and so may not be suitable for every investor. Prior to trading the foreign exchange, commodity or CFD market, consider your investment objectives, level of experience and risk appetite. You should never risk more than you can afford to lose. If you fail to understand or are uncertain of the risks involved, please seek independent advice and remember to conduct due diligence. Recap shots Monthly Weekly Daily Do you enjoy the setups? Professional analyst with 5+ years experience in the capital markets Focus on technical output not fundamentals Focus on investing for long term positional moves Provide updates where necessary - with new updated ideas tracking the progress. If you like the idea, please leave a like or comment. To all the followers, thank you for your continued support. Thanks, LVPA MMXXIII
by LupaCapital
Polkadot $DOT Price breakdownThis is a price breakdown of BINANCE:BTCUSDTPERP based on Smart money concept in combination with Supply and demand and candlesticks. By using the following: - Fractals Period 2: major and minor high and lows were identified. - Trend Change and break of structure were drawn to identify the trend. - Supply and demands zones were identified by using reversal patterns such as engulfing candlesticks to ensure area of entries and exits. - Fair value gaps were identified on the charts to identify future reversals. I believe after market shift formation, Price tends to break the structure to revisits previous demands and supply zones. In this case, It is around a demand area which may indicates a possible bullish signals. Entry and exits with stop loss are drawn.
Long
by oxMarvel
Potential Long Opportunity on CHFJPYPrice action context clues have printed an opportunity for reversals to the upside within this zone that it is currently dropping into. If price action begins to show exhaustion at this level, then a reversal could be likely to happen. Exhaustion presents itself when you see wicks into the are but there are no candles breaking the level. Multiple wicks into an area that you have mapped out as a trade entry further validate your analysis and you should take the trade. Liquidity is being sucked from that area for a move to the opposite way. Wait for multiple wicks into your area of interest before you decide to pull the trigger for you trade. Manage your risk and keep a cool head no matter the outcome of the trade. Winning streaks can create ego, recklessness and over confidence, losing streaks can create fear, timidness, uncertainty, and hesitancy. Believe in yourself, trust your analysis and maintain zen in your life on and off the charts for best results. Happy trading!
Long
by jefferytheartist
EURCHF I Best zones to trade this week!Welcome back! Let me know your thoughts in the comments! ** EURCHF Analysis - Listen to video! We recommend that you keep this pair on your watchlist and enter when the entry criteria of your strategy is met. Please support this idea with a LIKE and COMMENT if you find it useful and Click "Follow" on our profile if you'd like these trade ideas delivered straight to your email in the future. Thanks for your continued support!
Short
by BKTradingAcademy
32
FTM Strong Support Ahead 🏹 Analysis #13/50Hello TradingView Family / Fellow Traders. This is Richard, also known as theSignalyst. on DAILY: Left Chart FTM is overall bearish , however we are approaching a strong demand and support zones. So we will be looking for buy setups on lower timeframes. on H4: Right Chart FTM is bearish from a short-term perspective trading inside the falling red channel. 🏹 Trigger => for the bulls to take over, we need a new high to form and then a break above the upper red trendline and red zone. Meanwhile, until the buy is activated, FTM can still trade lower till the 0.27 - 0.30 support zone . 📚 Always follow your trading plan regarding entry, risk management, and trade management. Good luck! All Strategies Are Good; If Managed Properly! ~Rich
by TheSignalyst
2
CADCHF Update I Potential bounce from pandemic lowWelcome back! Let me know your thoughts in the comments! ** CADCHF Analysis - Listen to video! We recommend that you keep this pair on your watchlist and enter when the entry criteria of your strategy is met. Please support this idea with a LIKE and COMMENT if you find it useful and Click "Follow" on our profile if you'd like these trade ideas delivered straight to your email in the future. Thanks for your continued support!
Long
by BKTradingAcademy
Ethereum Important supply & demand zonesI am a time traveler and I come from the future. This is a story that is told to our children. Once upon a time, there was a cryptocurrency called Ethereum. People who traded Ethereum watched the price carefully. They noticed that when the price reached $2300, it would go down, and when it reached $800 (if $1200 didn't hold), it would go up. But something strange was happening. Banks were playing games with the money, and the range wasn't behaving normally. People watched and waited for a big change. Finally, the price went down a lot, and people who were watching carefully made some money. They learned that it's important to pay attention to the price and the key levels, even when things are strange. We are in this range now. As long as $1200-$1350 holds, I believe will get to the $2300-2500 target this year. If that $1200 level fails, I think ETH can drop quickly to $800 which would be a 33% drop. Watch that weekly hidden bearish divergence (in white). It may be a significant sign of weakness if we don't get back into the diamond I've been discussing for a week or so.
BITSTAMP:ETHUSD
by bitdoctor
📊 DBR & Demand Zone📍 What is Drop Base Rally in Trading? The drop base rally pattern in technical analysis is a chart pattern that appears when the market falls, then enters a period of sideways price action, and finally, shows explosive upward movements. Market makers open buy orders from demand zones to have a long position in trading. This is some kind of study for technical analysis known as DBR. These patterns are the basis of supply/demand logics. In the showcased example, after a steep drop, the sale finally stopped, leaving bulls the option of buying at lower prices. However, purchasing power at that point was insufficient to reverse the market. Instead, the market starts moving sideways because neither buyers nor sellers could defeat the other party. Eventually, the price action entered the demand zone that was formed and recovered back to higher prices. 📍 How to identify Drop Base Rally pattern? The drop base rally pattern contains three waves. As shown in the figure above. 🔹 Bearish wave: Drop 🔹 Sideways wave: Base. 🔹 Bullish wave (rally). 📍 Demand Zone A demand zone is a price level where a significant amount of buying interest or demand for an asset is believed to exist. Traders use demand zones as potential areas of support where buying pressure could increase, causing the price to rebound or reverse. As shown in the example above, we entered a long trade once the price action reached that demand zone, with the entry being inside the zone and the stop loss below the zone. 👤 @AlgoBuddy 📅 Daily Ideas about market update, psychology & indicators ❤️ If you appreciate our work, please like, comment and follow ❤️
Education
by QuantVue
8
GBPUSD | Perspective for the new week | Follow-upIn the absence of high-impact events from the UK this week, the anticipation of the testimony by Fed Chair Jerome Powell on Tuesday and Wednesday as he delivers the semi-annual monetary policy report to lawmakers is on everyone's radar. Obviously, his comments will shed light on whether stakeholders are in tune with the central bank’s view on how high it will have to raise rates to knock down inflation. From a technical standpoint, this video shed light on what to look out for in the charts as bullish activities from last week's trading session may linger into the new week. 00:48 Reference to last week's daily commentaries and results 04:27 GBPUSD Technical analysis on Daily chart 04:35 Macroeconomic events to look out for the week 10:12 GBPUSD Technical analysis on 4H Timeframe 12:40 Conclusion on next week's expectation on GBPUSD Disclaimer: Margin trading in the foreign exchange market (including commodity trading, CFDs, stocks etc.) has a high risk and is not suitable for all investors. The content of this speculation (including all data) is organized and published by me for the sole purpose of education and assistance in making independent investment decisions. All information herein is for your reference only and I take no responsibility. You are hereby advised to carefully consider your investment experience, financial situation, investment objective, risk tolerance level, and consult your independent financial adviser as to the suitability of your situation prior to making any investment. I do not guarantee its accuracy and is not liable for any loss or damage which may result directly or indirectly from such content or the receipt of any instruction or notification therewith. Past performance is not necessarily indicative of future results.
by darcsherry