There was a question on another thread as to why Bank Nifty moved up so much today without any news?
In terms of Price Action, this was an ignored supply zone flipping to become a demand zone. Much PA goes on in the background when such a phenomenon occurs.
Usually there are trapped sellers who were stuck due to the overwhelming move on the upside on the day (20th Sep) the supply was taken out, who were waiting to buy.
The insti buy order flow was so strong that day that there was a dearth of sell orders to match them causing price to shoot up and leave behind unfilled buy orders.
When price returns to such a zone, it usually flips it’s nature due to the above reasons. Although, the potency of such a flip is difficult to gauge at times.
New unfolding PA on Reliance Daily chart. The new DZ created is an important one, respect or break of this one will give fresh clue about its next journey.
I have no idea about volume spread analysis @vishnux . Unfortunately, it’s not my area of expertise. I have only invested my years on reading Price. The zones, the traps, the fakeouts, the engulfs… all by Price. I did read some books on Volume and the way they interpreted volume was completely contrary to the way I see Demand/Supply with price. So I left my study there. Sorry to disappoint you.
I can share how I view distribution/redistribution in a range bound area from a PA perspective, if you would like? Although it may or may not be similar to how Wyckoff method views it.
