Buying Pressure and Selling Pressure

1.When we look at the market trends, we should not only see whether the price is going up or down.

2.When the price drops, instead of saying “The price is dropping, I’m feeling down, I have to sell!” we should be able to say “The selling pressure is intense, I should sell” or “The selling pressure is nothing special, I don’t need to sell.”

3.Even if the price drops, a decline accompanied by strong selling pressure is different from a decline due to weak selling pressure.

Rise Accompanied by Strong Buying Pressure

1.A price level that many people perceive as a good price to buy, leading to many participants in the buying pressure, thus strengthening the upward trend.

2.Even if selling occurs to realize profits, the buying pressure is stronger, so the risk of a subsequent drop is low.

3.If the price returns to this level, it can receive support because it is an attractive price to buy (formation of a supply zone).

Rise Not Accompanied by Buying Pressure

1.Although many people are not participating in buying, there are fewer sellers, causing the price to crawl up. If the price continues to rise in a range not ideal for buying, it will eventually reach a good price for selling.

2.Since the price rises without forming a supply zone, those who bought from lower levels start selling to realize profits. Without support from below, this leads to a price drop.

Decline Due to Strong Selling Pressure

1.A price level that many people perceive as attractive to sell, leading to many participants in the selling pressure, thus strengthening the downward trend.

2.The buyers who take over at this time become “dead bodies,” and when the price rises again, they will sell due to a break-even mentality, acting as resistance and making it difficult for the price to rise again.

Decline Due to Weak Selling Pressure

1.Although many people are not selling, the low buying pressure causes the price to drop.

2.When the price drops to a good level for buying and starts to rise again, the absence of many “dead bodies” makes it easier for the price to rise again.