In any market demand and supply is very important factor. In technical analysis trader can measures the demand and supply factor by watching trading volume and price action. It will be very easy to understand to find out demand situation and supply situation. So at first you need to identify Lack of Demand and Supply. Lack of demand means there is no demand for a particular stock in market. if you see price of a particular share is increasing but volume is not increasing that much and difference between opening price and closing price is very low then you can assume there is a lack of demand. And after few days the price will go down because smart money is not interested to that share. look at the graph. Before October month the spread of price was low but the volume was not increase that much so here is a lack of demand. After few days the price went down.
Chart Analysis
