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this is a basic question and im pretty sure in the answer i just want some confirmation, lets say a we have a down bar that goes from 1.40500 down to 1.40450 so a 50pip bar that would now be a supply bar and lets say the next bar starts at 1.40450 and closes 1.40480 this up bar would have took out 30 pips of supply on the first bar and this bar would be a demand bar is this right. hope it makes sense

 

Cheers.

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when u think of supply/demand its better to think in waves than bars , now regarding ur Qs first bar down bigger than 2nd means sellers more stronger , 2nd bar is inside of first so possible pause before continuation if buyers or demand would have been stronger it should have been bigger than 1st bar i.e reversal bar{engulfing or outside bar} , other things also matter whether we are at support level or how long trend has been going etc

for ex if this pattern forms on breaking below support levels chances of moving down are much more than demand eating supply .

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