Example: Forex Supply and Demand Trading Strategy - ForeXposed

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Sunday, February 19, 2017

Example: Forex Supply and Demand Trading Strategy

This is just one example of visual identification of Supply and Demand area for Euro vs United State Dollar or EUR/USD (EU) in the Daily Time Frame (TF D1). Let's see, how long the price will play in this area, and whether Demand > Supply (demand is bigger than supply) as shown previously in August 2009? Or on the contrary, more sellers who want to continue to sell in this zone.
Example: Forex Supply and Demand Trading Strategy




More Examples of Supply and Demand Forex Strategy

Before proceeding, I gave a sample picture of Great Britain Pound movement against the United State Dollar (GBP/USD), today.

Example: Forex Supply and Demand Trading Strategy



Notice in the chart above, where the GBP/USD on Hourly Time Frame (H1) consolidating on the previous Supply and Demand zone. Then the price goes up quickly leaving the area. Do not feel miss the price or need to chase the price, stay still, because now, at least you have a base in this time frame in case the price pullback to this zone.

Below is another example to identified Supply and Demand zone. Notice how the price of EUR/USD is in the area for a moment, before rejected from ​​supply and demand area. Highlighted in aqua on H1 time frame in the image below. That indicates Demand > Supply (more demand than supply). This zone can be called as Demand Zone or Demand Area.
Example: Forex Supply and Demand Trading Strategy