Forex Supply and Demand: The Rule for Intraday Trading - ForeXposed

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Monday, February 20, 2017

Forex Supply and Demand: The Rule for Intraday Trading

A forex trader should have rules for taking decisions in trading. Because emotions can affect analysis and decisions on the trade.

Do not believe? On trading online, try to trade using tick chart or on the M1 time frame. Very intense, isn't it? How it feels when your adrenaline is pumped, every second, every minute. Failure in controlling emotions will culminate in failure trade. So, by following the rules that already in the set, you can manage your trade well.


Forex Supply and Demand: A Simple Rule for Day Traders:



  1. Each day, identify on one area of supply and one area of demand at hourly time frame (H1). Always pay attention to the position of the price compared to a larger time frame (D1).


  1. Entry is only done when prices approaching the entry/support (demand) or resistance (supply).


  1. There are two types of entry; breakout and pullback (see picture).


  1. Pre-plan: entry, stop loss, and target.


  1. Open Position (OP) is done only if there is enough room between supply and demand area, so the profit zone becomes attractive.
Forex Supply and Demand: The Rule for Intraday Trading




In this forex online, only this 2 types of entry alone that we need. The first entry on a pullback offers lower risk/high reward, although for some people it is considered still at risk. While the breakout is most popular as an entry. But more importantly is the profit zone, calculate how much space for price moves after entry is done.

This pic shows that EU prices seen moving from between supply and demand.

Forex Supply and Demand: The Rule for Intraday Trading