Forex Supply and Demand: Trading For Living - ForeXposed

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Monday, May 22, 2017

Forex Supply and Demand: Trading For Living

Forex Trading With Supply And Demand Strategy

Supply and demand strategies is one of the best strategies to use in forex trading. In using this strategy, there is a thing that is often become a problem for traders, i.e. how do we read that the supply and demand areas have really broken, for use in making decisions on any trade.

Supply and demand is the heart of a market mechanism, either in the forex market or other instruments. Therefore, supply and demand need to be understood by every trader who plunges into a market.
Forex Supply and Demand: Trading For Living

There is little difference between the supply and demand levels with support and resistance level. On supply and demand, there are at least two lines to mark in the area that has a small distance. Traders often refer to this area as the supply zone or demand zone, where here we can do an entry.
Forex Supply and Demand: Trading For Living

If we want to succeed in forex trading, then we need to study this. First, we must be able to read when the confirmation level is broken on supply and demand areas.

This is a thing that must be understood in the supply and demand strategy and is the key to this strategy. This basic rules should be applied in our trading.

To facilitate understanding, if you want to take the 'sell positions' then look at the supply area, when the area is characterized by the presence break, closing candle is breaking this supply level, the price will be heading to demand areas (bearish).

Whereas if you want to take the 'buy positions' then look at the demand area, if the closing candle is breaking this demand level then the prices will be heading to the supply areas (bullish).

For ease in understanding this, please see the image below:
Forex Supply and Demand: Trading For Living
Forex Supply and Demand: Trading For Living
Forex Supply and Demand: Trading For Living

The image below shows when you take a position as traders intraday or swing forex traders. Green zone is for intraday traders, which look small zone areas, then you can only take a maximum of 100 pips. While the area in yellow is for swing traders, that are created by using a larger time frame.
Forex Supply and Demand: Trading For Living


This is another example of the use of supply and demand as a forex trading strategy.
Forex Supply and Demand: Trading For Living

Note:

The supply and demand areas is different in size ranges, the area can be small or large, depending on the trading type used by each of the traders.

If you are an intraday trader, then you can use h4 or the daily time frame to determine supply and demand areas, and on any trading you can take a profit between 15-60 pips.

Whereas if you were a swing trader, then you can use the weekly time frame to determine supply and demand areas and may take 100-500 pips for each trade.

For easy to analyzing use the trend lines, this tool can help you analyze trends in accordance with the strategy you use.

You should know that trading with any strategy, the most important thing is to be consistent with the trade rule that has been created. Comply with the rule that you have created, so you're more likely to achieve success.


Refference: ForexSwingProfit.