Supply and Demand Indicator for Forex Trading Online - ForeXposed


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Wednesday, May 10, 2017

Supply and Demand Indicator for Forex Trading Online

Supply and Demand Analysis is one of the technical analysis which is very popular among traders. This theory published by Adam Smith and was applied by Sam Smith in a financial instrument graphs such as stock, commodities, and forex.

With the concept of supply and demand, makes the traders more easy to identify supply and demand area to determine their position. That is why they are often referred to as Positional Trader.

But in practice, many traders are confused to identify the area where actual supply and demand is really valid.

For that, Supply and Demand Indicators created to help traders determine where is supply area and demand areas will be taking place.

Supply and Demand Indicator determines the level of the price power, where you can find resistance area and support area more quickly which directly indicated by the indicator. Without the need of help to other indicators, the support and resistance point directly reflected in the chart, automatically.
Supply and Demand Indicator for Forex Trading Online

Supply and Demand Indicator superiority it’s was able to identify the direct market right on the target. If there is a supply power, then the indicators show it, automatically. In a case of demand power, the indicators give it’s signal, instantly.

Supply and Demand Indicators will directly evaluate the point of resistance and support. When a trader wants to make the signal as a reference, he can instantly use it without having to wait for a while. Forms of resistance and support can be directly read on any time frame at any pair.

This indicator is not only showing the supply areas and demand areas. Yet in the supply areas and demand areas, this indicator provides information about areas have been touched many times or is it still a virgin (haven't been touched at all by the price).
Supply and Demand Indicator for Forex Trading Online

This indicator also gives classification about existing supply and demand areas.

The classification is:

  • Untested Supply or Demand
  • Weak supply or Demand
  • Proven Supply or Demand
  • Verified Supply or Demand
  • not only that, it also shows the support that has become resistance (supply become demand); is called “TurnCoat”.
Supply and Demand Indicator for Forex Trading Online

With the help of this indicator, you'll be a little bit helped in drawing lines that would certainly take a time. Because as you know, supply and demand are very dependent on the trader's ability to determine the supply and demand area.

The Characteristics of Supply and Demand Indicator

Actually, this indicator just belonged as a tool, because of its just showing support and resistance area, without being able to give a signal to find out the end of the trend as well as the changing of the direction of prices through the crossing. Therefore, the Supply and Demand Analysis Indicators only relied upon as a reference for traders to predict price movements.

However, there is one more interesting component of this indicator, especially when the price that will be highlighted first with blue color. The colors shown by the Supply and Demand indicator depends on the form of support or resistance.

For example, in the event of resistance, the price formed will directly highlight in red, automatically. Whereas, in the support, the price will be highlighted in blue. Further, each beam will also be marked with the level of support and resistance where the place price is identified.

Using Supply and Demand Indicators

You can use Supply and Demand Indicators on all kinds of movements, both trend, sideways, or consolidation. This indicator also tends to be stable on a trade in any pair. Because of its nature which could detect the support area and resistance area, the signal that is given automatically can illustrate the open positions.

When you want to open a position, first seen at the beginning of the indicator signal. If the signal with highlighted color appears, then automatically the price has experienced ‘reversal’. This is where you should be responsive and start executing.

Conclusion on Supply and demand Indicator for Forex Trading Online

You can take advantage of Supply and Demand Indicators to open a transaction order, due to the support and resistance areas can be found only by looking at the signal of the highlighted price. When you can run a command order from the interpretation of given signal then you get a chance to reverse a loss into a profit in forex trading.