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How to Learn Supply and Demand Trading in Forex

Most traders spend time studying how to identify trends or reversals on the chart without reflecting on what those trends or reversals are causing. There are various factors affecting currencies on different TF time frames and it is often difficult to decide the most significant one at any point in time, even though many investors believe in the superiority of one or another factor. You should have, at least, a clear understanding of basic mechanisms to get an idea of the relation between the factors and the price action on different  TF time frames . Forex is not an easy exchange. This kind of thought will easily, eat away from your end result. Fortunately, there are ways of understanding each of the economic and political affecting currency. Currency prices are not changing constantly. Moreover, many stock traders find value in   foreign exchange markets  because they are related to similar main factors that generate different volatility levels, such as supply and...
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Power of Supply and Demand in the Forex Market

Two powers influencing the forex market that are supply and demand. The secret to understanding forex trading dynamics is understanding the factors that influence supply and demand. Like with every business out there, the  supply and demand trading   powers are also influencing the forex market. Multiple influences such as the business, stock market, political variables, and economic data are predictors of supply and demand. Supply and demand are also one of economics ‘most basic principles, and it is the pillar of the economy market. Demand refers to just how much (the quantity) a consumer requires of goods or services. The quantity demanded is the number of goods that are willing to purchase at a certain price, the price-quantity relationship demanded is known as the demand relationship. Supply stands for how much the industry will sell. The supplied quantity represents the amount certain good suppliers are able to supply when they obtain a certain market price. The...

Understanding the Forex Market in terms of Supply and Demand Trading

In the international forex market, investors, speculators, retailers, and banks determine the relative value of exchanging currencies into another by buying and selling a currency pair. Forex traders use a variety of tools to forecast currency pair movements. Many FX traders depend on news, economic variables and interest rates, while others choose to use charting different tools and indicators to drive their decisions. No matter your trading style, you’ll just need to know how to read the forex market chart. Charts originated as a tool of financial technical analysts but due to their fast and efficient transmission of useful information about financial market trends, they have found wider use during a time with investors. The most reliable method will be to follow the charts, with several ways for traders to find out how to navigate trends on  forex pairs , and also commodities and other instruments. Traders using chats are known as technical traders who tend to monitor char...

Best Supply and Demand Forex Trading Platform

What is Supply and Demand Forex? What exactly is  supply and demand Forex ? Supply is actually the amount that is available and demand is the amount that is requested. If you think about Supply and Demand, it is actually very simple. Just imagine that you sell bananas from your own farm on a local market. And you do not necessarily have to sell all your bananas. Because you can eat them just as easily as anyone who buys them from you. Supply and Demand Forex If bananas reach only 1 dollar per bag, you may be willing to sell 4 or 5 bags. But if the price rises, you decide to make more available. Up to 10 dollars per bag. At that moment you are more than willing to sell every last banana you have. Just because you can easily take all the money you have made and buy something else to eat. How do you draw Supply and Demand Forex? Supply and Demand Trading describes 2 types of zone entry’s that are  ‘Sell at Supply Zones’  and  ‘Buy at Demand Zones’ . T...

Where to enter into a Supply and Demand trade?

Where to enter into a Supply and Demand trade? A good entry point is very important when trading. If you step in at the wrong time, you can unnecessarily lose a lot of money, which ultimately would not have been necessary at all. In this blog, I will, therefore, give you some tips on how you can recognize a good entry point in supply and demand forex trading . If you practice this properly you will automatically see the correct entry points for every trade. Very often I get the question where people should get into a trade and it doesn’t have to be difficult just train your eyes! Let’s take a look at the following chart. Here you can see the EUR / USD chart. Here is the price not yet where I could see a possible entry. But I did explain how I look at it! Just be patient now. In the following example, you also see a few nice entry points. On Supply and Demand Forex Trading , I would personally only use the first and second touch. Then you see that the price bounces off th...

Supply Demand Zone Trading

Exploring Supply and Demand Zones and How to Trade Them No matter how much knowledge you gain from supply-demand zone trading, there is always so much more to learn in this area of the forex market. The knowledgebase can be made vast by knowing more about supply and demand zones, way to trade them and about variables such as resistance areas, trends, support, and turning points. Knowing your supply and demand zones can really pay you off in the long run for forex trading. Experts say that strong uptrend exists only if buyers outnumber sellers. During a trend, the price often moves up. This continues until there are enough numbers of sellers entering the market to absorb the buyers ‘orders. This is the origin of the demand zone. On the other hand, when sellers outnumber the buyers, the price falls. This happens until a new balance is created in which buyers become interested again in the seller’s prepositions. This is the origin of the supply zone. You can identify both of thes...