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Showing posts from April, 2020

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...

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...