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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’.
There are 3 rules in trading Supply and Demand forex.

  1. Always look to the left.
  2. Sell at Supply Zone.
  3. Buy at Demand Zone.

Below is an example of Drop Base Drop. Drop Base Drop is a type of supply
zone for a setup for a sell.
The bullish Candle (BASE) that tries to withstand prices on
the base produces good buying and selling areas here.
So price will return at the spot and continue with the DROP price direction.

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I often draw my supply and demand zones on an undecided candle. Often this works well for me and my supply and demand forex zones are fairly accurate.

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Above is an example of Rally Base Rally.
Rally Base Rally is a type of demand
zone for a buy setup.
The bearish Candle (The Base) that tries to withstand prices on
the base produces good buying and selling areas here.
So when price return at the base the price is in balance and continue with the RALLY price direction.

Supply and Demand Forex Trade

Of course there are many more ways to trade with supply and demand. Everything about this in my book.
And maybe I’ll write another blog here another time.
It is too much explanation to give in 1 blog.
Below are a few important points that should not be forgotten:

Important that you must know to trade Supply And Demand
Rally= Buyer exceed Seller
Drop= Seller exceed Buyer
Base= Seller and buyer are equal to each other.

Supply and Demand Forex Online

Want to know more about trading in forex or do you want to join the forex group?

Please contact me so that I can explain you much more about what we have to offer.

Looking for good Forex education? Look at www.theforexscalpers.com
The best Broker? Look at 
IC MARKETS.


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