What is Forex and how does it work?
27 November 2015
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theforexscalper
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Learn everything about Orderflow trading?
theforexscalper
Email us now :
info@theforexscalpers.com
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.
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.
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.
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.
Supply and Demand Forex
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.
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.
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
Want to know more about Supply and Demand 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.
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Welcome to my author blog. With over 12 years of experience in the financial markets, Trading is more than a profession for me; it's a passion that has fueled my curiosity and determination. Over the years, I've explored various trading strategies, dabbled in different asset classes, and navigated through the ever-evolving landscape of technology and innovation. Through it all, I've witnessed firsthand the transformation of the financial industry. My mission is to share the wealth of knowledge I've gained over the years with you, my fellow traders and aspiring investors. Whether you're a seasoned pro looking for fresh perspectives or a newcomer eager to understand the basics, you'll find something valuable here.
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6 Replies to “Supply and Demand Forex / How to trade?”
Parabéns Kev, e muito obrigado por compartilhar seus conhecimentos. Deus te abençoe grandemente