Support/Resistance Demand/Supply – The difference.
I often get the question what the difference is between Support and Resistance and Supply and Demand.
Or people who ask me but Support and Resistance and Supply and Demand are the same right?
I will explain the biggest differences in this blog a bit to you.
Support and resistance levels and Supply and Demand levels are 2 different trading concepts that are very similar.
They both indicate points where the price can reverse.
And you can find them both everywhere on the charts.
I think the big difference between the two is that Support and resistance often works on historical levels
and Supply and Demand especially on fresh levels.
Where Support and Resistance is particularly strong in multiple touches of the Support and resistance line.
So the more often the price has responded to that line, the stronger the level.
Usually the Support and resistance is also drawn by means of the highest or the lowest point in the market.
At Supply and Demand this is very different again.
At Supply and Demand you mainly look for fresh new zones.
And you can often only use it up to three times.
In Supply and demand we have different patterns on which we make our base.
-RBR (Rally Base Rally)
-RBD (Rally Base Drop)
-DBD (Drop Base Drop)
-DBR (Drop Base Rally)
Supply and demand zones are therefore not only based on the highest or lowest point of the market.
I hope you now understand the biggest difference between these two terms.
In my new course in the member zone I will of course go into more detail about this,
and after the course you know exactly how you can trade the best Support / Resistance and Supply / Demand levels.
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.