Supply and Demand Trading Course.

Supply and Demand Trading Course.

It is not just economic events that cause market volatility.
Price action is also ruled by transactions or rather large amounts of money.
That are injected into the market.
Of course this affects liquidity in the market.
So the understanding of the balance between supply and demand,
is one of the most important aspects of forex trading.
Because that are factors that affect market liquidity.

Market liquidity occurs when currencies can be bought and sold without a clear price change.
Contrary to popular belief that what affects liquidity is a large number of buyers.
And that compared to market sellers.
So the truth is that market liquidity is affected by market orders.
When people execute market orders they allow their trades to be executed immediately.
This would remove market liquidity.
Market orders are then linked to pending orders.
So in other words someone who wants to sell in the market.

Market orders

Supply and Demand Trading Course.

When market orders are larger than the corresponding pending orders.
Only a portion of them is filled out, leaving the remainder unfilled.
So in order to find new pending orders, the demand must push higher.
And the pending orders effectively add market liquidity.
Retail traders do not typically place very large orders which can affect prices.
This is the major institutional investors who are doing so.
The aim for an average trader is to find a Supply & Demand Market Zone.
Because that is where there is high liquidity.
And where trades can be placed with negligible price impact.

Supply and Demand Trading Course
Supply and Demand Zones:

Identifying supply and demand zones is the basis for the trade-in supply and demand.
As markets experience dramatic rises and falls orders usually issued by large institutional investors.
And are not filled.
They leave pending orders at the base of the liquidity zones to buy or sell.
They do that with the hope that the market will return to fill the remaining orders.
The demand zone is a high price increase zone.
In addition the supply zone is the one where the economy has made a decline.

To become a profitable and most successful trader in Supply and Demand.
Join THEFOREXSCALPERS and trade with 3500+ community traders with daily analysis.
And educations which boost your trading skills make you Professional Forex Market Trader.

JOIN HERE TFS COMMUNITY

 

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