Supply and Demand is one of the core strategies used in trading. It focusses on the ancient laws of supply and demand and how price moves in a free-flowing market. The foundation of this strategy is that the amount of an instrument that is available and the desire of buyers for it, drive the price. It identifies zones on the chart where demand overwhelms supply (the demand zone), driving the price up or where supply overwhelms demand (the supply zone), driving the price down. Most supply and demand traders wait for the price to enter these zones, where major activities of buying or selling have taken place, before entering a long or short position themselves.
It makes sense to buy at a demand zone and to sell at a supply zone, but keep in mind that fresh zones are more effective than retested ones. They can be used as entry zones for a continuing trend or as reversal zones for a changing trend. Trades can be made aggressively or conservatively, each with their own rules of entry and exit. TradingView has a smart drawing tool that allows users to visually identify these levels on a chart.
MY FIRST VIDEO ANALYSIS. My analysis for daily income on the EURJPY. Looking at the video, I see I wasn't finished with that zone. It might be better than I think but I didn't have time.
Simple, don't buy into Supply.
Forced to make this due to the amount of positive Bitcoin posts on Social Media right now. If you want to buy it, wait for the break and test of structure.
Multiple reasons to short this based not on the recent Bullish breakout on the shorter time-frames, but on the longer rejection area's. Of course Forex is random factors so we wait for everything to allign before going short.
VFF big upper wick and profit taking with three bounces from the low of day, lose that level tomorrow we'll be looking for a healthy daily higher low. We've already pulled back 10% from the top of the move, we could still pull back 40% and be very healthy on the weekly chart. The triple bottom on the hourly chart makes it clear the bulls are defending the low of...
EMH forming a tightening range and offering double daily inside bars to play off of as a potential early signal, with a higher risk / higher reward potential. Need to see over 1 million shares traded on any break of the current channel to tell me this break could be going for multiple daily levels.
APHA could barely break the high of yesterday before pulling back for the rest of the day. Still the name more likely to drop down to lower lows, if we lose the low of today tomorrow morning we will be watching for the bulls to attempt to form a daily higher low above the low of Friday. I still find the greatest clarity here on the weekly chart, where we are...
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