Hi all,
I recently came across the idea of trading using supply and demand zones. How viable an idea is it really? Is there any place I can read or learn more about it?
Hi lian312
There is more than enough FREE material on trading Supply & Demand on the net that should provide what you need to know on how to trade that method profitably. But you will need to put in the time to learn how to trade it correctly.
There are 2 excellent threads regarding Supply & Demand over at FF search there for “Supply and demand in a nutshell by Alfonso Moreno” & also for Trading Institutional Order Flow. You can also watch many instructional videos on YouTube regarding Supply & Demand.
Once you understand & learn the methodology you will never use lagging indicators again. In my opinion there is no other way to trade. Good luck!
Hi GPipster,
Thank you for the reply I’ll definitely try it out! Yes, it’s because of so much material that I’m not sure what I should follow. This seems like a good first step!
Supply and demand theory, this is interested topic if there are good master here, I am ever trying use indicator based on supply and demand, and look on the chart it semilar with line support and resistance, basic theory on support and demand is look on equilibrium area, and waiting breakout
Supply demand, I also use volume. Very helpful but in Forex true volume is never a givin, Big Banks keep it to there selves. Still helpful though. The more volume the more supply, the more demand the more supply or lack of that is a determination by the trader. Demand goes up or down dependent on supply and Supply=Volume!
Dear Pingback,
Thank you for that! I’ll keep it in mind and see if it works for me (:
No, problem. There is lots of information on supply and demand, and can find a lot about it on the web. Richard Wyckoff made it popular from way back, a newer name for it is VSA, there is a thread on babypips, Petefader has some good tutorials on it with video. I myself have found it usefull mainly with volume. Price movement also helps. But volume helps me determine the participation, market participation, which I refer to as supply. The more volume the more participation the more supply. When used with price action I can determine easier the strength of the market. If I see small candles with little volume I can see traders have little interest in trading. For what ever reason it could be anything. Fundementals, geo-political-risk off etc…When price moves with volume then I know traders participation is more active and currency pair is ready to move. I also like a two day view on it, a two day view I can get a picture of the different sessions, from New York , Sydney,Asia to London and can see what those markets are doing and volume helps a lot with that. But that’s me, there are probably as many ways to use supply demand as there are traders.