Hi,
Is the Supply Zone in the attached image a new or old supply zone?
I have been researching Supply & Demand trading recently, and many of the guides state that ‘Fresh Supply & Demand Zones’ are the best, however, when looking at the charts it seems that the majority of the Supply & Demand Zones have already been a zone at some point in history. Am I missing something here?
Thanks in advance for any help.
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Mmmmm supply and demmand I think that more of a stock and share term .Have you not done the babypips course ??? They be stuff like support and resistance and fibonacci.on there
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Hi, thanks for replying. According to my research and the many articles, guides, and ‘tutorials’ I have read/watched, it can be applied to any market including Forex, Stocks & Shares etc? Having said that, I am aware that Supply & Demand is more of a general economic concept and not a trading strategy in itself.
I have had limited success using the Supply & Demand concept on a demo account - as well as using other technical indicators - but I am looking to improve my results and overall understanding of the concept and I am struggling to understand what actually constitutes a ‘Fresh Zone’.
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For years it was taught that SD zones could be reused because large institutions have to wait for price to return to these levels to fill their remaining orders. But, recently that’s been in question, because why would they expose themselves for weeks, sometimes months on end waiting for price to return? So, now people are saying to just trade new zones because these institutions are not using pending orders to enter the market.
I don’t know if I buy any of that. Sure, institutions probably have the ability to move price with their large positions, but I don’t believe they cn move it at will.
Whether you call them SD, SR, or Secret Government Alien Communication zones (SGAC)…all I know is these are important areas to watch because price tends to react when it gets there.
Best thing to do is wait and see what price does and don’t get too hung up on what they’re labelled as. If it bounces off and meets your entry criteria, sell.