Can someone help me understand the difference between “Supply and Demand” zones on a chart versus “Support and Resistance” areas?
Thanks for your help!
Brian
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hi, check these two links
https://www.babypips.com/learn/forex/elementary#support-and-resistance-levels
Regards Greg
Can someone explain how I can place a trade using either a buy limit or a sell limit order successfully? That is, when the trade is executed, I would make profit. Please, someone should help me out!
Apart from the terminology I don’t think there is much difference ,as a Forex retail trader I’m only interested in S and R.You.highlighted Zones as opposed to a specific level. (areas where the market can “get busy” )I sometimes put a narrow channel.on the chart,there 's plenty of information around, regarding how to place your S/R levels correctly on the charts .
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and you are?
Thanks Scorpio… I was also developing the “feeling” that there was much to do about terminology here in relation to the current asset price in relation to Support (demand) & Resistance (supply) levels. A double speak of sorts! ?
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Thanks for your comment… although very textbook I suspectc there’s more to it than that!
I suppose the term originates ages ago from the stock market. I just keep it simple with S/R ,don’t bother with Fibonacci either.
so do you expect information from 20 years experience and research for free?
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That’s what the forum is for!
If you don’t want to participate - DON’T
hahahahahaaha… 
poor funny guy, forum gives you only tips, NO ONE will give you 20 years own research for free, good luck in trading 
Depending on who you talk to SD & SR are basically the same, or completely different. There are many different strategies and variations based around both subjects.
I have tried a few variations and as far as I’m concerned, one is just as good (or useless) as the other. SR levels are more reliable IMO. But, I’ll give you some examples and you can do what you want with them.
One method is using a strong move in a certain direction right after a consolidation period:
The idea here being that price is eventually going to return to that zone.
Some strategies use the long bar alone and claim that it creates its own SD zone:
It is all very subjective and can be confusing. But it can also be fun. If I were you I would Google some different strategies and try them out on a practice account. Different people have different rules, and it’s usually their way or the highway! “You must wait for 3 short bars, then divide price by your mothers birthday, and only then will you have your zone!”
Forget about that, start with a set of rules then make it your own, do what works best for you.
SR levels are similar except you’re looking for areas where price has been rejected at least 2 times:
I would see this area as support, but others could argue that, and there’s no guarantee how price is going to react once it gets there again. It might be rejected or it might blow right through. Confirmation is usually needed before entering long or short in the form of another candle. if it closes above then chances are it’s on it’s way back up. If it closes below then there’s likely more downside to follow. It also helps to zoom out and look at the underlying trend. If the 4H or 1D trend is down then there’s a better chance price will break through.
Never assume anything because price is going to ignore all rules regularly, so all you can do is create a set of rules for yourself and follow them consistently. You will be wrong sometimes.
Good luck!
***EDIT - Got my SR levels mixed up. All fixed.
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lmao…. resentful or what! BTW, that was not a question.
Awesome explanation Matt. Thanks for your time and consideration of others. I’m familiar with much of what you explained and described. Just having difficulty getting past the definitions as they are so similar. Again muchly appreciated.
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