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Supplydemandanalytics

The Concept of Supply / Demand TradingThe principle of supply and demand trading involves identifying a counter-trend candle that precedes a sequence of three consecutive candles exhibiting strong bullish or bearish momentum. This specific candle is designated as the supply or demand level. The underlying theory posits that when the price retraces to the region where demand previously triggered a robust price movement, it is likely to encounter renewed demand, consequently attracting a larger number of buyers, thereby sustaining the prevailing trend. Rule 1: The aggressive price movement must consist of 2-3 (3 preferred) candles that demonstrate remarkable strength in their respective directions. Rule 2: The candle retracing to the demand zone should close outside of the zone, accompanied by a wick that reflects considerable strength.
CME_MINI:NQ1!Education
by AmpedTrading
SUPPLY vs DEMAND 📉📉📉✅1) Use longer time frames to identify supply and demand zones By zooming out, traders are able to get a better view of areas where price had bounced off previously. Be sure to use the appropriate charts when altering the between multiple time frames. Draw a rectangular shape to denote this zone. Demand and supply zones do not necessarily have to appear together - often currency pairs can reveal one or the other. ✅ 2) Identify strong moves off the potential demand/supply zone Certain price levels offer value to either bullish or bearish traders. Once institutional traders and big banks see this value, they will look to capitalize on it. As a result, price action tends to accelerate relatively quickly until the value has diminished or has been fully realized. Witnessing multiple instances of this at the same price level increases the probability that it is an area of value and therefore, a supply or demand zone. ✅ 3) Use indicators for confirmation of support and demand zones Traders can incorporate daily or weekly pivot points to identify or confirm supply or demand zones. At DailyFX, we have a dedicated page showing relevant support and resistance levels for all major markets. Traders should look for support and resistance levels to line up with demand and supply zones for higher probability trades. 🏦 Often, a currency pair will climb to an area of resistance called a ‘selling zone’, where sellers perceive there to be great selling potential at a relatively overbought price. The reverse is also true for currency pairs that drop to relatively low levels, ‘demand zone’ where buyers perceive there to be great value to buy. If you haven’t learned the basics of the supply and demand, or would like a refresher, read our guide on the forces of supply and demand. 🏦 Supply and demand zones are observable areas on a chart where price has approached many times in the past. Unlike lines of support and resistance, these resemble zones more closely than precise lines. Traders can customize charts to identify the demand and supply zones Do you use this concept ? 🔥
BINANCE:BTCUSDEducation
by AnonimFXRO
Importance of Volume vs Price RelationshipA lot of people dismiss the importance of volume. But the truth is, without volume, a comprehensive analysis is almost not possible. Each candle, each swing point, each supply/demand zone, each wave and each retracements volume is important not to be overlooked. I hope this picture helps a lot of you to get some basic understanding on how I use volume to measure strength/weakness in a pair and trade accordingly. This is the reason why most of my trades go in the right direction.
Education
by naviafra
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