Trading Discussion Understanding the Power of Supply and Demand Zone

[theolove2021]

In the chart you can see a demand zone (broad support level) and a supply zone (broad area of resistance).

What we want to find at the price zones where supply overwhelms demand and where demand overwhelms supply.

The former is known as SUPPLY ZONES. When the market bumps into SUPPLY ZONES, the price will drop. Then, you can make money by shorting the market.
The latter is market DEMAND ZONE. With the support of demand, the price will rise. Then, you can profit in a long position.
IF the supply zone is broken it becomes a demand zone, pullback test from demand zone you can go long.

To your success,
Theophilus S.

 

[Sotherefore]

Wow nice explanation but I don't really understand how we will be able to detect when a supply zone is over to long , that is why it is always very difficult for me to predict cryptocurrency with good percent of accuracy because I don't know when a supply zone is over and when a demand zone is over, tell us more about this.

 

[kayode10]

I think an expert forex trader can make money from both supply zone and demand zone. I think as a beginner it is very good too focused on one of the two directions. Perhaps one needs to focus on demand is known as it can be easy to make money when someone buy a currency has a lower price and sell it going the price go up.

 

[Good luck]

When the demand of goods is high then the supply will be affected because there may not be much products to supply,which may leads to inflation or recession.in some cases you have high supply while you have low demand from customers.In this kind of situation then such products need repackaging so as to attract more customers in the Market

 

[kayode10]

I think this law can be applied in cryptocurrency Trading. I saw the same graph on my binance application. I think I am going to explore the opportunity of making more money Trading Forex in cryptocurrency. I'm going to look for an expert in either of them and learn from them to expand my income stream.

 

[Ray Martinez]

A trader should pick a suitable broker to trade in the forex market. Without a suitable broker it is quite difficult to invest in the huge market. Broker can be the well wisher for any trader. But Broker has to be good. Wrong broker can create difficulties in trading. As a trader, I choose Forex4you as my broker. It provides low spreads and high leverage. The trading strategy is quite easy.

 

[kayode10]

To be very honest with you I am here to have a full concept on how cryptocurrency trading works. I know that the basis of all market Is On demand and supply both of which affect the price in their movements. One of the major problem is that I am yet to know how to pair two cryptocurrency assets together in order to make profit from the trade.

 

[Setho]

So a lot of experts will tell you that is sound knowledge of the demand zone and the supply zone is the basic thing about trading whatsoever commodity. The period of supply detonate the best time for you to be able to buy in commodity and the demands room might be the best time to sell.

 

[Wisdom01]

I have been seeing your post concerning forex and I feel they are more enlightening ,I think knowing the demand and supply zone is very important ,and we should only buy when the market is showing every sign of a buy action , if not we shouldn't buy so we won't make loss

 

[Asahi]

They should avoid trading at uncertain point and lower trading lot size so they risk doesn’t become skyrocketing. So, make increasing cautiousness your primary target. Eurotrader allows traders with a whopping 111% deposit bonus that enlarges traders’ capital.