FOREX INDICATOR FIBO SUPPLY DEMAND

Description

Supply And Demand In Forex Trading
In forex trading, supply and demand play a significant role.
As a matter of fact, all the price moves you see on the chart,
whether the price is going up or going down simply tells you the forces of supply and demand are at work.
what actually is Supply and what is Demand?
if an item has a lot of demand, price increase
if there is an oversupply of an item, price falls.
So really, in forex, when there is a demand for a currency pair, then it simply means that there are lot more buyers than sellers and therefore, the tendency to push price up.
If there is less less demand for a a currency pair (which means more there are more sellers than buyers), price falls in the currency pair.
So basically, this is what supply and demand in forex means:demand=buyers market, supply=sellers market.
HOW TO TRADE THE SUPPLY AND DEMAND ZONE MT4 INDICATOR
#1: Set supply and demand zones as taking profit targets
In case you had to buy order and now you notice that the price is headed into the supply zone, consider locking in profits from your trades. The other option in this scenario is to shift trailing stop loss tighter.
#2: Stop Loss placement
The most appropriate way to place a
stop loss
is to put it outside of the support or resistance level zones. In this case, these zones are the supply and demand zones.
In case you enter a sell order in a demand zone, place your stop loss a few pips under this zone. Similarly, if you enter a sell order in a support zone, place you stop loss a few pips above the supply zone.
#3: Confirm your trades
Some of the traders in Forex are facing difficulties when trying to quickly identify support and resistance zones. Worry no more, this supply and demand MT4 indicator perfectly does this job.
One fundamental way to trade supply and demand zones is just to buy on the demand and sell on the supply zone.
However, some of the Forex industry experts believe that this way is not completely correct. They state that the proper method involves using the supply and demand zones along with the rules of your Forex trading strategy. Another great piece of advice is to use the supply and demand zones as the price action convergence. Based on the results of the analysis, you decide whether to buy or sell.
#4:
Use Them As Trailing Stops
T
his is really easy-in a downtrend the supply zones will be continuously heading down. So if you have a open sell order, you can use them as your trailing stops to lock your profits as price moves down.
Similarly, in an uptrend, the demand zones will start to increase on your chart as new swing highs are created therefore, these should give you the potential price levels where you can trail stop your buy trade and lock your profits as price continues to move up.
#5: Supply And Demand Zones Can Be Traps F
or Traders
Demand zones are essentially support level zones and therefore the potential for sellers getting caught out with
bear traps
is there.
So knowing your
bear trap charts
as well as having a knowledge of the
bear trap trading strategy
can help you get out of a losing trade and change direction immediately when that happens so you can profit from the up move price tends to make after the formation of bear traps.
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