How To Trade With Supply And Demand Zones
As we know supply demand forex trading strategy is one best of the best trading techniques. But how read the confirmation level of break supply demand zones to decide on every trade that we make? Supply-demand is the heart of forex or any other instrument in the market economy since the exchange of services and goods is for economic value. The supply-demand level is a little bit different from the support resistance level. Supply-demand has at least two line zones that cover this level. These two lines have a small distance area that is called a supply or demand zone that we can enter on this level. All the explanation details such as how to get accurate demand-supply trading zones and how we use liquidity area even for the scalping area are in an e-book that you can download on the last page of this article.
First, If we want to learn about forex trading using supply demand trading strategy, we have to understand how we read broken confirmation levels from the supply-demand area itself. The models of breakout supply demand has to be making an imbalance area (see video tutorial supply-demand below). This is the key to a supply-demand trading strategy. From my experience using this supply-demand trading strategy, these basic rules have to be done.
This is how we look for the best entry on order block to minimize our trading risk.
Just simple, first if you want to sell, just look at the supply zone level, and if this supply zone level breaks it means there is a closing candle break at this level so the price would be moving to the next demand level area. And if you want to buy just look at the demand zone area and if this demand zone area breaks so buying trading setup is formed.
Another scalping trading forex strategy uses liquidity areas that we have got from the supply-demand trading strategy are explained in this video below.
Intraday Forex Trading Strategies That You Can Use Based On Supply and Demand Trading Strategy
Here are some pictures that give a clear explanation of this forex supply-demand trading strategy :
The pictures below are representative of intraday or swing forex traders you are. The green zone is for intraday which is a small area zone, so take pips it is about max 100 pips. For yellow zone is for swing level supply demand which getting from a bigger time frame.
It’s another sample picture from this great supply-demand trading decision.
Attention
Another source on how to identify supply and demand zones on a chart can be read from forex factory forum traders and this video tutorial which is highly recommended in learning supply demand step-by-step analysis and combined with secret forex trading method using institutional candle strategy.
This range of supply and demand areas can be small and can be large. It all depends on what kind of trader you are. if you are an intraday trader, use the daily or h4 supply demand area and take a profit usually between 15-60 pips, or if you are a swing trader just use the weekly supply demand area to get 100-500 pips. You can use trend lines, these can help to assess trends if you have the right rules.
Lastly, here we go download the e-book about trading for living with supply demand strategy that I’ve promised to share, and remember using this forex broker for scalping on using this forex supply demand trading strategy because they have a great and good feed data price, have a nice pips !!