SUPPLY AND DEMAND TRADING : Understanding and Mastering the Supply and Demand Zones, with Price Action and Liquidity Trading Concept

Understanding and Mastering the Supply and Demand Zones with Price Action and Liquidity Trading Concept

The concept of supply and demand applies to many businesses and industries, and the foreign exchange market is no exception. The lack of supply of an item would naturally bring the demand of said item higher. On the other hand, the excessive supply of an item would result in the lack of demand for the item.

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.

This book will begin the journey to take you off bad habits and wild-man scalping. It will steer you away from retail lagging tools to teach you how to view Supply/Demand levels and zones that matter.

You'll learn to apply real-time price action reading to these institutional Supply/Demand levels. I also set you on a path to determine whether your trade will have enough space.

The reason why S/D levels on large time frames are so efficient is because there is so much trading information over long periods of time.

But also because institutional traders need deep liquidity pools to execute huge institutional orders that go into thousands of lots (we're talking positions in excess of $300-500 million).

In order to save on execution costs (to ensure the order is filled in as little trades as possible), institutional market makers will move the price up or down by using some of the allocated funds to bring the price to the levels where the huge several thousand lots orders can be filled in a cost-effective way.

You will learn how to spot these big players on medium and larger timeframes.