This article will explain some useful factors to consider when trading based on the supply and demand methodology. I will provide a brief overview of supply and demand before delving into how to identify high probability levels from which to trade.Supply and Demand OverviewThe only reason why price moves in any and all markets is because of an imbalance in supply and demand. The greater the imbalance, the greater the move.Strong moves in price away from a level indicate that not all orders were filled.
For example, at the origin of a supply level, there are not enough buy orders to fulfil the number of sell orders. This is why price moves away in such a strong fashion. When price returns to those levels, the novice traders are buying into an area where institutions have their sell orders. Hi nomadic123, I am one of those people who trained with Sam Seiden and OTA and I use supply and demand in all my trading, forex, futures, shares and commodities.
I believe if you look closely you will see that he drew the upper supply area along the lower edge on the bodies of 4 bars ( the bodies are small) with longer bars on the entry and exit of the area.Looks perfectly normal imo.The demand area looks in keeping with his methods. They will not always look exactly alike. bars are bars and they do not all form the same.jmo. To start viewing threads,select the forum that you want to visit from the selection below.
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