Is it Real, if the mirror of supply and demand are support and resistance - Page 25
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Thread: Is it Real, if the mirror of supply and demand are support and resistance

  1. #1
    Registered user Agustina's Avatar
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    Is it Real, if the mirror of supply and demand are support and resistance

    [lang=id]Often when we look at the chart the price only moves up to a certain point, then back, then down, Rebounce again, and so on. like there was a wall in that price , are you feel like that?

    Ok, lets to know more in detail:

    • The basic principle the reason of the price down because there are selling activity, because there are selling then supply on the market increases, and under the laws of economic balance, if the supply increases then price will go down. Is it true, try to imagine. if not correct me .
    • Another cases basic principle the reason of the price up because there are buying activity, because there are buying then demand on the market increases, and under the laws of economic balance, if the demand increases then price will go up. Is it true, try to imagine. if not correct me .


    Well, the next question, why do they sell or buy at that price? why not in another price. in this case at pecific price there are supply and in another hands also there are demand at specific price

    In the financial markets, it is called support and resistance. if this true, the initial conclusion: the support and resistance is a mirror of supply and demand.

    Let's go to the next step:

    • Support Point is a certain point which is psychologically a lot of people will buy the instrument, simply where prices will Rebounce after down.
    • Resistance Point is the opposite of support, that is a certain point which is psychologically a lot of people selling the instrument, simply where prices will back again after up.


    __________________________________________________ ___________________________

    A Simple story about the logic of supply and demand that could create support and resistance .

    Supposing you are stockpiling oil. Price of 1 July was 10 000 per bottle. On July 3, the price up till 12 000 per bottle. Of course you are not directly buy at the price of 12 000. You will wait for the price down a bit, then buy again. It turned out that on July 5, the price drops to 10 000. So psychologically, you would think , wah, has gone down as before, this is the time I bought . "Equally, in forex also apply this principle . well EURUSD has dropped as low as last week, this is the time I bought."

    That is the principe of supply

    then what about the principe of demand, it is:

    Well it turns out on July 7, the oil price up till 15 000 per bottle, and then on January 9, fell to 12000. Then on July9, psychologically, there will be mind to buy oil (the premise: to have gone down a lot, and hard if you want to go down to 10000 again ...), then buy again at 12 000.

    Then on July 10, the price of oil so 15 000, then you would think (wah, the price very expensive,, same as when the price of the most expensive), then you will take off to sell oil, because naturally, you would think 15 000 it most expensive and perhaps further price will not rise more than 15 000 again.

    From there we can take point : The price at 10 000 as support and price at 15 000 as resistance.

    __________________________________________________ __________

    only that I have, hopefully you gain insights into this case, this can you make basic decisions or as a supporting way to your system

    henceforth may we continue on mechanically how to determine the zone of supply and demand on the forex as support and resistance.[/lang]

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  2. #241
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    I think that supply demand is the same as support resistance and we have to trade the same as we trade support resistance. Market moves from support to resistance and then it moves back. There is nothing special but we must find the strong support resistance levels on h4 and d1 charts and watch if currency moves between them or try to brake any level.

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  3. #242
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    Quote Originally Posted by Rola View Post
    I think that supply demand is the same as support resistance and we have to trade the same as we trade support resistance. Market moves from support to resistance and then it moves back. There is nothing special but we must find the strong support resistance levels on h4 and d1 charts and watch if currency moves between them or try to brake any level.
    It is true and the effect is very simple on trade if we have opportunity to trade well we have to wait for more clear results in trade ,a trader if fully understand about the support and resistance level then we expect good results from market which are very helpful for generate positive results from market .

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  4. #243
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    There is a relationship between the supply and demand with our regular support and resistance, only that we often trade Forex by watching only what we understand, supply and demand will make us some good profits, it is better we trade this than support and resistance, the knowledge we get from one can be applied for the other, these two are Mirrors of each other.

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  5. #244
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    i think that supply and demands have the same function of support and resistance and both have similar characters and so the trader can combine between them and see the effect of both of them, i do not trade with supply and demands but trade with support and resistance and see it is more practical for me and let me to read the chart better.

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  6. #245
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    Yeah, supply and demand are most likely support and resistances. If price can not break a resistance then it means buyers are not sure to keep the pair higher and they want to sell it. Same like demand, if support is unable to break then there are no sellers at that point and traders will start buying there.

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  7. #246
    Trader snnaky's Avatar
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    Forex trading as they say is an art, every trader has its own way of finding an strategy that will work best for him, but one's strategy may work best for you but not on other trader, because each one of us has its own personality, it is important that traders pick or design an strategy that will suit him best.

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  8. #247
    Trader pajero's Avatar
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    In general the concept of supply & demand (supply and demand) occurs When demand rises and supply decreases, the price will rise. Conversely, if the supply (supply) rises and demand (demand) falls, the price will go down. The conditions that occur are the price of the currency on the market always moves up and down. This is also influenced by supply and demand for the currency. Then, there is a time in the market where prices stop moving up or stop moving down. This is certainly because the demand or supply is not large enough to cause prices to rise or fall.

    In technical analysis, we can estimate when approximately supply or demand gets bigger. The trick is to recognize the support and resistance levels earlier.

    Support is an area of ​​price level, where at that level DEMAND is large enough to hold down prices (DEMAND> SUPPLY). At this level, prices tend to stop moving downwards and most likely will rise again. The practical language, support is a level that is expected to hold a bearish movement (down).

    While resistance is an area of ​​price level where at that level SUPPLY is large enough to stop rising prices (SUPPLY> DEMAND). At this level, prices tend to stop moving up and most likely will go down again. The practical language, resistance is a level that is expected to hold a bullish movement (up).

    So the difference is that what we can understand is Demand and Supply discussing the price problem that occurs due to rising demand and supply As if Support and Resistance are related to the Level area or price movement space shown on a chart or graph and marked by a certain point either Bearish and Bullish.

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  9. #248
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    the supply and demand and support and resistance have the same function and they are similar, the trader can trade with both of them or any of them as this depends on his preference and so he will be able to make an easy money because both are effective and let the trader to read the chart better and determine the strong levels always.

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  10. #249
    Trader Doge's Avatar
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    It's not exactly like that, there is supply and demand both above and below the point value of support/resistance which form the zone of support/resistance. Besides just buyers and sellers there are also people interested in the asset and speculators. Depending on which one are more on every side of the S/R point value a trend or a range forms on the chart. In trends S/R zones are tested or broken, in range they become the middle points of consolidations or ranges.

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    Wow. Much Forex. So Monies. Very Opportunity.Many Trade. So Amazed. Wow.

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