Is it Real, if the mirror of supply and demand are support and resistance - Page 2
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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. #11
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    supply and demand and support and resistance levels are strong levels for trading and so all are good for trading, sometimes the levels become the same as we can find a good and strong level of support and it is the same level of demands, so bth work well and both can help the traders to get good results from the market and can make money.

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  3. #12
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    i do agree if supply demand is the causes of support resistance, it was built with the price where supply and demand become the main thing behind it, then the advantages that we can see the lower price and the high price as the range in the market, we can analyze this part as the way to get the time to enter and exit from the market

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  4. #13
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    That's why we should be carefully when we are making buy and sell near those support and resistance based areas. A trader who is going against the support and resistance can also lose his money in forex, because then we start to play wrongly with market demand and supply. Support and resistance are our demand and supply zones and when market have respect for them then they can become the best points to earn consistently in forex.

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  5. #14
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    I have learned a lot about that from so many of my friends that its better to do trade with support and resistance and we have to be careful every time when they are coming in our way actually I am a trend follower and so many time when I am holding a trend then they appear on the way and reverse the market to the opposite direction so its true that support and resistance are very essential part of our trading in forex.

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  6. #15
    Trader cutiekc's Avatar
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    We can really follow the market through the support and resistance movement and then we will be able to know the movement of the market and know how to react and trade it. In forex trading to make money from the market we need to have much better understanding on how the business works before we can make money from it, there is no fast way of earning in the business, learning will really teach us.

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  7. #16
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    Quote Originally Posted by cutiekc View Post
    We can really follow the market through the support and resistance movement and then we will be able to know the movement of the market and know how to react and trade it. In forex trading to make money from the market we need to have much better understanding on how the business works before we can make money from it, there is no fast way of earning in the business, learning will really teach us.
    If the trader has really understood the way the support and resistance is working, then, they will not have issues with its trading in the market. There are actually lots to learn in this business, and traders will be sure that they are learning it actively with real trading efforts, that is what will help them to maintain a good trading system.

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  8. #17
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    cozard007, yes mate. support resistance is the gate for them to enter the market and also to exit from the market and soit means they have mastered the basic with well. support resistance become the mirror for supply and demand and also as the point for traders to get the right timing. and so they know how to put the position on the market and also to protect the balance from big loses

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  9. #18
    Trader cutiekc's Avatar
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    Quote Originally Posted by cozard007 View Post
    If the trader has really understood the way the support and resistance is working, then, they will not have issues with its trading in the market. There are actually lots to learn in this business, and traders will be sure that they are learning it actively with real trading efforts, that is what will help them to maintain a good trading system.
    But at the same time a trader needs to know that nothing is going to be perfect in the business,whereas traders knowing that even at when making use of the support and resistance levels, there is no way you will be able to master the market, it could be tricky to, but being that I do follow the candle stick bar, anyone that has formed on the support and resistance levels do actually work out much better.

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  10. #19
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    Yes, it is real. Supply and demand are the same things as support and resistance. It's just a different view of support and resistance. Supply and demand are more clear than support and resistance. It's easy to understand the supply and demand. And you can trade with confident with supply and demand.

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  11. #20
    Trader cutiekc's Avatar
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    If we really want to earn more in forex trading then we need to learn and understand how the support and resistance levels do work. The business is a risky one and we have to make sure that we have all what it takes to make us a successful trader. Furthermore, in the past I do ignore the support and resistance when trading but now I have got to know and see how much important it has been.

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