Is it Real, if the mirror of supply and demand are support and resistance - Page 3
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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. #21
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    Quote Originally Posted by cutiekc View Post
    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.
    If we trully desire to earn more money in here, we need to invest more time to learn about the conditions of the market first. Many traders want to earn money but they spent less effort in learning. I think that a precious care in trading need to be placed too because we need to know a lot of conditions might happen even if they do not move in the support and resistance.

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  3. #22
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    The market is real so with that been said, traders needs to put in more efforts to understand more about the market and be able to have the ability to make use of the market rightly as possible. Trading is not simple a lot have been losing their money but when learning is been given the right time and understanding the more better you become.

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  4. #23
    Trader shambca7's Avatar
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    Trader's should understand the concept of support and resistance when they are learning about the market demand and supply, here market demand and support and resistance both will complete the knowledge of this whole term for the traders. Actually the demand is related to the market support points and the supply can be seen above on resistance zones.

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  5. #24
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    I think that is difficult to understand that support and resistance are the real mirror of supply and demand, you explain very briefly in your thread but i do not think that new traders can understand that so i think you can learn the support and resistance and supply and demand separate so you can better understand them...

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  6. #25
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    I do not know much about supply and demand of this business. I only know that support and resistance is the only two levels in which market is always move. We only need to find market support and resistance then find trend and make profit is become easy for us. The real thing in this business is knowledge about these levels.

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  7. #26
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    Yeah I think so that we can see demand and supply as support or resistance of a market because when any thing demand is increase then its price goes up we can say its resistance and when its supply increase then its demand is decrease and price is down then we can say its going to find the support. So we can say it as demand or supply level of support or resistance levels.

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  8. #27
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    support resistance is the reflection of supply and demand, but there are some aspects too that will change the situations in the market immediately, so the support resistance is broken by something too, we have to trade carefully and because everything can happen in the market, but i do agree that support resistance become the basic for us to enter and exit from the market, that is the way to get the time in the market

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  9. #28
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    support and resistant is good option for us, supply and demand rule can be apply on it because this type of all things can be same meaning but if we work like professional then we can differ small difference also, so make sure you have good understanding in it and you are using then make and more practice on it then easily will earn

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  10. #29
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    Quote Originally Posted by mr.big View Post
    support resistance is the reflection of supply and demand, but there are some aspects too that will change the situations in the market immediately, so the support resistance is broken by something too, we have to trade carefully and because everything can happen in the market, but i do agree that support resistance become the basic for us to enter and exit from the market, that is the way to get the time in the market
    Support and resistance levels are really helpful when it comes to trading, it do reflect the activities of the big market investors and from my best of knowledge it should not be ignored because when you ignore such trading method you probably will loss. As per my experience trades that forms around the support and resistance are more strong and reliable.

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  11. #30
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    Quote Originally Posted by D'mastermind View Post
    Support and resistance levels are really helpful when it comes to trading, it do reflect the activities of the big market investors and from my best of knowledge it should not be ignored because when you ignore such trading method you probably will loss. As per my experience trades that forms around the support and resistance are more strong and reliable.
    Support and resistance will be really helpful when we need to trade but we need to know also that trading themselves is not easy at all. The psychology of the investors is what actually you need to learn in here since they will tell you how to trade and invest too in the next moment you need to get in the market.

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