Supply/Demand (Resistance/Support)

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Supply/Demand (Resistance/Support)

Postby lehmann » Wed Jan 20, 2010 8:40 pm

Im posting 3 charts just to give you an idea of what im trying to say.
I have read some articles where this approach is described as a low risk and high reward trading opportunity, but im curious if any has thought of it this way. And maybe even traded this way. I hope to get some applies. all are very welcome.
Basically the idea is when price is moving sideways, then there's a very good balance between supply and demand. When prices moves down from that level, there must be an imbalance between supply and demand in that level.
We then know that if we hit that level again, it was a supply area, and who wants to buy into an area where we know by history that theres has been some selling going on. So if we hit that supply area again, we will be selling in the area, with a stop just outside the area. Its off course just opposite with a demand level.
The Risk/Reward ratio in this approach is very good because you have a tight stop.

EURUSD.jpg
Supply
EURJPY.jpg
Supply
EURCHF.jpg
Demand
lehmann
 
Posts: 15
Joined: Fri Nov 27, 2009 9:28 am

Re: Supply/Demand (Resistance/Support)

Postby marathon777 » Mon May 03, 2010 6:58 am

Hi,

Anyone that's serious about Support and Resistance might want to check out the Ichimoku indicator and related strategies.

It's unique becuse it provides the user with visual and distinct moving Support and Resistance areas or zones rather than a single non-moving point/line.
marathon777
 
Posts: 2
Joined: Sat Apr 17, 2010 5:11 am

Re: Supply/Demand (Resistance/Support)

Postby JohnR » Thu Jul 22, 2010 7:51 pm

I googled and found an indicator/EA set that actually trades according to the S/R that you specify. www.freeforexforall.com .

Has anyone tried this? It seems like a great idea. But just like every other paid products, I'm not sure if it will be worth the money or not, unless tested personally.

Anyone found any other tool that will trade (or indicate easily ) S/R strategies?
JohnR
 
Posts: 7
Joined: Mon Mar 22, 2010 7:15 pm


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