Learn how to use the supply and demand technique in forex trading to identify areas where the market is moving aggressively by marking potential buy or sell levels. The technique involves waiting for structural shifts and momentum to buy or sell in specific areas. The strategy can make $1000 a day and works best with stronger, more bullish or bearish candlesticks. You can use any timeframe and can target high-profit trades by waiting for significant structural changes, breaking up or down. Make sure to mark target areas before placing a buy or sell limit order.

The Supply and Demand Technique – A Guide to Making $1000 Per Day Trading Forex

Forex trading is one of the most lucrative businesses in the world, and many people dream of making a fortune by trading currency pairs. However, the reality is that it takes a lot of time, effort, and patience to become a successful forex trader. In this article, we will discuss the supply and demand technique and how it can help you make profits in forex trading.

What is the Supply and Demand Technique?

The supply and demand technique is a trading strategy that involves identifying levels where buyers and sellers are likely to enter the market. This technique is based on the fundamental law of price, which states that the price of an asset is determined by the balance between supply and demand.

In forex trading, supply represents the amount of currency that traders are willing to sell, and demand represents the amount of currency that traders are willing to buy. When there is an excess of demand over supply, the price of the currency pair goes up, and when there is an excess of supply over demand, the price of the currency pair goes down.

The supply and demand technique works on the principle of buying low and selling high. The goal is to identify areas where the market is likely to move aggressively in one direction and then wait for a retracement to enter a position in the opposite direction.

How Does the Supply and Demand Technique Work?

The supply and demand technique involves identifying levels of support and resistance on the charts. A support level is a level where the price of the currency pair has bounced off in the past, and a resistance level is a level where the price of the currency pair has struggled to break through.

To apply this technique, traders need to look for a market that has moved aggressively in one direction. For example, if the market has moved up aggressively, the trader needs to look for a level where the price is likely to retrace and show some resistance. Once this level is identified, the trader places a buy limit at this level and waits for the price to move up.

Similarly, if the market has moved down aggressively, the trader needs to look for a level where the price is likely to retrace and show some support. Once this level is identified, the trader places a sell limit at this level and waits for the price to move down.

Live Trade Example

Let’s take a look at a live trade example using the supply and demand technique. In this example, we can see that the market has moved up aggressively, and we are looking for a level where the price is likely to retrace and show some resistance.

Once we identify this level, we place a buy limit at this level and wait for the price to move up. In this case, the price did move up, and we made a profit of $500.

Conclusion

The supply and demand technique is a simple yet effective trading strategy that can help traders make profits in forex trading. By identifying levels of support and resistance and waiting for a retracement, traders can enter positions at optimal levels and maximize their profits.

However, it is important to note that like any other trading strategy, the supply and demand technique requires a lot of practice and patience. Traders need to test this technique on different currency pairs and time frames to find the optimal trading conditions.

We hope this article has given you a better understanding of the supply and demand technique and how it can help you make profits in forex trading. Happy trading!