The principle of Supply And Demand can be used as a forex trading analysis tool. One way to use it is to rely on the balance zone as zone stops Supply And Demand and the trading system applied, as well as the legal basis for general supply and demand.
All these discussions have been explained in detail in the previous article, How to trade supply and demand for beginners. Well, in this article, we will discuss advanced trading methods that can be applied by non-beginner traders.
Supply And Demand Balance Zone
Before continuing, let's repeat a little discussion about the balance zone. These zones or stops become regions when the number of buyers and goods available is of the same magnitude. There are no shortages or surpluses that can cause significant price changes. These stops are known as the balance zone.
Balance zones are usually depicted with prices that coincide with each other, and look like people who are lining up neatly. In this balance zone, prices often go back and forth in certain areas before finally breaking out and continuing their journey. Also in the Supply And Demand zone, there is price bargaining between the seller and the buyer to determine where the price will move next.
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In these four laws, a memorandum regarding price balance has never been discussed. The four laws are focused on notes when prices experience imbalances due to different quantities of goods available and interested people.
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