What is a supply and demand trading strategy?

Are you wondering what a supply and demand trading strategy is? The supply and demand trading strategy is a price action trading method that looks for trade entry opportunities around supply and demand zones — areas in the chart that show periods of sideways price action before explosive price moves.

How does supply and demand affect forex trading?

Now Forex, as well as all other markets, stocks, commodities, crypto, etc, are driven by supply and demand. News events, economic announcements, and general market action cause different groups of traders to buy and sell, resulting in changes to the supply and demand equation.

What happens when supply & demand are balanced in financial markets?

When supply and demand are balanced in the financial markets, the markets balance and are ranging. Once there is an imbalance between buyers (demand) and sellers (supply), we can see markets to trend. When demand exceeds supply, prices are going higher. When supply exceeds demand, prices are going lower.

What is the law of supply and demand?

In the world of finance and economics, supply and demand is the most important concept — the law of supply and demand governs all market prices. In basic economics, it is well-known that supply and demand are what affect the prices of goods and services.