#education
Smart money concept that works
Supply and demand trading is about placing your orders according to zones where the price tends to reverse due to various factors. It’s almost like support and resistance lines but wider and usually backed up by fundamental factors.
Usually, the price reacts sharply to supply and demand zones, meaning there is a lot of selling or buying interest.
But how do you know when to enter? That’s what the picture is about. Look for a rally-base-drop movement or other variations of it. The price tends to retest the base before moving toward the rally.
These areas allow traders to implement a favorable risk-to-reward approach in trades. You can set a buy limit order before the price reaches the base, and the chart will do it for you. Notice that stop loss should usually be near the demand zone and below the supply zone.
What else do you want to know about trading?
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