Demand and Supply are the chief catalysts of the Forex market. These variables show where the money lies and analyzing them; one can carry out their trades in a lucrative manner. However, the real issue lies in finding out a strategy. Newbies search the net continuously till exhaustion but unfortunately remain oblivious as to which strategy will work well for them. Experts point out that most new traders have the wrong mindset. Instead of searching for the so-called very profitable Forex strategy, they should gather more information regarding demand and supply and how it influences the market.
An Insight Demand and Supply Trading Strategy:
Be a strong price turning point, market trend or support and resistance – one will always find the conception of demand and supply existing in its core. As per Forex 101, it is known that a strong uptrend is possible if buyers surpass the sellers in mass.
In such situations price trend moves upwards till there ample no. of sellers enter the market to absorb the massive buy orders. This showcases an emphatic Bullish Trend and defines itself as –Demand Zone or Accumulation.
Contrarily, when the market scenario shows sellers surpass the market buyers’ orders. This creates a Bearish Trend also known as Distribution Zone. Traders look at such supply and demand zones and try to determine it with the help of technical indicators as well as via Price Action techniques.
Some Tips for Those Searching For the ‘So-Called’ Very Profitable Forex Strategy:
Look For the Market with High Imbalance Zones
Whether it’s a Forex simple profit strategy or a complex one, the trick is always to identify areas with most price imbalance between buyers and sellers. In lucid terms, it means that if some when some signals occur in the rally and all of a sudden it reverses or drops dead like a stone, those are zones with tremendous imbalance.
Making it simpler – it denotes that no. of sellers entering the market have surpassed the buyers count. So, the 1st tip is that traders will need to identify this zone and conduct their trades accordingly.
Be Wary of the Spring Chart Pattern
2nd most tip for traders using a Forex simple profit strategy is careful of the Spring Pattern. This denotes currency price movements heading in a direction opposite to the trend. These primarily look like false breakout points and treating it as the perfect sell opportunity; most traders get sucked into the trap.
Venture veterans state that what traders should look to do is wait for this pattern and rather use this price the prices higher and load up their buy orders.
Looking Into a Strong Force Which Leaves the Zone
This is an essential point of all. There are times when traders will find that the currency price leaves the supply zone. Instead, it starts trending, and that causes a strong imbalance amid the buyers and sellers.
Experts again point out that the stronger the Breakout point; the better will be the demand zone. The trick is to always look for extremely strong fluctuating points as big profits lie there itself.
These are some of those crucial tips which those searching for their so-called very profitable Forex strategy should keep in mind. Follow them properly and keep trading Forex.
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