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Supply and Demand Trading
3:01 · 8 chapters · Forex lessons, part 61
What you'll learn
A supply or demand zone is the base before a sharp move. Here's how to find one, judge its strength and wait for a rejection.
Go further with our written guide on this topic, browse all the free Learn Forex lessons, or check today's market in our forex news.
- Key point 1
- What supply and demand zones are, and why the zone is the base
- Key point 2
- The four patterns: drop-base-rally, rally-base-drop, rally-base-rally, drop-base-drop
- Key point 3
- Why fresh zones are treated as stronger than tested ones
- Key point 4
- How to draw a zone and where the stop goes
- Key point 5
- A step-by-step checklist before trading a zone
Rules and limits from regulators and official sources; every price, account and chart in the video is an example. Education, not financial advice.
More forex lessons
The video is presented by an animated host with a computer-generated voice; the research and checks are by the FX Recap team. Risk warning: forex and CFD trading carries a high risk of losing money because of leverage, and most retail accounts lose money. This is education and review, not financial advice. FX Recap may earn a commission from some broker links; see our affiliate disclosure.