Supply and Demand trading is a method used to locate areas of excess supply to predict where price will go down or excess demand to predict where price will go up. The main assumption of supply and demand trading is when the market makes a bullish or bearish aggressive move, we assume it is due to banks/hedge funds market influence and they are not able to fill their entire position, therefore they leave pending orders to buy or sell at the zone with the expectation the market will return to the zone and the rest of their trading position will be filled.

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