Key Concept of Any market ::Support/Resistance and Demand/Supply
What is Support Resistance : In any security or Instument, Support and Resistances are Price Levels or Zones at which Price Stops and tend to reverse in opposite Direction. So These are zones(in a price chart) where price test them a few times and fails to breakthrough. Demand and Supply : This is an economic term. Demand Supply are relationship Bitween Sellers or Producers and Consumers or Buyers at Certain price levels they tend to sell or Buy. If they are producers they got certain price levels in mind to sell for profit and if they are consumers they got certain price levels in mind to buy. Here Product in question can be any security, stock, Bond or Currency. If we try to define supply and demand then Supply and Demand defines an asset or asset class. Here we will use Currencies as asset class or a currency as an asset. Supply refers to the amount of an currency(s) that is available while demand is the quantity of a currency that people are willing to buy...