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.
How Values of currencies Increase or Decrease:
As supply of a currency increases, its value declines. On the contrary, as supply of a currency decreases, its value rises. As demand for a currency increases, its value rises. On the other hand, as demand for a currency decreases, its value declines.
For currencies,
So Demand and supply are zones where Buy and Sell orders are stacked.
Support and Resistances are zones where prices are tested and could not passthrough.
Demand or Support : Are prices Below the current price or they are floor prices.
Supply or Resistance : Are prices above the current price or they are the ceiling prices.
We tend to think Demand and Support are similar at the same time Supply or Resistances are similar which they are.
In our trading We use these terms loosely where we wish to buy or sell. Here is support and resistance on a eurusd 1 hour chart,
Daily for Larger Time Frame view of resistance that we could not see in 1 hour chart,
Support Turned Resistance and Resistance Turned Support: In 1H or 4H chart this is where actually eurusd Flipped it's direction to upside. Please copy the image and review the follow picture. Here You shall see where the zone was a resistance. Tried First and failed and backed down to lower support. Then Broke finally and Made it a Support. This is where entry taken is guranteed to make you a lots of pips, this is where we take long term positions!!,
New Month Date 01/06/2020(dd/mm/yyyy), Chart in 4H,
Indicator used on the chart,(auto pivot-akbar)
https://drive.google.com/file/d/1mj6ESpMsfUMB3f_ufehjmFVOEiZ_rQFe/view?usp=sharing
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.
How Values of currencies Increase or Decrease:
As supply of a currency increases, its value declines. On the contrary, as supply of a currency decreases, its value rises. As demand for a currency increases, its value rises. On the other hand, as demand for a currency decreases, its value declines.
For currencies,
So Demand and supply are zones where Buy and Sell orders are stacked.
Support and Resistances are zones where prices are tested and could not passthrough.
Demand or Support : Are prices Below the current price or they are floor prices.
Supply or Resistance : Are prices above the current price or they are the ceiling prices.
We tend to think Demand and Support are similar at the same time Supply or Resistances are similar which they are.
In our trading We use these terms loosely where we wish to buy or sell. Here is support and resistance on a eurusd 1 hour chart,
Daily for Larger Time Frame view of resistance that we could not see in 1 hour chart,
Support Turned Resistance and Resistance Turned Support: In 1H or 4H chart this is where actually eurusd Flipped it's direction to upside. Please copy the image and review the follow picture. Here You shall see where the zone was a resistance. Tried First and failed and backed down to lower support. Then Broke finally and Made it a Support. This is where entry taken is guranteed to make you a lots of pips, this is where we take long term positions!!,
gbpusd : Another pair
New Month Date 01/06/2020(dd/mm/yyyy), Chart in 4H,
Indicator used on the chart,(auto pivot-akbar)
https://drive.google.com/file/d/1mj6ESpMsfUMB3f_ufehjmFVOEiZ_rQFe/view?usp=sharing
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