Sam Seiden wrote:
"Noted economist Adam Smith suggested hundreds of years ago that when supply exceeds demand at a price level, prices will decline and vice-versa. Noted physicist Isaac Newton suggested in his three laws of motion that an object will remain in motion until it is met with an equal or greater force. These two simple, yet brilliant principles have stood the test of time and are directly responsible for the movement of price in the markets we trade today. There is no doubt in my mind that the two of them would have made excellent traders."
Demand
A price at which someone is willing and able to buy something.
Demand = (Support) = where to buy.
Supply
The price at which someone is willing and able to sell something.
Supply = (Resistance) = where to sell.
Just like any market, the financial markets are a function of supply & demand and good trading opportunities present themselves when this equation is out of balance.
Watch over 25 Sam Seiden webinars devoted to the concept of trading Supply & Demand zones here.
The best thread on Forex Factory to learn from a real Supply & Demand trader who shares his trades is "Price is everything" here: run by RedsWord11
"Noted economist Adam Smith suggested hundreds of years ago that when supply exceeds demand at a price level, prices will decline and vice-versa. Noted physicist Isaac Newton suggested in his three laws of motion that an object will remain in motion until it is met with an equal or greater force. These two simple, yet brilliant principles have stood the test of time and are directly responsible for the movement of price in the markets we trade today. There is no doubt in my mind that the two of them would have made excellent traders."
Demand
A price at which someone is willing and able to buy something.
Demand = (Support) = where to buy.
Supply
The price at which someone is willing and able to sell something.
Supply = (Resistance) = where to sell.
Just like any market, the financial markets are a function of supply & demand and good trading opportunities present themselves when this equation is out of balance.
Watch over 25 Sam Seiden webinars devoted to the concept of trading Supply & Demand zones here.
The best thread on Forex Factory to learn from a real Supply & Demand trader who shares his trades is "Price is everything" here: run by RedsWord11
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