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Supply Demand Trading Short and Sweet: Quick Guide for Beginners

As an amateur or a seasoned trader, you must be familiar with the term ‘Supply & Demand.’ It is an age old principle known to mankind. And, Supply-Demand trading is based on this very principle. https://bit.ly/2HR0fNe

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Supply Demand Trading Short and Sweet: Quick Guide for Beginners

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  1. As an amateur or a seasoned trader, you must be familiar with the term ‘Supply & Demand.’ It is an age old principle known to mankind. And, Supply-Demand trading is based on this very principle. If you are a beginner in the world of trading, then this guide will explain you the Supply-Demand Trading short and sweet. Supply-Demand Trading is a full-fledged trading strategy in itself. In this trading strategy, we basically look for the points on the chart where the price of the trading commodity has either risen very sharply or has declined sharply. These points, known as Supply-Demand Zones, are marked by rectangles. Rectangles make the trading strategy visually appealing for many stock traders. Easy-to-Understand Concept: While you will still deal with pie-charts and candle-charts, the concept of Supply-demand trading is relatively easier to understand.

  2. Use of Rectangles: Rectangles are drawn by marking Supply and Demand levels. Probability of a successful prediction goes up depending upon the accuracy with which these levels have been plotted on the chart. Get Started Right Away: With the right Supply-Demand Trading Community, you can get started with this trading analysis method right away! Medium Volatility: A narrow Supply-Demand zone usually results in a low risk trade opportunity after a strong breakout. Supply zones are characterized by narrow abundances of sell orders. Timed Exit: Favorable Supply zones are narrow and do not stay the same way for longer durations. Re-entry opportunities are typically favored by shorter accumulation zones. The ‘Spring Pattern’: A Spring Pattern is characterized by price movement in the opposite direction immediately after a breakout. The ‘Spring’ pattern often fools traders because it looks like a ‘Breakout.’ Strong Force exiting the zone: A Strong Breakout depicts a favorable demand zone. The explosive price variation is caused by a high imbalance between the buyers and sellers.

  3. With proper guidance, yes! There is a lot that goes into learning this trading strategy. A hands-on experience on the live market with Stock Trading Training can help you learn this trading method.

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