The following article aims to provide:
- A quick introduction to our trading philosophy as Supply and Demand Forex traders
- A first few words on Supply and Demand levels (more on separate dedicated pages under the learn menu)
We believe in the timeless market principles that have remained the same since even before there were any organized markets for trading. Supply and Demand is the only principle that has withstood the test of time, the passing of centuries and even the technological revolution. Trading has evolved, our monitoring tools have changed, the way we view each and every market changes year after year. What has always remained the same, exactly the same, is the reason why price moves from one point to the next: it is the very simple and basic fact that either buyers or sellers have been exhausted at a specific price, thus trading now naturally takes places at a slightly different price than a moment ago, where additional buyers or sellers can be matched, and more orders can be fulfilled. This constant Supply and Demand force is what makes price change and over time creates the charts on our screens that we are so familiar with.
But this is neither privileged nor actionable information. Where is that desired trading "edge", and how can we use it in our daily trading? Most importantly, which objective market information is it based upon and where is the consistency in results? Does the logic behind it make true sense, and can it be reproduced and verified without special equipment or premium software? That's where Supply and Demand level trading comes in. Properly identifying the traces of Supply and Demand imbalances on your chart and evaluating the likelihood of a predictable market reaction when price returns can provide exactly that. Trade entries can be placed so as to be boosted by the anticipated imbalance near a valid level, and stop orders can be made much harder to hit behind the virtual wall of Supply and Demand imbalance.
If you can identify areas on a chart where there has been a true Supply/Demand imbalance in the past, then you have a great trading advantage over your competition
And this is applicable to any timeframe, from the smallest to the largest ones. So if you can identify areas on a chart where there has been a true Supply/Demand imbalance in the past, and if you can properly evaluate the probability a level has to produce the expected reaction, then you obviously have a great trading advantage over your competition: you can enter lower-risk higher-reward trades, with improved probabilities for success when price returns to the level for the first time after such an imbalance is created. Market interest around valid imbalance levels tends to be renewed, and banks and institutions really enjoy catching the trading herd on the wrong side of the trade. These imbalances can create market reactions that can be anticipated in advance in a statistically meaningful way, in order to be successfully used in trading, but not many traders outside professional circles understand the underlying simplicity of the markets. The vast majority of traders end up lost in the maze of illusions and invalid information and never attain any true trading "edge".
Identifying these levels takes some practice, but it is something that can make a huge difference in your trading and the way you view the markets. Our services are intended to provide all the notifications you need now, in order to enhance your trading by using the same levels that we have identified and evaluated for our own trades. We also give you the opportunity to start recognizing and filtering the levels by yourself over time, as you watch the reactions of the market to these levels on your charts, including those you might have chosen not to use. And have in mind that you will have access to all these identified levels long before the price reaches the area, which means you will have the opportunity to anticipate the market reaction instead of chasing it after the fact like everyone else. You will see for yourself how price reacts to a supply and demand imbalance, and how it bounces off the level or even reverses direction altogether. This is probably the most powerful technique you have ever seen in trading and it could easily change the way you trade in the future.
Supply and Demand levels are NOT the same as support and resistance areas, and in fact they rarely coincide
At this point we should clarify that "Supply and Demand" levels are NOT the same as "support and resistance" areas, and in fact they rarely coincide. This is a whole topic on its own and we have covered it on another page. This is one of the most important topics and we strongly advise you to read it, whether you are interested in our services or not, as it can make you re-evaluate everything you know about successful trading.
Supply and demand levels are not supernatural, magical, or even rare. On the contrary, they are the natural result of trading activity in any market and on any timeframe. Trading at a specific price occurs only when there are both buyers to buy and sellers to sell to these buyers. While both groups remain relatively equal in strength, trading continues with very little fluctuation in price. But when the time comes and one of the two groups gets naturally exhausted by having all their orders filled at that price and so one of the groups becomes much larger than the other one, then we have a supply/demand imbalance and price shoots towards a new direction where more willing buyers/sellers enter the market, thus filling orders at that new price.
When price (after a supply/demand imbalance) shoots strongly towards a new area, it leaves behind an area which now represents the supply/demand imbalance which drove the price away.
Your charts are full of areas/levels that represent smaller or larger supply/demand imbalances, you can see them on nearly every chart. This does NOT mean that all of these levels are suitable for trading. Only a few of these levels are actually valid (high probability) and can reliably cause the market reaction we anticipate, and that is the reason why we filter all these numerous levels and choose the very few that we choose to trade. After all, the whole point is to have probabilities stacked on our side, which is a vital ingredient for profitability. There are some rules that are meant to make this filtering much easier, and with some practice you can start identifying and using your own levels after a while. You can find a lot more information in the educational section of our website. We have prepared a lot of material for you to read, evaluate and think about, that will also cover your questions and hopefully give you a few of those "Aha!" moments that will shape your future trading. This material is provided to you for free as we think it is important to understand the logic and dynamics behind Supply and Demand trading before you even start your free trial and gain access to our actual trades. Our free trial will be much more rewarding for you if you are already familiar with the basic concepts and understand the Supply and Demand dynamics behind the scenes. After all, you will want to know what kind of reaction you can anticipate in order to use it more efficiently in your daily trading.
Our service aims to provide you with the levels we have identified for ourselves while looking for new low-risk high-reward trades to take. We have chosen to offer a very long 30-day free trial period for you to have all the time you need in order to evaluate our service and see for yourself the real-time market reactions to levels that we pre-identified, filtered, and provided to you in advance.