How do we limit losing trades in the Forex market due to supply and demand
Limit loss in forex trading
Our goal as a trader is to find hidden, incomplete institutional orders by identifying the imprints left by the institutions on the chart; this area we call the origin is an area on the chart where one of the two forces has become zero at a specific price so let’s apply step by step very basically what we just learned Let’s take a look at the candidates. In this direction, the price is heading. Is it in a range, or is it moving sideways because the price is moving sideways ?
What does that mean in terms of the power that controls his supplier of modern control here since we can’t say who is in control? Does that mean a significant imbalance or an imbalance in the current price range? It is appropriately balanced since the price is pretty balanced. We cannot identify institutional activity at this point because we now see a significant price drop.
Using the supply and demand strategy in Forex
This function in price tells us about the force controlling the demand of suppliers and controlling it without any doubt in the supply, and based on the decline that you see rather than a gradual decline with small red candles or a considerable substantial decrease in price, it is a significant decline which caused this function, you And I or the banks and major institutions it is a corporate activity that we were not able to cause the price to fall, take this into account and think about it logically, the only reason the price drops is that one of the two forces is out of balance.
So, in this case, the billing bias became zero in this region. It was inevitable that the price would fall since we don’t have any willing buyers in this region. However, there are still many willing sellers, leaving the result that the supply exceeds the demand we initially set. We highlight the asset with the yellow box to visualize the area where the price has remained in a powerful movement. We take this area of imbalance where supply has exceeded demand and draw two horizontal lines to the right, so what do we want to do when the price returns to that area?
We want to sell short to get in, we put our set, and we walk away because when the price comes back, what do we expect to happen, and why do we expect the price to enter this supply zone since we have buyers without invoices in the supply zone and this is a large number of unfilled sell orders, the supply will exceed the demand. We will see a decline in the price, so we expect the price to enter these supply zones. As I said, since we do not have any winning bars in the supply zone and there are many unfilled sell orders, the supply will eventually exceed the demand, and the price will fall.
“How can I set a stop loss in forex trading” ?
Let’s give another example here again. Let’s look at the candles in which direction the price is moving. It’s in a range since the price is moving sideways; what does that mean regarding its strength? Supplier demand control and control here again. It’s the same story since we can’t determine who is in control. Does this mean there is a significant imbalance or an imbalance in the current price range since the price is fairly balanced?
We cannot identify institutional activity since we are now seeing a significant price rise. What does this price rise tell us about the force that controls supply or demand? Is it controlled without a doubt by demand and based on the rise you see rather than a gradual move with small green candles Or a significant substantial rise in price? It is a big rise.
So, who caused this rise? Is it you and me again, or the banks and large institutions? It is an institutional activity. We could never have caused this rise in price; consider this, keep in mind.
Learn how to deal with losses in trading
Think about it logically: the only reason the price goes up is that one of the two forces is out of balance, so in this case, the willing sellers have reached zero in this area. The price was bound to go up because, in this area, we don’t have any winning sellers, but there are still a large number of Winning buyers who left a minimum order that exceeded the bid.
We select the origin and highlight the origin with the yellow box to visualize the area where the price is left with a powerful movement; we take this area of imbalance where the demand exceeds the supply and pull two horizontal lines to the right. Here we go now: what do we want to do when the price returns to the area where we want to go? With it long, we put our set and walk away 74 and get a life.
Because when the price returns, what do we want to do, and what do we expect to happen? We expect the price to enter this demand zone as we do not have any winning sellers in the demand zone, and a large amount of invalid buy orders will exceed the supply; hence, we will see a rise in the price they bear is responsible for the prices rising or falling, supply and demand push that if there is Low supply and high demand, prices will increase.
summary
Your goal as a professional trader is to find hidden incomplete institutional orders and prepare for some exciting market movements. This article has helped you formulate the basic concept of supply and demand. I wish you happiness.
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