Piphunterss wrote: Wed Oct 23, 2024 1:24 am Hi Guys I want to Understand the true Meaning of Support and Resistance / Supply Demand i know there are tons of indicators available plus trader can manually draw supply demand but as i traded more and more i felt these levels never hold in expansion hwhen market expand with trend , so Question is what is the true criteria of supply demand zones in Forex , other previous week day and month .

In trading, Supply and Demand "zones" are a more advanced version of horizontal Support and Resistance lines and are based on the areas created by rallies to the upside (distributions) and price drops (accumulations). A supply zone is an area where there is a lot of selling activity, and a demand zone is where there is a lot of buying activity.

From a technical standpoint, in all my years of trading, Supply and Demand zones as well as horizontal support and resistance are only good for counter-trend scalping and making quick profit, I'm talking about a quick few ticks or pips on majors and that's it.

If you're just starting off as a trader and have a solid trend trading strategy already, it's only good to mark the higher timeframe's Supply and Demand zones for reference if:

• You're eying out short-term tops and bottoms on lower timeframes
• Looking at exiting swing positions that are already in profit and heading towards these "zones"

Round numbers also. But if you're swing trading strong trends on big timeframes such as the 4H, Daily, Weekly and Monthly try not to focus those zones as it will cast fear and doubt in your positions.

You are right, if the market is moving there's just no stopping it.

When I was working as a bond trader we never even drew any lines or support and resistance on our charts. Even though we were using a process called Market Making (pretty much scalping in both directions) I cannot remember a time where my colleagues or I discussed any major support and resistance areas coming up.

To give you an idea on what our screens looked like, here's a screenshot of my work desktop. One monitor, one trading platform and a DOM ladder with black and white bar chart minimized behind it just for reference.

No supply and demand zones here!