The supply and demand indicator is an indicator that is used to identify the supply and demand factor in the market trend. Supply and demand both are financial categories. This indicator focuses on the law of supply and demand. As everyone knows that price will not move in a straight line all over time. It changes concerning time. Supply and demand play a significant role in Forex trading and binary trading. This indicator also indicates that where the supply and demand cause a solid increase or decrease and it also uses rectangles for indicating supply and demand zones.
Details of SUPPLY AND DEMAND INDICATOR.
Supply and demand both are economic terms which means that there are sellers available for selling and buyers available for buying in the market trend. They are important factors for price movements. They both are regulating factors which regulate the price movement in the market. In Forex trading there are not any physical goods are trader only currency pairs are trading in the Forex trading.
It is very difficult to identify that at which price supply and demand is strongest. For this purpose, traders are using supply and demand indicator for identifying price at which supply and demand are strongest. It depends on up and don of price action in market trend. The basic concept of this indicator is trade in that at the area where supply and demand rates are strongest and price for them is also high. There are two rules of supply and demand in the market.
- If there is an oversupply of an item, price falls.
- If there is a lot of demand for any item, then the price increases.
This rule is the same for every trading platform. In Forex trading, if there is a lot of demand for currency pairs then the price will increase automatically and if there is an oversupply of currency pairs occur then the price will move downward. In other words, the price will start to decrease. The supply and demand indicator is available for both Meta Trader 4 and Meta trader 5 platforms.
Like every indicator, this indicator also has a specific pip. Supply and demand indicator also uses a different colour scheme. Colours which are used in supply and demand indicator are Green, red, Dark red, and blue. Green and red colours are used for candlestick patterns. The dark red colour is used to indicate a supply zone in the indicator. The blue colour is used for demand zone in the trade. These two zones also help to understand the buying level and selling level.
USES of Supply and demand indicator
The supply and demand indicator has man uses. It is a free and best supply and demand indicator. It tells its users about supply and demand range in the market. It tells us about changing of price action in the market on the demand of currencies. It is an indicator which is used to show buy and sell rates. This indicator also uses different colours for ease of understanding. It is a free indicator. It is the most popular indicator of supply and demand.
Uses of Supply and demand indicator:
Currency pairs: All
EURUSD, GBPUSD, USDCHF, USDJPY, AUDUSD, NZDUSD, USDCAD,EURJPY, EURCHF, EURGBP, EURAUD, EURNZD, EURCAD,GBPJPY, GBPCHF, GBPAUD, GBPNZD, GBPCAD AUDCAD, AUDNZD, AUDJPY, CHFJPY, NZDJPY, CADJPY, CADCHF, NZDCHF
Trading Time: 24 Hours
Timeframe: Supply and demand indicator
Recommended broker: All trusted brokers
Remember, Before use Supply and demand indicator you can test on Demo account. When you will expert then you will use in Real account of trading.