Best Supply and Demand Indicator

Sep 8, 2020 | 0 comments

Welcome again to our best forex indicator website. As a forex trader, you would often notice that the prices of different currency pairs do not move in a straight line. However, the correct way to describe the movement of price is that it moves in a zigzag manner. The main reason for this movement is the supply and demand factor. And therefore, the importance of using Best Supply and Demand Indicator becomes more.

In the financial market as a whole, supply and demand factor cannot be shelved aside if you must make headway as a trader. The buying and selling activities of investors or traders are behind the supply and demand factor. In other words, supply and demand factor denotes the available of buyers willing to buy and sellers also willing to sell.

So, in essence, the supply and demand factor is responsible for price movement. Therefore, they are regulating factors that determine the price point of every currency pair on the open market. The concept of supply and demand should be incorporated in the forex space, given that forex trading is all about price movement.

The best supply and demand indicator is a tool that comes handy when you want to trade with supply and demand in mind. While it works on any timeframe, it works best on H1 timeframes and above. Moreover, you can also use it to trade any currency pair of your choice.

While this article will explore how best to use the supply and demand indicator, and highlight a few information on what and what not to do to get the most of the tool. And let’s see if such indicator can make our best metatrader indicators page.

What Is The Supply And Demand Indicator?

Simply put, the best supply and demand indicator is a technical indicator that forex traders use to highlight the supply and demand zones on the market. Since the supply and demand zone is between two price levels – this indicator will help you highlight these price levels.

While the indicator will also help you to determine the best times to enter or exit a trade position so that you won’t lose your hard-earned money. Besides, you can combine the supply and demand indicator with other technical indicators, because the truth is that no technical indicator is ever 100% efficient. So keep reading and you will discover today if this will be one off the proven best forex indicators or not!

Best Supply and Demand Indicators

How To Trade With The Supply And Demand Indicator

The best supply and demand indicator can be used in several ways to trade the FX market. Hence, take a look at the buy and sell rules of using this indicator, here what to observe:

Buy Setup – Entries, Exits, and SL

The supply and demand indicator can set up to help you buy any currency pair at favorable prices. The indicator plots the supply and demand areas on your trading chart.

1. Buy Entry: Before setting up the indicator to place a buy order, ensure you observe as the price moves towards fresh demand areas. While the indicator will plot this zone as a blue rectangle. The next candle will bounce off the blue rectangle once the price touches the area. Hence, this is a strong bullish indication.

2. Stop Loss: Set your stop loss a few pips below the blue rectangle.

3. TP1: TP1 stands for “take profit 1.” Take profit is divided into two positions. Your first take profit should be between the nearest supply area (red rectangle) and the demand area (blue rectangle).

4. TP2: The second take profit should be the 80% line between the nearest supply area and the demand area.

5. Trailing Stop: You should trail the stop as soon as the price hits your first take profit to breakeven.

Sell Setup – Entries, Exits, and SLs

Below is how to configure the supply and demand indicator to sell:

1. Sell Entry: Before setting up the indicator to place a sell order, ensure you observe as the price moves towards fresh supply areas. While the indicator will plot this zone as a red rectangle. The next candle will bounce off the red rectangle once the price touches the area. Therefore, a strong sign of the price dropping in value.

2. Stop Loss: Set your stop loss a little bit above the red rectangle.

3. TP1: Your TP1 should be configured to be 50% between the nearest demand area (where you have the blue rectangle) and the supply area (where you have the red rectangle)

4. TP2: Set your TP2 to be 80% between the nearest demand area (where you have the blue rectangle) and the supply area (where you have the red rectangle)

5. Trailing Stop: You should trail the stop as soon as the price hits your first take profit to breakeven.

Tips To Help You Use The Supply And Demand Indicator

Below tips will help you use the supply and demand indicator efficiently:

1. Set your supply and demand zones to be your take profit zones: This simple tip will help you earn a profit. After placing a buy order and you observe that the price is heading into the supply zone. Therefore, it makes sense to move trailing stop loss tighter or take the profit off your trades.

2. The supply and demand zones are perfect areas to place your stop loss: The perfect area to place your stop loss is outside the resistance and support zone, and in this instance, it is the supply and demand zones.

3. Supply and demand zones can serve as confirmation zones when you want to buy or sell: The supply and demand indicator can help you identify support and resistance zone. Therefore, it is best to buy on the demand zone and also sell on the supply zone.

4. Use the indicator as trailing stops: The indicator can help you place a trailing stop loss to lock your profits as price moves down if you have a sell order.

5. Be wary of supply and demand zones: As they can be a trap for traders. To avoid been caught up with bear traps, ensure you study your bear trap chart and understand the bear trap trading strategies. Since this approach will help you not to lose your hard-earned money.

How To Install The Supply And Demand Indicator?

The process of downloading and installing the Supply and Demand Indicator is simple, seamless, and hassle-free. Here is all you have to do:

1. Download the indicator from a trusted platform or marketplace
2. Save the indicator file in a folder that you won’t forget.
3. Move the file to your MT4 indicator directory folder.
4. Start or restart your MT4 trading terminal.
5. Select the chart you wish to install the new indicator
6. Head over to the MT4 indicator directory
7. Look out for the supply and demand indicator.
8. Once you find the indicator, right-click on the file and select “install.”
9. Configure the indicator to suit your style
10. The indicator should appear on your trading chart.

Final Words On Best Supply and Demand Indicator

The best Supply and Demand Indicator can help you trade like a boss. All you need is to download and install it on your trading terminal. Then configure it to suit your trading preferences, and you would be one step closer to improving your revenue.

However, to enjoy this tool to the fullest, you can combine it with other technical indicators like support and resistance indicators, MACD indicator, breakout indicator, as well as the Gap indicator. We have all these indicators listed on our website for you to check out.

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