Support and resistance

[denero234]

What's the difference between supply and demand to support and resistance

 

[Fxzombie]

In my opinion, the two are similar but not the same, identical twins but have special characteristics, support resistance reflects a price zone that is hard to break, supply demand reflects the balance of trading volume between buyers and sellers. In the equilibrium phase, prices tend to be flat because there is a balance in the volume of buyers and sellers, when a rally reflects the volume of buyers dominating more than sellers.

 

[pippin]

What's the difference between supply and demand to support and resistance

Supply and demand in trading refer to the fundamental economic forces that drive price movements. Supply is the amount of a particular asset available in the market, while demand is the desire and ability of buyers to purchase it. When demand exceeds supply, prices rise, and when supply exceeds demand, prices fall.

 

[Fxzombie]

It seems like there is a Supply and Demand indicator created by a third party, which automatically draws supply and demand zones like horizontal lines which are considered support and resistance. however, plotting on different timeframes produces different channels.

 

[pippin]

What's the difference between supply and demand to support and resistance

Supply and demand refer to the fundamental forces in a market that dictate price movement. Supply is the amount of an asset available, while demand represents the desire to purchase that asset. When demand exceeds supply, prices rise, and when supply exceeds demand, prices fall.

Support and resistance, on the other hand, are specific price levels identified through technical analysis. Support is a price level where the asset tends to find buying interest, preventing it from falling further. Resistance is a price level where selling pressure prevents the price from rising higher. While support and resistance reflect supply and demand dynamics, they are technical concepts used to predict market behavior at specific price points.

 

[Fxzombie]

Supply and demand analysis includes trading volume by exploring market behavior from market sentiment, many factors influence the increase in demand, such as recently when the Fed cut interest rates, the market became very volatile because many traders sold USD.

 

[pippin]

What's your favorite supply and demand tools please share so we can try it together. I use Autochartist with HFM, it comes free so newbies can also try it. Can anybody suggest something similar to try?

 

[Fxzombie]

What's your favorite supply and demand tools please share so we can try it together. I use Autochartist with HFM, it comes free so newbies can also try it. Can anybody suggest something similar to try?

Some time ago I tried using supply and demand indicators, but now I don't use them anymore and mostly use indicators such as Bollinger bands and RSI as tools while looking at the market with price action and candlestick patterns.

 

[Jonathan Lee]

Supply and demand zones represent areas where buying or selling pressure is high, influencing price movement. Support and resistance levels, on the other hand, are specific price points where trends often pause or reverse. Supply/demand is broader and dynamic, while support/resistance is static and derived from historical price action.

 

[Fxzombie]

Supply and demand zones represent areas where buying or selling pressure is high, influencing price movement. Support and resistance levels, on the other hand, are specific price points where trends often pause or reverse. Supply/demand is broader and dynamic, while support/resistance is static and derived from historical price action.

Good point and easy to understand, but I think calculating price history can result in dynamic support and resistance prices because price history itself is dynamic.