Maybe you’ve watched the webinars mentioned in this blog post, maybe you haven’t. The good news is you don’t have to. I’m going to lay it out for you in a relatively easy way to understand as it relates to trading the Spot Foreign Exchange Market. I prefer to get straight to the point. A lot of the jibber jabber about politics, economics, and opinions about how much the EU blows circus clowns while swinging on a trapeze fitted above a pit full of hungry alligators, or is using magic money , will all be left out of this.
We will use price and nothing more. Fuck your moving averages, RSI, Stochastic’s, and any other voodoo indicator created as far back as the fucking Egyptians. There are in fact people out there that use these indicators against you because they make you predictable and vulnerable. They already know what it is you will be doing and when you will do it. I know some of them, and they take advantage of you on a scale Bonnie and Clyde would envy.
Everything I present in this series of posts can be carried over into any market you wish to apply it to. I personally use it within FX and Stocks. However you can use it in bonds, deciding to buy put or call options, futures, you name it. The concept applies to all of it.
What is trading supply and demand?
– It is about as high probability as you can get, when you apply it in a certain way. You CAN fuck this up, but i’ll try to show you how not to, like I did recently.
– It can be used for anything from scalping to short and mid-term trading, and even long term investing.
– It is surprisingly very easy if you do not over think/analyze it.
What trading supply and demand is not?
– It is not the holy grail. Supply and demand changes just as much as the market itself does. Price, at all times, is a product of the ever changing supply and demand of a stock, currency, or anything you can think of.
In part deux I will go into the 4 types of levels and identifying and qualifying a supply and demand level. Have a good weekend!
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Looking forward to it.