How To Avoid Supply and Demand Trading Trap ✅

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What is demand and supply in trading?
The law of demand says that at higher prices, buyers will demand less of an economic good. The law of supply says that at higher prices, sellers will supply more of an economic good. These two laws interact to determine the actual market prices and volume of goods that are traded on a market.

Is supply and demand a good trading strategy?
Supply and demand trading can be seen as a strategy to understand the zones in which you can look to enter into trades. While support and resistance are defined by key levels of price, supply and demand is defined by a wider price area/zone. The breadth makes it easier to find entries for trades.

How do you find supply and demand in trading?
Most traders use daily or weekly pivot points to indicate the supply and demand zones. These points are technical analysis indicators that provide the traders with an average of high, low, and closing prices from the last trading day. You can also use pivot points to find support and resistance levels too.

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