demand & supply

Buitre

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[langtitle=it]demand & supply[/langtitle]

Ciao a tutti ,


how to calculate demand and supply ?
how do you calculate demand and supply knowing the previous day's closing the minimum and maximum of the day and the volumes of the same day?
thank you very much
 
In retail forex, you generally don't know the volumes. On major pairs, liquidity is such that supply isn't going to run short. That pretty much leaves demand.

If price goes up, demand for the first currency in the pair is greater than for the second.
 
Ciao a tutti ,


how to calculate demand and supply ?
how do you calculate demand and supply knowing the previous day's closing the minimum and maximum of the day and the volumes of the same day?
thank you very much

Technical analysis will easily help you to identify supply and demand zones.
 
Its the demand and supply of the currency pair which determines its bullish or bearish market sentiment. Like for gold the long term market sentiment was bullish meaning the demand was too high. But now the scenario is slightly changed through the demand for physical gold still exists.
 
Supply/Demand is a concept adopted into forex, inspired by futures/stocks, which is centralized. It is closely related to order books/order flow which takes a different path.

Anyways, Forex is not centralized (thus the term Over-The-Counter)
Most people mistake the 'Volume' option on their platform (in forex) to depict the actual volume.. truth is that it is only the broker (or their liquidity network's volume in some cases).

Supply/Demand has lot of different meanings to different people... one commonly used method is to find out key areas (or zones) of price interaction.. By price interaction, it could be reversals, consolidation, re-visiting the same zone (these phenomenon's are often used by pattern traders. Ex: Double tap, head and shoulders, triangles, doji etc).

Trading off SD requires time, effort and experience. Its one of the best ways to get started with pure price action trading (there are some indicators to help guide you, but don't rely on them too much, use the indi's as a way to help you find the SD zones yourself).

If you search for Supply demand trading or supply demand strategy forex you'll find a ton of information to help you get started.

To answer your question: How to calculate supply and demand, you first should know what it means, how to identify it on the charts. SD trading has its own lingo.. Drop-base-Drop, Rally-base-Drop and so on.

@Buitre.. the eHow article inclines towards Volume analysis.

Supply/Demand is more to do with buyers and sellers. For example, volume can be high but prices might drop.. In other words, more people will step in to sell the currency. So if the previous day shows high buying volume (green bar) then next day price can drop just as much and the volume bar will still be green (if not greener).
 
siete tutti molto gentili a rispondre alla mia domanda ma..... io chiedo solo una formula matematica per il calcolo.
Poi tutto il resto non mi interessa .
Se sapete come si calcola matematicamente grazie , altrimenti non scrivete .
Mi serve la formula .
Non altro .
 
siete tutti molto gentili a rispondre alla mia domanda ma..... io chiedo solo una formula matematica per il calcolo.
Poi tutto il resto non mi interessa .
Se sapete come si calcola matematicamente grazie , altrimenti non scrivete .
Mi serve la formula .
Non altro .

LOL. If you can't find the solutions here, use Google rather than wasting your time here.
 
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