Chapter 3.

Basics of Supply and Demand

3.1 Basis of market movements and Base Youth Drop

There are 3 basic movements in the currency market. It is Rally Drop and Base

3.1.1 Rally

Current Price ascending naik..pergerakan named Rally

In the circumstances of this Rally is NOT Transactions in which the balance

Demand Exceeds Supply

Demand More of Supply

And the demand for greater BUY this can not be accommodated by offering to SELL cause prices keep going up and
up.
3.1.2 Drop

Current Price descending down ..pergerakan is called DROP

In this situation Drop transactions which are not in balance

Supply Exceeds Demand

Supply Greater than Demand

Then offer to SELL greater can not be accommodated by request to BUY cause prices continue to fall and fall.
3.1.3 Base

When creating BASE price or price in a state of equilibrium within a sideway price.

Here is the most widely sold and accepted the demand to buy successfully accommodated by the offer to sell.

And offer to sell successfully accommodated by request to buy ...

So a lot of sales and Price are in equilibrium ...

Demand is approximately equal to the supply

This condition is also called HIGH lIQUIDITY because a lot of sales.

Note: When the price break on the show that tanda2 early on that supply has decreased and demand has
exceeded supply

When price breaks below this shows early signs that supply exceeds demand
 3.2 Identification Zone and Zone Supply Demand

3.2.1 Supply Zone RBD and DBD

There are 2 types of Supply Zone

1. RBD - Rally Base Drop

How to draw RBD

1. Search Bearish engulfing candlestick pattern that is clear as shown above

2. Make sure after going ... Bearish engulfing the downward movement is very
SIGNIFICANT / or movement of a BIG CLEAR
3. Save Open price candle next to a Low Supply highest Zone and shadow as High Supply Zone

4. Rules SND no 1 Sell at Supply Zone is only when the price comes back to supply Zone
5. Stop Loss above Supply Zone

6. We see the example below ....

Example Figure H1 above the EU

1. In the area marked 1 ....

Price creating Bearish Engulfing Pattern form CS We mark
our Supply Zone.
In the case of forming the above price zone RBD Rally Base Drop

2. In the area marked no 2

Note the downward movement of highly SIGNIFICANT / Strong / CLEAR
This means that price is in a state of balance (Supply is greater than demand) This is what we were looking for
to make our ENTRY

Sell ​Where do we start?

Remember Rules SND no 1

"SELL at SUPPLY ZONE"

3. Area no 3
Note the price rose back towards our supply zone.
When the price went back into the supply zone so here we will do our SELL Entry

Stop Loss above Supply Zone

 This is the basis of trade SND

For more entry Sharp or Sharp refer to Chapter 4 (technique Dabel Maru and FTR

There are many examples of how to do a sharp Entry in Supply Zone.

2. DBD- Base Drop Drop

How to draw Zone Supply DBD

How do Entry in DHF

1. Search Bearish engulfing candlestick pattern that is clear as shown above

2. Make sure after going ... Bearish engulfing the downward movement is very
SIGNIFICANT / or movement of a BIG CLEAR
3. Save Open price candle next to a Low Supply highest Zone and shadow as High Supply Zone

4. Rules SND no 1 Sell at Supply Zone is only when the price comes back to supply Zone
5. Stop Loss above Supply Zone

6. We see the example below ....

Example diagram above

1. In the area marked 1 ....

Price made a motion or movement down DROP

2. In the area marked no 2

Price formed a sideway movement or balance here
Current BASE
Here we do not make any ENTRY because DECISION yet to be made. We are not sure
whether the price will be climbing up or going down

3. This region turns Price has made a downward movement

movement DROP
So BASE area in the no 2 had been identified as the Drop Base Supply Drop
Zone

Sell ​Where do we start?

We will start to sell when the price came back to our zone Supply

Remember Rules No. 1

 "Sell at Supply Zone"

4. No. 4 area ... We zoom in on an area and we were looking Base Bearish Engulfing candle

We draw our Supply Zone which is a more accurate supply zone standby
price we came back to our Zone

5. No region 5 price has come back to the area we supply Zone

Here we would Entry SELL SL above

the supply zone

Stop Loss above Supply Zone

2 Type Zone Demand

There are 2 types of Demand zone DBR and RBR

1. DBR - Drop Base Rally

1. Find Bullish Engulfing candlestick pattern clear as in the diagram above
2. Make sure that after a Bullish engulfing ... the movement upwards is very
SIGNIFICANT / or movement of a BIG CLEAR
3. Save Open price candle next to the High Demand Zone and the lower shadow as Low Demand Zone

4. Rules SND no 2 Buy at Demand Zone only when the price came back to Demand Zone
5. Stop Loss below Demand Zone
6. We see the example below ....
1. Note the region marked 1
Bullish Engulfing Pattern Price create the demand zone very clear we will only entry when
the price came back to the area 1

2. Note the 2
Price came back to zone kita..masa demand for a Buy Stop Loss below
the demand zone.
2. RBR - Base Rally Rally

We need to find Bullish engulfing pattern on the Base

Example diagram above

1. In the area marked 1 ....

Price makes the upward movement or movement RALLY

2. In the area marked no 2

Price formed a sideway movement or balance here
Current BASE
Here we do not make any ENTRY because DECISION yet to be made. We are not sure
whether the price will be climbing up or going down

3. This region turns Price has made a movement upwards

movement RALLY
So BASE area in the no 2 had been identified as the Demand Rally Rally Base
Zone

Buy Where do we start?

We will start to buy when the price came back to our zone Demand
 Remember Rules No. 2

"Demand at Buy Zone"

4. No. 4 area down towards the zone ... Price Demand

Zoom in our region and we are looking for Base Bullish Engulfing candle we draw zone

which is the zone of our Demand Demand more accurate our price standby come back

to our Zone

5. No region 5 price has come back to the area we Demand Zone

Here we would Entry BUY

SL zone under Demand

Conclusion. Trading using the concept of Supply and Demand fairly easy but requires patience.

Not all of us can sell or buy.

Rules Must Remember SND

RULES OF SND Trading

1. Sell at Supply Zone

2. Buy at Demand Zone

3. Look to the LEFT (always refer to the chart to the left of us. Always ask yourself where Price is
now whether the supply or demand zone zone

4.Look to the Top- is there a better supply zone of the supply zone now.

Look to The Bottom-Demand is there a better Zone

5. Is the price action that is being done by Price (chapter 4 5 6 7 8 will be described in more detail pullover Price
action)

6.Watch out for SR Flip (fakeout) Do not sell in SR Flip (Chapters 6 and 7)
Warning: What you learn this or Chapter 1, 2 and 3 is BASIC or BASIC trading using the concept of Supply
and Demand

But Must Remember ....

* * * * * * Not all of us can Sell Supply zone

* * * * * * Not all of us can BUY Demand Zone

We will only place RISKY Entry in the Low Risk with Reward Small and Large This is further explained in

1. Chapter 4 Techniques Dabel Maru and FTR

2. Chapter 5 Compression Techniques

3. Chapter 6 Techniques fakeout R1 R2 R3

4. Chapter 7 of SR Flip
5. Chapter 8 of Quasimodo

SPECIAL NOTE:

I am not the founder of Supply and Demand, but I have spent 2 years to study Supply and Demand and take the
best sources and collected into this ebook.

I take note of the Supply and Demand website available on the Internet

Excellent learning resource for you to learn more about Supply and Demand.
Website 1: Readthemarket.com

Readthemarket.com founder is Mr. IMFYANTE ... he was the one who changed the way I look at the market and the way I
read the market.

You can read more about Price action and a use of Supply and Demand on websites with his

Special Note: from www.Readthemarket.com

Read the Market says it all, we read the Market! Reading where a S / D zone is located is not enough, we need our Price Action aswell as it is a
crucial part of our trading click here to learn how we use it.

Price Reading

In order to be able to trade the markets, we need to be able to understand why the price is where it is, and where it will go to next. The best

indicator for all this is the price itself. It holds all the clues you'll ever need to work out the market. We do our trading at levels called Supply and

Demand Zones (Video), and we watch Price Action there to give us signs as to the intentions of the big money.

Here's what we look for on the charts:

General: HTF. Know where the price is coming from and going to, and the PA past and present in all the TFs, from the Monthly down.

Specific: At the zones you want to trade, look to

Past. study the zone in all TFs, ask yourself down to M1

Where were the decisions made? Clean S / D? Mark these lines. No clean S / D? - Did compressed zone price really shoot away form the

zone, or did it cp away?

Did the zone itself react at the right place? Look beyond the zone further into the past. See what it
reacted to. Was there a better S / D nearby that price wants to visit? This explains many Fakeouts. Did the price originally react to the

hospital of a Flag Limit? It can fakeout to true SD of the FL.

Present.

Approach.

How is the price returning to the zone?

Where's the nearest flag in the TF you want to trade? This is your TF tg1 in this. Flags in the LTFs? What does PA tell you?

Price has tested the last flag on approach? (Good sign) Has price compressed into the zone in

this TF or LTFs? (Good sign) Is there big news on the way? There has just been big news?

reaction

In LTF, price does react violently to the first decision point? Does it quickly engulf the nearest S / D? (Good sign)

CP price simply does away? Maybe it wants to go to the next decision point If the first decision point breaks, watch the signs on the

approach to the next, and, of course, reaction.

Chew this over for now. Apply it to your chart history. Apply it to as many failed setups as successful ones. Millions of them if possible!

Capture and file them all. - IFMYANTE - Readthemarket.com

Website 2: Sam Seiden

You can Google Sam Seiden on the Internet

He is the founder of Supply and Demand and has for many become teachers in the world of Forex. Many article he writes about Supply and

Demand can be read in FXStreet.com

This article is the first one that I like Sam Seidin

(The English language is so pandai2 translate)

Sam Seidin - http://www.tradingacademy.com/lessons/article/the-white-space/

A market is always in one of three states:

First, as price declines, it will reach a state (price level) where demand exceeds supply which means there is competition to buy and that

leads to higher prices.

Second, when the price is high, it will reach a state (price levels) where supply exceeds demand which means there is competition to sell

and this leads to declining prices.

Third, it can be in a state of equilibrium. At equilibrium, there is little competition to buy or sell because the market is at a price where everyone can

buy or sell as much as they want.

However, as the market moves away from equilibrium and closer to price levels where demand exceeds supply or supply exceeds demand, which

increases competition forces back too equilibrium price. In other words, competition eliminates itself by forcing markets back to equilibrium.

** **** ** We just concluded that the most significant turns in price will happen at price levels where supply and
demand are most out of balance *********

Think about it, at price levels where supply and demand are most "out of balance", you will see lots of trading activity or very little trading activity?

If you said very little, you are correct.

This is because of the big supply and demand imbalance. At that same price level, you have the potential for the most activity but the reason
you do not get much trading activity is because all that potential is on one side of the market, the buy (demand) or sell (supply) side.

So, what does this picture look like on a price chart? It's not many candles on a screen like conventional technical analysis suggests, it's actually
very few. Furthermore, this picture is not going to include above average volume, it's going to be very low volume most of the time.
Website 3: Archive

Understanding Supply and Demand by Expert Trader Thread aka ET

Thank you to Expertrader aka ET for sharing understanding price movement

to understand some of the terms, ASK, BID, SPREAD, SUPPLY, DEMAND and so on ..

1 st Thread here http://carigold.com/portal/forums/sh...d.php?t=296468

2 nd Thread here http://carigold.com/portal/forums/showthread.php?t=298252

Here you will learn more about the basic DETAIL market movements driven by Supply and Demand ... a very valuable
resource.

That's all Chapter 3 of the Basic supply and demand. Too wide for me to tell me everything he was born with share
trading techniques to facilitate the use of Supply and Demand
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