Hi! I’m sure you know that support and resistance is a powerful pillar in trading. Support and resistance tends to develop around key areas that price has regularly approached and rebounded thereafter.
It is a simple method to analyze a chart quickly to determine three points of interest to a trader:
1) the direction of the market;
2) timing an entry in the market;
3) establishing points to exit the market at either a profit or loss.
The Advanced Supply Demand indicator that I’m sharing with you today draws the most profitable supply and demand zones on the MT4 chart. It gives you a clear idea where to look for significant zones of support and resistance. Simple to use, even for absolute beginners.
It’s important to combine this indicator with a trading strategy or with price action in order to find the best entry point. It can be used to trade trend reversals, trend breakouts and range-bound markets.
As soon as price reaches the supply and demand zones, the indicator will send out an alert.
The Advanced Supply Demand indicator works for any currency pair and time frame.
After the installation, your trading chart will appear as the following image:
Basic Trading Signals
Buy Signal: Look for a buy trade when the market is in an uptrend and price pulls back into the supply zone. Place a stop loss below the supply zone, or use your own preferred stop loss strategy. Take profit when price reaches the demand zone (resistance), or use your own preferred exit strategy
Sell Signal: Look for a sell trade when the market is in a downtrend and price rallies back into the demand zone. Place a stop loss above the demand zone, or use your own preferred stop loss strategy. Take profit when price reaches the supply zone (support), or use your own preferred exit strategy.