Supply and demand zones are one of the basic things a beginning forex trader will learn. They are so important that prices react to these zones even years after they first appear. In addition, with the Supply and Demand indicator .
MT4’s Supply and Demand Zone Indicator
The Supply and Demand Zones indicator depicts the demand and supply zones of an exchange pair in a chart. In addition, in the settings, traders can adjust the indicator so that it shows the Fibonacci retracement levels between the zones.
How to use the Supply and Demand Zones indicator
The supply and demand zone indicators are simple to utilize. Since demand and supply zones are generally support and resistance zones, this indicator can be used in a similar way.
Price is often hit by a supply zone before rallying back down. When it hits the demand zone, the price bounces upward. Therefore, traders can profit from this predictability and trade on it. The basic rule for trading demand and supply can be to buy at supply levels and buy at demand.
Also, you should make sure that you trust only the trimmed areas (that is, the white areas). The white colored areas are reliable because the price has been tested more than twice. The gray colored areas are good for observing areas that are likely to be reliable.
What is the best supply and demand zone indicator best for?
The Supply and Demand Zone indicator is ideal for all Forex traders. Beginning traders who have difficulty identifying resistance and support levels may appreciate it more than those who do not.