By far, one of the most common questions I get these days is how to trade supply and demand.
Even though the concept is essential to how free markets operate, it has gotten a lot more popular as the basis for trading strategies in recent years.
And it makes sense! Using supply and demand as a part of your trading arsenal can be quite effective and potentially very profitable. So let’s figure out how to use supply and demand in your trading.
What Is Supply And Demand?
Before we discuss anything else, we should define what supply and demand actually is. In short: demand is how many buyers there are in a given market and how much they are willing to buy an instrument. Supply is how many sellers there are in a market and how much they are willing to sell an instrument.
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