Supply and demand is one of the main strategies used in trading.
It focuses on the ancient laws of supply and demand and how price moves in a freely flowing market.
The basis of this strategy is that the number of available tools and the desire of buyers determine the price.
It identifies areas on the chart where demand exceeds supply (the demand zone), raising the price, or where supply exceeds demand (the supply zone), which leads to a lower price.
Most supply and demand traders wait for the price to enter these zones, where the main buying or selling operations took place, before opening a long or short position.