Supply and Demand Trading - Complete Guide

Supply and Demand Trading is a technical analysis approach based on identifying price levels where significant imbalances between buyers and sellers occurred, creating strong support and resistance zones.

Core Concepts

Supply Zones

Areas where selling pressure overwhelmed buying, causing sharp price drops. These act as resistance levels where price may reverse downward when revisited.

Demand Zones

Areas where buying pressure overwhelmed selling, causing sharp price increases. These act as support levels where price may bounce upward when revisited.

Key Principles

How Traders Use It

  1. Identify zones where price made strong, impulsive moves
  2. Wait for price to return to these zones
  3. Look for confirmation signals (candlestick patterns, volume)
  4. Enter trades with stops below demand or above supply zones

Recommended Books

1. "Supply and Demand Trading: How To Master The Trading Zones" by Frank Miller

This practical workbook covers how to identify trading zones, draw supply and demand zones, combine candlestick patterns with S&D trading, and includes multiple high-quality chart examples. Perfect for both beginners and experienced traders.

2. "Trading in the Zone" by Mark Douglas

While less focused on specific S&D strategies, this iconic book emphasizes crucial trader psychology - controlling emotions and making objective decisions based on probabilities rather than certainty.

3. "Naked Forex" by Walter Peters and Alex Nekritin

This book strips away complex indicators to reveal how supply and demand dynamics drive currency prices, with expertise in identifying and profiting from order flow imbalances.

4. "Understanding Price Action" by Atanas Matov

This practical guide reveals proven strategies to identify and trade supply and demand zones on any timeframe, forming the core of Matov's price action trading course.

Free Online Articles & Resources

PriceActionNinja - The Ultimate Guide

URL: https://priceactionninja.com/the-ultimate-guide-to-trading-supply-and-demand-zones/

Comprehensive guide with detailed explanations, including a supply and demand FAQ database featuring emails from actual traders.

TraderSimon Supply & Demand Trading Basics

URL: https://www.tradersimon.com/2021/06/supply-and-demand-trading-basics/

Covers fundamentals including how to recognize zones, draw them on charts, place stop-losses, and includes real chart examples.

FluxCharts - Supply and Demand Zones Explained

URL: https://www.fluxcharts.com/articles/Trading-Concepts/Technical-Analysis/Supply-and-Demand

Detailed explanation with examples of typical supply and demand zones in trading.

Colibri Trader Supply and Demand Course

URL: https://supplyanddemand.colibritrader.com/

Offers both free articles and a paid comprehensive course focusing on practical examples and execution rules.

Free Video Course on YouTube

A comprehensive 12-hour free forex trading course covering advanced techniques like Fibonacci pullbacks, multi-timeframe analysis, and risk management.

Free PDFs Available

Multiple free trading PDFs are available on platforms like: