I probably disagree. If by evidence of supply and demand you mean "does price action follow many of the same tradable supply and demand related patterns of behaviour that you see in futures" then the answer is yes. Examples would be resistance and highs and lows and the use of so called supply/demand channels.
Sure. I was assuming the OP (from his first few posts) refers to volumes transacted or b/o at certain price levels.
Thank you both, yes, I did mean, in the absence of useable volume data (as established by this thread), can the same notions of S/R, supply/demand, markup/down, accumulation/distribution be applied to the discipline of correctly reading a Forex price chart? Does Forex 'professional money' "accumulate" and "distribute"? If not, is there an equivalent? I want to know what I can take from these excellent discussions and those with dbphoenix in his journal threads and apply to my world of currencies... Thanks again.
Undoubtedly, as kiwi described, many traders of FX do use S/R levels as part of their approach. Why this might be trickier to apply than other markets are the nature of a 24-hour market (does a high/low established during certain periods carry any information?), the defence of exotic option barriers, and the running of stops (e.g. at London open). They might all make marks in the sand that stand out on a chart, but it can be questionable whether they represent S/R levels in the classic sense. Bear in mind also that you have major players in FX - central banks, corporate hedgers, cross-border M&A deals - that may not have a profit motive (i.e. price-insensitive) when executing.
Then the plot thickens... thank you. So this might be turning into one of the most valuable discussions I've had regarding the vehicle I have chosen to trade. If it doesn't irritate anyone here too much, I'd like to explore further the issues dunleggin has raised?
Price/Volatility Analysis resolves all the weakness of Price/Volume Analysis... No indicators needed although I know many beginners or new traders to Forex will be seduced to start with volatility derived indicators. Therefore, learn all you can about volatility analysis to understand changes in supply/demand regardless via price action only or via the help of an indicator. Mark
NihabaAshi and Mr_Black, thanks, OK, now we're getting to it. So where (please) do I go to acquire this knowledge? Mr Black â it's your thang right now... how did you start your learning process? The lines on your example seem very similar to supply/demand lines on stock PV analyses...? I'm going to scour this forum for answers to my own question in case it's already here, but otherwise, who should I read? What other forums should I befriend? I'm laser-focused on securing this wisdom â specifically as it relates to Forex â and I'm extremely happy to summarize and share it by way of a journal or whatever when I've earned it. Hope you can clue me in further Thanks
Ok , this is a fresh sample of Price / Volatility / Time relationship.... 1.you have to collect data sets... 2. Compare the now data set whit previous.... 3. Conclusion... 4. Act ..... Every data set is Price whit related Volatility.... attached is a 1 hour chart of EUR/USD you can see how 1,2,3 Up channel is constructed from 2 Green and 1 Red data set....
Forgive me, I don't see what is illustrated on this chart other than the well-known range expansion at specific times of the FX day?