The SupDem Indicator is a tool used by traders to help predict changes in price in financial markets. It works by measuring the difference between the amount of supply and demand in the market.
This information is then displayed as a histogram on a chart, with positive values indicating an excess of demand and negative values indicating an excess of supply.
When the histogram is positive and rising, it suggests that demand is increasing and the price may be likely to rise. Conversely, when the histogram is negative and falling, it suggests that supply is increasing and the price may be likely to fall. Traders can use this information to make informed trading decisions.
SupDem Indicator helps traders identify imbalances in the market but must be considered alongside other factors for accurate analysis.
A buy signal is generated when the histogram is positive and rising, indicating an excess of demand over supply.
Other signals include when the histogram crosses above the zero line, forms a higher low, is above the zero line and the price is above its moving average, above the zero line and making higher highs, or above the zero line and above its trendline.
By using the SupDem Indicator in conjunction with other technical indicators and considering market conditions, traders can make informed decisions about entering the market.
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When the histogram is negative or decreasing, indicating an excess of supply over demand, a sell signal is generated.
Bearish chart patterns like head and shoulders or bearish engulfing patterns, high or rising values on the indicator, and divergences between the indicator and price movement are examples of further signs.
Trading decisions can be made by traders by employing the SupDem Indicator in conjunction with other technical indicators and taking into account market conditions.