Understanding supply and demand is crucial in forex trading as it forms the basis for various trading strategies, where increased supply leads to price drops and increased demand leads to price rises. The document describes three primary market movements: rally (uptrend), drop (downtrend), and base (sideways), which together create four key market moves associated with supply and demand zones. It also outlines how to identify and mark these zones on charts using specific candle combinations.

1. BASIC SUPPLY AND DEMAND
pureHEART Menget

2. Perhaps one of the most important aspects of Forex trading is understanding Supply and Demand. These two terms will
become your foundation as you begin to build an arsenal of trading strategies. The definition of Supply and Demand is so
simple in fact, one word can be used to describe each term.
Supply = selling
Demand = buying
Of course it isn’t quite that simple, but that’s the general idea. An area of increased Supply refers to an area of increased
selling pressure. This selling pressure causes a market’s price to fall. An increase in Demand refers to an area of
increased buying pressure. This area of increased buying pressure causes a market’s price to rise. The ever-changing
balance between Supply and Demand is what causes a market’s price to fluctuate over time. As supply increases a
market will decline (drop) while an increase in demand will trigger a rally back the other way as we see in the forex chart.
INTRODUCTION

3. Basically, there are 3 market moves that create the ups and downs of the market. They are as follows:
THE PRICE MOVEMENT
This is UPTREND. Some
people call it BULLISH but in
Supply and Demand, it is
called RALLY.
This is DOWNTREND. Some
people call it BEARISH but in
Supply and Demand, it is called
DROP.
This is SIDEWAYS. Some people call it CONSOLIDATION but
in Supply and Demand, it is called BASE.
THE 3 MARKET MOVEMENTS

4. THE RALLY MOVE
Whenever the market is making its move
up, it is called RALLY. At this point, buyers
are empowering the market.
Whenever the market is making its
move down, it is called DROP. At this
point, Sellers are empowering the
market.
THE DROP MOVE
Whenever the market is not making any
move up or down, it is called BASE.
THE BASE

5. This 3 market movements when combine together, create the 4 market moves that sharped the chart and creates
patterns of ups and downs we see in the forex market which is called Supply and Demand zones.
THE 4 MARKET MOVES
DEMAND SUPPLY

6. PRICE RETRACE PRICE RETRACE

7. BUY SELL

8. HOW SUPPLY AND DEMAND ZONES LOOK IN THE CHART
Supply and demand moves are basically candles combination that can we find across the forex chart at any Time
Frame.
RBR
DBR
DBD
RBD

9. RBR
DBD
DBR
RBD

10. 4 TYPES OF SUPPLY AND DEMAND CATEGORY
2 TYPES OF SUPPLY ZONE:
1) Rally Base Drop (RBD) Reversal Category
2) Drop Base Drop (DBD) Continuation category
2 TYPES OF DEMAND ZONE:
1) Drop Base Rally (DBR) Reversal Category
2) Rally Base Rally (RBR) Continuation category

11. HOW TO MARK SUPPLY AND DEMAND ZONE
USING INTERMITTENT BASE
FULL BASE: Marking from shadow
to shadow.
INTERMITTENT BASE: Marking
from shadow to shadow.

12. RBR
DBR
DBD
RBD
Hence, we mark Supply and Demand zone, using the intermittent base in all our setups as shown below:

13. MARKING SUPPLY AND DEMAND ZONE USING THE INTERMITTENT BASE ON LIVE CHART
EXAMPLE
RBR
RBR

14. DBD
DBD

15. DBR
DBR

16. RBD
RBD

17. THE END
It is my wish and blessings that you succeed in this skill called forex. Therefore, don’t give up, keep practicing and
back-testing on daily bases.
‘’Whether it is your work, your love or your life, unless you throw your entire self into it,
you will never really know it.’’
SADHGURU
Above all, have faith in God, seek his Wisdom from James 1:5. pureHEART cares!
WhatsApp Contact:
+2348149259851