This post is from 2011, but have posted today due to high demand.
Supply and Demand zones represent price areas where the currency pair stopped its advance or decline in the past. These reversal points are important because these zones can affect the currency pair again in the future. If you understand where the pair is struggling, you can adjust your trading plan accordingly.
Supply And Demand Indicator shows the potential supply and demand areas.
How To Trade With Supply And Demand Indicator:
Buy Signal: When the pair touches demand zone (blue marked zone)
When the pair touches supply zone (maroon marked zone)