In the crypto space, 'zones' often refer to so-called 'support and resistance zones' on trading charts. They are price areas where the price of a cryptocurrency shows significant reactions:
• Support Zones: These are price areas where the price often 'bounces back' because many traders buy there. They are considered a lower boundary, as demand is high and the price rarely falls below this level.
• Resistance Zones: The opposite: Here, the price often hits a 'ceiling' because many traders sell. The supply is greater than the demand, which is why the price usually does not rise above this level.
These zones are often visualized as 'pixels' because charts on digital platforms consist of many individual data points (candles, lines). For traders, determining zones 'pixel-perfectly' means defining very precise price areas - often based on several touchpoints of historical highs and lows.
Practical application:
• Traders mark colored corridors ('zones') for support/resistance on the chart - sometimes very narrow ($1–2), sometimes wider ($100+ for Bitcoin).
• Within these corridors, they specifically pay attention to price reactions to open short or long positions.
• 'Liquidity Zones' are also identified: areas with high trading volume where strong movements or changes in volume are expected.
Overall, zones ('pixels' as an analogy to precise chart points) help to strategically steer trading decisions in the crypto market and better calculate risks.
