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Buy the Floor, Sell the Ceiling 🏦📈”
Support vs. Demand Zone and Resistance vs. Supply Zone
Support and Demand Zones, as well as Resistance and Supply Zones, are key concepts in trading that help us understand price behavior and market psychology.
Support and Demand Zone:
Support is a level where the price stops falling and buyers step in with strength. Similarly, a Demand Zone is an area where heavy buying pressure exists. When the price enters this zone, traders and institutions tend to buy in large quantities, which pushes the price back upward. These zones usually form at levels where the price has previously reversed. In simple words, the Demand Zone acts like a “floor” that prevents the price from falling further.
Resistance and Supply Zone:
Resistance is a level where the price stops rising because sellers become more active. The Supply Zone is the area where selling pressure is strong. When the price reaches this zone, many traders start selling their positions or initiate ? sell orders, which causes the price to drop. These zones are often formed at points where the market has previously made a top.
What small fishes could do at supply or demand zone to be benefitted ?
Great question 👍 Let’s look at it from the “small fishes” (retail traders) point of view when dealing with Supply & Demand zones:
🐟 At Demand Zone (Buyers’ Area / Support):
Small traders should look for buying opportunities when price enters this zone.
But don’t jump in blindly — wait for confirmation (like bullish candles, volume increase, or rejection wicks).
The strategy is to follow the big buyers (whales & institutions) instead of fighting against them.
Place stop-loss just below the demand zone in case price breaks down.
🐟 At Supply Zone (Sellers’ Area / Resistance):
Small traders should be cautious about buying here.
It’s usually a good spot to take profits if they entered earlier at lower levels.
Aggressive traders can also short-sell here, but with proper risk management.
Place stop-loss just above the supply zone in case price breaks out uTpward.
⚖️ In short:
At Demand Zone → Think like a buyer (buy with confirmation, ride with whales).
At Supply Zone → Think like a seller (sell, take profit, or short if skilled.
FINAL THOUGHTS
In short, the Demand Zone represents the area of buyers, while the Supply Zone represents the area of sellers. The price often rises from a Demand Zone and falls from a Supply Zone.
#SupplyAndDemand
#writetoearn #BinanceSquare
$BTC
$SOL
$XRP
Support and Demand Zones, as well as Resistance and Supply Zones, are key concepts in trading that help us understand price behavior and market psychology.
Support and Demand Zone:
Support is a level where the price stops falling and buyers step in with strength. Similarly, a Demand Zone is an area where heavy buying pressure exists. When the price enters this zone, traders and institutions tend to buy in large quantities, which pushes the price back upward. These zones usually form at levels where the price has previously reversed. In simple words, the Demand Zone acts like a “floor” that prevents the price from falling further.
Resistance and Supply Zone:
Resistance is a level where the price stops rising because sellers become more active. The Supply Zone is the area where selling pressure is strong. When the price reaches this zone, many traders start selling their positions or initiate ? sell orders, which causes the price to drop. These zones are often formed at points where the market has previously made a top.
What small fishes could do at supply or demand zone to be benefitted ?
Great question 👍 Let’s look at it from the “small fishes” (retail traders) point of view when dealing with Supply & Demand zones:
🐟 At Demand Zone (Buyers’ Area / Support):
Small traders should look for buying opportunities when price enters this zone.
But don’t jump in blindly — wait for confirmation (like bullish candles, volume increase, or rejection wicks).
The strategy is to follow the big buyers (whales & institutions) instead of fighting against them.
Place stop-loss just below the demand zone in case price breaks down.
🐟 At Supply Zone (Sellers’ Area / Resistance):
Small traders should be cautious about buying here.
It’s usually a good spot to take profits if they entered earlier at lower levels.
Aggressive traders can also short-sell here, but with proper risk management.
Place stop-loss just above the supply zone in case price breaks out uTpward.
⚖️ In short:
At Demand Zone → Think like a buyer (buy with confirmation, ride with whales).
At Supply Zone → Think like a seller (sell, take profit, or short if skilled.
FINAL THOUGHTS
In short, the Demand Zone represents the area of buyers, while the Supply Zone represents the area of sellers. The price often rises from a Demand Zone and falls from a Supply Zone.
#SupplyAndDemand
#writetoearn #BinanceSquare
$BTC
$SOL
$XRP
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
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