Every big move in crypto starts from one thing: imbalances between buyers and sellers. That’s what Supply and Demand Zones reveal — the exact areas where smart money enters and exits.
If you’re tired of fake breakouts and weak entries, mastering this concept is a game-changer.
Let’s break it down 👇
🔍 What Are Supply and Demand Zones?
🟥 Supply Zone = An area where selling pressure outweighs demand. Price drops from here.
🟩 Demand Zone = An area where buying pressure overcomes selling. Price rises from here.
These zones form when price leaves an area aggressively, creating an imbalance. Price often comes back to test that zone before continuing.
> Think of them like footprints left behind by institutions.
📊 How to Spot Supply & Demand Zones
Demand Zone Setup:
1. Price drops
2. Forms a base (2–3 candles of consolidation)
3. Sharp move upward (strong green candles)
→ That base = Demand Zone
Supply Zone Setup:
1. Price rises
2. Forms a base
3. Sharp move downward
→ That base = Supply Zone
🧠 Why These Zones Matter
✅ Predictable Reactions — Price often reverses here
✅ Smart Money Logic — Institutions place big buy/sell orders here
✅ Better Entry Points — Catch moves before they explode
✅ Tighter Stop Losses — Clearly defined zones for risk control
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📈 How to Trade Them
For a Demand Zone (Buy Setup):
1. Wait for price to return to the demand zone
2. Look for bullish confirmation (wick rejections, bullish engulfing)
3. Enter trade
4. Stop-loss just below the zone
5. Target recent highs or next supply zone
For a Supply Zone (Sell Setup):
1. Wait for price to retrace to supply
2. Look for bearish signals
3. Short entry
4. SL just above the zone
5. Target next demand or key low
🧩 Pro Tips:
Use in confluence with Order Blocks or Fair Value Gaps
Zones from higher timeframes (1H, 4H) are stronger
The more times a zone is tested → the weaker it becomes
Look for zones after market consolidates, then explodes
🧠 Final Thought
Supply & Demand Zones show you where the big players trade — not just where price moves, but why.
Want fewer fakeouts and more sniper entries?
Start drawing these zones.
Start thinking like smart money.
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