Supply And Demand Zones
These are areas on the chart that show price levels where a strong price reversal occurred due to a significant increase in supply or demand. They are used to identify entry and exit points in trades.
✅ Demand Zones:
A place in the market where buyers are abundant.
A strong upward price bounce occurs here.
Usually located below the price action.
Indicates that there is significant buying interest at this price.
📌 Example: If the price drops to the $100 area and then bounces back strongly, this area is considered a "Demand Zone".
✅ Supply Zones:
A place in the market where sellers are abundant.
A strong downward price bounce occurs here.
Usually located above the price action.
Indicates that there is significant selling pressure at this price.
📌 Example: If the price rises to 150$ and then drops quickly, this area is considered a "Supply Zone".
🧠 Why is it important?
It helps traders identify potential reversal areas.
It is used to place entry orders, stop losses, and take profits.
It is closer to the concept of "support and resistance" but in a more dynamic and realistic way.