Supply and Demand Zones: Tips For Successful Trading

Supply and demand zones are a popular concept in technical analysis and trading that can help traders identify potential areas of market reversals or trend continuations in cryptocurrency markets. Understanding how supply and demand levels work can be an invaluable tool for traders looking to make more informed decisions in the financial markets. 

In this article, we’ll provide an overview of the successful use of supply and demand zones in cryptocurrency trading, including identifying these zones on price charts and implementing them in a trading strategy, and their pros and cons. Whether you’re a new or experienced trader, mastering the art of supply and demand zones can give you an edge in trading.

Key Takeaways:

• Supply and demand zones are consolidation areas that occur before an explosive upward or downward price movement.

• You can find supply and demand zones by identifying strong impulse waves, which are represented by large green or red candles that signal a sharp uptrend or downtrend.

• There are three rules to ensuring the credibility of a supply and demand zone: strength, time and freshness of the zone.

What Are Supply and Demand Zones?