What is the difference between a supply zone and a demand zone?

A supply zone comes into formation before a downtrend, whereas a demand zone forms after an uptrend. Traders can customize their charts to identify demand and supply zones. What Is A Support Zone? A support zone is an area of interest where traders and investors are making transactions.

What are the advantages of selling in a Supply Zone?

The supply zone is essentially an area above the current price, and it’s also an area that holds a strong selling interest. Therefore, when the price reaches the stated level, the orders are filled out, and the price decreases.

What is the best method for trading in Supply and Demand Zones?

Trading supply and demand zones can be enhanced using technical indicators such as Pivot Points (PP) which show core resistance and support levels, which are similar to the supply and demand zones. Supply and demand are one of the four principles of economics. If we buy something, we create demand for it.

What is a supply zone?

Supply zones show points where the banks place a significant number, or size, of sell positions and these are the resistance points where price could fall. Supply zones form when the banks decide to sell a large amount of currency. This selling creates an excess of supply, which causes price to fall, creating the supply zone.