Mastering Demand & Supply Trading: A Beginner’s Guide Part - I
In trading, demand and supply zones are areas on a price chart where significant buying or selling pressure is expected, potentially influencing price movements; supply zones indicate areas where sellers dominate, while demand zones represent areas where buyers are in control.
Here's a more detailed explanation:
What are Demand and Supply Zones?
Demand Zone:
A price range where there's a strong buying interest, often acting as a potential support level where the market might stabilize or rise.
Supply Zone:
A price range where there's strong selling interest, often acting as a potential resistance level where the price may stabilize or fall.
How they work:
Supply and demand zones are based on the idea that prices are driven by the balance between sellers (supply) and buyers (demand).
Identifying Zones:
Traders look for areas where significant buying or selling activity has occurred, analyzing price patterns and levels where supply exceeds demand or vice versa
PGDM in finance, having 5+ experience in Equity, commodities , forex analysis and trading.
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