1. Supply Zone:
A supply zone is an area on the chart where many sellers are present.
Price usually falls from this area.
It means there is more supply than demand.
Traders look to sell from this zone.
Example:
If EUR/USD moves up to 1.0900 and keeps falling from there, that area is a supply zone.
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2. Demand Zone:
A demand zone is where many buyers are waiting.
Price usually rises from this area.
It means there is more demand than supply.
Traders look to buy from this zone.
Example:
If EUR/USD drops to 1.0650 and bounces up every time, that area is a demand zone.
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Main Differences:
Feature Supply Zone Demand Zone
Who is strong? Sellers Buyers
Price action Price goes down Price goes up
Trading move Best to sell Best to buy
Trend Impact Starts downtrend or pause Starts uptrend or bounce
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.