Support and Resistance VS Supply and Demand. Important Lesson
In the today's post, I will compare support and resistance levels with supply and demand zones.
I will explain to you the difference between them and share important tips and examples.
What are support and resistance levels?
We also call them key levels. These are particular levels on a price chart from where in the past we saw significant bullish or bearish movements.
Key support will be a one single level, that has a historical significance and from where a bullish reaction will be anticipated.
The all-time low on USDCHF will be a perfect example of a key support.
It is one single level that was respected one time in the past and from where a bullish reversal initiated.
Key resistance will be a one single level on a price chart that has a historical significance and from where a bearish movement will be expected.
The all-time high on Gold will represent a key horizontal resistance.
That level was respected one time in the past and from that level exactly the market dropped heavily.
What are supply and demand zones?
In comparison to support and resistance levels, supply and demand zones are the areas on a price chart. The zones that are based on multiple touches and consequent strong bullish or bearish reactions.
Demand zone will be the area that was tested at least 2 times in the past, and the price should strictly respect different price levels within that area.
A similar reaction will be anticipated from the demand zone in the future.
The yellow area above will a good example of a demand zone.
You can see that the price tested that area 3 times, and each time the market respected different levels lying within that.
These 3 tests compose the demand area.
Supply zon e will be the area that was tested at least 2 times in the past and the price should strictly respect different price levels within that area.
A similar reaction will be anticipated from the demand zone in the future.
In this example, a supply area on EURUSD is based on 2 touches of key levels, lying very close to each other.
On the chart above, I underlined 2 horizontal support levels - the single levels that were respected by the market multiple times, and a supply zone - the area that is based on tests of multiple levels lying close to each other.
Support and resistance levels give you SINGLE levels from where you can look for trading opportunities. While supply and demand zones represent the areas. After a test of a supply and demand zone, the market may react to a RANDOM level within that.
For newbie traders, it is highly recommendable to trade single key levels, while experienced traders can broaden their strategies and trade supply and demand zones as well.
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Keylevels
NQ Power Range Report with FIB Ext - 12/28/2023 SessionCME_MINI:NQH2024
- PR High: 17129.00
- PR Low: 17117.75
- NZ Spread: 25.25
Key economic calendar events
08:30 | Initial Jobless Claims
10:00 | Pending Home Sales
11:00 | Crude Oil Inventories
Prev session virtually unchanged
- Vol and open interest increase
- Lifting weekly high
Evening Stats (As of 12:05 AM)
- Weekend Gap: N/A
- Gap 10/30 +0.47% (open < 14272)
- Session Open ATR: 189.65
- Volume: 19K
- Open Int: 284K
- Trend Grade: Bull
- From ATH: -3.1% (Rounded)
Key Levels (Rounded - Think of these as ranges)
- Long: 17700
- Mid: 16391
- Short: 15819
Keep in mind this is not speculation or a prediction. Only a report of the Power Range with Fib extensions for target hunting. Do your DD! You determine your risk tolerance. You are fully capable of making your own decisions.
NQ Power Range Report with FIB Ext - 12/27/2023 SessionCME_MINI:NQH2024
- PR High: 17103.00
- PR Low: 17085.00
- NZ Spread: 40.0
No significant calendar events
Low vols continue
- Slightly breaking prev week's highs
Evening Stats (As of 12:05 AM)
- Weekend Gap: N/A
- Gap 10/30 +0.47% (open < 14272)
- Session Open ATR: 197.87
- Volume: 14K
- Open Int: 276K
- Trend Grade: Bull
- From ATH: -3.4% (Rounded)
Key Levels (Rounded - Think of these as ranges)
- Long: 17700
- Mid: 16391
- Short: 15819
Keep in mind this is not speculation or a prediction. Only a report of the Power Range with Fib extensions for target hunting. Do your DD! You determine your risk tolerance. You are fully capable of making your own decisions.
Gold Buy LevelsIn this Picture I will show Buy Levels of Gold High Risk Low Risk and full Margin believe me I will trade also in this setup but market will respects all these levels 80 to 110 pips in just hour or 2
and this is H1 hour timeframe kindly wait for level and don't trade on our own don't loss money and enjoy Christmas Holiday we will meet tomorrow inshallah
ICPUSDT: Ascending to New Heights! 🚀💹Introduction: 🌐 Brace yourselves for an exciting ascent in the crypto sky with ICPUSDT! Traders are gearing up for a long position from $11, as the price approaches a compelling level. Let's unravel the details of this potentially rewarding trade.
Trade Details: 💰 The long position (#ICPUSDT) takes flight from $11, safeguarded by a stop-loss at $10.93. The rationale behind this move is the price approaching a fascinating level, amidst a confident ascending structure, backed by trading volumes and notable buyer activity.
Technical Analysis: 📊 Navigating the 1-hour timeframe, ICPUSDT is steadily approaching a significant price level of $11. The ascending structure remains robust, marked by trading volumes and evident buyer activity. Upon reaching the designated peak, traders are advised to await the formation of consolidation before initiating a breakout.
Expectations and Strategy: 🎯 The trader anticipates potential gains of approximately 9%, emphasizing the need to patiently wait for consolidation post the designated peak and subsequently capitalize on the breakout.
Trade Target: 🚀 The primary goal is to ride the confident ascending structure, unlocking potential profits as the price ascends to new heights.
Conclusion: 🌟 ICPUSDT invites traders to ascend to new heights in this promising trade. Prepare for a journey of potential profits, exercise patience during consolidation, and get ready to ride the crypto waves to new heights! 💹🚀
NQ Power Range Report with FIB Ext - 12/18/2023 SessionCME_MINI:NQH2024
- PR High: 16838.00
- PR Low: 16802.25
- NZ Spread: 79.75
No significant calendar events
Hanging out in the highs of prev 2 sessions
Evening Stats (As of 12:05 AM)
- Weekend Gap: N/A
- Gap 12/14 +0.08% (filled)
- Gap 10/30 +0.47% (open < 14272)
- Session Open ATR: 215.76
- Volume: 22K
- Open Int: 266K
- Trend Grade: Bull
- From ATH: -4.8% (Rounded)
Key Levels (Rounded - Think of these as ranges)
- Long: 17700
- Mid: 16391
- Short: 15819
Keep in mind this is not speculation or a prediction. Only a report of the Power Range with Fib extensions for target hunting. Do your DD! You determine your risk tolerance. You are fully capable of making your own decisions.
NQ Power Range Report with FIB Ext - 12/15/2023 SessionCME_MINI:NQH2024
- PR High: 16763.50
- PR Low: 16732.25
- NZ Spread: 69.75
Key economic calendar event
08:30 | S&P Global Services PMI
Volatility remains relatively high
- Extreme vol highs throughout prev session
- Ranging half-back from prev session high
Evening Stats (As of 1:35 AM)
- Weekend Gap: N/A
- Gap 12/14 +0.08% (filled)
- Gap 10/30 +0.47% (open < 14272)
- Session Open ATR: 220.85
- Volume: 28K
- Open Int: 257K
- Trend Grade: Bull
- From ATH: -5.2% (Rounded)
Key Levels (Rounded - Think of these as ranges)
- Long: 17700
- Mid: 16391
- Short: 15819
Keep in mind this is not speculation or a prediction. Only a report of the Power Range with Fib extensions for target hunting. Do your DD! You determine your risk tolerance. You are fully capable of making your own decisions.
NQ Power Range Report with FIB Ext - 12/14/2023 SessionCME_MINI:NQH2024
- PR High: 16817.25
- PR Low: 16774.00
- NZ Spread: 96.75
Key economic events
08:30 | Initial Jobless Claims
- Retail Sales (x2)
Continuing to push supply into ATH
- ATH marker 17700
Evening Stats (As of 12:05 AM)
- Weekend Gap: N/A
- Gap 12/13 +0.08% (open <16765)
- Gap 10/30 +0.47% (open < 14272)
- Session Open ATR: 224.46
- Volume: 48K
- Open Int: 252K
- Trend Grade: Bull
- From ATH: -4.6% (Rounded) (adjusted for contract changes)
Key Levels (Rounded - Think of these as ranges)
- Long: 17700
- Mid: 16391
- Short: 15819
Keep in mind this is not speculation or a prediction. Only a report of the Power Range with Fib extensions for target hunting. Do your DD! You determine your risk tolerance. You are fully capable of making your own decisions.
NQ Power Range Report with FIB Ext - 12/13/2023 SessionCME_MINI:NQH2024
- PR High: 16613.50
- PR Low: 16589.50
- NZ Spread: 53.5
Full calendar of key events
08:30 |PPI
10:30 | Crude Oil Inventories
13:00 | Fed Interest Rate Decision
14:00 | FOMC Economic Projections
- FOMC Statement
14:30 | FOMC Press Conference
Inching closer to ATH - 1% away
Evening Stats (As of 12:05 AM)
- Weekend Gap: N/A
- Gap 10/30 +0.47% (open < 14272)
- Session Open ATR: 217.50
- Volume: 18K
- Open Int: 229K
- Trend Grade: Bull
- From ATH: -1.0% (Rounded)
Key Levels (Rounded - Think of these as ranges)
- Long: 16677
- Mid: 16391
- Short: 15819
Keep in mind this is not speculation or a prediction. Only a report of the Power Range with Fib extensions for target hunting. Do your DD! You determine your risk tolerance. You are fully capable of making your own decisions.
NQ Power Range Report with FIB Ext - 12/12/2023 SessionCME_MINI:NQH2024
- PR High: 16456.50
- PR Low: 16441.00
- NZ Spread: 34.5
Key economic calendar events
08:30 | CPI (x3)
13:00 | 30-Year Bond Auction
Near ATH - 16767.50
Evening Stats (As of 1:55 AM)
- Weekend Gap: N/A
- Gap 10/30 +0.47% (open < 14272)
- Session Open ATR: 221.05
- Volume: 27K
- Open Int: 159K
- Trend Grade: Neutral
- From ATH: -1.8% (Rounded)
Key Levels (Rounded - Think of these as ranges)
- Long: 16677
- Mid: 16391
- Short: 15819
Keep in mind this is not speculation or a prediction. Only a report of the Power Range with Fib extensions for target hunting. Do your DD! You determine your risk tolerance. You are fully capable of making your own decisions.
NQ Power Range Report with FIB Ext - 12/5/2023 SessionCME_MINI:NQZ2023
- PR High: 15862.50
- PR Low: 15845.00
- NZ Spread: 39.0
Key economic calendar events
09:45 | S&P Global Services PMI
10:00 | ISM Non-Manufacturing PMI
- ISM Non-Manufacturing Prices
- JOLTs Job Openings
Break and hold below prev week inventory
- Riding 15830 support
Evening Stats (As of 12:05 AM)
- Weekend Gap: -0.05% (open > 16030)
- Gap 10/30 +0.47% (open < 14272)
- Session Open ATR: 207.30
- Volume: 19K
- Open Int: 264K
- Trend Grade: Neutral
- From ATH: -5.6% (Rounded)
Key Levels (Rounded - Think of these as ranges)
- Long: 15247
- Mid: 14675
- Short: 13531
Keep in mind this is not speculation or a prediction. Only a report of the Power Range with Fib extensions for target hunting. Do your DD! You determine your risk tolerance. You are fully capable of making your own decisions.
NQ Power Range Report with FIB Ext - 12/1/2023 SessionCME_MINI:NQZ2023
- PR High: 15966.75
- PR Low: 15950.00
- NZ Spread: 37.25
Key economic events
10:00 | ISM Manufacturing PMI
- ISM Manufacturing Prices
11:00 | Fed Chair Powell Speaks
Maintaining weekly range
- Failed to hold inventory below 15830 zone
- Vol spike expected for Powell
Evening Stats (As of 2:55 AM)
- Weekend Gap: N/A
- Gap 10/30 +0.47% (open < 14272)
- Session Open ATR: 202.13
- Volume: 26K
- Open Int: 281K
- Trend Grade: Neutral
- From ATH: -5.0% (Rounded)
Key Levels (Rounded - Think of these as ranges)
- Long: 15247
- Mid: 14675
- Short: 13531
Keep in mind this is not speculation or a prediction. Only a report of the Power Range with Fib extensions for target hunting. Do your DD! You determine your risk tolerance. You are fully capable of making your own decisions.
EURJPY: Important Key Levels to Watch 🇪🇺🇯🇵
EURJPY started a correctional movement.
Here are the important key levels to watch.
Support 1: 160.43 - 160.85 area
Support 2: 158.90 - 159.60 area
Support 3: 157.72 - 158.14 area
Support 4: 156.52 - 157.18 area
Support 5: 154.39 - 154.90 area
Resistance 1: 164.18 - 164.30 area
Watch carefully these supports.
From one of those, a bullish trend-following movement may initiate.
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EURUSD: Detailed Structure Analysis For Next Week 🇪🇺🇺🇸
Here is my latest structure analysis for EURUSD.
Resistance 1: 1.0736 - 1.0775 area
Resistance 2: 1.0920 - 1.0946 area
Support 1: 1.0658 - 1.0684 area
Support 2: 1.0495 - 1.0536 area
Support 3: 1.0447 - 1.0468 area
Consider these structures for pullback/breakout trading next week.
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NQ Power Range Report with FIB Ext - 11/15/2023 SessionCME_MINI:NQZ2023
- PR High: 15913.00
- PR Low: 15894.25
- NZ Spread: 41.75
Key economic events
08:30 – Retail Sales (Core/MoM)
- PPI
10:30 – Crude Oil Inventories
Another day of expected news driven volatility
- Continues to drive supply towards ATHs
Evening Stats (As of 12:35 AM)
- Weekend Gap: N/A
- Gap 10/30 +0.47% (open < 14272)
- Gap 8/2: -0.33% (closed)
- Gap 7/20: -0.11% (open > 15939)
- Session Open ATR: 243.93
- Volume: 27K
- Open Int: 271K
- Trend Grade: Neutral
- From ATH: -5.3% (Rounded)
Key Levels (Rounded - Think of these as ranges)
- Long: 15247
- Mid: 14675
- Short: 13531
Keep in mind this is not speculation or a prediction. Only a report of the Power Range with Fib extensions for target hunting. Do your DD! You determine your risk tolerance. You are fully capable of making your own decisions.
NQ Power Range Report with FIB Ext - 11/9/2023 SessionCME_MINI:NQZ2023
- PR High: 15360.00
- PR Low: 15344.50
- NZ Spread: 34.5
Key economic events
08:30 – Initial Jobless Claims
14:00 – Fed Chair Powell Speaks
Prev session closed virtually flat
- Holding the highs
Evening Stats (As of 12:05 AM)
- Weekend Gap: N/A
- Gap 10/30 +0.47% (open < 14272)
- Gap 8/2: -0.33% (open > 15807)
- Gap 7/20: -0.11% (open > 15939)
- Session Open ATR: 235.38
- Volume: 18K
- Open Int: 265K
- Trend Grade: Neutral
- From ATH: -8.5% (Rounded)
Key Levels (Rounded - Think of these as ranges)
- Long: 15247
- Mid: 14675
- Short: 13531
Keep in mind this is not speculation or a prediction. Only a report of the Power Range with Fib extensions for target hunting. Do your DD! You determine your risk tolerance. You are fully capable of making your own decisions.
NQ Power Range Report with FIB Ext - 11/8/2023 SessionCME_MINI:NQZ2023
- PR High: 15374.75
- PR Low: 15362.75
- NZ Spread: 27.0
Key Economic Events
09:15 – Fed Chair Powell Speaks
10:30 – Crude Oil Inventories
Daily supply lift continues
Evening Stats (As of 12:25 AM)
- Weekend Gap: N/A
- Gap 10/30 +0.47% (open < 14272)
- Gap 8/2: -0.33% (open > 15807)
- Gap 7/20: -0.11% (open > 15939)
- Session Open ATR: 243.71
- Volume: 22K
- Open Int: 265K
- Trend Grade: Neutral
- From ATH: -8.5% (Rounded)
Key Levels (Rounded - Think of these as ranges)
- Long: 15247
- Mid: 14675
- Short: 13531
Keep in mind this is not speculation or a prediction. Only a report of the Power Range with Fib extensions for target hunting. Do your DD! You determine your risk tolerance. You are fully capable of making your own decisions.
NQ Power Range Report with FIB Ext - 11/7/2023 SessionCME_MINI:NQZ2023
- PR High: 15222.50
- PR Low: 15203.25
- NZ Spread: 43.25
No key economic events
Slight lift of daily supply
- Print shows potential for reversal
- High anticipation for selling
Evening Stats (As of 12:25 AM)
- Weekend Gap: +0.47% (open < 14272)
- Session Gap 8/2: -0.33% (open > 15807)
- Session Gap 7/20: -0.11% (open > 15939)
- Session Open ATR: 245.39
- Volume: 24K
- Open Int: 258K
- Trend Grade: Neutral
- From ATH: -9.4% (Rounded)
Key Levels (Rounded - Think of these as ranges)
- Long: 15247
- Mid: 14675
- Short: 13531
Keep in mind this is not speculation or a prediction. Only a report of the Power Range with Fib extensions for target hunting. Do your DD! You determine your risk tolerance. You are fully capable of making your own decisions.
NQ Power Range Report with FIB Ext - 11/6/2023 SessionCME_MINI:NQZ2023
- PR High: 15203.00
- PR Low: 15172.50
- NZ Spread: 68.0
Lite week for key economic events
- Nothing scheduled for today's session
Holding Friday's highs
- 5 Green daily bars in a row
Evening Stats (As of 12:25 AM)
- Weekend Gap: +0.47% (open < 14272)
- Session Gap 8/2: -0.33% (open > 15807)
- Session Gap 7/20: -0.11% (open > 15939)
- Session Open ATR: 247.60
- Volume: 26K
- Open Int: 258K
- Trend Grade: Neutral
- From ATH: -9.6% (Rounded)
Key Levels (Rounded - Think of these as ranges)
- Long: 15247
- Mid: 14675
- Short: 13531
Keep in mind this is not speculation or a prediction. Only a report of the Power Range with Fib extensions for target hunting. Do your DD! You determine your risk tolerance. You are fully capable of making your own decisions.
NQ Power Range Report with FIB Ext - 10/31/2023 SessionCME_MINI:NQZ2023
- PR High: 14416.50
- PR Low: 14403.50
- NZ Spread: 29.0
Key Economic Event
10:00 – CB Consumer Confidence
Weekend gap still open
- Inside prev session range
- Broke into bear zone early
- Inventory response near prev session lows
Evening Stats (As of 12:05 AM)
- Weekend Gap: +0.47% (open < 14272)
- Session Gap 8/2: -0.33% (open > 15807)
- Session Gap 7/20: -0.11% (open > 15939)
- Session Open ATR: 258.34
- Volume: 31K
- Open Int: 256K
- Trend Grade: Neutral
- From ATH: -14.5% (Rounded)
Key Levels (Rounded - Think of these as ranges)
- Long: 15247
- Mid: 14675
- Short: 13531
Keep in mind this is not speculation or a prediction. Only a report of the Power Range with Fib extensions for target hunting. Do your DD! You determine your risk tolerance. You are fully capable of making your own decisions.
NQ Power Range Report with FIB Ext - 10/27/2023 SessionCME_MINI:NQZ2023
- PR High: 14302.00
- PR Low: 14244.00
- NZ Spread: 129.25
Key Economic Event
08:30 – Core PCE Price Index
Month End
Session gap up (details below)
- First major buy response off June inventory
- Prev session gap down filled during A period
- Retrace ~50% of prev session range
Evening Stats (As of 1:25 AM)
- Weekend Gap: +0.21% (filled)
- Session Gap 10/27: +0.28% (open < 14216)
- Session Gap 8/2: -0.33% (open > 15807)
- Session Gap 7/20: -0.11% (open > 15939)
- Session Open ATR: 270.30
- Volume: 37K
- Open Int: 264K
- Trend Grade: Neutral
- From ATH: -14.7% (Rounded)
Key Levels (Rounded - Think of these as ranges)
- Long: 15247
- Mid: 14675
- Short: 13531
Keep in mind this is not speculation or a prediction. Only a report of the Power Range with Fib extensions for target hunting. Do your DD! You determine your risk tolerance. You are fully capable of making your own decisions.