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Supply_and_demand

Supply and Demand Zones: Buying Low, Selling High1. What Are Supply and Demand Zones? In the cryptocurrency trading, supply and demand zones are pivotal concepts that profoundly impact market behavior. These zones act as critical areas where traders engage in buying and selling actions, significantly influencing price movements. To gain a deeper understanding of how these zones work, let's delve into the specifics. 2. What Is A Supply Zone? A supply zone, within the context of cryptocurrency trading, represents a resistance area where traders are inclined to sell their assets. Supply zones are typically positioned above the current market spot price and often coincide with prominent psychological price thresholds, such as $50,000 or $60,000. This zone often becomes the focal point for take-profit orders, and when the price approaches it, resistance ensues. Unless there's a notable surge in buying pressure to counteract the selling momentum, prices are prone to decline. 3. What Is A Demand Zone? On the flip side, a demand zone serves as a support area where traders favor purchasing cryptocurrency assets. Demand zones are generally situated below the current market spot price and are frequently aligned with significant psychological price levels, such as $10,000 or $20,000. Traders are inclined to set limit buy orders within these zones, leading to upward price movements as the appeal of the support level draws in buyers. 4. How to Draw Supply and Demand Zones? Drawing supply and demand zones is a fundamental skill for cryptocurrency traders. To create these zones effectively, traders often employ the "Rectangle" tool available on @TradingView charts. By identifying historical peak levels and bottoms where price reversals have occurred, traders can accurately delineate supply and demand areas. 5. How to Find Supply and Demand Zones? While there isn't a specific indicator dedicated to supply and demand, we can utilize tools like "Pivot Points" to narrow down these key areas. Pivot Points are instrumental in highlighting support and resistance levels, making them valuable for identifying potential supply and demand zones. When Bitcoin or other cryptocurrencies reach these levels marked by Pivot Points, significant price reactions often follow, offering prime opportunities for profitable trades. 6. How to Trade Supply and Demand Zones? Trading based on supply and demand zones is a versatile strategy that suits both short-term and long-term trading approaches. The fundamental principle remains constant: buy within demand zones and sell within supply zones. For example, suppose Bitcoin is currently trading at $25,900, and demand zones are situated in the range of $25,300 to $25,600. In this case, we can place buy orders within this demand zone and sell orders in the supply zones. It's essential to adapt this strategy to your specific trading goals and preferences, utilizing support and resistance levels as a foundational framework for drawing trend lines and setting limit orders. Incorporating the power of supply and demand zones into your cryptocurrency trading strategy can provide invaluable insights and enhance your overall trading success. Whether you're a day trader or a long-term investor, comprehending and effectively utilizing these zones can enable you to make more informed decisions and potentially amplify your profitability in the cryptocurrency trading.
Education
by Vestinda
EUR/USD 4H TF Analysis🇪🇺 EUR/USD 🇺🇸 🗣️EUR/USD analysis update - 4H Timeframe🗣️ Analyzing the EUR/USD currency pair chart is a fundamental skill for anyone interested in foreign exchange (Forex) trading or investing in the currency markets. The EUR/USD pairing is one of the most traded in the world, making it a prime choice for both beginners and experienced traders. This analysis serves as a foundation for understanding how to make informed decisions in the Forex market. As we have received many request regarding the technical analysis of this pair, Here we are going to analyze EUR/USD since 13 July 2023. And we hope to provide useful info for Educational and better future investing decisions. As you can see, after reaching the weekly supply zone, price has formed a distributing structure. And we can see a Wyckoff formed. And as a result of this structure and break of the SR line, there is a FTR formed and price has formed a downtrend after retesting this zone. Most of the SHORT positions which were set up at the FTR zone has successfully take their profit. Price has again engulfed the green zone and formed a new FTR which has been presented to you as a base structure on the chart. Overall, after a Drop Base Drop price has started a downtrend! Flag Limits of this structure are shown on the chart and price has first engulfed the bottom of the range which is a sign of possible future bottom break of this range. Also this engulfing as been along with break of the SR line. After reaching the higher of the range and hunting liquidities at this area, as per expected price has moved downward and by engulfing the Blue SR line it has formed a new FTR (Decision Point). *very important point for this currency*. Price had a pullback to this area and started moving downward to 1.076 area. (In higher time-frames we can see a QM formed at this stage) Price was supported at 1.076 and was pulled back to the FTR(decision point). We expected the price to be rejected from this zone and by touching the Midterm Trend-line (red line) price continued the downtrend to the 1.076 are again. As the result of all this we are expecting the price to move lower to the Weekly Demand zone at 1.063. 🎗 Trader ACE Academy 🎗
Short
by SardarLo
XAU USD - showing it's teethG'day, Master Key for zones Red = Three Month Blue = Monthly Purple = weekly Pink = Consolidative box example (Daily) Orange = Daily Risk Warning Trading leveraged products such as Forex, commodities and CFDs, carries with it a high level of risk and so may not be suitable for every investor. Prior to trading the foreign exchange, commodity or CFD market, consider your investment objectives, level of experience and risk appetite. You should never risk more than you can afford to lose. If you fail to understand or are uncertain of the risks involved, please seek independent advice and remember to conduct due diligence as criteria varies to suit the individual. Below are some of the take aways from the video - please listen again incase any detail is missed. Daily Weekly Monthly Do you enjoy the setups? Professional analyst with 7+ years experience in the capital markets Focus on technical output not fundamentals Focus on investing for long term positional moves Provide updates where necessary - with new updated ideas tracking the progress. If you like the idea, please leave a like or comment. To all the followers, thank you for your continued support. Thanks, LVPA MMXXIII
FOREXCOM:XAUUSD
by LupaCapital
20
BTC 3 scenarios hello traders, regarding days left to next halving which suitable enough for a sharp move. We're much more interested in buying Bitcoin! It has been long since we bought bitcoin and we aim to keep most of them. here by buying and selling I mean increasing and decreasing our cryptocurrencies basket volume. (for more information of halving read the related idea) In case of trading buying over 31750 is suggested. Also a reaction to 25500 could be a good reason to buy BTC. We don't suggest to buy on bottom of the bullish channel, since the 31500 level is really strong. If we see 25000 is well broken down, we will search for shorting reasons for only the next important level by half risk. best regards, Ali signals
BINANCE:BTCUSDLong
by AliSignals
LUV Weekly Chart Showing Heavy DemandSouthwest Airlines has been going through some turbulence with recent flight rearrangement issues, but for the most part has smoothened out all issues regarding flights. Air Travel Demand is still thriving and growing exponentially, respectively. Southwest is a leader among a few others in Airline Stocks as they have High-Quality Management & Great Financial Strategy (e.g. Fuel hedging) The stock has performed quite poorly since its post-COVID peak of $65 and has retreated nearly 50% while remaining a sound financial base. Southwest has been hovering around this major demand zone at the $30 area. As highlighted in green, this demand zone has repeatedly pushed LUV back up higher, and on this weekly chart, we can see a triple bottom starting to push back higher from this $31 level. This weekly chart prevails a strong Risk/Reward towards Southwest as a swing-trade or LT investment. Southwest has remained a fundamentally strong & sound company as they are the first American Airline Co. to reinstate their dividend. EPS projections are very optimistic for the next several years as demand increases & costs decrease. It would also be likely to see a rotation into the travel / Airlines sector as it has been quite low and non-volatile thru the past half year. Recent PT cuts lead me to believe Funds could be loading up Conclusion: LONG NYSE:LUV through commons Option Play: Credit-Spread : Jan 19, '24 Puts $30-$27.5p
NYSE:LUVLong
by ZachSap
PEPE to fall by 71% to under 100 million market cap!In the absence of any concrete utility to support the token, nothing seems to prevent Pepecoin from falling below the 100 million mark in market cap. Shiba Inu expands into DeFi to support its ecosystem. Speculators will be less patient for PEPE. Developers cashed out and are watching the ship sink! There is no bullish momentum to reject PEPE's price as it approaches key support at $0.0000008375 or June 2023 low. If price breaks down this level, there would be another drop to 0.0000003099 support, or more than -71%. PEPE market cap would then be less than 100 million dollars. PEPE's initial price is $0.00000000001394 according to Techopedia.
CRYPTO:PEPEUSDShort
by almmaye