Any feedback is welcome
Hi Chriz- all tech analysis exists within some range of % objective % subjective. It’d be hard to argue against your “Supply Zone” NOT being a resistance point. And, you’re clearly listing out a swing high with subsequent lower highs.
The interpretation of those markings though are going to be managed differently by different people.
For example- Your “Supply Zone” is clear as day. There are a few requirements that need to be met to classify an area as a valid supply zone (I go by Sam Seidens’ definitions).
So, price spent a short amount of time there, and, when it left, it left violently (big red bars, more red bars than green). It also checked backed and sold off twice as hard. That is a valid supply zone.
Your “demand zone” is a bit weaker (you should be able to tell why by taking the inverse of the above claims).
And, Yes- if you remove price from the chart, and just look at the SMA- you’ll see price is trending sideways or is in a “range”. That type of behavior typically calls for selling tops and buying bottoms.
Your analysis is accurate, and the real question then becomes- how do you plan to act on it?
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