Supply and demand zones

Beginner Questions
1

Hi

I get the concept but I wondered if some would be kind to direct me to some resources on how to identify central zones?

Thanks

2

Look at price levels most prevalent in long-term charts. This will illustrate where supply/demand levels are on buying or selling the instrument. For example, a price range that trades most frequently in a chart or ranges of commonly approached supports and resistances.

1 Like
3

Please share your concepts, I would listen to it.

4

Basically; supply & demand zones are known as support and resistant levels on our trading chart.

1 Like
5

Supply and demand zones, basically indicate where prices are likely to touch then reverse.
These zones can be identified using a longer timeframe (I personally use 4hr). From there, look for a breakout candle to the opposite direction of the current trend. After which draw a rectangle starting from the wick of the previous candle to the close of the breakout candle. (In supply zone this is usually from the bullish candle wick to the close of the bearish candle), extend the rectangle to the future, in order to help you know when price approaches this zone.
The opposite applies for the demand zone.

3 Likes
6

@thegrumpytrader ,

Use the search bar above for threads on supply and demand. You will get a boat load of great intell. Gold, Jerry! Gold!

This thread helped me a lot.

Good luck,

KC

1 Like
7

I would also suggest to you to read some quality books on economy in order to understand better concepts of supply and demand as these are most common economic terms. With understanding of these concepts you will be able better to understand how to spot them on the chart