A Demand and Supply Zone is a term used in the field of technical analysis in finance. It refers to areas on a price chart where the demand for a particular asset (such as a stock or currency) or the supply of that asset is high enough to cause a noticeable effect on the price.
In a Demand Zone, buyers are more likely to be present, causing prices to increase. In contrast, a Supply Zone indicates a level at which sellers are more likely to be present, resulting in prices decreasing.
Demand and Supply Zones are often used by traders to identify potential areas of support and resistance in the market. By analyzing these zones, traders can make better-informed decisions about when to buy or sell a particular asset.
In a Demand Zone, buyers are more likely to be present, causing prices to increase. In contrast, a Supply Zone indicates a level at which sellers are more likely to be present, resulting in prices decreasing.
Demand and Supply Zones are often used by traders to identify potential areas of support and resistance in the market. By analyzing these zones, traders can make better-informed decisions about when to buy or sell a particular asset.