Support and Resistance VS Supply and Demand Explained
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 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.
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
ES (SPX, SPY) Analyses, Key Zones, Setups Fri (Oct 10)Session Roadmap (London → NY)
London (02:00–05:00 ET): Expect balance 6792–6807. A sustained London hold above 6802–6805 increases odds of a pre-NY probe into 6809–6812. A London slip below 6784.5 shifts risk to a VWAP check 6777–6780 and potentially 6766–6761 into NY AM.
NY AM (09:30–11:00): Two-way opening likely unless 6812 converts rapidly; watch 9:45–10:05 for the sentiment print impulse.
NY PM (13:30–16:00): If morning sets a trend, expect continuation toward RE1/RE2; otherwise back-to-value rotations inside 6780–6795.
TIER-1 (A++) — Breakout LONG above PDH/ONH
Trigger: 15m full-body close above 6810–6812, then a 5m hold/re-close with HLs.
Entry: 6810.75–6812.25 on the first clean retest/hold.
Invalidation (hard SL): 6804.75 (below retest & today’s open region).
TPs: TP1 6821.75 (RE1), TP2 6834.00, TP3 6841.25.
TIER-1 (A++) — Breakdown SHORT through Y-VAL/PDL
Trigger: 15m full-body close below 6766.5 and then 6760.75, with a 5m retest 6764–6766 that fails.
Entry: 6764.00–6766.00 on the rejection.
Invalidation (hard SL): 6772.50 (back above value shelf).
TPs: TP1 6748.50, TP2 6736.50, TP3 6729.00.
TIER-2 (A+ Bounce) — Quick-reclaim LONG at Value Shelf
Trigger: Fast flush into 6777–6780 with a 1m reclaim of 6780.5 and 5m re-close above.
Entry: 6778.00–6780.50 after the reclaim.
SL: 6771.25.
TPs: TP1 6792.75 (Asia H pivot), TP2 6805.50 (today’s open/nearby shelf), runner eye 6810–6812 if momentum.
TIER-3 (A Bounce) — Exhaustion-flush LONG at PDL
Trigger: Liquidity sweep 6758–6752 that reclaims 6761 on 1m and 5m holds.
Entry: 6754–6756 on the reclaim.
SL: 6750.75.
TPs: TP1 6777.75 (VWAP), TP2 6789–6792 (pivot band).
===
Price-Path Scenarios (most to least likely)
Balance → Break Probe: Early churn inside 6792–6807; successful lift through 6810–6812 post-10:00 unlocks 6821.75 (RE1).
Fade to Value: Early rejection at 6809–6812 leads to a drift back into 6784/80 → 6777.75; buyers defend value and keep the range intact.
Bear Extension (data-shock needed): Clean 15m close below 6766.5/6760.75 opens 6748.50 with potential follow-through to 6736.50.
Learn the Significance of Psychological Levels and Round Numbers
When traders analyze the key levels, quite often then neglect the psychological levels in trading.
In this article, we will discuss what are the psychological levels and how to identify them.
What is Psychological Level?
Let's start with the definition.
Psychological level is a price level on a chart that has a strong significance for the market participants due to the round numbers.
By the round numbers, I imply the whole numbers that are multiples of 5, 10, 100, etc.
These levels act as strong supports and resistances and the points of interest of the market participants.
Take a look at 2 important psychological levels on EURGBP: 0.95 and 0.82. As the market approached these levels, we saw a strong reaction of the price to them.
Why Psychological Levels Work?
And here is why the psychological levels work:
Research in behavioral finance has shown that individuals exhibit a tendency to anchor their judgments and decisions to round numbers.
Such a decision-making can be attributed to the cognitive biases.
Quite typically, these levels act as reference points for the market participants for setting entry, exit points and placing stop-loss orders.
Bad Psychological Levels?
However, one should remember that not all price levels based on round numbers are significant.
When one is looking for an important psychological level, he should take into consideration the historical price action.
Here are the round number based levels that I identified on AUDUSD on a weekly time frame.
After all such levels are underlined, check the historical price action and make sure that the market reacted to that at least one time in the recent past.
With the circles, I highlighted the recent reaction to the underlined levels. Such ones we will keep on the chart, while others should be removed.
Here are the psychological levels and proved their significance with a recent historical price action.
From these levels, we will look for trading opportunities.
Market Reaction to Psychological Levels
Please, note that psychological levels may trigger various reactions of the market participants.
For instance, a price approaching a round number may trigger feelings of greed, leading to increased selling pressure as traders seek to lock in profits.
Alternatively, a breakout above/below a psychological level can trigger buying/selling activity as traders anticipate further price momentum.
For that reason, it is very important to monitor the price action around such levels and look for confirmations.
Learn to identify psychological levels. They are very powerful and for you, they can become a source of tremendous profits.
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5 Elements of the Best Key Level in Forex, Gold Trading
What are the best key levels to trade?
This year I analyzed more than 1500 key structures on Forex, Gold, Crypto and Indexes.
In the today's article, I prepared for you a list of 5 elements of a perfect support and resistance for trading.
As always, remember that the best key levels are always on a daily time frame . So all the structures that we will discuss will be strictly on a daily .
Also, all the structures that I analyzed and traded are available on my TradingView page, so you can back test them by your own.
1. Clear historical significance
The structure that you spotted should act as a significant historical support or resistance.
Here are the important historical support and resistance that I spotted on USDCAD on a daily time frame.
2. Psychological significance
The structure that you identified should match with round numbers.
All the structures that we spotted on USDCAD match with psychological numbers.
3. Confluence with other technical tools
The best structure should align with other trading tools such as trend lines or Fibonacci levels , strengthening its significance.
After adding fibonacci levels and a significant falling trend line on the chart, the confluence was found in Resistance 6, Resistance 3, Resistance 2, Resistance 1, Support 2. Other structure does not match with technical tolls.
4. Volume
The level experiences high trading volumes, indicating strong participation and interest from market participants, especially smart money.
All the structures that we underlined show significant volume spikes. By volume spike, I mean a volume being higher than the average volume - a blue curve on volume.
5. Multiple touches
The more, the better. There are numerous instances where price has respected and reacted to the structure, confirming its strength (at least 2).
Only these 3 structures were confirmed by the multiple touches. These resistances will be considered the strongest ones.
That checklist will help you to identify the most significant structures from where you will be able to catch impulsive movement and make nice profits.
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Bellring Brands Bounce from Huge Key Levels & Motived ManagementFundamentals:
In today's earning's call (August 5, 2025, the management was excited about the future outlook of the company. Their expected negativity from the start. The questions by the banks (JP Morgan and Morgan Stanley and others) were answered thoroughly and professionally...and positively.
Technicals:
I discuss the quick fundamentals and technicals of this stock in this video here:
Monthly:
hidden bullish divergence
2021 horizontal key level of support
Weekly:
diagonal and horizontal level of support
with indicators:
30-Minute Chart:
HAMMER TIME!
Morning Star!
Volume confirmation!
GBP/USD: Following the Bearish Trend to a Key LevelSharing my perspective on a potential short setup in GBP/USD.
This view is based on a combination of weakening UK fundamentals and a clear bearish technical structure.
📰 The Fundamental View
The main driver here is the growing difference in monetary policy. The Bank of England is signaling a more dovish stance due to recent soft economic data out of the UK. In contrast, the US economy is showing more resilience, which may keep the Federal Reserve on a less aggressive easing path. This fundamental divergence puts downward pressure on the Pound versus the Dollar.
📊 The Technical Picture
The chart supports this bearish bias. We can see a clear downtrend in place, defined by a series of lower highs and lower lows. Price is currently trading below its key moving averages, which often act as dynamic resistance. The critical level to watch is the 1.34377 price zone, which was a previous area of support and could now be tested as resistance.
🎯 The Strategy
The plan is to watch for bearish price action as we approach the 1.34377 key level. A rejection from this zone would provide a good opportunity to enter a short position, aiming to ride the next leg of the established downtrend.
As always, this is my own perspective. Manage your risk carefully and trade safe.
The only key levels you need - DITCH THE INDICATORS- Previous day high/Low
- Weekly high/low
- Session high/low
- Closing Price
In this specific example on OANDA:AUDUSD we have a day 3 Tuesday breakout fail reversal setup on the backside of a previous weeks expansion.
Fridays closing price was plotted going into Monday day 2 on the backside of a new week. Once the initial high low was set on day 2 below the previous weeks high and closing price we than look for short opportunities going into day 3 Tuesday.
In this case day 2 Ny session high acted as the reversal point staying below Friday closing price below the high of the previous week. The Asia/London session printed a beautiful high/low range reversing at near the midpoint of the previous days range (50% retrace.)
A great opportunity for a projected range expansion presented with confluence at a previous days low giving a solid set and forget trade with little to no stress or heat. This parabolic opportunity took place in the NY session below Fridays closing price to a previous weeks LOD level.
- Mondays High (Stop)
- NY session High, Fridays Close (Entry)
- Wed Low, Range expansion (Target)
KEY NOTES:
It is very important to keep your trading simple. As a newer trader I filled my chart with as many indicators as possible trying to find a "signal" because I lacked the patience for the market to give me a setup over multiple days. Now as a more experienced trader I sit back on higher time frames (1H/15M) TO WAIT FOR THE DAILY LEVELS TO PRINT. Avoiding trading inside a range on a low time frame. Lower time frames are only to decrease risk and increase position accuracy already derived from higher time frames. It is key to understand when higher time frame traders are triggered into a market and to understand there are only two main plays from key levels. Keep it simple, find the scalable setups, AND PUT THE SIZE ON WITH CONFIDENCE.
USDJPY Outlook – Bearish Continuation or Bullish Reversal??In this analysis, I'm breaking down the USDJPY structure starting from the 4H to identify the overall market direction (Bearish/Sells), then zooming into the 1H to fine-tune potential trade setups.
On the 4H timeframe, we’re assessing whether the recent bearish momentum is likely to continue or if price action is showing early signs of a bullish reversal. The LOW created at 141.800 level is our first target IF we continue to sell as its creating that LowerLow.
IF price closes bullish above 142.500, I will switch sides and look for potential buys.
On the 1H timeframe, I’m watching for a bullish liquidity sweep below141.888, followed by a clear break of structure to the upside on the 15m or 1H for more confirmation. That would indicate smart money accumulation and a potential shift in market sentiment—giving me confirmation to start looking for long setups.
🚀 Give me a boost and follow for upcoming $niper entries this week! 🦇🔥
CMCMARKETS:USDJPY
GBPUSD: Buy Entry Win. HOW LOL
SO I was able to win this. idk how. but..
oh wait I know.
Here's what I did right.
0. I checked the Levels (W>D>HR>KEY LEVELS) of the Forex Market pairs on Saturday.
-I plan to keep re-assessing this every week, as practice, and to see how price is moving.
1. I assessed day bias & market intention. I guess I hit the nail on the head here.
2. Saw price trending up, so I plotted my fib and frvp. Confluenced with FVG.
3. Instead of entering on the OTE Zone, I waited to see if it would be respected. It did.
4. Instead of putting a limit entry, I set an alarm on my intended entry zone. So when it got hit, I setup my buy limit.
-I think I can improve this by putting a buy stop limit on the OTE ZONE as entry trigger, and the actual buy stop at the intended entry zone. So, if OTE is HIT, then activate LIMIT ENTRY @ price breakout(the choch line)
5. I looked farther to the left to see what's a probable target. I found one, so I targeted it. It was the weekly & daily FVGs above.
It's more or less lucky that I hit it? Price really just had a strong momentum... and before the momentum, it hit a bullish fvg below.
What happens after price rebalances an FVG? It seeks liquidity on the opposite side. This is what happened. And I caught it right this time.
GOLD All Key Levels! Buy!
Hello,Traders!
GOLD is trading in a MASSIVE
Uptrend and the slope of the
Price increase is getting steeper
And steeper which begs a question
Of how sustainable is this growth
In the future, however we are
Still bullish biased as the turmoil
In the markets makes makes Gold
Particularly attractive as a safe
Haven asset and so the next
Target seems to be a strong
Psychological level of 3300$
Buy!
Comment and subscribe to help us grow!
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BTC — Bulls in Full Control | Next Stop $87K+?Bitcoin just smashed through the resistance around $84,300, and the bullish momentum is 🔥
Now we’re heading straight into the next key zone at $87,000–$88,765, which lines up perfectly with previous supply.
If bulls keep this pace — a clean push toward 87K looks very real in the coming sessions.
Entry: $84,500 – $85,500
TP: $86,800 – $87,000
SL: $83,500
More thoughts in my profile @93balaclava
Personally I trade on a platform that offers low fees and strong execution. DM me if you're interested.
NeiroETH — Strong Rebound Zone Hit. Big Move Loading?We just tapped into a major demand zone at 0.01532–0.01607, and the reaction was immediate — strong bounce straight off the level.
From here, I’m looking for at least a recovery into the mid-range of the descending channel, with potential for much more.
Main target — a breakout above the local ATH at 0.01993.
More thoughts in my profile @93balaclava
Personally I trade on a platform that offers low fees and strong execution. DM me if you're curious.
BTC — Bullish Momentum in Play. Key Levels to WatchYesterday’s impulse lit up the market and set a bullish tone.
Short-term, I’d like to see continuation — 83,588 is the nearest resistance. Break above it, and bulls could easily push toward 88,500.
On the downside, keep an eye on 77,649 and 74,508 — the origin of the impulse and weekly low. Key spots for bears to defend.
Stay locked in. Big moves often follow clean structure.
ETH — Still Lagging Behind. Two Levels That MatterETH continues to underperform the market — and it's not just about Ethereum. Most alts showed weakness after yesterday’s front-running impulse ended in today’s fade-out.
Let’s see how they behave on BTC’s next leg up.
As for ETH — only two levels matter for now:
1689 to the upside, and 1485.7 to the downside.
I’ll take action only after a confirmed breakout and hold above or below one of these zones. Until then — just observing.
PEAQ down 87% – Is it Time to Buy the Dip?PEAQ has been in a brutal downtrend, dropping 87% within 92 days and printing 9 straight weekly red candles, with the 10th currently red as it trades below the weekly open. Now, price is attempting to stabilise around the key $0.10 level, hinting at a potential high-probability long trade setup.
Key Levels to Watch:
Support: $0.10 (Price has been trying to hold this level for two days.)
Resistance: $0.11 (A reclaim of this level increases the probability of a move higher.)
Major Resistance: $0.1260 – $0.1280 (Weekly open + bearish order block.)
Technical Confluences Supporting the Trade:
The Fib retracement from $0.1337 to $0.0989 shows that the 0.786 Fib level ($0.1263) aligns with the bearish order block from the previous trading range.
The weekly open at $0.128 strengthens the take-profit zone, making it a logical exit point.
Price has failed to break below $0.10, signaling a possible accumulation phase.
Long Trade Setup
Entry: Around $0.10
Stop Loss: Below $0.0989 (Tight SL for minimal risk)
Take Profit Target: $0.1260 (Right before key resistance)
Risk-to-Reward (R:R): 17:1 🚀 (Risking only 1.5% to potentially gain 25%)
Additional Play:
If price reclaims $0.11 with strong volume, look for order flow confirmation to add to the position. The move towards $0.12+ could be quick, as there's little resistance in between.
This setup offers a strong risk-reward ratio, making it an attractive trade with minimal downside and high upside potential. Watch for bullish momentum above $0.11, as that could confirm a stronger push to the weekly open at $0.128.
Your Stock, My Analysis – Key Levels Straight to Comments!Hey-hey
I want to give back to this amazing community! If you need a technical analysis (TA) on almost any asset, here’s all you have to do:
📌 Like this post & Follow me
📌 Comment your ticker
📌 Tell me what you want – Buying zones? Selling zones?
I’ll personally send you my TA straight to comments as soon as possible! 📩
Let’s spot the best setups together – Drop your request below! 👇
💡 Does Technical Analysis Work?
🔗 I picked 75 stocks from the S&P 500 purely based on technicals – and they outperformed the index.
Cheers,
Vaido
GOLD Key Levels: Where To Take Profit?
Hello,Traders!
GOLD is trading in a strong
Uptrend and as we are will
Be expecting the price to hit
The strong supply supply
Area around 3000$
From where some traders
Might wanna take some profits.
A correction by 7% from the
Resistance above is likely
With the retest of the
Horizontal demand area
Around 2790$
After the correction the
Uptrend will likely continue
Buy!
Comment and subscribe to help us grow!
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DEEP Key Levels - Weekend Trade SetupsDEEP has been consolidating in a 6-day trading range and as we move into the weekend, lets look at the setups.
Short Trade Setup
Resistance Zone: The 0.786 Fibonacci retracement aligns with the POC of the 6-day range at $0.304, making it an ideal short entry
Target: The 0.618 Fibonacci retracement at $0.208, where liquidity has built up below
Risk-to-Reward (R:R): This short offers an impressive 10:1 R:R if the setup plays out
Long Trade Setup
Support Zone: The 0.618 Fibonacci retracement at $0.208 also serves as a key support level
Anchored VWAP from the recent highs provides additional support near this level
Stop Loss: Stop just below $0.195
Take Profit: TP at round 0.24
XLM - Will XLM Find Strength or Stumble?XLM has been in a downtrend for the past 10 days after rejecting from the 0.618 Fibonacci retracement resistance. The price action shows lower highs and lower lows with no significant volume, signaling a potential continuation of the trend. Let’s identify the key support and resistance zones and possible trade setups.
Support Zone
A strong support zone lies between $0.3725 and $0.3695 based on multiple confluences:
Monthly Level: At $0.3725
Anchored VWAP: From the very low, the VWAP aligns with the monthly level
Fibonacci Retracement: Drawing the fib retracement from the year’s low to the recent high, the 0.75 Fibonacci level lies at $0.3695
Resistance Zone
Key Level: Price data highlights $0.435 as a significant S/R zone
Fibonacci Retracement: The 0.618 Fibonacci retracement from the current wave aligns with the key level
Short Trade Setup
Entry: 0.618 Fibonacci retracement/key level at around $0.435
Stop Loss: Above the previous high
Take Profit: Target the support zone at round $0.3725
Risk-to-Reward (R:R): 4.5
Long Trade Setup (on confirmation)
Entry: Long position between the support zone of $0.3725 and $0.3695
Stop Loss: 3% SL
Take Profit: around 0.39/0.4
Risk-to-Reward (R:R): 2 or better






















