Demand zone (support): A lower price range where buyers became clearly active, causing the price to bounce upward, and where candles could not easily close below it. It can be identified when candles test the area two or more times and fail to break through it, especially if this is followed by a strong rise or an increase in trading volume.
Supply zone (resistance): An upper price range where sellers became clearly active, causing the price to fall after reaching it, and where candles could not easily close above it. It is relatively confirmed when the price touches the area two or more times and fails to break through it, especially if this is followed by a clear decline.
Important: A zone is not usually drawn around just one candle wick; it is better to mark a range that includes the candle bodies and wicks around which reactions have repeatedly occurred. The more tests and the stronger the bounce, the clearer the zone becomes—but repeated tests can also weaken it, as buy or sell orders may gradually be absorbed.
When a breakout occurs, watch for a candle to close outside the zone, followed by a retest if one occurs; this helps distinguish a genuine breakout from a false break or breakout. This is a market-reading tool, not a guarantee of price direction.
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Supply zone (resistance): An upper price range where sellers became clearly active, causing the price to fall after reaching it, and where candles could not easily close above it. It is relatively confirmed when the price touches the area two or more times and fails to break through it, especially if this is followed by a clear decline.
Important: A zone is not usually drawn around just one candle wick; it is better to mark a range that includes the candle bodies and wicks around which reactions have repeatedly occurred. The more tests and the stronger the bounce, the clearer the zone becomes—but repeated tests can also weaken it, as buy or sell orders may gradually be absorbed.
When a breakout occurs, watch for a candle to close outside the zone, followed by a retest if one occurs; this helps distinguish a genuine breakout from a false break or breakout. This is a market-reading tool, not a guarantee of price direction.
#تعليم_تحليل #BinanceSquare