How to draw supply and demand zones in the cryptocurrency market?

1 answers

• PisitOct 30, 2022 · 3 years ago
  Drawing supply and demand zones in the cryptocurrency market can be a valuable tool for traders. Here's a step-by-step guide: 1. Identify key support and resistance levels on the price chart. 2. Draw horizontal lines to connect these levels, creating zones. 3. Look for areas where the price has shown multiple reversals or consolidations. These are potential supply and demand zones. 4. Consider the volume at these zones. Higher volume indicates stronger supply or demand. 5. Adjust the zones as new price data becomes available. Remember, supply and demand zones are not precise levels but rather areas of interest. They can help you identify potential areas of market reversal or continuation.
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