Supply and demand zones versus support and resistance: what's the difference to you?
Supply and demand traders draw zones from the impulsive moves that created them; classic S/R traders draw levels from repeated touches. The two schools overlap heavily and disagree about everything else.
Which school are you?
- how you draw your zones or levels
- what must happen at a zone for you to act
- the concept from the other school you secretly use
The support and resistance guide sets the shared foundation.
Background: Support and resistance: how traders mark price levels
Support and resistance are the most widely used ideas in chart reading. How to find levels, why they work as zones, and what happens when they break.
What is support and resistance in forex?
Support is a price area where falling prices have tended to stop, and resistance is an area where rising prices have tended to stall, often because many orders cluster there.
What happens when support breaks?
The price often falls further, and the old support level frequently acts as resistance if the price comes back up to it.
Comments
Log in to join the discussion. Comments follow the community guidelines.
Log in to commentLoading comments…