Supply and demand are the fundamental driving factors in any trade, and the share

market is no exception. The delicate balance between supply and demand not only
determines the price and availability of securities but also reflects the
collective desire to own them. To navigate this dynamic landscape, traders turn to
the concept of supply demand zone, which provides vital insights into market trends
and potential price movements.

In this blog, we will explore the intricacies of trading supply and demand zones,
delve into the significance of supply demand trading, and uncover effective
strategies to unlock the profit potential they hold.

Supply and Demand Zone

Supply and demand zones are specific price levels in financial markets where there
are lots of pending orders. Banks and other financial institutions use complex
algorithms to find these important areas where the forces of supply and demand
intersect.

The supply zone represents a price level where traders tend to sell their assets.
It is located on top of the current market price, indicating a high potential for
selling activity. When the price reaches this zone, outstanding sell orders are
fulfilled, resulting in a downward price movement. The diagram below illustrates
the concept of a supply zone.