Support & Resistance, Supply & Demand, Psychological Levels, and Micro Zones — explained visually with live BTCUSD examples.
Think of zones as invisible floors and ceilings on a chart — areas where price tends to pause, bounce, or reverse.
Zones reveal where institutions placed orders. When price returns, those orders re-activate — creating predictable reactions you can trade.
Beginners draw lines. Pros draw zones ($200–$2,000 wide on BTC). This gives you a reaction area instead of a single point of failure.
The most fundamental concept — zones where price has historically reacted.
Where buyers step in. Like a trampoline — more bounces = stronger.
Where sellers dominate. A ceiling — price rises, hits it, drops.
When price breaks through support, that zone becomes resistance — and vice versa.
S/D goes deeper than S/R — we identify why price reacted: the origin where institutions placed massive orders.
Heavy buying. Small candles (base) then strong move UP. Banks loaded here.
Heavy selling. Base then strong move DOWN. Sell orders wait for price return.
| Feature | Support / Resistance | Supply / Demand |
|---|---|---|
| What it marks | Where price bounced | Where orders originated |
| Based on | Swing highs/lows | Base candles before impulse |
| Touches | More = stronger | Fewer = fresher |
| Best for | All timeframes | Sniper entries |
| Think of it as | "Where did it react?" | "Why did it react?" |
Humans love round numbers. Traders cluster orders at them — creating self-fulfilling reaction zones called BRNs.
Traders set TP/SL at round numbers — easy to remember.
Banks and algos cluster orders here = massive liquidity.
Everyone expects it → everyone places orders → it happens.
Price gets "pulled" toward round numbers before reversing.
Precise areas within larger zones. "901" targets levels ending in 01 (like $70,001) — where smart money places real orders, just past the round number.
1 pip from BRN. Smart money front-runs the crowd.
5 pips from BRN. Common TP/SL for experienced traders.
Untested near BRN = highest probability.
Price breaks BRN briefly to grab stops, then snaps back. Classic liquidity grab.
The magic happens when multiple zones stack on top of each other. That's confluence — where the best trades live.
Rate your zone before entering:
Your step-by-step workflow every time you open a chart.
| ❌ Mistake | ✅ Fix |
|---|---|
| Too many zones | Max 3–5 key zones per timeframe |
| Lines instead of zones | Draw rectangles covering wicks |
| One timeframe only | Mark H4/D1 first, refine on M15/M5 |
| Trading every touch | Wait for 3+ confluence factors |
| Not marking "used" zones | Delete zones tested 2+ times |
Tap the best answer for each question.
What's the difference between a zone and a line?
What pattern identifies a Demand Zone?
Why enter at $70,001 instead of $70,000?
What does "confluence" mean?
Screenshot this. Keep it next to your chart.
Support: Historical bounce — more touches = stronger
Demand: Base → rally origin — fewer touches = fresher
Action: Look for BUY setups
Resistance: Rejection ceiling
Supply: Base → drop origin — institutional sells
Action: Look for SELL setups
$x0,000: Mega — strongest reaction ($50k, $100k)
$x0,000: Major — very strong on BTCUSD ($60k, $70k, $80k)
$x5,000: Mid — moderate reaction ($65k, $75k)
$x0,001: Just above BRN — smart money entry ($70,001)
$x9,999: Just below — front-run sells ($69,999)
Use: Refine exact entry within larger zone
Real zones based on current MT5 data. BTC is at ~$69,808 after crashing from $105k to $59,991 and bouncing.
Last updated: Feb 7, 2026 · Data from Pu Prime MT5
Type: Fresh Demand + $60k Mega BRN
Strength: EXTREME — Feb 6 low hit $59,991, instant $10k bounce
Confluence: S/D (fresh base) + $60k BRN + panic capitulation wick
Type: Demand + $65k BRN + S/R Flip
Strength: STRONG — Feb 6 consolidation before rally continuation
Confluence: S/D + $65k BRN + retest of broken resistance
Type: Fresh Supply + $75k BRN
Strength: STRONG — Feb 4 breakdown point, untested from above
Confluence: S/D (breakdown base) + $75k BRN + S/R Flip
Type: Supply + $80k Mega BRN
Strength: VERY STRONG — Former major support, now resistance ceiling
Confluence: S/D + $80k BRN + major S/R flip from Jan-Feb
$70k BRN holds as support → price builds base → push toward $75k supply.
Buy at $70,001 (901 level) if H4 candle shows rejection wick + bullish close above $70k
TP1: $72,000 (+$2k) · TP2: $74,500 (supply zone edge) · SL: $68,500 (-$1.5k)
$70k fails to hold → price retests demand at $65k-$66.5k. Classic bearish continuation.
Sell if H4 closes below $69,000 with strong bearish candle. Target the $65k demand.
Wait for $65,001 (901 level) with bullish rejection. SL below $63,500.
Short squeeze pushes BTC to $74.5k-$76.5k supply zone → heavy selling resumes.
Sell at $74,999 or $75,001 (901 micro zone). Look for H4 bearish engulfing at supply.
TP1: $72,000 · TP2: $70,000 · SL: $77,000 (above supply zone)
Worst case: all support breaks → BTC retests the Feb 6 capitulation low at $60k.
Buy at $60,001 (901 level) with wide SL at $57,500. This is the "back up the truck" zone.
TP1: $65,000 (+$5k) · TP2: $70,000 (+$10k) · R:R up to 4:1
In a crash environment, patience wins. The best zones are at the extremes — $60k demand or $75k+ supply. Trading the middle ($68k-$72k chop zone) is low-probability. Wait for price to come to YOUR zone, not the other way around.