CHART Charting · Updated January 2026 · ~4 min · For TradingView desktop 3.2.1
Drawing Supply/Demand Zones & Liquidity Areas in Crypto
Drawing support/resistance as a single line is too precise — a wick fools it. Closer to reality is a supply/demand zone (or order block): a price band where large orders stacked and price may react again.
How to frame one
- Find the last small consolidation/reversal candles before a sharp move;
- Box the bodies (or including wicks) of those candles — that's the supply/demand zone;
- When price returns to the zone, watch the reaction: does demand re-absorb, does supply re-cap?
Liquidity hunts
In crypto, price often first spikes through obvious support/resistance to "sweep stops" (hunt liquidity), then reverses. So: don't put entries below the round numbers everyone uses; wait for price to sweep liquidity and return to the zone to confirm — higher win rate.
Tip: a zone is a "reaction area," not a guaranteed reversal. Wait for clear price action inside it (engulfing, long lower wick) before acting.