Definition
Price areas, rather than single lines, where a market previously turned sharply, which some traders expect could see heavy buying (demand) or selling (supply) again.
The story
Instead of drawing support at one exact price, some traders mark a band, say $4,000 to $4,020 on gold, where price last bounced hard. It's the same idea as support and resistance, drawn as a zone, because markets rarely turn at one exact tick.
Why you'll see it
It's a common way trading education teaches people to mark levels.
Connects to
We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms