Recently, when looking at charts, I found that many people haven't really understood how to use supply and demand. Actually, this thing boils down to identifying those "key price levels"—places where the market either buys heavily or sells heavily.

What is SND? Simply put, a demand area is a price level where buyers swarm in, and a supply area is where sellers cluster to unload. When Bitcoin rises from $25,000 to $30,000 but gets repeatedly pushed down at $30,000, then $30,000 is likely a supply zone—big players are dumping there. Conversely, if Ethereum drops from $2,000 to $1,800 and keeps bouncing at $1,800, then $1,800 is a demand zone.

How to find these areas? Look at volume, especially where trading volume suddenly spikes. Also, observe candlestick reversal patterns, such as hammer or doji formations, which often indicate SND zones. I usually combine price action with technical indicators for confirmation, making it easier to verify.

Why focus on these? Because they are potential turning points. If you can buy in demand zones and sell in supply zones, the risk-reward ratio naturally improves. Plus, you can set stop-losses in these areas to prevent being wiped out easily.

However, note that supply and demand are not foolproof. Sometimes, breakouts occur, and the price simply breaches these zones and continues moving. There are also fakeouts, where the price pushes through and then reverses, trapping the trend followers. Since the crypto market is so volatile and illiquid coins' SND can be more easily broken, risk management is essential—don't go all-in on one position.

My advice is to wait for confirmation signals before acting, use limit orders to get better prices, and strictly execute stop-losses. SND is indeed a useful tool, but it shouldn't be relied on alone; you also need to consider the overall market environment and sentiment changes. When combined with other analysis methods, this approach can help you find more high-probability trading opportunities.