Posted by mastermind on 2nd of Feb 2026 at 02:01 pm
Are supply zones really that significant after 6 years? How many
people do you think were holding that long to get out at break
even? That seems far-fetched to me.
Agreed. My understanding is that the Supply Zone remains
valid until tested and broken. I think the reason for this is
simply a self-fulfilling prophecy. Technical Analysts are
taught that these levels matter, so they react accordingly.
Algos are programmed to react to these levels. So IMO
it is less that actual individuals held for 6 years to get to break
even, and more that traders and computers are making decisions
based on that assumption, faulty though it may be. Once
selling begins, the resistance level is confirmed and others pile
in, even if they aren't looking back that far.
AAOI into supply zone that goes
Posted by timebandit on 2nd of Feb 2026 at 01:55 pm
AAOI into supply zone that goes back to 2017, above which is a nearly 10 point gap
Are supply zones really that
Posted by mastermind on 2nd of Feb 2026 at 02:01 pm
Are supply zones really that significant after 6 years? How many people do you think were holding that long to get out at break even? That seems far-fetched to me.
From what a learned from
Posted by drmarky on 2nd of Feb 2026 at 02:04 pm
From what a learned from hard core supply and demand traders they are always valid doesn't matter how much time has passed.
Price seems to be treating
Posted by timebandit on 2nd of Feb 2026 at 02:21 pm
Price seems to be treating it as such. Pulled back out of it again
Agreed. My understanding is that
Posted by bpt_ken on 2nd of Feb 2026 at 03:36 pm
Agreed. My understanding is that the Supply Zone remains valid until tested and broken. I think the reason for this is simply a self-fulfilling prophecy. Technical Analysts are taught that these levels matter, so they react accordingly. Algos are programmed to react to these levels. So IMO it is less that actual individuals held for 6 years to get to break even, and more that traders and computers are making decisions based on that assumption, faulty though it may be. Once selling begins, the resistance level is confirmed and others pile in, even if they aren't looking back that far.
OK, got it. Thanks.
Posted by mastermind on 2nd of Feb 2026 at 03:58 pm
OK, got it. Thanks.