Purple Zone
Strategic accumulation zone between two support or resistance levels.
Beginner-friendly explanation
The Purple Zone is a chart area where prices often bounce but do not break down or rally significantly. It’s a waiting zone between two important levels.
📌 Example:
On a chart, Bitcoin trades for several days between $28,000 and $30,000: it’s in a Purple Zone.
Intermediate-level insight
The Purple Zone is often an accumulation zone where investors place buy or sell orders. It signals compression before a future expansion (breakout or breakdown).
📌 Example:
After several days in a Purple Zone, ETH breaks above resistance, confirming a breakout.
Advanced perspective
In advanced technical analysis, the Purple Zone corresponds to tight ranges optimized by market makers to accumulate or distribute liquidity before a major directional move.
📌 Example:
A trading desk identifies a Purple Zone on the SP500 futures and places long options anticipating a bullish breakout.
Blockchain & Technology
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