Supply & Demand Zones

Supply and Demand Zone trading identifies specific price regions where institutional orders previously overwhelmed the opposing side, causing sharp reversals. These zones are drawn as rectangular boxes. From the highest wick to the body close of the rally-or-decline that followed a reversal. and are expected to defend price on subsequent retests because leftover institutional orders remain at the level.

The strategies here cover the four canonical zone formations: Rally-Base-Rally (continuation demand in uptrends), Drop-Base-Drop (continuation supply in downtrends), Rally-Base-Drop (reversal supply from uptrend), and Drop-Base-Rally (reversal demand from downtrend). Zone Flip trades the scenario where a supply zone, once broken, becomes demand on retest. Role reversal that signals structural shift. Fresh Zone Entry emphasizes that untested zones are stronger than revisited ones; each retest depletes the resting orders. The critical variable is zone quality: strong zones have a narrow base (few consolidation candles before the breakout), aggressive departures (wide-range candles leaving the zone), and extended distance from origin before retest. Combining supply/demand zones with higher-timeframe structure produces the most durable setups. take only demand zones when the higher-timeframe trend is bullish, only supply zones when bearish.