I am not the type of a trader that uses profusely indicators.Even quite the contrary! My students know exactly what I use and most of the time, it is the chart itself. Juggling between a few timeframes and using price action has proven to be the best tactic when it comes to using supply and…
In order to answer this question, we should first start off with what is the difference between zones and levels.Let’s have a look at the example below showing a level: Let’s have a look at a supply and demand zone: As you can see from the sketch above, a zone is the distance between two…
How to Identify Supply and Demand Zones So, how we identify the major types of supply and demand formations. As pointed out above, you need to follow the three steps in order to identify the supply and demand zones.• Look at the chart and try to spot successive large successive candles.• Establish the base• Draw…
There are different supply and demand zone patterns. Some of the more popular ones are shown below: In this image, there are two potential scenarios. In the first one on the left, we have price going down (D), then forming a base (B) and then going up (U) again. I will call this setup the…
Supply and Demand zones do offer a great insight into the structure of any market. If you have an idea of how to trade with support and resistance zones, you might find supply and demand zones very similar. You won’t be mistaken. Supply and demand zones are very similar if not the same. There are…