Different Types of Supply and Demand Formations

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 DBU setup.
In the right image above, there is an uptrend (U) first. Then, we have the price forming a base (B) after which we have a continuation of the uptrend (U). I will call this setup UBU.
There are two possible setups when reviewing the supply and demand zones.

In the left image above, we have the prices going up (U), then forming a base (B) and then going down (D). I will call this the UBD setup.
In the right image above, we have price going
down (D), then forming a base (B) and after that it continues its fall down (D). This is the DBD setup.
So, the 4 setups (you don’t need to remember the abbreviations) are DBU, UBU, UBD and DBD. This is how you can identify the different supply and demand zones.

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