What are supply & demand zones?

The zones are the periods of sideways price action that come before explosive price moves, and are typically marked out using a rectangle tool in the stocks, forex or CFD trading platform. Supply and Demand trading strategies use price returning to these zones as entry and exit criteria.

How do I make a trading plan when trading with supply and demand zones?

Making a trading plan when trading with supply and demand zones is not an easy task. There are a lot of factors to consider. Firstly, there are different ways to approach trading with supply and demand zones. Some prefer to use price action methods (like myself). Others are incorporating indicators (which I have never find very profitable).

What is a condensed supply zone?

In a condensed supply zone, price is rejected from that zone strongly, quickly, and often on volume, while initial supply zones are softer are rejections with price often stalling around the zones without substantial volume traded. Round numbers as well often provide good micro supply or demand zones with stacked orders.

What is the difference between support & resistance & demand supply zone?

Support and resistance is historical price point in charts but demand supply zone is marked analyzing the recent move to the price area. Sometimes support and resistance is defined by a line but D& S zone is area on the chart. If S&R is tested after substantial amount of time and honored then it becomes stronger.