How do you use supply and demand zones in trading?

Here are some common ways traders use supply and demand zones in their trading strategy: Trading reversals: One common strategy is to look for supply and demand zones where the price has reversed in the past, and use those zones to identify potential reversal points in the future.

Does the supply zone fit all three laws of supply and demand?

The supply zone denoted in blue fits all three laws of supply and demand. On the H1 chart, the consolidation lasted for approximately 48 hours with a strong bearish move away and it is the first time the market has entered the supply zone.

What is supply and demand trading?

Supply and Demand is one of the core strategies used in trading. It focusses on the ancient laws of supply and demand and how price moves in a free-flowing market. The foundation of this strategy is that the amount of an instrument that is available and the desire of buyers for it, drive the price.

What is a supply zone or distribution zone?

The candlesticks or bars that mark the origin of a strong downtrend are called the supply zone or distribution zone. What is a demand zone? The candlesticks or bars that mark the origin of a strong uptrend are called the demand zone or accumulation zone. Let’s think about the three simplest concepts in trading financial markets