Common mistakes in supply and demand

Many traders fall into recurring mistakes that spoil an approach sound in its essence. Recognising these mistakes is half the road to avoiding them.

The most common mistakes

• Drawing zones on every wobble: not every pause is a zone. A real zone is a base followed by a powerful surge, not merely a halt in a quiet move.
• Ignoring the trend: buying from a demand zone in a stubborn downtrend is a recurring mistake. A zone is always read in the context of the overall trend.
• Chasing exhausted zones: a zone price has returned to repeatedly has lost its freshness; do not treat a tested zone like a fresh one.
• Blind entry on the mere touch: touching the proximal edge is not an order to enter, but an invitation to pay attention and wait for confirmation from the candles.
• Too tight a stop: placing the stop inside the zone instead of behind the line of defence takes you out on a natural wobble before price takes off.
• The sprawling base: relying on a base of many long candles produces a wide, fragile zone; the solution is to move up to a higher frame.