How to draw the zone precisely

Precise drawing is half the work; a zone drawn wrongly produces an early stop-out or a missed entry. A zone is a band bounded by two lines: the proximal edge and the distal edge.

The two edges of the zone

• The proximal edge — is drawn on the candle body at the side facing price: at the top of the base bodies in a demand zone, and at the bottom of its bodies in a supply zone.
• The distal edge — is drawn at the extreme of the base; that is, the lowest wick in a demand zone, and the highest wick in a supply zone. It is the line of defence on which the stop is built.