Supply and demand zones

Supply and demand zones develop the idea of support and resistance but with different logic: you do not look for a line price bounced from, you look for the area a powerful move departed from — because that move is evidence that large orders sit there.

The definition

• A demand zone — a price band that price left upward with force and speed, indicating institutional buying that was not fully filled.
• A supply zone — a band that price left downward with force, indicating large selling.