GLOSSARY · MARKET STRUCTURE

What is Supply & Demand Zone?

Supply and demand zones are price areas where strong selling or buying previously started a big move.

A demand zone is the base a strong rally launched from; a supply zone is where a strong drop started. Traders expect unfilled orders to remain there and look for reactions when price returns.

EXAMPLE

NQ consolidates at 19,900–19,920, then rallies 120 points. The 19,900–19,920 base becomes a demand zone.

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