Demand & supply zone ( part 1)
The former is known as SUPPLY ZONES. When the market bumps into SUPPLY ZONES, the price will drop. Then, you can make money by shorting the market.The latter is market DEMAND ZONE. With the support of demand, the price will rise. Then, you can profit in a long position. If the supply zone is broken it becomes a demand zone, pullback test from the demand zone you can go long
How to Find Supply and Demand Zones ?
Two steps in order to identify the supply and demand zones.
- Look at the chart and try to spot successive large successive candles. It is important that price moves a lot
- Establish the base (usually sideways price action area) from which price started the quick move