Supply and Demand Zones

A demand zone forms at the base before a strong bullish departure — price rallied away quickly, leaving unfilled buy interest below. A supply zone forms before a sharp drop — unfilled sell interest above.

Draw zones from the last opposing candles (or tight consolidation) before the impulse, extending forward as a rectangle. The zone should include the bodies where the decision happened, not random wicks far away.

Fresh zones (first retest) outperform tested zones. Each touch depletes orders; third and fourth retests often break through.

Strength of departure matters: explosive move breaking structure creates strong zones; sluggish drift creates weak zones.

Supply and demand is horizontal thinking like support/resistance but origin-focused — you care why the level exists (imbalance departure), not just that price touched twice.