Supply and demand zones: how to find and trade them

Large players cannot fill huge orders at once, so they build positions in a tight area and leave orders behind. You see it as a base of small candles followed by an explosive move away. That base is a zone: demand if price left upwards, supply if it left downwards.

Strong zones have a fast exit with big candles, a tight base, and have not been revisited (fresh). Zones touched many times get weaker as their orders are used up.

Trading it: wait for price to return, enter near the zone with a stop just beyond it, and aim for the next opposite zone or swing, at least twice the stop distance. If price never comes back, you miss the trade and that is fine.

Practise marking zones in the free interactive Academy.

Education only. This is not financial advice. Trading gold with leverage involves a high risk of losing money.

Practise it for free

Learn step by step with the interactive Academy: charts you can tap, drag and replay, with a Coach and a free certificate.