A trader explains how to spot supply and demand zones by finding sharp price moves out of tight ranges. When price returns to where the move started, watch for big players defending that level, which signals a reliable entry point for your next trade.
I don't even know how I traded without this, to be honest. Every level that I draw now, I am looking for the reaction at. Give me 30 seconds and I'll show you exactly how I draw them. I find an area on my chart where price moves sharply in one direction. Not a slow grind, a sharp, impulsive, aggressive, decisive move in one direction. Now I look for where that move started. Price most likely was sitting quietly in a tight range in a form of consolidation. and then it exploded. This is now the imbalanced move. The origin point before the imbalanced move is where I draw my zone. I draw my zone from the top of the range to the bottom of the range. This is where large participants are sitting. Every trader who leveraged into a position got filled, then the market moved in their favor. When price now retests this level, I look for the market to react and the original participants to defend price. If this can be confirmed and the level holds, there are real orders waiting inside it and real large buyers or sellers that we can follow their footsteps in playing a high-quality trading setup. Comment charts to learn this for free.
