Supply & Demand Zones

Supply and Demand zones are a popular technical analysis technique. The zones are marked from periods of sideways price action. Once price breaks these areas of consolidation, explosive moves are likely to occur.

Supply Zone

A supply zone is created at the high of the price action, where price action is failing to move higher past a certain point in the market.

Demand zone

A demand zone is created at the lows of the price action, where price action is failing to move lower past a certain point in the market.

Supply and Demand Trend Continuation Pattern

Supply and Demand Reversal Pattern