Price areas where a strong imbalance between buyers and sellers previously caused a sharp move — and may again.
A demand zone is an area buyers stepped in aggressively and price rallied away from; a supply zone is where sellers overwhelmed and price dropped. Unlike a single support line, they are zones with width, drawn from the base a move launched from.
When price returns to a fresh zone, unfilled orders can drive another reaction — a bounce from demand or a rejection from supply — offering potential entries with defined risk.
Find a tight consolidation (the base) immediately before a strong, fast departure, and mark that base as the zone. The stronger and faster the departure, the more significant the zone.
Zones weaken each time they are tested and eventually break. They are a probability tool, not a wall — combine them with trend and confirmation.
Reading a definition is step one. Chart Bound drills you on spotting Supply & Demand Zones and dozens of other setups on live candles, and the Daily gives you one fresh chart to read every day. Free to start.