The invisible Walls of the Market
Every trader knows about support and resistance, but why do most retail traders fail at it? It is because they look at "Lines" while professionals look at "Zones." In this guide, we will teach you how to spot institutional buying and selling areas with high precision.
What is a Supply and Demand Zone?
Institutional traders don't just buy 100 shares; they buy millions. Their orders are so large that they cannot be filled at a single price. This creates a "Base" or a "Zone." When the price returns to this zone, the remaining orders get filled, leading to a massive move.
How to Identify a Strong Support Zone
- Multiple Touches: The more times a level is tested and holds, the stronger it becomes.
- Volume Confirmation: Look for high volume when the price bounces off a level. This shows big players are defending it.
- Confluence with Indicators: If a support zone matches with a 200 EMA or a Fibonacci retracement level, its probability increases tenfold.