Why Are Some Supply and Demand Zones Stronger Then Other Ones? 1) The strength of a zone is determined by the move it makes 2) Recent zones will be more powerful than the old zones 3) Untouched zones are stronger than the zones that have been tested Drawing demand and supply zones is a subjective job, but as you practice they will becomes easier to do. Yes, Practice on TV charts… How to trade out of zones: 1) Find origin of 1st move and extend zone box to right on daily chart .
2) Only trade when price action goes out of either supply or demand box with harami, engulfing or pin bar setups- they are easy to see on charts.
3) Entries and stop losses are based on original candle of zone: Demand zone enter of price action about candle with stop loss below candle (see chart)
4) If you trade based on daily candles, then look for a 1:1 minimum Risk Reward or higher with correct risk management and lot size,etc.. Note on chart: possible bullish future trade out of Demand zone rectangle box. Something to think about for last part of month or next month.