Supply and Demand Illustrations/ Guide Vol#2

Supply and demand zones are key concepts in day trading that help identify potential price reversal points. A supply zone is an area where selling pressure is strong enough to push prices down, while a demand zone is where buying interest is high enough to drive prices up. Traders use these zones to spot potential entry and exit points, analyzing past price action to determine where institutions may have placed large orders. By recognizing these zones, traders can make informed decisions and manage risk effectively, increasing their chances of successful trades.