Supply Zone & Volume (Educational Psot)

Hello Traders, here's an educational post about a supply zone. You don't need to overcomplicate the things a valid supply area is found in trending markets with a sell Order Flow volume very strong. price is making higher lows and lower lows. as you can see at some point price will push the price down.

An area with a large amount of sell-orders is called a Sell-Zone, and it has very specific boundaries as we will see. This zone can be considered an area where a large of Sell-OFV was transacted at the origin. The only way the downwards move that occurred could have been created is by the triggering of a large amount of Sell-OFV at the origin of the movement. Somebody important decided that it was EXPENSIVE TO THEM, so they transacted huge volumes of sell-orders. This is area is a great deal for a seller and a terrible deal for a buyer.


If the price come back to that level , be sure that they can continue pushing the price down.