4.2Demand
- ·What a demand area represents
- ·The observable evidence of prior buying pressure
- ·How demand and supply mirror each other
Demand represents an area where buying pressure previously became significant. Look for:
- ·strong bullish departure
- ·rejection
- ·consolidation before expansion
- ·repeated reactions
Departure is evidence. Return is opportunity. Neither is a guarantee.
Price rejects sharply from an area and drives higher. On the next return to that area, the trader has a location to assess — not an automatic entry.
Examples use historical or illustrative data only. They are not live market signals.
Mark two demand zones and record what price did on the first return to each.
Demand zones are identified primarily by:
A return to demand is an automatic entry.
- 01Demand marks previously significant buying pressure.
- 02Look for departure, rejection and repeated reaction.
- 03Location is the start of the decision, not the end.
Educational content only. Nothing here is financial advice or a recommendation to trade. Trading involves risk of loss, results vary between individuals, and past performance does not indicate future results. Only capital you can afford to lose should be exposed to market risk.