Supply and Demand Zone Trading — Institutional Levels
r/DaytradingstocksAny timeframe (zones work fractally)by reddit_community
Supply/demand zone trading at institutional order block levels. Enter on first retest of fresh zones. More reliable than traditional S/R.
ENTRY RULES
Identify fresh demand zone (base of strong impulsive bullish move) | Or fresh supply zone (base of strong bearish move) | Wait for first retest of the zone | Enter on bullish candle at demand zone / bearish candle at supply zone | Zone must not have been tested before (fresh only)
EXIT RULES
Stop loss beyond the zone (below demand zone low, above supply zone high) | Target at opposing zone | Partial profit at 1:1 RR | Trail using lower timeframe zones | If zone breaks (price closes through it), exit immediately
INDICATORS
Supply/Demand ZonesPrice ActionCandlestick Patterns
ORIGINAL POST
345
r/Daytradingposted by reddit_community
Supply and Demand Zone Trading — Institutional Levels
Trading based on supply and demand zones rather than traditional support/resistance. A demand zone is the base of a strong impulsive move up (where institutions were buying). A supply zone is the base of a strong move down. These zones are more reliable than simple horizontal S/R because they represent actual institutional order blocks. Enter on the first retest of a fresh zone.
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