Been looking into supply and demand zones lately after seeing some traders swear by them.
Seems like it could work but wondering if anyone here actually uses this approach consistently. Do you find the zones hold up in practice or is it just another overcomplicated way to draw lines on charts?
The zones work well but people overcomplicate how to use them.
I stick to higher timeframes where you can actually see institutional footprints. Don’t just assume they’ll hold - wait for price to show you it’s reacting at those levels.
Think of them as areas to watch, not precise entry spots. Price often spikes through before bouncing back, so you’ve got to be patient.
They work okay but you need volume to confirm signals. Supply and demand alone is pretty weak without other factors backing it up.
Been using supply and demand zones for 3 years now. They beat regular support/resistance lines because you’re tracking where big money actually moved.
Key is finding fresh zones that haven’t been tested much. After 3-4 hits, they usually break down.
I pair them with volume to see if institutions are really active there. No volume? You’re just drawing boxes.
Stick to 4H and daily timeframes - they’re way more reliable. 15min charts are a mess with too many fake signals.
Keep it simple. Don’t mark every zone or your chart looks like a Christmas tree.
Supply and demand zones work when you understand what creates them. Look for sharp moves away from a level without much consolidation. That’s real institutional money at play, not retail traders drawing random lines. Many traders mark too many zones. Focus on areas where price moved quickly, then returned. If a zone has been hit several times, it’s typically no longer valid. Always consider the larger trend. A demand zone in an uptrend is more reliable than one against it.
They work if marked correctly and used with volume.