Supply & Demand Zones

Supply & Demand – The Institutional View

Supply and Demand is not just "where price bounced before." It's about order flow – where real buying and selling pressure exists.

The Order Block Framework

An Order Block is the footprint of institutional activity:

• •Demand OB – Institutions bought heavily here. Unfilled buy orders remain.
• •Supply OB – Institutions sold heavily here. Unfilled sell orders remain.

Quality Filters for Order Blocks

Not all OBs are equal. High-quality zones have:

• •Imbalance – The impulse away from the OB was strong and impulsive
• •Freshness – The zone has not been tested yet (untouched = unmitigated)
• •Context – The OB aligns with the HTF structural direction
• •Liquidity – There's a liquidity pool nearby that was swept before the OB formed

How to Trade OBs

• •Identify the HTF trend direction
• •Wait for price to pull back into an unmitigated OB
• •Look for LTF confirmation (CHoCH on M1/M5)
• •Enter with stop loss below the OB, target at the opposing zone

"The best trades happen when price returns to where it came from – to fill the orders that were left behind."