🐾 Supply and Demand Zone 🐾
The Demand Zone is the last downward movement, consisting of a single candle or a sequence of candles (STB), before moving upwards.
The Supply Zone is the last upward movement, consisting of a single candle or a sequence of candles (BTS), before moving downwards.
Testing the demand/supply zone or mitigations. When the price reaches in any direction and on any timeframe, smart capital leaves positions open, which initiated movements to gather liquidity: BTS and STB. Such positions become unprofitable in the event of a trend reversal, so they must be closed - at a loss or at a profit. Otherwise, smart capital will suffer losses, which is highly unlikely.
Thus, to close unprofitable positions, smart capital opens new positions to deliver the price to supply/demand zones, where the mitigation process occurs - closing old positions that initiated manipulation.
