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Supply & Demand Zones

Smart Money / ICT

Trade where price left in a hurry, it usually defends that spot again.

how supply & demand zones works
demand base (unfilled orders)explosive departure ↑return + reaction → BUYprice defends where it left in a hurry

What it does

Supply and demand zones mark where orders were so imbalanced that price left explosively (rally-base-rally for demand, drop-base-drop for supply). The tight 'base' before that departure is where unfilled orders rest. When price returns to a fresh base, the same imbalance tends to defend it. This version confirms the departure was real, price has returned, the zone is unbroken, and a reaction candle prints.

How it works

  1. 1Find a tight base candle followed by a departure move (>1.5 ATR), the base becomes the zone (drawn shaded).
  2. 2Confirm 1: a valid departure created the zone. Confirm 2: price returned into the base.
  3. 3Confirm 3: the zone hasn't been broken. Confirm 4: a reaction candle prints in the zone.
  4. 4Confirm 5: the higher-timeframe 50-EMA bias agrees. Three-plus align to fire.