Module 2: Support & Resistance Mastery · Lesson 6/144
8 min 50 XP
Support and resistance work because of unfilled orders. When a large buyer wants more than the market can give at one price, it buys what it can and price rockets away, leaving the rest of its order unfilled. That origin area is a demand zone: a place where big buying is waiting. When price drifts back there later, those resting orders fire again and price bounces. The mirror is a supply zone, left by aggressive selling.
Demand zone 🟢
Supply zone 🔴
The signature is always the same: a quiet base (the orders accumulating), then a violent move away (the imbalance). The stronger and cleaner the move out of the base, the more powerful the zone. When price comes back to "fill" that zone for the first time, it is called a mitigation — and the first mitigation is usually the highest-probability reaction.
Fresh beats used
A zone is strongest the FIRST time price returns, when the most orders are still resting there. Each retest consumes some of them, so a zone that has already been hit several times is weaker. Prefer fresh, unmitigated zones.