WickCheck / Trading school / Supply and demand zones
Supply and demand zonesIntermediate
Areas where price left quickly, showing unfilled orders: demand below price, supply above.
What it means
A demand zone is the base before a strong rally; a supply zone the base before a strong drop. The idea overlaps heavily with order blocks and fair value gaps.
How to spot it
- Find a tight base followed by a large, fast candle away from it.
Common mistakes
- Treating every small pause as a zone.
Related terms
Order blockThe last opposite-colour candle before a strong move, seen as the zone where lar…Fair value gapA three-candle pattern where the wicks of the first and third candle do not over…DisplacementA fast, strong move made of large candles, often leaving fair value gaps behind.…
Why most strategies need a human behind the screen
Read the lessonWhat a mechanical test can and cannot tell you about smart money concepts.
Education only, not financial advice. Definitions vary between teachers; these are ours, written for clarity.