How To Draw Supply And Demand Zones

Okay, let's talk about drawing lines on charts. You know, for supply and demand zones.

It's like connect-the-dots for grown-ups, but with more anxiety.

The Great Zone Debate

First off, everyone has an opinion. A very strong opinion. Usually, they're all different.

It’s like pizza toppings. Some like pineapple, others... well, they’re wrong (unpopular opinion alert!).

Where Do We Even Start?

So, you're staring at a chart. It looks like abstract art gone wild.

The burning question: Where exactly do these magical zones begin and end?

Honestly? Anywhere you want. Hear me out!

The "Draw It 'Til You Make It" Strategy

Okay, that's not entirely true. But there’s a certain artistic license involved.

Find an area where price bounced hard. Like it stubbed its toe and screamed "Ouch!".

That's your potential zone. Now, draw a rectangle.

Rectangle Wrangling: The Width Problem

How wide should this rectangle be? This is where the existential crisis begins.

Too wide, and it's basically the whole chart. Not helpful.

Too narrow, and it's missed every time. Equally unhelpful.

My solution? Eyeball it. Really.

The "Wicks vs. Bodies" Controversy

Ah, the age-old question: Do we include the wicks (those little pointy things) or just the candle bodies?

Some say wicks represent fleeting emotions. Others say they're crucial data points.

I say, again, whatever floats your boat. Just be consistent (ish).

Refinement? More Like Guesswork

People talk about “refining” their zones. Sounds fancy, right?

It usually involves moving the rectangle a tiny bit and muttering to yourself.

Like you're trying to find the perfect radio station between static bursts.

Confirmation Bias Bonanza

Here's the fun part: You've drawn your zones. Now, you only see what you want to see.

Price hits your zone? Confirmation! You're a genius!

Price ignores your zone? Clearly, the market is rigged. (Just kidding... mostly).

The Truth Nobody Wants to Hear

Zones are not magic walls. Price doesn't have to obey them.

Think of them more like suggestions. "Hey, price, maybe slow down here?"

Sometimes price listens. Sometimes it laughs in your face. That's trading!

Embrace the Chaos

So, how to draw supply and demand zones? There's no single right answer.

Experiment. Find what works (or at least feels like it works) for you.

And remember, it's okay to be wrong. We all are. A lot.

Just don't blame me when your zones fail. Okay, maybe a little bit.

Happy charting! And may your rectangles be ever in your favor.