Supply and Demand Zones and Structure Breaks, Explained Simply
What demand and supply zones are, what a Break versus a Shift in structure means, and how Pro Signals V5 draws and cleans them up automatically.
Supply and Demand Zones and Structure Breaks, Explained Simply
"Smart money" tools can sound complicated. The ideas behind them are simple: price tends to react where big orders were placed before, and trends change when price breaks through recent swings.
Demand and supply zones
A demand zone is the candle where buyers last stepped in before price broke above a swing high. A supply zone is the mirror: where sellers stepped in before price broke a swing low.
In Pro Signals V5, a zone dims once price comes back to test it, and is removed once price closes through it. Your chart only shows zones that still matter.
Price gaps
A price gap is a space between candles where price moved so fast that little traded. Price often comes back to fill it. Pro Signals V5 removes each gap once it's filled.
Structure breaks: Break vs. Shift
When price closes beyond the last swing high or low, Pro Signals V5 draws a dashed line and a mark:
Putting it together with signals
A BUY that prints near demand, after a Shift up, with open space to the next supply zone is a cleaner plan than one printed straight into supply. Check where your targets sit against these zones.
Full details: Smart Money & Key Levels.
SimpleAlgo provides educational tools and chart analysis. Nothing here is financial advice. Trading involves substantial risk of loss, and past performance does not guarantee future results.
Written by
Nikolas MetreveliFounder of SimpleAlgo
Nikolas wrote his first real code at 12 and freelanced software tools and websites for small businesses before finding the markets at 15. He builds and maintains every SimpleAlgo indicator and writes these guides from hands-on use of the tools.
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