SUPPLY ZONES: The Institutional Trap Most Traders Miss

Supply isn't just resistance - it's where smart money unloads positions. Here's how to spot the real distribution zones:

Anatomy of a Killer Supply Zone:
Where price previously stalled with volume
Left by failed breakouts (trapped buyers)
Aligned with Fibonacci extensions (61.8% or 127%)
Coincides with large liquidity pools

Advanced Supply Zone Tactics:

The Liquidity Grab - Price often spikes ABOVE supply before reversing

Volume Divergence - Decreasing volume on approaches = weak demand

Time Decay - Older zones (>2 weeks) lose potency unless refreshed

3 Signs Supply Will Break:
โœ“ Absence of strong rejection candles
โœ“ Gradual absorption of supply (small candles)
โœ“ Volume expanding on approach

How the 1% Trade Supply Zones:
• Aggressive: Short first test with stop above recent high
• Patient: Wait for clear rejection candle (pinbar/engulfing)
• Breakout: Trade retest after clean breakout (failed supply = support)

Pro Tip: The best shorts come when retail buys the "breakout" into supply.

Drop a if you've been trapped in a supply zone before!

#OrderFlowTrading #SmartMoney
๐Ÿ”ฅ SUPPLY ZONES: The Institutional Trap Most Traders Miss ๐Ÿ”ฅ Supply isn't just resistance - it's where smart money unloads positions. Here's how to spot the real distribution zones: ๐ŸŽฏ Anatomy of a Killer Supply Zone: ๐Ÿ“ Where price previously stalled with volume ๐Ÿ“ Left by failed breakouts (trapped buyers) ๐Ÿ“ Aligned with Fibonacci extensions (61.8% or 127%) ๐Ÿ“ Coincides with large liquidity pools ๐Ÿ’ก Advanced Supply Zone Tactics: The Liquidity Grab - Price often spikes ABOVE supply before reversing Volume Divergence - Decreasing volume on approaches = weak demand Time Decay - Older zones (>2 weeks) lose potency unless refreshed ๐Ÿšจ 3 Signs Supply Will Break: โœ“ Absence of strong rejection candles โœ“ Gradual absorption of supply (small candles) โœ“ Volume expanding on approach ๐Ÿ’ฐ How the 1% Trade Supply Zones: • Aggressive: Short first test with stop above recent high • Patient: Wait for clear rejection candle (pinbar/engulfing) • Breakout: Trade retest after clean breakout (failed supply = support) ๐Ÿ“Œ Pro Tip: The best shorts come when retail buys the "breakout" into supply. ๐Ÿ‘‡ Drop a ๐ŸŽฏ if you've been trapped in a supply zone before! #OrderFlowTrading #SmartMoney
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