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:
โ Absence of strong rejection candles
โ Gradual absorption of supply (small candles)
โ 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
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:
โ Absence of strong rejection candles
โ Gradual absorption of supply (small candles)
โ 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
๐ฅ SUPPLY ZONES: The Institutional Trap Most Traders Miss ๐ฅ
Supply isn't just resistance - it's where smart money unloads positions. Here's how to spot the real distribution zones:
๐ฏ Anatomy of a Killer Supply Zone:
๐ Where price previously stalled with volume
๐ Left by failed breakouts (trapped buyers)
๐ Aligned with Fibonacci extensions (61.8% or 127%)
๐ Coincides with large liquidity pools
๐ก 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
๐จ 3 Signs Supply Will Break:
โ Absence of strong rejection candles
โ Gradual absorption of supply (small candles)
โ Volume expanding on approach
๐ฐ 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)
๐ Pro Tip: The best shorts come when retail buys the "breakout" into supply.
๐ Drop a ๐ฏ if you've been trapped in a supply zone before!
#OrderFlowTrading #SmartMoney

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