If anyone is wanting more info on supply and demand, have a look at the address below it shows how to identify them.
As I mentioned these are zones not levels (like support and resistance but work in a similar way) and define the area where the big players were last active(?), hence the price reversal as it takes a large volume to reverse a trend. They are of interest because smaller traders get caught on the wrong side of the reversal and either exit their position straight away adding to the movement (squeeze), or wait for price to return to that level again to exit. This CAN cause a predictable price reversal out of the zone.
This is why you can have a price reversal approaching a support or resistance level that just doesn't quiet make it. It also helps to understand what Paul is talking about when he mentions waves.
Its a good tool to have in your tool belt as it gives a indication of turning points. However it shouldn't be used exclusively as price can blow straight through with little regard to the zone.
https://www.colibritrader.com/what-are-supply-and-demand-zones-and-how-to-trade-with-them/
