Reusing Old Supply Demand Zone

Here is a short article on increasing your profitability with supply and demand zone for Forex and Stock Market Trading. As we provide non repainting supply and demand zone now, naturally we are able monitor the price action for both old and new supply demand zone. What does this mean ? Firstly if you are using Fresh supply demand zone only, then you might skip to read this article. It is entirely your choice.

However, we observe that old supply and demand zone is still important in our trading. Consider  the  screenshot below.  We  have  picked  up  one old  supply  zone. This supply zone was penetrated already and people may not have an interest in reusing this old supply zone. Hence, this supply zone was no longer fresh. However, when there are no new supply zones in our sight, we see that market is respecting this old supply zone. Check out how many times  price was reversed at this old supply zone. Price was reversed almost four times in raw. Even this is old supply zone, it still provide us good money making opportunity. Therefore, we can use old supply demand zone with caution.

Here is simple rule in using old supply zone.

  1. Use supply zone ( detected at peak) as supply zone: To use old supply zone, current price must be staying below supply zone.
  2. You can bring one or two old supply zone if there is no new supply zone in your chart. But still choose the latest and well respected supply zone only.

Here is simple rule in using old demand zone.

  1. Use demand zone (detected at trough) as demand zone: To use old demand zone, price must be staying above demand zone.
  2. You can bring one or two old demand zone if there is no new demand zone in your chart. But still choose the latest and well respected demand zone only.

At the end of day, supply demand zone is the extended concept from support and resistance. In support and resistance, we commonly use old one as long as they are respected by market. Likewise, I have just demonstrated the way of using old supply and demand zone in our trading. As I mentioned, if your strategy is purely based on using fresh supply demand zone, you do not have to take this advice.

Here is the link to Ace Supply Demand Zone Indicator.

https://www.mql5.com/en/market/product/40076

https://www.mql5.com/en/market/product/40075

https://algotrading-investment.com/portfolio-item/ace-supply-demand-zone/

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