Understanding Trading Zones

Where to trade: liquidity, supply and demand, order blocks and fair value gaps.

Part 2 / 3

Learning objectives

  • Mark liquidity before the session
  • Choose zones that agree with the bias
  • Ignore zones in the middle of nowhere
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Liquidity

Obvious highs and lows attract price. Mark them before the session so you are not surprised when they are taken.

Zones

Supply and demand, order blocks and fair value gaps mark where a reaction is likely. A zone is a location to watch, not an entry.

Lessons in this part