Scribd
Upload
4 views2 pages

Zone Prioritization System (Simple & Structured)

This document outlines the criteria for identifying high-probability supply and demand zones in trading. Key factors include liquidity location, zone freshness, displacement quality, price location, timeframe alignment, session importance, and first reaction strength. A zone is considered high probability when it meets the liquidity requirement and at least three to four additional qualities, with a recommendation to mark no more than two zones per session.

Uploaded by

lordofshadows3377
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
4 views2 pages

Zone Prioritization System (Simple & Structured)

This document outlines the criteria for identifying high-probability supply and demand zones in trading. Key factors include liquidity location, zone freshness, displacement quality, price location, timeframe alignment, session importance, and first reaction strength. A zone is considered high probability when it meets the liquidity requirement and at least three to four additional qualities, with a recommendation to mark no more than two zones per session.

Uploaded by

lordofshadows3377
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

High‑Probability Supply & Demand Zones

This page defines what makes a supply or demand zone worth marking. A zone is marked only
when most of the qualities below are clearly present. Weak zones are ignored.

Liquidity Location (Mandatory)

A strong zone must sit where stops are likely resting.

• Above equal highs for shorts


• Below equal lows for longs
• Near session high or session low
• Near Asian range high or low

Zones far from obvious liquidity are low quality.

Zone Freshness

The first reaction is usually the strongest.

• Untouched zones are best


• One clean reaction is acceptable
• Multiple taps reduce probability

Displacement Quality

The move away shows intent.

• Fast impulsive candles


• Large bodies, little overlap
• Clear separation from the zone
• Break of structure or clear direction change

Slow or overlapping price action weakens the zone.

Price Location (Value)

Where the zone sits in the range matters.

• Demand zones near range lows (discount)


• Supply zones near range highs (premium)
• Avoid middle of the range

Mid‑range zones offer poor reward and follow‑through.

1
Timeframe Alignment

Good zones respect higher context.

• Zone visible on 15‑minute or higher


• Lower timeframe follows higher‑timeframe direction
• Entries refined on 1‑minute or 5‑minute

Pure low‑timeframe zones are weaker.

Session Importance

Timing affects reliability.

• Best during London session


• Strongest during London–New York overlap

Zones tapped in low‑volume periods lose strength.

First Reaction Strength

The initial response matters.

• Quick move away


• Shallow wicks into the zone
• Immediate follow‑through

Slow or choppy reactions downgrade the zone.

Marking Rule

A zone is marked high probability when:

• Liquidity location is clear


• Plus 3–4 other qualities above are present

Mark no more than two zones per session.

End of Zone Definition

You might also like