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Why Zones Fail (Part 2)

Beyond the market structure discussed in Part 1, there are two additional items to consider
when determining why a zone might fail:

1.) Time - the longer the price spends in a zone, the higher chance the
zone will fail.

Multiple candles (more time) within the supply zone


increases the odds of failure when shorting

2.) Depth - the deeper the price goes into a zone, the higher the chance
the zone will fail.

The first candle to hit the demand zone showed


significant depth into the zone thus increasing the
odds of stopping out.

Key Reminder: When looking at price action the time (amount of candles) and depth into the
zone can both help indicate the potential of stopping out. These two items combined with
market structure awareness can help a trader understand why a zone might fail.

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