In the market, supply zones are areas where sellers dominate, causing price to drop. But before price hits these zones, the market often goes through consolidation โ a period of sideways movement โ and expansion, where buyers or sellers push price strongly.
Understanding this flow helps traders:
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Identify high-probability supply zones
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Spot consolidation patterns before major moves
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Catch expansion phases for entries and exits
By observing supply โ consolidation โ expansion, you can trade with the marketโs natural rhythm and follow smart money movements for better results.
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