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 β a period of sideways movement β and expansion, where buyers or sellers push price strongly.
Understanding this flow helps traders:
β
Identify high-probability supply zones
β
Spot consolidation patterns before major moves
β
Catch expansion phases for entries and exits
By observing supply β consolidation β expansion, you can trade with the marketβs natural rhythm and follow smart money movements for better results.
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