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SUPPLY ZONE

The area from where earlier strong selling had come; The price can be returned to sellers again.

Published by The Retail Trader · JUL 31, 2026 · Market Structure

Supply Zone — The area from which the first strong selling came; The price can be returned to sellers again.

WHERE THIS FITS IN

This term comes under Market Structure, in the section “ZONE-BASED THINKING”. New traders draw lines, create experienced log zones — because orders are placed in an area, not at an exact price:

RELATED TERMS TO READ

Other terms in this group — understanding them together is more useful:
• Demand Zone
• Order Block
• Fair Value Gap / Imbalance
• Liquidity
• Liquidity Grab / Stop Hunt
• Equal Highs / Equal Lows
• Mitigation
• Consolidation Zone

To read the entire group and all its examples in one place, see the journal "MARKET STRUCTURE: LEVELS, ZONES and SWINGS" - this term is taken from there.

This entry is for educational purposes only and is not a recommendation to buy or sell. Exchanges change charges, margins, lot sizes and expiry rules from time to time, so verify any figures with your broker or exchange.

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