Supply & Demand Zones Are NOT Single Horizontal Lines.
One of the common mistakes traders make is marking Supply and Demand Zones as a single horizontal line.
Remember:
Previous Day High (PDH) & Previous Day Low (PDL) can be marked as horizontal lines.
Swing Highs & Swing Lows can also be marked as horizontal levels.
But Supply & Demand are zones — not single horizontal lines.
Always mark them as a zone or area, preferably using a box, just like the red box I marked on the chart.
Look at Nifty's chart from 17th & 18th August.
On 17th August, Nifty made a strong upward move from a particular Demand Zone.
The next day, 18th August, Nifty opened gap down with a bullish candle and broke the Previous Day Low in the first candle.
At first, it looked like bullish sign since it's a breakout.
But the breakout after PDL could not sustain.
Nifty started moving lower.
August 19, 2026 2.4K 6
