⚠️ Risk warning: CFDs and leveraged forex are complex instruments with a high risk of losing money rapidly. Most retail accounts lose money. This content is education only, not investment advice or a recommendation.
The beginner course introduced support and resistance. This lesson goes further: how to draw levels as zones, what happens when they break, and how supply and demand zones differ from simple lines.
Levels are zones
Price rarely turns at exactly the same tick twice. Draw a zone that covers the wicks and bodies of earlier turns. A zone touched several times is widely watched, but each test also uses up some of the orders resting there, so a level can weaken as well as strengthen.
Role reversal
When price breaks clearly through resistance, the old resistance zone often acts as support on the next pullback (and broken support often acts as resistance). Traders call this a retest. It does not always hold, which is why you plan where you would be wrong.
Supply and demand zones
A demand zone is the base, usually a few small candles, that price left with a strong, fast move up. The idea is that buyers overwhelmed sellers there and some unfilled buy orders may remain. A supply zone is the opposite: a base before a strong drop. Signs of a better-quality zone:
- a tight base of small candles, then a strong move away;
- the move away breaks structure;
- it is fresh: price has not returned to it yet;
- it lines up with the higher-timeframe trend.
How traders use zones
A zone is a place to pay attention, not an order to buy or sell. Traders look for confirmation inside the zone (for example a structure shift on a lower timeframe or a candlestick pattern) and place the stop beyond the zone, where the idea is clearly wrong.
Educational only. Levels on Invvex pages (such as pivots) are calculated reference points, not recommendations.
🛠️ Practice task
Practise on a daily chart. Write your zones down before you look at what happened next.
- Open Saudi Aramco (2222) on Invvex and look at the 1Y chart and the pivot levels. Then open 2222 on a daily chart in TradingView or your platform.
- Mark the two most obvious resistance zones and two support zones with rectangles, covering wicks and bodies.
- Find one demand zone and one supply zone (a tight base before a strong move) and note whether each is fresh.
- For one zone, write where you would expect confirmation and where the idea would be wrong.
- Repeat on gold H4 and compare: which zones were respected and which were broken?
🎯 Mark this chart
Study the drawing, pick the letter, then check. This exercise does not count toward your progress; the quiz below does.
✍️ Quick quiz
Check what you learned. Your answers stay in this browser.