There has been traders out there wondering still how to draw up the demand and supply zones and level. I thought I did show this in my previous blog or has been posted somewhere, apparently still there are confusion on how to draw it.
Keep it simple with Distal and proximital line either you want to include the wick or not is up to you base on your experience of backtest or trading in quantifying levels of demand and supply.
Step 1. Find the largest imbalance , where significant enough for the price to move away from that equilibrium.
Notice the almost vertical move. with at least between 2-6 candles period. That is a quality move.
STEP 2. Notice on the origin of that move. the Candle making LH. Telling us buyers started from that move indicating us no Sellers on the other side of that trade hence making it that way.
STEP 3 . Shade the area and marked the distal and proximal line for Entry and SL.
In addition, if you have the odd enhancer, utilize that to determine high quality entries.
Its that simple really. Try that on your back test or demo or even real account. Simplest way is to look back on on chart and look back year or days or months before that.