Overview
What is demand and supply zone trading?
Demand and supply zone trading marks the price areas where large buy or sell orders were left unfilled, then plans trades for when price returns. A demand zone forms when price leaves a short base with a strong rally; a supply zone forms when it leaves with a strong drop. These lessons teach one consistent rulebook: the 50% candle rule, four zone patterns, body-to-wick marking, freshness, a 7-point zone score, three-timeframe analysis, and 1% risk position sizing. Every lesson uses original diagrams and worked rupee examples, and none of it is a stock recommendation.
- Lessons
- 17
- Topics
- 6
- Glossary terms
- 40
DBR — demand, reversal
RBR — demand, continuation
RBD — supply, reversal
DBD — supply, continuation
DBR and RBR create demand zones; RBD and DBD create supply zones. Reversal patterns change direction, continuation patterns resume it.
Start here
Recommended learning path
New to zones? Read these eight lessons in order. Each builds on the previous one and ends with the numbers you need before setting an alert.
8 lessons, about 83 minutes in total
Zone basics
What demand and supply zones are, how candles reveal them, and how they compare with other ways of reading a chart.
- Demand and Supply Zones in Trading: What They Are, How to Find Them and How to Trade ThemA demand and supply zone is a base between two strong candles where unfilled orders wait. Learn the 4 types, 8 rules, and how to find and trade them on NSE.
- Base Candle and Exciting Candle: How the 50% Rule Builds Every Demand and Supply ZoneA base candle has wicks over 50% of its range; an exciting candle has a body over 50%. Check any candle with OHLC maths, and why a zone allows 1 to 6 bases.
- Supply and Demand vs Support and Resistance: What Is the Difference?Not the same: support and resistance are lines that strengthen with each touch; demand and supply zones are areas that weaken with each test. When to use which.
- Order Block vs Demand Zone: Same Idea, Different RulesClose, but not the same: an order block is the last opposite candle before a move; a demand zone is the whole base. Rules compared, with a ₹ stop example.
- Demand and Supply Zone in Hindi: Kya Hai, Kaise Banta Hai aur Kaise PehchaneDemand zone kya hai aur chart pe kaise pehchane: leg in, base, leg out, 4 patterns (RBR, DBR, RBD, DBD), 50% rule aur ₹ example. Aasan Hinglish mein, free.
Zone patterns
The four structures that create zones: Drop-Base-Rally, Rally-Base-Rally, Rally-Base-Drop and Drop-Base-Drop.
- Rally Base Rally, Drop Base Rally, RBD and DBD: The Four Zone Patterns ExplainedRally base rally, drop base rally, RBD and DBD explained: structure, meaning, how marking differs, and which pattern deserves priority on your chart.
- Drop Base Rally (DBR): How to Spot, Mark and Trade the Reversal Demand ZoneDrop base rally (DBR) is a red leg in, a 1 to 6 candle base and a green leg out. Learn to spot it, mark proximal and distal lines, and plan a 1:2 trade.
- Rally Base Drop (RBD): How to Spot, Mark and Use the Reversal Supply ZoneRally base drop (RBD) is a green leg in, a 1 to 6 candle base and a red leg out. Learn to spot it, mark proximal and distal lines, and use it to plan exits.
Marking & quality
Draw proximal and distal lines precisely, then judge freshness, strength and closing before a zone earns your attention.
- How to Draw Supply and Demand Zones: Proximal and Distal Lines, Body-to-Wick and Exceptional MarkingDraw a demand zone in 3 steps: proximal line at the highest base body, distal line at the lowest wick, then label it. Diagrams and common marking mistakes.
- Fresh vs Tested Demand Zone: When a Zone Loses Its EdgeWhat a fresh demand zone is, when a candle body or a second leg-out tests it, the same-timeframe rule and how freshness scores 3, 1.5 or 0 points.
- How to Identify a Strong Demand Zone: The 7-Point Score and BeyondLearn how to identify a strong demand zone with a 7-point score, coinciding zones, leg-out closing and V vs U shapes, so you rank setups before risking money.
Timeframes
Read location, trend and execution on three related timeframes so one chart never makes the decision alone.
Trade planning
Turn a marked zone into entry, stop-loss and target checkpoints, and choose how you want to be notified.
- How to Find Stop Loss and Target Using Demand and Supply ZonesHow to find stop loss and target from demand and supply zones: entry, distal-line stop and a 1:2 target with ₹ examples, so every trade has a fixed plan.
- Swing Trading Strategy Using Demand and Supply Zones: A Beginner's ProcessA swing trading strategy using demand and supply zones for Indian beginners: weekly location, GTT entry, 1% risk, 1:2 target, so every trade is planned.
- Stock Price Alerts on WhatsApp vs Telegram, Email, SMS and PushStock price alert on WhatsApp free? Compare WhatsApp, Telegram, email, SMS and push alerts in India on cost, reliability and privacy to pick the right one.
Risk management
Size every position from the stop-loss distance and judge whether the reward justifies the risk.
- What Is a Good Risk Reward Ratio? Formula, Break-Even Win Rate and ExpectancyRisk reward ratio = (target − entry) ÷ (entry − stop). At 1:2 you break even winning 33% of trades. Formula, win-rate table from 1:1 to 1:4, ₹ examples.
- Position Sizing in Trading: The 1% Rule and How Many Shares to BuyPosition sizing in trading explained: the 1% rule, quantity formula, skip rule and drawdown maths with ₹ examples, so one loss never sinks your account.
Product guides
Step-by-step help for setting, receiving and troubleshooting StockNotify alerts.
- How Stock Price Alerts WorkLearn how stock price conditions are checked, when notifications trigger, where delivery can fail, and how alerts fit into a safer review workflow.
- How to Set Stock Price AlertsSet a one-time stock price alert with Crosses above or Crosses below, choose a threshold, connect Telegram or email, and verify the saved condition.
- Price Alert vs WatchlistCompare StockNotify watchlists, one-time price alerts, and trade setups. Learn which action saves a symbol, creates a condition, or removes an active alert.
- Telegram Stock Alert Troubleshooting GuideTroubleshoot Telegram chat-ID linking, blocked bots, disabled delivery, missing messages, status checks, and safer backup workflows.
- Nifty 50 Price AlertsUnderstand what the Nifty 50 represents, how session timing affects index alerts, and how to use index checkpoints without treating them as trade calls.
Reference and tools
Look up any term, then check the numbers on a setup with the free calculators.
Demand and supply trading glossary
Plain-English definitions of proximal line, distal line, leg out, fresh zone, coinciding zone, HTF, GTT and more.
Open glossary Free toolsTrading calculators
Position size, risk-reward, stop loss and target, stock average, pivot points and a demand-zone score calculator.
Open tools ProductZone overlay in StockNotify
See how StockNotify draws DBR, RBR, RBD and DBD zones with freshness and a score out of seven on NSE charts.
See the overlayEducational content only, not investment advice. Diagrams use illustrative prices, not market data.