What is a fresh demand zone?
A fresh demand zone is a demand zone that price has not returned to since it formed — no candle on the zone's own timeframe has touched its proximal line after the leg-out. Because none of its pending buy orders have been used up, a fresh zone is the version most likely to produce a reaction, and it earns the full 3 freshness points in zone scoring.
After the zone forms, price pulls back. While candles stay above the proximal line the zone is fresh; the first candle that touches the proximal line tests it.
Key takeaways
- A zone stays fresh until a later candle on the same timeframe touches or crosses its proximal line.
- A wick counts as a test just as much as a body — marking uses bodies and wicks, testing does not care which one touched.
- The zone's own first leg-out candle never tests it; a second candle that dips back into the base range does.
- Freshness is judged only on the timeframe where the zone was formed, never on a higher or lower chart.
- Freshness is worth 3 points when fresh, 1.5 after one test and 0 after two or more tests in the 7-point score.
- A tested zone is weakened; a zone with a close beyond its distal line is broken and no longer a zone at all.
What is the difference between a fresh and a tested demand zone?
A fresh demand zone has not been revisited since it formed, so the buy orders that created the rally are assumed to still be waiting there. A tested demand zone has been revisited at least once, which means some of those orders have already been filled. The structure on the chart can look identical in both cases — the difference is entirely in what happened after the leg-out.
Supply zones follow the same logic in mirror image: a fresh supply zone has not been revisited from below, a tested one has. Throughout this guide we use demand zones, but every rule applies to supply zones with the direction reversed.
| Status | What happened after the leg-out | Orders assumed left | How it is treated |
|---|---|---|---|
| Fresh | No candle has touched the proximal line | All original orders | Primary trade candidate, 3 freshness points |
| Tested once | One revisit touched or entered the zone | Some orders filled | Context only, 1.5 points if compared |
| Tested twice or more | Two or more revisits | Few or none | Skip, 0 points |
| Broken | Price went beyond the distal line | Overwhelmed | Zone is invalid; delete it |
You will also see the words unmitigated and mitigated, which are common in order-block and smart-money discussions. An unmitigated zone means the same thing as a fresh zone; a mitigated zone is one price has already returned to, which corresponds to a tested zone in this framework.
Exactly when does a demand zone become tested?
A demand zone becomes tested the moment any later candle touches or enters its proximal line — the top boundary, drawn at the highest body of the base. It does not matter whether a wick or a body made the touch, and it does not matter whether price bounced immediately afterwards. A single paise of overlap with the proximal line is enough.
- Find the leg-out candle that completed the zone. Freshness checks start from the next candle.
- Scan every later candle on the same timeframe and compare its low with the proximal line.
- If any low is at or below the proximal line, the zone is tested. Count how many separate revisits did this.
- If any candle has closed below the distal line, stop counting — the zone is broken, not tested.
Does the leg-out candle count as a test of the zone?
No. The first exciting leg-out candle is the final step that creates the zone, so it cannot also test it — the zone does not exist until that candle closes. Its low often sits inside the base range, and that overlap is ignored. The exception ends there: if a second candle after the leg-out dips back into the base area, that candle is a revisit and the zone becomes tested.
- Drop → base → first green exciting candle: the zone forms; it is fresh.
- Next candle stays above the proximal line: still fresh.
- A later candle's wick reaches into the base range: tested once, even if the rally then continues.
Why is freshness judged only on the zone's own timeframe?
Each zone represents orders placed by participants working on one timeframe, so it is judged only by the candles of that timeframe. A daily zone is checked on the daily chart, a weekly zone on the weekly chart, a monthly zone on the monthly chart. Switching to another timeframe to decide freshness produces false “tests” because candles of different lengths group the same price action differently.
The rule also stops a common error in the other direction: a monthly zone is not tested just because daily candles have wandered near it inside the formation month. Only a later monthly candle touching the monthly proximal line tests a monthly zone.
How many times can a demand zone be tested before it stops working?
In this framework a zone is traded as a primary setup only while it is fresh. After one test it can still be noted for context and compared, but it starts from half the freshness score. After two or more tests it scores zero for freshness and is normally skipped. There is no guarantee in either direction — fresh zones fail and tested zones sometimes react — but the rule is designed to put your capital where the most unfilled orders are likely to sit.
Fresh = 3 · Tested once = 1.5 · Tested twice or more = 0Leg-out strength (max 2) and time at base (max 2) make up the other 4 points.Why do pending orders get absorbed each time a zone is tested?
A demand zone exists because large buyers could not fill their whole order during the base and left the rest pending at those prices. When price returns, those resting orders are what create the bounce — and filling them uses them up. Each revisit therefore leaves fewer unfilled orders behind, until a later visit finds too little demand to stop the selling.
This also explains why the first touch of a fresh zone is the one you plan to trade. A GTT order resting at the proximal line is filled by that first touch — the same touch that turns the zone from fresh to tested.
Is a broken demand zone the same as a tested one?
No. A tested zone was visited and held — some orders were used, but buyers still defended it. A broken zone is one where price went beyond the distal line, the lowest wick of the base, showing that sellers overwhelmed every resting buy order. A tested zone is weaker; a broken zone is finished and should be removed from the chart.
- Tested: touched the proximal line, stayed above the distal line. Status: weakened.
- Broken: traded below the distal line. Status: invalid; any long trade from it should already be stopped out.
- After a break: the next question is which higher-timeframe demand sits below, not whether the broken zone will “come back”.
What mistakes do traders make when judging zone freshness?
Most freshness errors come from wanting a zone to be tradable and quietly bending the rule to allow it. Checking freshness candle by candle, on one timeframe, before placing any order, removes most of them.
- Ignoring wick touches because the candle closed above the proximal line.
- Counting the leg-out candle as a test and discarding a perfectly fresh zone.
- Forgetting the second leg-out candle that dipped back into the base.
- Checking freshness on a different timeframe, which makes fresh zones look tested and tested zones look fresh.
- Treating a bounce as proof the zone is still fresh — a touch that bounced is still a test.
- Calling a broken zone “tested” and continuing to look for buys inside it.
- Not re-checking before a GTT triggers: a zone that was fresh when you planned it can get tested before your level is reached if you set the entry too deep.
StockNotify's zone overlay labels each detected zone as FRESH or with its test count (for example 1x) alongside a score out of 7, which makes this check quicker. It is a visual aid built on the same rules — always confirm the touch history on the chart yourself.
Frequently asked questions
What does unmitigated demand zone mean?
An unmitigated demand zone is a zone price has not returned to since it formed, so its pending buy orders have not been used. It is the same idea as a fresh demand zone. Once price comes back and touches the proximal line, the zone is called mitigated or tested, and its expected strength is lower because some of the resting orders have been filled.
Does a wick touching the zone make it tested?
Yes. Any part of a later candle — wick or body — that touches or enters the proximal line tests the zone. The body-versus-wick distinction only matters when you mark the zone's boundaries. After the lines are drawn, the testing check simply asks whether price reached the proximal line, regardless of which part of the candle did it.
Can a tested demand zone still be traded?
A once-tested zone can still react, but in this framework it is not a primary setup. It drops to 1.5 freshness points, so a comparable fresh zone will usually outrank it. Zones tested twice or more score zero for freshness and are normally skipped. Any trade from a tested zone should be treated as lower confidence, with normal 1% risk sizing.
Is a daily zone tested if the weekly chart shows price inside it?
No. Freshness is judged only on the timeframe where the zone formed. A daily zone is fresh as long as no daily candle after its leg-out has touched the daily proximal line. A weekly candle can look as though it overlaps the zone simply because it contains the days that formed it. Check the daily chart only.
What is the difference between a mitigated zone and a broken zone?
A mitigated or tested zone was revisited and held — price touched the proximal line but stayed above the distal line. A broken zone is one where price went beyond the distal line, which means buyers were overwhelmed. A tested zone is weakened but still exists; a broken zone is invalid and should be removed from your chart.
Put this into practice
Work out the numbers before the market moves, then let an alert bring you back to your own plan.
Educational content only. StockNotify is not a SEBI-registered investment adviser or research analyst, and nothing here is a recommendation to buy or sell any security. Chart diagrams use illustrative prices, not market data. Trading involves risk of loss; verify prices independently and apply your own risk process.
