How to Demand Supply Zone

What is Demand Supply Zone

Before we dive into understanding Demand Supply Zones, I'd like everyone to first understand the origins of this theory.

Demand and Supply Zones arise from the theory that the various markets, whether it's the Forex market, stocks, gold, or others, often have major players who buy and sell at different prices and time intervals. These theories are collectively known as the Smart Money Concept or SMC.


Observing Demand - Supply Zone

  1. Price is consolidating.
  2. There are large candlesticks (indicating higher than usual buying or selling pressure), Imbalance candle.


Demand Zone

Demand Zone is an area where there is a special demand to buy, causing the price to rise.

The yellow circle shows the price consolidation.

Before the large green candle appears, according to SMC theory, the price often comes back to test the Demand Zone (indicated by the yellow arrow).

If the test is unsuccessful, the price is likely to continue to rise.

Demand Zone XAUUSD


Supply Zone

Supply Zone is an area where there is a significant selling interest causing the price to drop sharply.

The yellow circle shows the price consolidation.

Before the formation of a large red candlestick, a significant supply zone is created.

According to the SMC theory, the price tends to retest the supply zone (yellow arrow).

If the retest fails, the price usually continues to drop further.

Supply Zone XAUUSD


How to use

Below, the Demand - Supply Zone of each currency pair with various timeframes are displayed for selection.

Trading with SMC technique is good, but we need to limit our risk appropriately every time we trade because there is no technique that can win the market 100%.



After the program finishes downloading the data, a list will be provided for selection.

Choose the Demand/Supply, currency pair, and timeframe that you are interested in.

The date and time that the zone occurred are displayed in Thailand's time zone(UTC +7).

You will need to compare it with the MT4 time of each broker.


Once we know the entry point of the price at the starting zone, we wait for the price to retrace back to that point or we can set a pending order.

Then we set the stop loss at a price above or below the entry point according to the risk we are willing to take.

We can calculate the risk using the MM calculator program. Click here.



Expert Advisor: Butty MSI


Butty MSI

As shown in the above image, Butty MSI provides us with a convenient way to view the zones.

The bot divides the zones into 3 types:

  1. Demand Zone (green) is a zone where there is a lot of buying pressure.
  2. Supply Zone (orange) is a zone where there is a lot of selling pressure.
  3. Used Zone (grey) is a zone that has been destroyed.

Users can open and close orders or manage their portfolios themselves without any problem, all the time.

If you prefer to trade manually, you can disable the automated trading system and use the zone trading bot to manage the zones for you.

In addition to these features, there are many others such as money management that helps manage risk according to the user's preferences, and many more. All details can be found in the YouTube video.

For those interested in using the trading bot with the SMC technique, you can contact us by clicking here.


*** Note: Trading is a high-risk investment. Please study and analyze carefully before investing ***

Demand Zone