Floors and ceilings

Floors and ceilings, or demand and supply zones, are key to understanding market reactions and identifying strategic entry and exit points. In this lesson, we’ll explore how floors form as demand zones during upward movements, while ceilings emerge as supply zones in downtrends.

Learn to pinpoint these zones by identifying the lowest down candle before a sharp rise (floor) or the highest up candle before a decisive drop (ceiling). Recognizing these levels and the inefficiencies they often create will sharpen your ability to anticipate market moves and enhance your trading precision.