A valuable zone means there IS liquidity in this area to be used for continued long trades. Each time price comes to this area, it will go long because there is still ENOUGH orders at this area to  allow price to move higher. Not necessarily higher than before (previous high) but it will act as a continued support area.

This is important because we want to know if or when price will breach a previous swing level or in this case "Will it break the previous swing low or not."

Well what if the script told you on the fly weather there was enough value at this area to keep price away from it?

I may have that covered.

Now what happens when the value of the area runs out? Well simple enough really. Price will breach this level and it will turn into a RESISTANCE area.

This is where the roles of Support and Resistance become reversed.

Here is a long winded breakdown of my study.

I should podcast this into audio for some of you who cant sit here and read for too long and later today, think ill do just that.

-----------------------------------------------------------------\

In the context of supply and demand zones, if "Supply / Demand Regulator" shows the depletion of supply in a particular area (formerly a supply zone), it could indeed suggest a shift in market dynamics. This shift may lead to that area acting as a potential #demand #zone or #support area in the future.

The logic is as follows:

If the "Supply / Demand Regulator" detects that the selling interest (supply) in a specific zone has been depleted, it implies that sellers are no longer as active in that area.

The diminished supply in what was previously a supply zone may create an opportunity for buyers to take control. This could turn the area into a demand zone, where buyers are more likely to become active.

Support and resistance levels are dynamic, and they can change roles. A former supply zone, once depleted, might act as a support zone in the future, as buyers step in when the price revisits that area.

Depletion of supply or demand in a zone can indeed influence market behavior. Traders and algorithms often react to these historical zones, and if the supply in a zone is exhausted, it may lead to less resistance when the price returns to that level.

-------------------------------------------------------

In market analysis, the concept I'm referring to is often associated with support and resistance zones. These areas are where buyers (demand) and sellers (supply) are concentrated, leading to potential price reversals or pauses in the market.

The theory behind these supply and demand areas is that they represent zones where significant buying or selling occurred in the past. Traders and investors believe that these zones may influence future price movements when the market returns to these levels.

Here's a breakdown of the concept and how it might relate to "Supply / Demand Regulator"  indicator:

Demand Zone: This is an area where there is a concentration of buyers, and it is expected that if the price returns to this zone, buyers will once again become active, potentially leading to a price increase.

Supply Zone: This is an area where there is a concentration of sellers. If the price returns to this zone, sellers may become active, potentially leading to a price decrease.

As price revisits a supply or demand zone, the level of available supply or demand may change. It's possible that the buying or selling interest that was present in the past has diminished.

the "Supply / Demand Regulator" could potentially track the strength or weakness of supply and demand in these zones. It might consider factors such as volume, price action, or other relevant market data to assess the likelihood of a significant response from buyers or sellers in these areas.

If the "Supply / Demand Regulator" detects that the supply or demand in a particular zone has been depleted, it may suggest that the market could behave differently compared to historical reactions. For example, if a demand zone has been depleted, it might indicate that buyers are less likely to respond strongly, and the price may not bounce as significantly as before.

Traders often use these zones for risk management. If a supply or demand zone has been depleted, it might influence decisions about where to place stop-loss orders or set profit targets.

The  "Supply / Demand Regulator" could focus on assessing the strength of supply and demand in historical zones and providing insights into how the market might behave when these zones are revisited. Keep in mind that market dynamics can change, and it's essential to continually test and adapt the "Supply / Demand Regulator" to evolving market conditions.

Wish me luck!!