#Banknifty — this is the best example to understand how demand and supply zone behaves on breaking its territory.
in last 4 trading sessions market open gap-down and previous day demand zone acted as supply zone for the day, this theory is called breakdown and re-test in simple terms.
The logic behind such move is short of demand not excess supply and when abroad market impacting the index a gap- down next day morning then low demand causing a side ways movement(or volatility). in any day if we witness a gap up then we will see the same pattern and in such point supply zone will act as demand zone( breakout & re-test in simple term)
in last 4 trading sessions market open gap-down and previous day demand zone acted as supply zone for the day, this theory is called breakdown and re-test in simple terms.
The logic behind such move is short of demand not excess supply and when abroad market impacting the index a gap- down next day morning then low demand causing a side ways movement(or volatility). in any day if we witness a gap up then we will see the same pattern and in such point supply zone will act as demand zone( breakout & re-test in simple term)