Price Location
Extreme Zone
A supply or demand zone at the very edge of a structural range
An extreme zone is a supply or demand zone that sits at the outermost boundary of a structural range — the highest supply zone or the lowest demand zone. Extreme zones offer the best price for entry, the highest probability of a strong reaction, and the best risk-to-reward ratio. Institutions prefer these levels because they represent the optimal price for filling large orders.
✓How to Recognize
- •Zone sits at the very top (supply) or bottom (demand) of the structural range
- •Represents the best possible price within the current range
- •Strong impulsive move departs from this level
- •Tight stop loss placement just beyond the range edge
⚡How to Avoid
- →Confusing a decisional zone in the middle of the range with an extreme
- →Assuming all zones at a range boundary are automatically valid
- →Trading an extreme that has already been tested multiple times
- →Ignoring the structural range context when evaluating zone location