Supply/Demand Chain
A series of demand (or supply) zones where each holds and each last point of counter-pressure fails — the strongest order flow confirmation
A demand chain is a sequence where: the first demand zone holds, the last point of supply fails, a new demand zone forms at a higher level, that zone also holds, the next supply fails, and the pattern repeats. Each "link" adds evidence that demand is in control. Chains are the strongest order flow confirmation because they show repeated structural proof — not just one bounce, but a pattern. The chain connects directly to the first level of respect: the FLR is the first link, and the chain confirms it by adding more links. Chains work fractally — a demand chain on the 1m mirrors the 15m confirmation which mirrors the 4H thesis. The best entry zones are within the chain: after 2+ links form, you enter on the retest of a chain zone. Chains eventually exhaust — when a chain zone fails or supply starts holding, the chain phase is ending.
✓How to Recognize
- •Sequence: demand holds → last point of supply fails → new demand forms → repeat
- •First link = first level of respect. Second link = confirmation. Third link = strong trend.
- •Trade the retest of chain zones for continuation entries after 2+ links
- •Chains are fractal: same pattern on 4H (direction), 15m (zone), 1m (entry)
⚡How to Avoid
- →Trading exhausted chains (5+ links without pullback, likely to break)
- →Confusing any sequence of bounces with a proper chain (need LPS/LPD failures)
- →Entering on the first link without waiting for at least one confirmation link
- →Ignoring chain breaks (when a chain zone fails, the phase is ending)