Core Concepts
Zone Flip
When a failed supply zone creates demand, or a failed demand zone creates supply
A zone flip (also called a supply/demand flip or order flow flip) occurs when a supply or demand zone forms after interacting with the opposite zone type. The interaction consists of: initial reaction from the original zone, extreme of the reaction leg, then failure of the original zone. This failure creates a new zone of the opposite type. The transactional order flow — the battle between supply and demand at that level — transfers orders from the defeated side to the new zone, creating a higher-volume area. Zone flips represent confirmed shifts in control and are one of the strongest POI selection criteria.
✓How to Recognize
- •Price enters a supply/demand zone and gets an initial reaction
- •The reaction reaches an extreme, then the original zone fails
- •A new opposite-type zone forms from the failure
- •The new zone carries volume from the entire interaction
⚡How to Avoid
- →Confusing a clean break of structure with a zone flip (flips need interaction)
- →Not waiting for the full process: reaction → extreme → failure → new zone
- →Ignoring that the initial reaction confirms the original zone was active
- →Trading flip zones without additional confluence (extreme, liquidity, chain)