From Distribution to Defense Reading the Market’s MessageNetflix, Inc.BATS:NFLXAMIT-RAJANHello TradingView family, One thing about price it never forgets. Here’s how smart money distribute defends, tests, and retests the same levels to shape every trend. So In this post we’ll explore how market structure evolves through repeated interactions with the same zones and why smart money often revisits prior levels to confirm or reject market direction.This phenomenon, often called reconfirmed demand and supply, offers valuable insight into how institutions defend, test, or abandon positions during structural transitions. Understanding the Sequence--:: The price action we’re looking at highlights how an all-time high can transform into a repeating cycle of supply and demand a classic story of how the market moves in waves of distribution and accumulation. Let’s walk through the four stages of this evolving structure 👇 1️⃣ Primary Supply Zone (Distribution High)--:: The first rally culminates in a zone where aggressive buying starts to weaken. Volatility increases, candles become larger, and momentum slows. This area represents smart money distributing positions where liquidity is abundant because breakout traders are still buying, and institutions can quietly sell into that strength. This phase often sets the benchmark high that defines the rest of the structure. 2️⃣ Initial Demand Zone (Accumulation Response)--:: After the distribution, price declines until new demand emerges. The downtrend pauses here, forming a clear demand base a level where institutional buyers see value and start building exposure again. This level often becomes the anchor of the upcoming structure, as it’s where the first response from buyers is confirmed by noticeable rejection and strength. From here, the market begins to rebound. 3️⃣ Secondary Supply Zone (Lower High Confirmation)--:: The rally from the demand base faces resistance before reclaiming the prior high a lower high. This lower-high reaction is a crucial sign that supply remains dominant and that the recent buying was likely re-distribution rather than new strength. This is the zone where smart money offloads again, using the recent bounce to re-sell into liquidity. It also marks a Change of Character (ChoCH) and a potential trend transition. It’s not a new high it’s the confirmation of a shift. 4️⃣ Reconfirmed Demand Zone (Previous Support Retest) The final swing shows price declining back into the same demand zone from Stage 2. This zone isn’t new it’s a reconfirmation of prior institutional activity. When the same level holds again, it signifies that the same participants are defending the zone, maintaining the structure and keeping the market in balance. If the level breaks, however, it signals distribution completion the moment when prior demand can’t hold, and the market transitions into a markdown phase. 💡 The Bigger Picture--:: This repeating interaction between supply and demand is a snapshot of market psychology where the big players constantly test the same levels to validate whether the market still agrees with the prior valuation. Each touch, rejection, or breakthrough reveals who’s winning the battle between smart money and retail momentum. By recognizing this pattern — distribution ➜ accumulation ➜ re-distribution ➜ retest — traders can better understand where the true liquidity zones are and how the market’s behavior constantly revolves around these zones. This is not just about recognizing patterns it’s about understanding why these patterns form and how they reflect the business of smart money as they manage risk, scale positions, and trap liquidity. 🚀 Takeaway--:: When a previous level reacts again, the zone itself becomes part of the story not just a random reaction, but a confirmation of intent from bigger players. If you can read how the same zones behave on the second touch, you can anticipate where the next impulsive move or breakdown may occur. Mastering this pattern doesn’t just improve your entries it helps you think like the pros. Regards- Amit.