Why Supply and Demand Zones FailState Street SPDR S&P 500 ETFBATS:SPYitamardrori_Everyone teaches you how to draw a demand zone. Almost nobody talks about why half of them break. Here's what actually separates a zone that holds from one that doesn't: 1. How price left the zone the first time. A zone created by a sharp, one-directional move away from it means orders were left unfilled. Price came back because there was still business to do there. A zone that price drifted away from slowly is much weaker - most of that business already got done on the way out. 2. How many times it has been tested. The first retest is the strongest. Every touch after that consumes more of the resting orders. By the third or fourth test, there usually isn't much left to hold price up. 3. What the higher timeframe is doing. A demand zone in a downtrend is a pause, not a floor. The zone might slow price down, but the dominant flow is still against you. This is the one that catches most people. 4. How long it has been sitting there. Zones age. Orders get cancelled, positions get moved, and the participants who created the imbalance may not even be in the market anymore. On this chart you can see both outcomes marked: a zone that price respected, and one that price cut straight through. The indicator draws the zones automatically and removes each one once price retests it. What it can't do is tell you which of those retests will hold - that's context, and context is on you.