Many supply and demand traders would be drawing a buy zone around the 1280's on #gold and this is what causes many problems for them. drawing zones wherever you think they are is not the way to trade using supply and demand principles. Truth is, trading this way is a bit more complicated than that. There are certain key things we have to watch out for and track day to day to discover the real zones the institutions are using to move price. When you discover them it makes all the difference in your trading.
Take for instance this daily chart of #gold. We have price bouncing from this area today that would seem to be an area the #banks are likely buying, but the reality is, there is no zone in this area and the fact that there is no zone here that price is reacting from, we know that there is a huge likelihood that price will eventually move lower through this area.
When you know the difference between institutional zones and imbalances, you have the ability to determine the natural path that price will take along the charts! It's a beautiful thing!