Supply & Demand is the most approachable institutional framework — and it overlaps heavily with SMC order blocks.
The premise: big orders can't fill all at once, so they leave zones of unfilled interest. Price departs a zone sharply (an imbalance), and when it returns, the leftover orders defend it.
The zone types — read as the shape of the departure:
- RBR (Rally–Base–Rally) and DBR (Drop–Base–Rally) → demand zones (buy).
- DBD (Drop–Base–Drop) and RBD (Rally–Base–Drop) → supply zones (sell).
What makes a zone worth trading:
- Fresh / untested — the first return is the highest-probability; each retest weakens it.
- Strong departure — a sharp, gap-leaving exit from the base signals urgent orders (this is displacement by another name).
- Aligned with HTF bias — trade zones with the bigger picture, not into a wall.
Who it suits. Traders who want a clean, rule-based version of "buy low, sell high at institutional levels" without the full ICT vocabulary. It's an excellent standalone method — and a superb confluence to layer onto any other lens.