Gold Demand Zone Mitigated, Supply Zone Drawn | 27 October 2026

Alan Solarsh shows a gold demand zone being mitigated, then draws a new supply zone above it.

What the chart shows

This four-hour gold chart shows a green demand zone with candles near its bottom. A demand zone is a price area where buyers have stepped in before. Alan says a zone is used up once a candle opens below it.

A clear rule for when a zone stops counting saves time on busy days. It lets you check the chart quickly, even with a day job.

Key points from the video

• Alan says a demand zone, an area where buyers stepped in before, is mitigated as soon as a candle opens below it.
• In the first video a second candle has opened below the moving average, while price is still sitting inside the demand zone.
• In the second video a new candle opens below the moving average on the hour chart, so he calls the demand zone mitigated and marks a new supply zone.
• He draws the supply zone from the open price to the highest wick, the thin line above a candle, of the next second or third candle.
• Alan stresses this is a rough estimate with no hard rules, and he extends the zone upward if a wick quickly retraces back into it.

Update at 12:28

Watch a pink supply zone get drawn on the gold chart in about 3 minutes.

The gold four hour chart shows a pink supply zone drawn over recent candles. A supply zone is an area where sellers may have pushed price down before. He draws it from the open price to the highest wick, the thin line.

Alan says zones are rough estimates, so redraw them as the chart changes. A simple method like this keeps a day job trader calm and consistent.

I’ve closed my hedge

The probability of the price reversing back to the 8ema is high

Questions about this chart

When is a demand zone mitigated on a gold chart?

Alan says a demand zone is mitigated as soon as a candle opens below it. Once that happens the zone is used up, and he looks to draw a supply zone above instead.

How do you draw a supply zone on a forex chart?

Alan draws it from the open price to the highest wick of the next second or third candle. He treats it as a rough estimate and adjusts it to fit the chart.

What does a wick mean when drawing a supply zone?

A wick is the thin line above or below a candle body. Alan uses the highest wick to set the top of the supply zone, so the zone shows how far up it extends.

Read next

• Learn To Read A Forex Chart, the free course
• All trade analysis videos by Alan Solarsh
• The previous day's chart analysis
• Forex education articles
• See the Forex Robots

Forex trading carries risk. This is education from my own chart, not advice or a signal.