Consolidation = Access Points — the Foundation of All Entries
Every tradeable entry point in the market comes from consolidation. When price consolidates, it creates a zone where buyers and sellers have wrestled for control. That zone — whether it ends in a continuation or a reversal — becomes a DBS or SSR access point that price will reference on every future visit.
Price moves due to imbalance between buyers and sellers — larger imbalance = stronger movement
Consolidation zones = access points — the areas where the balance of power was established
DBS Zone (Demand/Buyer/Support): lowest price including wicks (bottom) → highest opening of down candle (top)
SSR Zone (Supply/Seller/Resistance): highest price including wicks (top) → lowest opening of up candle (bottom)
Three fundamentals: Strength (explosive breakout), Time (less = stronger), Depletion Factor (first test strongest)
Lesson
DBS and SSR — Definition, Strength, and Depletion
The three fundamentals of a valid DBS or SSR zone are Strength, Time, and the Depletion Factor. Understanding all three lets you immediately assess the quality of any zone — and determine whether it is worth trading. If the zone does not stand out at first glance, it is not a valid zone.
DBS Zone: lowest wick to highest opening of down candle; OR a single dramatic down candle before a new Higher High in an uptrend
SSR Zone: highest wick to lowest opening of up candle; OR a single dramatic up candle before a new Lower Low in a downtrend
Strength: more explosive breakout from the zone = stronger zone; continuation needs HH or LL; reversal needs a market structure break
Time: less time forming = stronger zone; a single-candle zone has maximum strength; multi-session zones are weaker
Depletion Factor: first test = most orders present = highest probability; each retest depletes orders; zone weakens with every touch
Quick validity test: if the zone does not stand out immediately when you look at the chart, it is not a valid zone
Depletion factor is the same principle as the Rule of Fives in range trading — more touches = more depleted
Check Yourself
Price drops sharply into a new area and immediately reverses with a strong explosive move up, creating a new Higher High. No consolidation occurred — just a single dramatic down candle before the reversal. What type of zone has formed and what is its key quality?
DBS Zone — single candlestick with explosive breakout creates maximum strength; first retest will be the highest probability entry
SSR Zone — the down candle before the reversal is a supply zone; sellers were momentarily in control at that price level
Not a valid zone — a single candle without multi-session consolidation does not meet the minimum criteria for a DBS or SSR zone
Answer it (with a live chart) in the interactive lesson.
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