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Module B · Demand & SupplyIntermediate Free

Fresh vs Tested Zones

6 min read
Learning objective
Track how many times price has returned to a zone and apply the freshness score (3 / 1.5 / 0) accordingly.

The freshness concept

When a zone forms, assume the full pool of unfilled orders is intact. Every time price revisits and bounces, some of those orders are consumed. After enough revisits the pool is depleted — the zone has no more fuel.

Freshness score: 3 / 1.5 / 0

The Trade Score system assigns exact points: Fresh (never revisited since forming) = 3 points. Tested once (one prior revisit with a bounce) = 1.5 points. Tested twice = 0 points. A zone that has been tested twice has likely consumed most of its pending orders and should be treated as exhausted.

Fresh zones and the first-touch rule

The first touch of a fresh demand or supply zone is statistically the strongest reaction. Once price breaks through a zone cleanly, the zone is broken — do not keep using it.

Broken zones flip roles

When a demand zone is decisively broken (price closes below the distal line), it often becomes resistance going forward — the former buyers are now trapped and will sell on a return to break even. This role-reversal is useful context.

Practice checklist

  • Check whether price has touched the zone since it formed
  • Assign freshness: 0 touches = 3 pts, 1 touch = 1.5 pts, 2 touches = 0 pts
  • Mark a zone broken once price closes clearly beyond its distal line
  • Note whether a broken demand zone has flipped to resistance

Mistakes to avoid

  • Reusing a zone that has already been tested twice — it has scored 0 on freshness
  • Treating a third or fourth test as equal to a first touch
  • Forgetting to check the freshness score before grading a setup
Quick check
A zone visited for the second time since forming scores…
Risk note — Even fresh zones fail; 'fresh' raises odds, it does not guarantee a bounce.