How to draw supply and demand zones when engulfing pattern forms the base?

How to draw supply and demand zones when engulfing pattern forms the base? Price Action Trading is the most famous form of Technical Analysis used by the traders today. It can be used across Trading instruments - Indices like Nifty, BankNifty, stocks and commodities. In today's episode, we are going to see "How to draw supply and demand zones when engulfing pattern forms the base?". How do I draw a level in a consistent and methodical way? The base of an imbalance can be identified by drawing two features 1. The proximal line. The price closest to current price 2. The distal line. The price furthest away from current price WHAT IS A DIS TAL LINE AND A PROXIMAL LINE? An area of supply or demand is not just a single price/line (like classic support/resistance), but a zone/area composed of a number of ticks. For a supply zone, The highest part of that (rectangle) is the distal line, that is, the highest price in the zone. The lowest part of that rectangle is the proximal line, which is the lowest and the closest to current price. There are some cases when you can adjust the proximal line: • When there is a single candle at the base • The candlesticks forming the base are tight and small, we can draw the proximal line covering the lower shadows (supply) or upper shadows (demand) Note: There is no flexibility when it comes to drawing Distal line – it should always follow rigid rules as it is related to SL. To watch our AmiBroker learning Series, use the below link:    • Learn AFL - Algo Trading   To know more about us, visit our website: http://marketsecrets.in If you have any issues or queries, please post it in the comments section. We will definitely answer it.