The beauty of supply and demand is that it works across all instruments and all timeframes.
This is the part 2 of my introduction to supply and demand HERE
It worked 103 years ago and it still works now.
Look below at the chart of $DJI
I always trade the first test of a demand zone because it is “fresh” so the first test is usually is the strongest. The next time it retests again, it would penetrate deeper and deeper.
Higher timeframe supply and demand zones are much more powerful. The higher it is the stronger it is. 12 month timeframe is definitely stronger than 3 months timeframe.
Below is a chart of $STI on a 12 months timeframe.
1st crash in year 2002 it found support in the demand zone that was created from 1997 asian financial crisis.
2nd crash aka GFC in 2008 it also found support in the demand zone that was created from the 1997 asian financial crisis.
Below is 2 more examples of higher timeframe demand zones.
$S63 12 months demand zone
$S51 3 months demand zone