1D Supply vs 4H Supply — Conflict Between Higher TF Bullish Bias and Lower TF Supply + Liquidity

External question — Personal Finance Stack Exchange Author: Arjun Reddy Original post: https://money.stackexchange.com/questions/166152 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. I’m trying to understand a tricky situation involving multi-timeframe supply and demand zones, and I’d really appreciate your thoughts. I’ve attached two screenshots for reference: What I’m seeing: On the Daily (1D) chart: Price is showing a bullish structure, with an impulsive move upward. There’s a clear supply zone above that hasn’t been tapped yet. This gives me the bias that price might want to reach that 1D supply — so overall, I’m leaning bullish from a daily perspective. On the 4H timeframe: Price has now entered a 4H supply zone, and I’m noticing a reaction there. But here’s where it gets confusing: There are unmitigated demand zones below on 4H. There’s also liquidity resting below — inefficiencies that price might want to clear before any real bullish move. So while daily is bullish, 4H has supply and downward pressure, and potential for price to sweep liquidity or mitigate lower demand. My Confusion: Key Points: Daily = bullish, aiming for untested 1D supply zone. 4H = currently reacting to supply, but has clean demand zones + liquidity below that price might want to target before any bullish continuation. My Thoughts So Far: If 4H supply fails (i.e., gets broken), I’ll look for long entries on the retest, probably from newly formed 4H demand. If 4H supply holds and we break 4H structure to the downside, I’ll wait for price to sweep liquidity and mitigate demand, then reassess for potential longs back toward the 1D supply zone — unless it turns fully bearish. Any Insights? I want to know the direction of price, I always stuck about this direction, How can I know the direction of price Really grateful for any input — still learning, trying to connect these concepts better. Thanks in advance!

External answer — Personal Finance Stack Exchange Author: Priyanka Verma Original post: https://money.stackexchange.com/a/166153 License: CC BY-SA 4.0 — https://creativecommons.org/licenses/by-sa/4.0/ Adaptation: HTML converted to plain text; contact email addresses removed. You're on the right track with your analysis. In this situation, the daily chart clearly shows a bullish structure aiming for an untested supply zone above, which should be your primary directional bias unless that structure breaks. However, the 4H chart is showing a short-term reaction to a supply zone, with clean demand and liquidity resting below. This doesn't necessarily contradict the daily trend it just suggests a potential pullback before continuation. The best approach here is to wait for price action confirmation: if 4H supply breaks, look for longs on the retest using new 4H demand as your entry point. If price rejects and breaks 4H structure to the downside, be patient and watch how it reacts around those lower demand zones and liquidity pools. The key to reading direction is understanding that higher timeframe structure sets the broader trend, while lower timeframes show you the short-term moves within that trend. So, stay aligned with the daily bias, but use 4H structure and liquidity behavior to time your entries with confirmation, not prediction.