I will explain the strategy outlined, called the "Gap Retest Strategy", which is one of the trading strategies that relies on supply and demand areas and filling price gaps (gaps). Here’s a simplified step-by-step explanation:

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What is a Gap?

A price gap occurs when the price suddenly opens higher or lower than the previous closing price, creating an area where no trading has occurred. These gaps are often filled later (i.e., the price returns to cover them).

1. A bearish gap forms:

The price opens with a large red candle, and a gap appears downward.

This gap means that the price has dropped suddenly without trading in this area.

2. Strong drop after the gap:

The price continues to drop to reach a new low.

3. Price retracement upwards (return to test the gap):

The price starts to rise gradually and fills the gap.

It reaches the supply area — which is the area from which the sharp drop began, and here it is expected that sellers will return to the market.

4. Entry point:

When the price reaches the supply area and fills the gap, this is the entry area (Retest Entry Area) for selling (short trade).

The trade can also be reinforced (Add to Position Area) when the price starts to drop again.

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Objective:

The primary objective is for the price to reach the previous low or exceed it, as shown in the Initial Target.