The concept of the first correction touching the supply or demand area is often used as a reference for trend validation. If, in an uptrend, the correction returns to the demand area on the left, or in a downtrend, it returns to the supply area, it usually indicates a healthy market structure. Using parallel candlesticks or parallel doji as area criteria is also quite common, as long as the area truly reflects the previous price reaction. But as always, even though the supply-demand area can be very strong, additional confirmation from price action is still needed to ensure a more measured entry and avoid false corrections.
