AUDSGD Forex cross pair short bias forecast, supply imbalances created and respected
15th May 2019
How to trade stocks like Walt Disney #DIS using supply and demand imbalances
21st May 2019

On this short video you will see learn a few things on how to trade stocks using supply and demand imbalances. We do not need any lagging indicator to make a trading decision using supply and demand imbalances. These imbalances are created on every asset, on stocks and equities, commodities, Forex, ETFs, etc.

This technical analysis video has no intention to tell you where to buy or sell on this stock, it’s giving you some hints on what kind of price action and impulses you need to be looking for in order to locate potential supply and demand imbalances.

One of the most important features of an imbalance is the strength of the impulse originated at the origin of the move. You will be able to distinguish how strong an impulse is by reading price action and candlesticks. Look for several consecutive and very wide candlestick bodies, it will probably be an imbalance. Compare previous price action with current price action, put those candlesticks against each other and calculate how much time price took to rally and how much it took to drop. Time is very important when trading these levels as explained in this video.

As you can see on Las Vengas Sands #LVS stock, there is a very strong monthly bearish impulse around $70 per share, this is the kind of strength we should be looking at when trading supply and demand imbalances. Price is falling short of retracing to that monthly supply level and dropping sharply creating supply levels on lower timeframes.

Trading supply and demand imbalances is ideal for beginners and those with a full or half time job, you won’t need to stay in front of the computer all day long trying to move price action with your mind.

As supply and demand traders, we do not need to pay attention to the news, fundamentals or any earnings reports. Once a big timeframe imbalance has gained control, earnings do just the opposite and reacts strongly to those imbalances. Why is it that you see positive earnings and then the underlying stock drops like a rock, or a negative earnings announcement and the stock rallies like a rocket out of control? You are probably missing the fact that there are big imbalances gaining control.

Unless you are doing very short term trading and scalping, you should not worry about fundamentals or earnings announcements.

Alfonso Moreno
Alfonso Moreno
Full time trader, expert technical analyst and founder of Set and Forget supply and demand online trading community. Traveler, photographer and adventurer.

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