Supply and demand in a nutshell by Alfonso Moreno

New buy opportunities on Bank Nifty NSE Indian index. We have a new weekly demand imbalance created around 27340 where longs will be possible again. Will this new trade setup and imbalance play out as nicely as previous demand level? We don't know, nobody knows. What we do know is that it's a new imbalance with a clear long term long bias, that's all we need to know. Can it be a loss? Of course this trade setup on Bank Nifty index could be a loss, but who cares about losses? Losses are part of the trading game, we cannot win if we do not lose because that would mean that we are not taking any risks. If we don't take any risks then we are actually NOT trading.



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GBPCAD Forex cross pair is rallying sharply creating very strong imbalances on the daily timeframes as expected and mentioned in previous long term supply and demand analysis done a few days ago for GBPCAD Forex monthly chart. We were expecting price to rally from that monthly imbalance and that's exactly what is happening on GBPCAD Forex cross pair and other GBP Forex cross pairs.

There are two several new daily demand imbalances created on GBPCAD Forex cross pair daily timeframe. Only longs area allowed in an uptrend, no shorts allowed, as simple as that. The last two daily demand levels have played out nicely, brand new one around 1.6354. Price will probably keep on rallying higher providing trade setups and entries in lower timeframes.

There are only three trading decisions to be made every time we look at a chart, either we buy, we sell or we do nothing. In this case we should be taking action since we have very strong impulse, selling is not possible so the only direction we should be thinking of trading is longs, bullish bias and forecast for GBPCAD Forex cross pair.



Learn how to trade Forex and stocks using a supply and demand strategy

EURGBP Forex cross pair has reached a strong monthly demand imbalance where going long is allowed again. As swing traders and longer term traders we should not be thinking of going shorts on EURGBP Forex cross pair.

Price action analysis is telling us there is a very strong monthly bullish impulse that ended up becoming a monthly demand imbalance around 0.8607. This imbalance has gained control and renders lower timeframe shorts low probability.

Price action analysis and supply and demand technical analysis is telling us that going long on EURGBP Forex cross pair is the way to go now, no matter what Brexit news or any other fundamentals are telling us to do. Learning how to trade Forex should not be as difficult as it seems, it will if you start paying attention to news releases and fundamentals as well as what media and web sites are talking about online.



Learn how to trade Forex and stocks using a supply and demand strategy

Nikkei 225 Japanese Index has been rallying for a few weeks creating new strong weekly demand imbalances. Nikkei 225 index has unfortunately not retraced yet to any of these two strong weekly imbalances and continues to rally on its way to weekly supply imbalance around 23600.

Nikkei 225 Japanese Index futures forecast. As per the weekly timeframe analysis, Nikkei 225 Index futures is in a clear uptrend creating new weekly demand imbalances at 21850 and lower at 20570. Nikkei tried to correct and reached bottom weekly demand level but it just couldn’t and kept on rallying ending up creating another strong weekly demand imbalance around 21850.

Long term long bias on Nikkei index. This is the kind of price action technical analysis you will learn in our trading community. You will learn how to locate new supply and demand imbalances and trade without using any indicators, no news, no fundamental analysis , no earnings announcements, no volume or VSA analysis. Just supply and demand imbalances.

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.



Learn how to trade Forex and stocks using a supply and demand strategy

Bank Nifty Indian Index bullish bias with new weekly demand imbalances

Bank Nifty Indian index has a clear long term long bias, bearish corrections must exist if we want to plan a trade using imbalance. The Indian stock market and its indexes does not move in straight lines and so do the other world indexes, the Indian Bank Nifty and Nifty 50 indexes are not an exception.

As explained in a previous Bank Nifty Index analysis and forecast a few weeks ago, we were expecting price to rally strongly after seeing that strong weekly demand imbalance created around 27300. Bank Nifty Index has done as expected rallying very strongly.

As explained in previous Bank Nifty NSE index analysis, we had a super strong weekly demand level around 27300 where we want to go long and that imbalance has played out nicely as expected. Check previous Bank Nifty supply and demand analysis, we called that trade months before price ever retraced to that price level and demand imbalance. At Set and Forget trading community we call the trades before the fact, sometimes weeks and months before price returns to the levels explained in our technical analysis.



Watch Bank Nifty Video Analysis and Forecast

On GBPNZD we can see very strong impulses on the weekly timeframe that ended up becoming a demand imbalance. Not all impulses are considered an imbalance, there are very specific rules to determine an imbalance in our supply and demand Forex trading strategy.

In the Forex video analysis for GBPNZD Forex cross pair below we can see three very strong weekly impulses and imbalances, the last one at 1.95 where we are expecting price to retrace. Longs will be possible again on GBPNZD around that price level. We must be patient when trading bigger timeframe imbalances.



Learn how to trade Forex and stocks using a supply and demand strategy

Forex USDSGD US Dollar versus Singapore Dollar has reached a very strong weekly demand imbalance. We are only allowed to go long on USDSGD Forex cross pair using a supply and demand strategy and approach.

Forex cross USDSGD forecast
We are expecting price to rally much higher reacting to strong weekly demand imbalance located around 1.3587. We should not be thinking of selling USDSGD against such a strong imbalance. We don’t need any indicators to tell us we should be thinking of going long. You are probably trading other Forex strategies and not even looking at the weekly timeframe, so you are probably thinking of going short unaware of this strong imbalance.



Learn how to trade Forex and stocks using a supply and demand strategy

A very strong weekly demand imbalance has been created on the weekly timeframe around $117 per share for a long term buy opportunity on this stock. Currently we have a pretty strong weekly supply level that has gained control, buying Spotify stock is not possible now. Remember this is a long term analysis, short term and intraday stock trading is a different story but this can help you decide which bias you can trade on your stock trading strategy.

When Spotify Technology #SPOT stock is analysed with the glasses of a supply and demand strategy, we can see that strong impulses and created providing new demand to lean on for long term buy opportunities.



Learn how to trade Forex and stocks using a supply and demand strategy

GBPUSD Forex cross pair bullish forecast November 2019
There is a strong weekly demand imbalance created on GBPUSD Forex cross pair around 1.2414 . Only longs area allowed in an uptrend, no shorts allowed, as simple as that. There are only three trading decisions to be made every time we look at a chart, either we buy, we sell or we do nothing. In this case we should be taking action since we have very strong impulse, selling is not possible so the only direction we should be thinking of trading is longs, bullish bias and forecast for GBPUSD Forex cross pair.



Learn how to trade Forex and stocks using a supply and demand strategy

You may be wondering how to trade BitCoin analysis and similar crypto currencies. There are countless crypto currency strategies you can use to trade BitCoin for profit, however you must be aware of a very important characteristic of the crypto crypto currency market, it follows supply and demand as any other financial market, crypto currencies and crypto trading are not exceptions.

Pools of supply and demand imbalances are created in all BitCoin timeframes, you must know what these imbalances look like and what they mean before you decide to take a trade on BitCoin. The BitCoin technical analysis video below is doing a long term analysis of the monthly timeframe, intraday and shorter term positions are not explained, those are different monsters.

As mentioned in a BitCoin crypto currency analysis from last September 2019, supply and demand trading analysis told us a bigger correction to $4,000 was expected on BitCoin crypto currency. I got some emails from people telling me a supply and demand strategy cannot be used to trade Crypto Currencies. Well, the market speaks by itself. Nobody believed price would drop from $20,000 and we warned everyone.

As per the monthly chart, BitCoin crypto currency created a very strong demand imbalance level around $4,722 last October 2018. It took a year for price to retrace to that imbalance but when it did, price reacted to it very strongly. Our BitCoin prediction was correct with laser beam accuracy when we spoke about that monthly demand level a few months ago. Those following us in the supply and demand trading community could take advantage of this long term analysis and position on BitCoin crypto currency.

All time highs around 12,100 have been broken again as expected once Nifty 50 retraced to monthly demand imbalance around 10,851. A brand new imbalance has been created slightly higher around 11,181. It might take some time for price to retrace to that level on Nifty 50 index.

But remember this is a long term technical analysis, you can use lower timeframes to go long as well, or even use other trading strategies but please if you do so, do not think of selling Nifty 50, only plan long positions.



Nifty 50 supply and demand trading strategy

Disney company has broken all time highs again, a very strong impulse has been created which is being in the process of create a new demand imbalance. The big picture trend is bullish, Walt Disney company is in a clear uptrend, only longs at new demand imbalances are allowed. Why should we need to add all kind of indicators like Bollinger Bands, CCI, RSI, MACD and exponential moving averages to make a trading decision when price action is telling us that all we can do is go long. But where can we go long, a new demand levels. It’s pretty clear that the whole move started around $132 per share, that’s where we would be interested to trade if the trend is still bullish by the time price revisits the impulse.

When trading supply and demand imbalances we don’t really need any indicator or add-on tools to tell us how and when to place a trade. Let’s take a look at Walt Disney Company stock #DIS using a supply and demand stock trading strategy.



Learn how to trade Forex and stocks using a supply and demand strategy

As explained in a previous GBPUSD Forex analysis posted in blog’s trade ideas, we have been looking to go long on GBPUSD ever since monthly demand level gained control. You can read the original GBPUSD Forex analysis here. New updated analysis were posts after that one. New updates are done in the Set and Forget trading community every week.

GBPUSD monthly demand imbalance in control.
Monthly demand level around is in control. Long term shorts are not allowed. We are expecting GBPUSD Forex cross to keep on rallying from that monthly demand imbalance around 1.2500. It was going to take some time for price to rally, it’s been almost four months already. No matter how many bad or good news created with the Brexit problem, supply and demand imbalances rule and control the markets because they are created by institutions and professionals and not by retail traders. We expected a reversal from that GBPUSD Forex cross pair monthly demand and new weekly and demand demand imbalances on the way up. Long term long bias probably in a couple of months.



Learn how to trade Forex and stocks using a supply and demand strategy

Ever wondered how to trade stocks without using any kind of indicators, fundamental analysis or volume analysis? You don’t need any special tools to learn how to trade stocks.

As a beginner, it shouldn’t be that difficult to place a high probability trade on stocks, you don’t need a university career either. When trading stocks using a supply and demand strategy, you don’t need to pay attention to anything else but price action and the strength of the imbalance.
How to trade Expedia Group stock using a supply and demand strategy

On Expedia Group american stock #EXPE we have located a super strong supply imbalance around $135 per share. That’s the kind of imbalance we are looking for and where we are interested in selling Expedia Group stock. You don’t need to pay attention to fundamentals or earnings announcements, why should we?

Clear short bias on Expedia Group, price action analysis is also telling us that selling is the way, but not now, we need to wait for the retracement.



Learn how to trade Forex and stocks using a supply and demand strategy

As explained in a previous GBPUSD Forex analysis posted previously , we have been looking to go long on GBPUSD ever since monthly demand level gained control, GBPUSD has been updated in previous posts. Now we have a brand new strong weekly demand imbalance at 1.2937 that is trying to play out as expected.
Selling GBPUSD Forex cross pair is not allowed because a strong weekly demand is in control and we have a weekly uptrend with new demand levels being created and respected.



Learn how to trade Forex and stocks using a supply and demand strategy

EURUSD bearish. I would say only allow to sell.

CADJPY weekly trend up. So I will be looking to buy.

On Comcast Corp american stock #CMCSA we have a clear monthly uptrend with new demand levels being created while breaking all time highs. In an uptrend with demand levels being created and respected, no shorts are allowed, only buying the underlying stock at new demand imbalances.

This is a longer term analysis for Comcast Corp, you can use lower timeframes to take a trade on this stock. By taking into consideration the long term big picture trend, we will be adding more odds when buying Comcast.

Two monthly demand imbalances have been created around $42 and $36 per share, price did not retrace to strong demand level at $36 but it did retrace to the imbalance at $42.



Watch Comcast supply and demand video analysis

This is a longer term analysis for EURJPY Forex cross pair done on the monthly timeframe. As explained in many other supply and demand scenarios, when we have a longer term monthly imbalance that gains control, we are not allowed to take a position against it.

If we take a look at EURJPY Forex monthly timeframe analysis wearing the supply and demand glasses, we can see the reason why EURJPY forex cross pair is rallying instead of dropping.

EURJPY Forex cross pair has been dropping for months until monthly demand imbalance at 1 gained control. This cross pair has been rallying from down there for five consecutive months, we are expecting price to continue rallying in the forthcoming months. That does not mean price is not going to correct at all, the underlying price hardly moves in a straight line. But what we do know is that a strong monthly demand imbalance has taken control of EURJPY Forex cross pair.



Learn how to trade Forex and stocks using a supply and demand strategy

Should we buy Apple Inc stock at $320 per share as of January 2020? Apple #APPL stock supply and demand technical analysis is telling us that we have a an uptrend, all time highs have been broken and very strong impulses have been created after all time highs were broken.

However, having a bullish stock does not mean we should jump and buy hundreds of shares straight away. That would be a very emotional behavior, which usually happens in losing money. Take a look at Apple Inc #AAPL monthly timeframe technical analysis below. We have a clear uptrend and a very strong bullish impulse that originated at the monthly demand imbalance around $218, five consecutive months rallying and not looking back.



Read Apple Inc full supply and demand analysis

EURGBP Forex cross supply and demand analysis on the monthly timeframe is showing as two strong imbalances located at [1] and [2]. Both imbalances are pretty strong, the one above is a strong monthly supply level made of a very strong bearish impulse, it’s likely that price will react to it strongly once price retraces to it. However, it could take a while before price ever moves that high unless high volatility is created by a strong event like the one that might materialise at the end of this week, on the 31st January 2020, Brexit. We should stay away from GBP cross pairs this week just in case a severe change happens.

In the meantime, price has been dropping and trying to fill a void, still a lot of room to reach strong demand level at #3. Right now we should be only interested in selling EURGBP Forex cross pair, going against such a strong bearish impulse is not a good idea, unless we start eliminating lower timeframe supply zones on the weekly timeframe.

Price action analysis is telling us there is a very strong monthly bearish impulse ended up becoming a monthly supply imbalance around 0.9036 and there is a lot of room for price to keep on dropping on the way down to monthly demand imbalance around 0,7835 filling the void at [3].

Price action analysis is telling us that those are the two strongest imbalances on the monthly timeframe for EURGBP Forex cross pair, where we expect price to react. Let’s wait and see what happens at the end of this week, if the UK finally leaves the UK or there is another postponement.



Learn how to trade Forex and stocks using a supply and demand strategy