Don’t buy stocks after a strong rally – here’s why

Don’t buy stocks after a strong rally – here’s why. The reason is that the markets are governed by the forces of supply and demand, whether we like it or not. These forces move the threads in the background, creating strong market price action. In this video market analysis, I will go over why you should not buy after a strong rally on stocks, Forex, Futures or cryptos.

You are probably trading the daily timeframe or taking short-term and intraday positions on stocks, Forex and cryptos.

  • Stop chasing trades.
  • A strong move should make you stop trading.
  • Take profits will usually start to happen.
  • No need for any indicators to do this.
  • Use logic and common sense.
  • Supply and demand govern the markets.

Supply and Demand Strategy

You are probably trading the daily timeframe or taking short-term and intraday positions on stocks, Forex and cryptos. When using the smaller timeframes, you will not know whether you are trading against a bigger timeframe obstacle. This is one of the most common mistakes the typical trader will make. The video goes more in-depth over several trading scenarios and what you should do to increase your odds of success.

The weekly analysis of Visa’s American stocks shows a significant imbalance at $208. After such a strong increase, we anticipate the stock returning to its original position. This may take a few weeks, as each candlestick represents one week. However, if you choose to go against this strong price movement, you will likely end up buying in an uncertain market when we are actually expecting a bearish correction to bring the stock back to its previous imbalance.

How to Use a Supply and Demand Trading Strategy

As supply and demand traders, we need not consider fundamental analysis. Unless you are doing very short-term trading and scalping, you should not worry about fundamentals for stocks and ETFs.

Trading is just waiting for the right trigger points and scenarios to present themselves. This game has a name, and it’s called the waiting game. We must patiently wait for the correct scenarios and setups to happen and for the price to pull back or dip into the price levels we want to trade. These price levels are made of supply and demand imbalances in our case. You can use these imbalances to plan your trades in lower timeframes.

Join our supply and demand online trading academy If you want to learn how to trade stocks using our supply and demand trading strategy.

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