How to trade European stocks using supply and demand imbalances

Hannover Re is a German stock with a gross premium of around €22.6 billion, is a European and third-largest reinsurance group in the world. Its headquarters is in Hannover, Germany. The company was founded in 1966 under the name Aktiengesellschaft für Transport- und Rückversicherung. This stock is a great example of how to trade European stocks using supply and demand imbalances.

As supply and demand traders, we don’t need to pay attention to fundamental stock analysis to buy shares of stock. As you can see in the weekly timeframe analysis for Hannover Re. German stock has a very strong weekly demand level that just took control at around 120 euros per share. It’s a great setup to buy shares of this German stock right now. I am long on this European stock. There is a lot of profit potential in this German stock analysis.

I could spend an hour talking about the history of the company, its profits or lack thereof or even how it has performed during the COVID-19 pandemic. I won’t do it because I don’t need to bear that in mind to buy stock using my supply and demand stock trading strategy. This type of imbalance we want to trade is one of the many examples being shared in the European and American stock markets.

We focus only on strong imbalances. Will Hannover Re German stock rally as expected? Nobody knows, but it’s a great imbalance, and the bigger-picture trend is bullish, so we can only make two decisions. Either we can buy it now, or we can pass on it. I did not pass on it and took the risk. No risk, no profit. Once you know where to buy and sell, it shouldn’t be difficult to learn to trade stocks.

Hannover Re stock analysis

Stock price action analysis using supply and demand strategy

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 are 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 react strongly to those imbalances. Why do 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 in gaining control.

You should not worry about fundamentals or earnings announcements unless you are doing very short-term trading and scalping.

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

Join our supply and demand stock trading course to learn how to use our supply and demand trading strategy.

There are several ways of buying stocks and futures. When trading stocks, you can buy shares of the underlying stock. You can also use stock options strategies to go long or short at these specific supply and demand levels. Long calls or long puts or spreads. You can even buy CFD (contracts for difference) if you are in a country where it’s allowed.