In this video, you will see how you can use a supply and demand trading strategy to make money trading stocks. You can use the same strategy to make money on Forex and cryptocurrencies since the supply and demand forces move all markets, sectors and industries. The strategy can be used to trade smaller and bigger timeframes, supply and demand intraday and swing trading. I prefer to use the bigger timeframes because they will give us a much better view of what professional investors are doing. In this supply and demand analysis, I have analyzed Yum China Holdings, Inc, a Chinese stock trading in the NYSE exchange with ticker YUMC. Yum China Holdings, Inc. owns, operates, and franchises restaurants in China. The company operates through two segments and two giant monsters in the restaurant industry, KFC and Pizza Hut.
Yumc China stock has reached a strong weekly supply imbalance located at $49.85, and it’s helping the stock drop as expected as new sellers are showing interest in the short-selling stock.
How to Use a Supply and Demand Trading Strategy to Make Money
As supply and demand traders, we do not need to pay attention to 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.