In this short technical analysis video on Dollar Index DXY you will learn some tips on the kind of price action we want to see in the creation of new supply and demand imbalances. You don’t need any indicators to plan a trade, price action and supply and demand will tell you where price is most out of balance.
Take a look at the Dollar Index DXY daily chart explained in the video analysis. The strongest impulses are bearish, the last one around $97 was created a couple of weeks ago, the first one at the top was created at $98 a couple of weeks before. When looking at the daily chart these two bearish impulses and imbalances stand out over the rest of impulses and price action. No matter what Forex trading strategy you are using to plan a trade, it’s neither wise nor advisable to go long in lower timeframes against such strong bearish impulses.
Most traders end up trading lower timeframe Forex strategies, probably using fifteen minutes and five minutes charts to plan their trades, ignoring what the bigger picture trend and the bigger timeframes are saying. No matter how many indicators you are using in your strategy, when price retraces to strong imbalances in a clear trend, you will start losing if you keep on trading against them.
Learning how to trade is not easy, but if you start adding layers of complexity with all kind of indicators you will make it even more difficult. If you want to learn how to trade Forex using supply and demand imbalances, join our supply and demand trading course.
Watch Dollar Index DXY supply and demand video analysis.
This is the kind of 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.
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.
Disclaimer: Any Advice or information on this website is General Advice Only - It does not take into account your personal circumstances, please do not trade or invest based solely on this information. By viewing any material or using the information within this site you agree that this is general education material and you will not hold any person or entity responsible for loss or damages resulting from the content or general advice provided here by Set and Forget, its employees, or fellow members. Futures, options, and spot currency and stocks trading have large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the Forex and futures markets. Don't trade with money you can't afford to lose. This website is neither a solicitation nor an offer to Buy/Sell spot Forex, cfd's, stocks or other financial products. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed in any material on this website. The past performance of any trading system or methodology is not necessarily indicative of future results.
High Risk Warning: Forex, Futures, and Options trading has large potential rewards, but also large potential risks. The high degree of leverage can work against you as well as for you. You must be aware of the risks of investing in Forex, futures, and options and be willing to accept them in order to trade in these markets. Forex trading involves substantial risk of loss and is not suitable for all investors. Please do not trade with borrowed money or money you cannot afford to lose. Any opinions, news, research, analysis, prices, or other information contained on this website is provided as general market commentary and does not constitute investment advice. We will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. Please remember that the past performance of any trading system or methodology is not necessarily indicative of future results.