Index market analysis

Find below top down index market analysis exclusively using supply and demand imbalances together with price action.
Bear in mind that a top down technical analysis is needed to make a trading decision, a single timeframe is not enough to place a trade. There are not signals, they are meant to point out strong imbalances usually in a clear trending market.

Top Indexes analysis today

2nd January 2018
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Short bias on DXY in a downtrend

Dollar Index #DXY has a short bias, monthly downtrend with new supply zone created overhead, shorts at daily and weekly supply imbalances around 91 and higher. Dollar Index is dropping, short trades There is a void to be filled if monthly lows around 91 are broken. Most USD cross pairs are filling that void already […]
31st October 2017
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NASDAQ buy daily demand levels 2017

Nasdaq Futures and Index daily uptrend. New daily demand zones being created and respected at all time highs.  QQQ and NQ1 long bias Longs at new area of demand around 6088. Previous daily demand levels around 6016 and 5844 played out nicely, Clear long bias, buy at new and clear demand imbalances. Nasdaq chart price action analysis, […]
27th October 2017
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Dollar Index DXY clear longs 2017

New Daily demand zone being created on Dollar Index DXY around 94. Weekly supply level eliminated, long bias at Daily and Weekly demand levels, similar scenarios happening on most USD Forex cross pairs with new daily and weekly levels and imbalances being created. DXY in uptrend for longs Dollar Index break the downtrend and have […]
12th October 2017
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DAX 30 Index breaking all time highs

DAX 30 German Index DY1! breaking all time highs. Pausing on the weekly timeframe before a breaks out to create a potential weekly demand level on the way up if the second leg is created. DAX Index and Futures high odds for longs New weekly demand zones created on the way up. Longs at weekly […]
17th July 2017
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DXY weekly downtrend

Weekly downtrend on Dollar Index DXY. Shorts at weekly and daily supply zones around 97 price area. Room for price to drop to opposing tested weekly demand level. New potential weekly supply zones being created lower at 95.55. Short bias. Dollar Index clear downtrend for shorts Dollar Index is dropping and dropping on weekly chart. […]
13th June 2017
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Bank Nifty long term buy setup

Bank Nifty Indian index big picture long bias, after a long rally in price we usually have a bigger retracement, very strong monthly demand level zone around at 18.725 for a long term long buy setup, longs will probably happen before it reaches that imbalance at weekly and daily imbalances. Bank Nifty high odds for […]

Index market analysis is a method for investors and traders to make buying and selling decisions in american indexes and other indexes from many other countries and exchanges. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions based on a set of rules predefined in a trading plan.

An index market analysis does not require a Ph.D in economics or knowing everything about the underlying stocks the indexes are composed of. Reading price action alone and understanding how new imbalances are created is more than enough analyse the indexes. You will read many traders and educators saying very different things, trying to sell you their strategy. That’s perfectly fine, there are hundreds if not thousands of trading strategies that will help you become successful trading indexes and doing a top down analysis of any index. Just remember to stick to a single strategy, that will prevent you from clouding your mind with different scenarios and trading ideas that will most likely contradict each other.

Technical analysis of indexes

Traditionally, the technical analysis of indexes has been the study of historical market data, including price and volume, while at the same time using tools like trendlines and support and resistance levels to help you trade with the support of as many indicators as possible. Technical analysis hasn’t always been used in the past, most traders used to trade fundamental analysis of american indexes like S&P500, Nasdaq and Dow Jones. As supply and demand traders we also have to use technical analysis on these important indexes, it’s the core of what we do because trendlines and the strength of price action will indicate us potential huge imbalances where we want to place our trades. However, we do not need to take into consideration volume or fundamental analysis in our technical analysis of stocks, because price action alone will tell us all we need to do. Price action is alone is not enough, we must the price action into context since context is everything.

Index chart

Examples of index charts will show us examples of how price action and supply and demand go hand in hand because every single imbalance is made of price action, candlesticks or bars if you are using the latter. Hundreds of index charts and potential trade setups are available in the set and forget trading community. We go over dozens of scenarios every week in our daily and weekly updates so you don’t have to do the hard work of locating those potential imbalances and trade opportunities.

Index trend analysis

The trend is your friend until it ends. Trading indexes like S&P500, Nasdaq, Dow Jones, Dax 30 and Nikkei in a clear trend is higher probability than trading them going against the trend. There is no such thing as the best index trend analysis, every trading strategy will have its own definition of a trend and we should use it as specified in its trading plan. As supply and demand traders, we will be using the price action and imbalances to learn about the index trend and trade accordingly.

A single timeframe is not enough to made a trading decision, neither are candlesticks and price action. We need a context, we must put price action into the context of the bigger picture trend analysis and avoid making a trading decision based on a single timeframe.

Index forecast long term

The most profitable bull market in history arouses a lot of interest among bears. American stock market indexes have started the new year 2020 at record highs. There is a clear long term bullish bias, but that does not mean we should be thinking of buying stocks and indexes right now because price does not move in straight lines. The long term forecast for indexes like &P500, Nasdaq, Dow Jones, Dax 30 and Nikkei is definitely bullish but we should be waiting for a strong bearish correction since all of these indexes and most of the underlying stocks have been rallying for years without a big retracement, meaning that a very strong correction will probably happen in 2020.

Long term forecast and prediction of major world indexes is crucial to position ourselves bullish or bearish in the stocks of our portfolio.


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