Today I’ll show you, once again, why supply and demand govern all markets, and why price action—pure and simple—is still the most powerful trading tool you’ll ever use.
We’re looking at Smith & Wesson Brands, SWBI, and you’ll see two weekly imbalances created and respected as if the chart were whispering: ‘Follow the big boys… forget the noise.’
If you’re learning to trade stocks with price action—especially supply and demand—this video will open your eyes.

Welcome back, traders. This is Alfonso from Set & Forget Trading Academy, and today, I will be diving deep into something that proves, once again, why I always say:

• Price action is the only real indicator that doesn’t lie.
• Supply and demand are the forces that move everything.

And yes… not even earnings can escape their power.

Quick Look at Smith & Wesson Brands (SWBI)

Smith & Wesson is one of the most recognizable firearms manufacturers in the United States. They’ve been around since 1852, supplying law enforcement, the military, and civilians. Very cyclical business… but charts don’t care about that.

What does matter? The weekly supply and demand imbalances that the big institutions leave behind when they position themselves.
And SWBI has given us two textbook examples in a row.

Weekly Demand Imbalance #1 — $8.26

This was the imbalance created after a positive earnings surprise.
Now, remember—I never use news to justify a trade. News doesn’t matter; the imbalance does.
But when news aligns with a strong imbalance already in control…
…well, let’s just say the reaction is often explosive.

And that’s exactly what happened.

Price pulled back into the $8.26 weekly imbalance, tapped into the institutional footprints we always talk about, and reacted beautifully with a clean bullish impulse.
Patience rewarded. Emotions deleted—just supply and demand doing its magic.

Weekly Demand Imbalance #2 — $8.82

Fast forward to the next earnings release.

Again, a positive surprise. Again, a brand-new pocket of demand created on the weekly timeframe.

This fresh imbalance at $8.82 is now in control, and price is already reacting exactly as a trained supply-and-demand trader expects—quiet, clean, mechanical price behaviour.

This is where most traders go wrong.
They want to force trades in the middle of nowhere, chase candles, scalp noise, gamble with indicators… But the professionals?
They wait. They place their orders at the extremes—within the imbalances exactly where you and I want to trade.

Patience: The Trader’s Greatest Weapon

Both imbalances show the same principle:
Wait for price to return to the extremes.

Most traders lose because they:

• Enter too early
• Enter in the middle
• Enter emotionally

Supply-and-demand traders win because they:

• Identify institutional zones
• Wait with discipline
• Let price come to them
• Ignore noise and headlines

Your job is not to predict.
Your job is to prepare.

News vs Imbalances: Why This Example Matters

You’ve heard me say it a thousand times:
👉 “I ignore news and fundamentals because imbalances already price everything in.”

But…
When an earnings release creates the imbalance, and then price respects that imbalance later…

It becomes one of the best real-world examples you can show a trader who’s still doubting the power of supply and demand.

The chart doesn’t move because analysts got excited. It moves because institutional orders were stacked at that imbalance long before you and I saw the earnings number.

This is why your job is not to read reports.
Your job is to read price.

SWBI is a clean, beautiful example of how price behaves around weekly supply and demand.
Two imbalances. Strong, impulsive moves created both.
Both aligned with earnings.
One already played out perfectly.
Another one currently in control.

If you want to learn to trade stocks with supply and demand, price action, patience, discipline, and no noise… this is the path.