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 creating 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 the price is most out of balance.
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, and 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 the impulses and price action. No matter what Forex trading strategy you use 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 use in your trading strategy, when the price returns 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 adding layers of complexity with all kinds of indicators will make it even more difficult. Join our supply and demand trading course if you want to learn how to trade Forex using supply and demand imbalances.
Watch the 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 jobs; 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.