Let’s look at USDSGD forex cross-pair using the supply and demand glasses as technical analysis. This forex cross pair has created a strong impulse on the weekly timeframe around 1.3497 price area that ended up becoming a strong demand imbalance where longs will be possible again. See the weekly timeframe screenshot below.
With practice, you will learn how to identify these strong imbalances and, what to do with them, how to trade them. You should focus on strong imbalances, regardless of your trading timeframe. The top weekly supply level USDSGD is expected to be removed any time soon, given the long term long bias and its weakness.
Using our supply and demand glasses, it should be pretty clear that the underlying asset, the USDSGD cross pair is now very expensive to buy, we do not; we should not buy after a strong rally, it goes against the core principles of supply and demand.
Since the bigger picture trend is bullish, we should be interested only in buying the USDSGD forex cross pair, but not it’s not possible. You can use this supply and demand technical analysis to plan your trades in smaller timeframes using other trading strategies or even take short of the way down. USDSGD is now within weekly supply imbalance around 1.3870, no longs allowed.
Planning your Forex trades based on supply and demand imbalances will often place you on the right side of the equation. There are many Forex trading strategies, stick to one and master it.
This is the kind of price action 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 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.