When trading supply and demand imbalances, we don’t need any indicator or add-on tools to tell us how and when to place a trade. Let’s look at Walt Disney Company stock #DIS using a supply and demand stock trading strategy.
Remember that a multiple timeframe analysis needs to be done to place a trade. This is just a monthly timeframe analysis. You need to know when to place a trade and when not to based on multiple timeframe analyses.
We were waiting for Walt Disney #DIS to retrace to strong demand around $132 per share, as explained in the previous Walt Disney supply and demand analysis. Still, the price has fallen short of doing exactly what we expected.
See Walt Disney Stock monthly timeframe underneath; the price almost reached the monthly demand imbalance around $133.68 and kept rallying.
A multiple timeframe analysis needs to be done to place a trade. This is just a monthly timeframe analysis. You need to know when to place a trade and when not to based on multiple timeframe analyses.
Walt Disney has been breaking all-time highs over and over and ended up creating this strong imbalance. Walt Disney stock’s big picture trend is bullish and in a clear uptrend. Why should we need to add all kinds of indicators like Bollinger Bands, CCI, RSI, MACD and exponential moving averages to make a trading decision when price action is telling us that all we can do is go long? But where can we go long, a new demand levels?
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, and 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 Walt Disney stock 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.
Unless you do very short-term trading and scalping on Walt Disney stock, you should not worry about fundamentals or earnings announcements.
You can use these imbalances to plan your trades in lower timeframes. Trading is just waiting for the right trigger points and scenarios to present themselves, this game has got a name and it’s called the waiting game. We need to patiently wait for the correct scenarios and setups to happen and wait for price to pullback or dip into the price levels we want to trade, in our case these price levels are made of supply and demand imbalances.
There are several ways of buying stocks and futures. When trading stocks, you can buy shares of the underlying stock or use options strategies to go long or short at these specific supply and demand levels, long calls or long puts or spreads. You can even buy a CFD (contracts for difference) for Walt Disney stock if you are in a country where it’s allowed.
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