Trading Currency Futures using Sam Seiden Supply & Demand levels

I've been studying trading educator Sam Seiden's methods for about a month now, and really like his simple, easy to understand method for trading. When I speak of supply and demand levels, these are slightly different to support and resistance. For more information on the method, check out his webiners here, I highly recommend you watch them all. You can also google a lot of his stuff to, check out his academy and search it to find all his previous free articles and lessons.

I've also decided to try and trade currency futures after seeing what Seiden says about them. This carries many advantages for an intraday trader like myself, for example the futures market is centralised through the Globex system, so we need not worry about market makers, stop loss hunting, sudden spikes, etc, and all the other usual stuff that can hurt you, especially if you tend to use tight stops in your trading. The other difference with futures is that each trade requires a commission fee, so scalpers may not benefit from this. The fees will also differ from broker to broker. This thread was originally a journal, but now it has been moved to Trading Discussion. I would welcome all Seiden style traders to participate and post their trades here so we can perfect our technique.

Peace out

Here's my first attempt this week, Yen short.

Entry 1.2058
SL 1.2064



Got stopped out for 6 ticks/0.75% of account.


Having checked my charts again, I realised there were levels on top of levels, so I entered another short with a bigger SL using the 'All Star' Bollinger Band entry on the 1hr.

Entry 1.2065
SL 1.2082




My target of 1.2035 was met for a pofit of 31 ticks/3.5%, just under 1:2 RR. I chose it because it was the first 'speedbump' in the previous uptrend, but also I had to go out and couldn't monitor my trade any further:




So results for 22 Feb:

Gain 31 ticks/3.5%
Loss 6 ticks/0.75%

Net profit +2.75%

Here's a long EUR trade I took yesterday.

Enrty 1.3700
SL 1.3680

Missed my ideal entry, hence a larger SL than I would've liked.



The reason I took the long is I felt the USDX was breaking previous days' support/demand, so a short term long trade could work, even though EUR itself was in a supply zone.



My 'soft' target was previous supply around 1.3730. Fortunately the trade worked out and I took profit at 1.3735 for 35 ticks/4.37%, 1:1.5 RR. Not ideal RR, and if following the 'Odds Enhancers', this trade would probably have been skipped.



I could've probably kept the trade open longer, but I'm opening positions during the European session, and I'm weary of what could happen at the US open as gaps can occur at any day during the week, unlike spot FX where gaps tend to occur on the weekend open.

With more experience of the US open, I'll be able to look after my trades better.

Here's another long I took yesterday.

Entry 1.2075
SL 1.2065



Big picture hourly:


Long way until next major supply zone on the daily:


Took profit at 1.2103, gain of 28 ticks/3.5%.



Should've stayed in for the long haul, will do it next time I hope.


Results for 23 Feb:

Gain 28/3.5%
35/4.37%
Loss 0

Net gain +7.87%

Nice charts, I trade in similar fashion. Keep it up

Thanks Sam, same to you

Short I took earlier today.

Entry 1.3771
SL 1.3782



SL hit for 11 ticks/1.37% loss.

Looks like I misjudged the level as price continued on upwards. In the end I got taken out because of levels on top of levels.

2nd attempt at short on EUR. Used the next level up on the hourly chart and Bollinger band 'All Star Entry':

Entry 1.3790
SL 1.3805



I aimed for a larger target, perhaps foolishly, at demand around 1.3715-25 area. Price got to 1.3750 where it found support and moved back up towards my entry and eventually my stop. I tried to set and forget, but looking over this trade again, the major flaw was the SL location. You can see above that I didn't place my stop at the correct location above the level, but instead chose to use the top of the pin bar. This ultimately cost me the trade, as I would've survived and could've got out with a small profit, or at least break even. Good lesson, and further reinforces why rules should be followed, or the trade skipped.

Loss of 15 ticks/1.87%.

Hi Niteshift, I am also interested in Sam's simple no nonsense style. He makes it all sound very easy. How are you going about your exits ie when SLs are not hit? Thanks

Hi Xfd,

Ideally I'd like to exit at the opposing demand/supply level, like he describes in his videos. Failing that, I look to take 1-3 times RR.

My priority at the moment is to be able to identify the levels correctly, I'm not too worried about exits at this stage. When I feel confident at identifying levels, I'll move onto using the odds enhancers as part of my trading plan. When using the odds enhancers you should already have a take profit target worked out. At the moment I'm just using 'soft' targets, basically just seeing what price action is doing and then deciding when to close the trade.

In the long term I want to just 'set and forget', this is probably the most stress free way of trading, you create your plan, and then let the market do its thing

Entry 1.2125
SL 1.2132



I exited manually at 1.2113, although I was trying to close it at 1.2110 for approx 1:2 RR, but price movement ate up 3 ticks of my profit. Sometimes exiting manually is not such a great idea.



In any case, although it was a successful trade, if I had waited another 30 seconds, I would've seen my profit increase substantially as price cut right through the demand level below. Talking on the phone and trying to trade is not a good ideal also. Oh well, I live to trade another day

Gain 12 ticks/1.5%

If your still posting, I'll be reading along....

Here are the levels I am watching on the ES.

Cheers,

Kulu

Nice chart kulu, your levels look good.

Everybody who is using this method, please feel free to post on this thread and continue discussing it.

Unfortunately, due to other commitments I now have, it is unlikely that I will continue to contribute to this journal. I think it more apt that it be moved to the Trading Discussion forum in the near future. But again, all you Seiden fans, please continue to contribute here.

The only other thing I will add is that this method seems to work better with Futures, rather than FX. This is based on my recent observation of some FX pairs and levels I drew up on some charts. I find the FX market doesn't seem to respect supply and demand levels as reliably as futures, but that is just from my limited observation, and I could be wrong.

Anyway, please continue to contribute and all the best in your Futures journey.

Peace out

Here is my trade from today

This thread was originally a journal, but now it has been moved to Trading Discussion. I would welcome all Seiden style traders to participate and post their trades here so we can perfect our technique. Please feel free to start posting and discussing guys

Hi Niteshift,

Thanks for starting this great thread. I happened to attend a webinar from Sam yesterday on fxstreet and really liked his trading style of demand and supply.

I am very much into trying this. As of now I am struglling in finding the levels correctly. Do you think a nice indicator that plots support/resistance levels should do?

BTW, I placed a Buy Order limit that did not execute yesterday



Thanks
Vicky

Here is another potential setup on USD/JPY. Let me know what you think

To me this looks like a sell stop, the trend is down, the highs are getting lower. When it runs out of demand it will fall, a good breakout set up, take profit when momo runs out of steam. But it could do anything.......

Vicky, you need to create a trading plan that involves bigger picture analysis and a set of criteria. You have to define what a supply/demand level is. Take a look at his odds enhancers which should help you on your way. Dig deep for this information and do the research before you start making trades. Be careful using Seiden's free information. You are only getting half the picture.