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Sam Seiden's Supply/Demand zones

  • #41
  • Sep 27, 2011 2:06am Sep 27, 2011 2:06am
All this is just a very complex way of saying:

Pick the highs and lows off the longerterm charts. Draw them across your chart.
Then figure out a way to tell if price will reverse when it reaches them as it tends to do this quite often.

The supply/demand zone is way too complicated as it obscures the issue-just look at how confused people can be with it!

Also, the 'zones' are quite wide-are you picking the area where price accelerated out of a consolidation period and not the actual area where it reversed in the first place? Why do that?

Just pick the highs/lows on 1 hour charts (if day trading) as those are the areas where the supply/demand ratios reversed, and will most likely do so again. It's really not that complicated, I think a lot of Seiden is overly intellectual and slightly long winded, hence the confusion. But that's just my opinion-good luck
  • #42
  • Sep 27, 2011 3:05am Sep 27, 2011 3:05am
Quoting bootsyjam
All this is just a very complex way of saying:

Pick the highs and lows off the longerterm charts. Draw them across your chart.
Then figure out a way to tell if price will reverse when it reaches them as it tends to do this quite often.

The supply/demand zone is way too complicated as it obscures the issue-just look at how confused people can be with it!

Also, the 'zones' are quite wide-are you picking the area where price accelerated out of a consolidation period and not the actual area where it reversed in the first place? Why do that?...
I think you pretty much nailed it. I've been trading variations of this supply/demand framework like 10 years ago, when supply/demand was not even marketed mainstream. Now every pimp likes to call it smart "supply-demand". It's pretty wild but still entertaining.
  • #43
  • Sep 27, 2011 2:33pm Sep 27, 2011 2:33pm
Thanks for the explanation,
however, I feel the subject is far more complicated than I first thought,
this is not the kind of SR I normally use, but I tought it was,
oboy was I wrong! I will follow this thread with my deepest interest.
Bulls are stupid Animals!especially when Im short!
  • #44
  • Sep 27, 2011 3:22pm Sep 27, 2011 3:22pm
Quoting roughtrader
Thanks for the explanation,
however, I feel the subject is far more complicated than I first thought,
this is not the kind of SR I normally use, but I tought it was,
oboy was I wrong! I will follow this thread with my deepest interest.

Sometimes it isn't that something is difficult but just that everything else we have tried to use was, So we expect this to be as well.
Good Trading To All ; Ken Lee
  • #45
  • Sep 28, 2011 5:38am Sep 28, 2011 5:38am
Quoting roughtrader
Thanks for the explanation,
however, I feel the subject is far more complicated than I first thought,
this is not the kind of SR I normally use, but I tought it was,
oboy was I wrong! I will follow this thread with my deepest interest.
Hey roughtrader,

It is quite simple, Sam Seiden does over elaborate, just take the very basics of what he's saying, and then apply them to highsa and lowd which will become Support/Resistance.
If you're a daytrader then it's simple, look at areas of previous S/R on hourly/4 hourly and daily charts. Draw lines across marking those levels.

For example, for the S/R levels that are obvious on the 1 hour chart, I use a yellow line, for the 4 hour/1 day S/R levels, I use a red line.
They're different as the 4 hour/1 day S/R levels are more significant and need to be highlighted. If these levels are at 00 or 50 price levels-even better.

Then, when price approaches these levels, get interested! Find an indicator/price action pattern that shows that price is likely to change direction at these points (rather than just entering once the price level is hit).

If you can do that, then you'll then be a trader who knows more than most people out there, and there won't be a Heikin Ashi/Ichimoku cloud in sight...
  • #46
  • Sep 28, 2011 7:33am Sep 28, 2011 7:33am
OZ
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Good Trading To All ; Ken Lee
  • #47
  • Sep 28, 2011 7:44am Sep 28, 2011 7:44am
gbp
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Good Trading To All ; Ken Lee
  • #48
  • Sep 28, 2011 7:54am Sep 28, 2011 7:54am
gbp 2
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Good Trading To All ; Ken Lee
  • #49
  • Sep 28, 2011 11:47am Sep 28, 2011 11:47am
charts
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Good Trading To All ; Ken Lee
  • #50
  • Sep 28, 2011 12:17pm Sep 28, 2011 12:17pm
Quoting Kenneth Lee
charts
for the studying purpose, please comment if you have the time.

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Or maybe you have POs on the 1/2, 3/4 of D1?

Thanks
  • #51
  • Sep 28, 2011 12:52pm Sep 28, 2011 12:52pm
answer
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Good Trading To All ; Ken Lee
  • #52
  • Sep 28, 2011 12:57pm Sep 28, 2011 12:57pm
One thing I still keep my eye on and always will is the swing highs and lows of the current swing. like on your e/u chart the long swings are making lower highs. and then lower lows. So lean towards shorts. Until the lower highs start getting broken .

That e/u long may be on the doomed list. Just looked Dow is tanking again, Oh well I trade the charts not the rumors.
Good Trading To All ; Ken Lee
  • #53
  • Sep 28, 2011 1:16pm Sep 28, 2011 1:16pm
Quoting Kenneth Lee
answer
D2 was breached. It seems like I can not get the S/D levels right. That is the whole purpose of this thread - How do I draw accurate levels.
  • #54
  • Sep 28, 2011 1:17pm Sep 28, 2011 1:17pm
Quoting Kenneth Lee
answer
Thanks Kenneth. I will keep learning from those levels.
  • #55
  • Sep 28, 2011 1:22pm Sep 28, 2011 1:22pm
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  • #56
  • Sep 28, 2011 1:35pm Sep 28, 2011 1:35pm
Quoting leelar
D2 was breached. It seems like I can not get the S/D levels right. That is the whole purpose of this thread - How do I draw accurate levels.

D@ was never breached.. Your stop has to be a few pips below the lowest wick I compromised on that one as I didn't like the 20 pip pin . But I did add 5 to min so stop was 1.3548
Good Trading To All ; Ken Lee
  • #57
  • Sep 28, 2011 1:39pm Sep 28, 2011 1:39pm
Quoting leelar
Attachment
Think I would go ahead and take the very bottom level on your e/u 1.3502 stop 1.3478 Where you have it looks to have tested that low once already . Kind of like the gbp example this morning

But i will also say I would be trying to watch this in real time. To see PA if it looks to hold at the upper I might take it as well. But apo would be only set at the bottom . If not may get stopped where your level is and then take off right after.
Good Trading To All ; Ken Lee
  • #58
  • Sep 28, 2011 1:40pm Sep 28, 2011 1:40pm
Another question on SS's theory.

He mentioned that S/D trading style based on the order stacks. And this trading works on any timeframe.

Then let's say we go to monthly TF. some S/D levels can easily be drawn by going way back, let's say 2000. Are we saying that there are orders back in 2000 that being sorted by the clerks are still valid?

For some reason, I highly doubt that. Please elaborate how that works.
  • #59
  • Sep 28, 2011 1:44pm Sep 28, 2011 1:44pm
PO trades are always hit or miss, but they almost always come into play, Just because you miss this time doesn't mean it isn't going to be stronger when it does hit. if you look through your charts you will see many levels on levels like e/u now where the lower level missed the first time but when it got hit it was a bigger better trade than the first level.

Plus we never will be 100% that just isn't reality. But we can do better than 50% and our winners should always net more then our losses, So the key is our net Gains verses losses as in any business. Always take the loss and move on .


Just like a bad quoted building project it is all you can do. just try and learn from the mistake.
Good Trading To All ; Ken Lee
  • #60
  • Sep 28, 2011 1:49pm Sep 28, 2011 1:49pm
Quoting Kenneth Lee
Think I would go ahead and take the very bottom level on your e/u 1.3502 stop 1.3478 Where you have it looks to have tested that low once already . Kind of like the gbp example this morning

But i will also say I would be trying to watch this in real time. To see PA if it looks to hold at the upper I might take it as well. But apo would be only set at the bottom . If not may get stopped where your level is and then take off right after.
Not quite so sure to understand all, but I will keep watching the PA.

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