Supply and Demand Journal

I have recently started studying Sam Seiden's supply and demand trading. It has changed the way I look at the market. This journal is to track my progress and force me to analyze my trades.

I will try to post my trades before they are taken, but since I trade off of small time frames it will not happen every time. Trade 1 is in progress and attached.



The green lines are my supply lines and also my target. The red line is my demand zone and my entry. I have circled an area that could give me trouble due to the fact that it has formed a supply zone, I have found that this method of trading is difficult due to the fact that these zones form a lot before your order gets hit or after. This trade does not have the best risk/reward. I am looking for trades that have at least 3 reward for each risk. This trade I am risking 22 pips to make 35, better than 1 to 1 but nowhere near the types of trades I am looking for.

EDIT: I just realized there are no green lines on the chart, the take profit is at 1.3500 that is the bottom of my supply zone, the rest of the info is correct.

EDIT: Take profit hit +35

Trade 1 is still in and going nowhere at the moment, I am leaving it in until take profit or stop loss is hit. Trying to take the human element out of the trade after it is entered, am letting my stop loss and take profit do their jobs.

If trade one closes in profit I have a sell order at 1.3502 stop loss slightly above the upper line. Take profit on that order will be 1.3465. Looks like a clear area between the two levels.

Maybe both of these will work as I sleep.

Trade 2 triggered



Looks scary long bull candles right into my level. Anyway what has me concerned is the small level that formed on the way up with that 2 candle consolidation. Anyway I have yet to decide what to do in cases such as these and a lot of time I will not be present so for the time being my take profit will stay.

Trade 2 hit my stop loss last night for -12.
Day 1 trading ended at +23



It is interesting to note that price bounced right at my line, I missed the turn by 1 pip. It also missed my take profit by 1 pip, if I had been present I would have probably taken something out of that trade. Anyway, trading with pending orders has its drawbacks and also has its benefits.

Here are the current demand and supply lines, neither of which is worth a trade imo. It would be a 9 pip risk for an 18 pip gain. 2:1 reward/risk. I am looking for better than 3:1 so I will keep watching for these levels to break and develop.

Here is trade 3 setup.



I had to go to a 30 minute chart to find a supply zone, will attach that chart as well. Short at 1.3600, 21 pip stop, take profit 1.3518. Better than 3:1 risk reward. Let's see how she goes.

Trade 3 triggered.
EDIT: Trade 3 closed manually +40. Closed manually due to the fact that it is Friday and I am ready to start my weekend. Wanted this trade off of my mind.

It is the end of week 1. I only had 2 days of trading this week.

Ended the week at +63
Took 3 trades, 2 wins 1 loss.
Win % 66.66
Average win was 37.5
Average loss 12 pips
That puts my reward/risk at 3.125/1

I hope you guys have a nice weekend.

I just glanced at the charts and trade 3 would have hit my take profit. That would have given me +80 instead of +40. If only I had the discipline to hold it. Next week my goal is to stick with the plan 100%. My rules are simple.


1. Identify the closest supply lines above price.
2. Identify the closest demand lines below price.
3. Trade the ones that give 3:1 or better.
4. Set profit target at closest demand line for sells at supply, closest supply
lines for buys at demand.
5. Let the trade run to targets, wash, rinse, repeat.

I have my goals for next week.

I have spent part of the day watching Sam Seiden videos of past webinars. I have come to realize that some of my levels are not the best levels to trade off of. From my understanding at this point he takes the Rally Base Drop and the Drop Base Rally levels as trade triggers. From the looks of it he only takes the Rally Base Rally and the Drop base Drop levels as targets. I have also seen him trade a Rally Base Rally breakout and retest to get in on the current trend on the time frame he is trading. I will be looking at that a little closer going forward with my trading. So far the levels I have been picking are working well, of course I have only been trading this way a couple weeks so still too early to tell.

nice thread - i will be watching reading your analysis.
I have just started with supplydemand concept too.
thanks for starting this.

Glad to see there are others starting on the same path. The Supply and Demand concept is the only thing that has really made sense to me. I have tried a lot of different things in the past and finally have found the way I want to trade.

Sorry about the charts had a problem getting the lines to show, had to zoom way out on these charts for the levels to show up for some reason.

Below are the levels I see atm, I am not trading these btw, I am about to go to bed, I generally do not trade too much outside of london session.



There are 2 supply zones outlined on the chart above, I would probably take the lower one and if it failed I would definitely try again at the upper one




I had to go to the 4 hr to find a fresh demand level, there is actually one right below where price is currently but I would not take it just because price has been in this area for a while ranging.

Like I said earlier though I am not looking to trade these atm, about to go to bed and get ready for london.

Here is the supply level I am currently watching, probably will not reach it but if it does I am trading it .



Would get in around 1.3515 stop would be at 1.3527 Take profit would be around 1.3463. Would be a good 4:1 reward to risk trade.

Here is the first trade of the week just triggered a couple minutes ago.



We will see how it goes. Not liking how far it penetrated the zone came a few pips from my stop already may lose this one.

EDIT: Stop Loss hit -12

Watching 1.3600 the upper level of the first chart I posted this week. Will put an order in as it gets closer take profit will be 1.3537 if it gets triggered.

Trade 2 is underway, attached is the chart



Entry is 1.3503 SL 1.3518 Take profit 1.3466

15 pip stop loss, 37 pip take profit. Not quite 3:1, it was before I padded stop loss and entry a little, need to pay more attention to that before I pull the trigger.

EDIT: Got stopped out at +0, I moved my stop to breakeven after it had been ranging for an hour or 2.

nice journal, and keep up the good work....I have watched some of the youtube sam seiden videos but I haven't really seen a basic introduction type of video on how to notice supply/demand zones, just him showing them but no explanation of why he chose/the rules to choosing them.

Would you be able to point me to a good intro to the rules/system?

There is not really one good video or article where he explains it, I have probably watched 10 of his videos and everytime I watch them I learn something else about the method that I did not previously know.

Basically I have put it together from watching the videos and reading BS Trading, http://www.forexfactory.com/showthread.php?t=311095 Kenneth Lee has a pdf that explains it fairly well. Reading that thread and gleaning bits and pieces from his videos is how I have started learning this method. I am still a newb to this method but am loving it so far, it is the simplest way to trade that I have seen thus far. And from the last couple weeks of trading I am impressed with the results so far, of course 2 weeks if by no means indicative of future results.

Rather slow and tedious day today, took 2 trades -15 on one +0 on the other.

So ended the day with -15 pips, oh well it happens sometimes. See you guys in London session, not expecting much this week with thanksgiving and all.