Supply and Demand trading with Fibs

That is fine, because, we are not getting in at the beginning of the big firms trades, since we don't know when that will happen, but we are getting in on the rebuy/resell where they attract price back to the area to full reamining unfilled orders, and of course these things usually occur couple hours or so after market opens.

Thanks, DK

Supply And Demand Trading Rules You Must Follow
Supply and demand zones are one of the core strategies I use to trade the forex market. I have been trading the supply and demand strategy since it became a popular method back in 2009, in the years since then Ive spent a lot of time trying to make supply and demand trading as profitable as possible, in doing so I had to change a lot of the supply and demand trading rules which traders commonly use because the rules themselves didnt quite make sense with the reality of how the market works.
Over the course of this article Im going to walk you through the 4 rules you need to help make your supply and demand trading more profitable.

1. Only Trade In The Direction Of The Most Recent High/Low

Most of the traders who trade supply and demand zones try to predict where a movement will end instead of trading in the direction of the movement itself.
What these traders typically tend to do is mark all the supply or demand zones which the market hasnt encountered yet and wait for the price to enter these zones before going either long or short. Usually these supply and demand zones will have been created a long time ago which means they dont have a high chance of causing a reversal anyway ( more on this in a minute )
Whilst the traders wait for the market to hit these old zones which they believe are going to cause a reversal, there are lots of zones forming in the direction of the current movement which the trader is neglecting to trade because he is so focused on predicting where the movement will reverse.
If the trader just stopped trying to find where the whole market was going to reverse and instead concentrated on taking trades at zones which formed in the direction of the most recent high or low, they would find themselves having far more winning trades.
A new high or low is a signal that the current momentum is to the upside or downside, by trading against this momentum you are unnecessarily putting yourself at risk of losing money because youre trying to trade against the trend.

Heres an example
The trader would have had the supply zone already marked on his charts before the price made a new high, when the bull move occurred and a new high was made, the trader should have seen it as a signal that the price wants to keep moving higher, instead he places a short trade because he believes the supply zone will cause the market to reverse.
After hitting the supply zone the price only manages to drop a small distance before breaking higher again, making another new high and forming a demand zone in the process. When the market returns to this demand it causes another up-move, had the trader taken this trade instead of the supply zone trade, its likely he would have made some money because he was trading in the direction of the current momentum as opposed to trading against it.
If you always trade in the direction of the most recent high or low youre giving yourself the best opportunity possible to have winning trades, reversals are very difficult to predict and usually when the market does reverse there will be another chance for you to get in right at the beginning of the reversal anyway, so theres no need for you to try to anticipate when a reversal will occur, just wait for it to happen and then trade in the new market direction.

2. Do Not Trade Zones Which Were Created A Long Time Ago

One of the main rules Sam Sedien implements in his trading of supply and demand zones is the idea that zones which formed a long time ago have a higher chance of working out successfully than zones which were created recently.
Like I explained in my supply and demand trading article this assumption is incorrect and makes no sense with how the banks operate in the market. Sam and other supply and demand teaches say old zones work because they have seen the price reverse at old zones before, but the reality is there only saying the old zones cause a reversal because there is no other reason they can point to as to why the reversal occurred.
It kinda comes back to what I was saying in my mutiple trading strategies article about how people who use one method will always look at the method as being the sole cause behind all movement in the market.
Sam Sedien teaches people that price moves because of a supply or demand zone being hit, the traders who then trade supply and demand using his teachings think every reversal begins from the market entering a supply or demand zone which is wrong, the only way the market will reverse is if the bank traders take profits off existing positions or place trades in the opposite direction to which the price is currently moving.
Both of these decisions are made based on how many orders are currently in the market, it has nothing to do with supply and demand zones it just happens to be that on some occasions the banks end up taking profits or placing trades at the same point where an old supply or demand zone formed.
This is why people think old supply and demand zones work, they see the price reverse at one of these old zones and think the zone itself is what has caused the reversal, not bank traders placing trades or taking profits which is the real reason for why the price has reversed.
Since I mainly trade the 1 hour chart I consider any supply or demand zones which formed over a week ago to be old, if the market returns to one of these zones I wont trade them nor will I expect them to cause a reversal, if the price does end up reversing at one of these zones I know its not the zone itself which has caused the reversal and is probably banks placing trades or taking profits.

OK. List all your credibility vs Sam Seiden's for saying his teaching is incorrect and yours is correct.

Hi Ruma welcome, for a start as stated a couple pages ago these articles are from forexmentoronline, of which I stumbled upon beginning of this year, which upped my game somewhat. So that question would need to be referred to them.

As for my own credibility, well, unfortunately for myself and followers my original livestream recordings from page 1 are now deleted by the sites servers due to age, but in these livestreams, I streamed from 8am UK or throughout the whole day, some even through to Asia. I was a taxi driver at the time trading a $200 account. My whole screen was on stream, account number, trades, facebook twitter, even stuff I was browsing inbetween trading the most transparent thing you would have ever witnessed. Anyway long story short, I did this every day for around 6 months, via skype and online meeting/streaming sites, and took my $200 to over $4,000 in that time, using Sams original teachings (So I have nothing Against Sam at all, if not for him I would have never been introduced to supply and demand). Many of my followers although not recommended followed my trades and teachings (I hope) and shown me on a weekly basis their growing accounts, 1 indian man I believe who I still speak to on skype now trades funds in Sweden.

During this time, I recieved many offers via PM, of which was also shown on my livestream, and 2 offers stood out. One of which was a private millionaire would like me to trade a demo and if succesful trade a big fund for him for 50/50 split. The other involved a Canadian Record Company (Avril Lavigne, Nickelback etc) who offered me a small $50,000 account to trade and accomodation and living expenses in Canada. I have a family so I could not move, however they compromised and sent a guy over here to where I live, bought me an office, trading desks, terminals the works. It was at this point due to contractual terms I could no longer share my trading This is where I have been since I come back to this thread, as now that venture is over, and trading my own funds + private funds now in the UK. With full time trading however, comes alot of free time in life, and it is a very boring life, which is why I would like to get involved here again at FF and revive this once popular thread, depending on interest of course.

So, there we go, credibility somewhat adheered to I'd say.

So in short, I love Sam Seiden, and his teachings are somewhat correct (remember he does not trade, only teaches )

During this time though, I researched trades that I took that didn't work, and from what I have been posting from the articles it was at this point everything fell into place with supply and demand, and trading and accuracy has improved tenfold.

On that note, I really do hope some of my old followers are still around, as I remember you guys were more excited than I was at the oppertunity I recieved from the record company.

I would love to update you old followers, on all what happened during this time, if your still around of course

I do not give a shit neither for you nor for "forexmentoronline"....You made serious accusation on sam seiden so you answer and compare your credibility vs Sam Seiden.

You did not answer my question. shut up and get lost.

Ruma, you are extremely Rude, I did not quote your post due to offensive language and insults.

From looking at your previous posts, seems you are an extremely angry person, as this is not the only thread you have attacked.

I am not sure what you agenda is with defending Sam Seiden, as he does need defending, and he has not been attacked. If anything, if you read this thread at all in any measure worthwhile, you will see I have treated Sam Seiden as my god, and worshipped him from day 1. Just because I have altered how I look at supply and demand, does not deter away from the core principles that I first ever learned from Sam.

You have been suspended until further actions, and I shall resume this thread for the benefit of the followers of the thread and new traders to supply and demand, and may I take this moment to also apologise for Rumas behaviour here.

Hi Dean,

Awesome thread and amazing stuff to hear about how your life and trading are going, all the more power to you.

Looking forward to hearing more about your analysis style!

All the best!
-fighter-

Thanks Fighter and welcome. Very much appreciate your nice comment, after recent comments

Like I said I hope to come back to FF and be a more active member of the community as I once was years ago.

NZD/USD
Excellent thread reading through and good for us that you've come back to give us some insight.

It also explains why one of my trades is behaving the way it is, perhaps. That's if I've marked it up correctly.

It was a long, I was using the 5SMA method at the time...and it's the daily timeframe. (Monthly Profit - Daily Trading using SMA)
It was considered a buy using this method at the time as the previous candle had crossed the 5SMA.

Which timeframe and pair is this, and I shall take a look for you and post some analysis.

I take it the order line is a short (green dotted line) hopefully not a long

re: USD/CAD daily.

This pair would be a sell with it's obvious supply and demand levels? So I would say this is a buy...without any obvious news at least?

From a quick glance, we know that more times a level is hit weaker it gets, so of it breaks through this level, we would have new demand, which you can see being formed at the moment, only however if the supply is broken.

Fundamentals also must be adhered to aswell, we know that the FED rate hike for Sept is now down to about 18% and this seems to be priced in, so all the spectulative buying of the USD now is the prediction now of a rate hike in December.

Here's how to analyze possible bad trades that first look good, see first pic, nice demand zone, price has been attracted back it quickly which raises more interest for me and on the 38.2 fib, with 50fib covering the lower area of the zone.



In pic 2 if we zoom out get a clearer view of things, applying a trendline here shows is, we are trending down here, and although there may be a reaction at the demand zone, it is now lowered the risk reward of this trade, trading with the dominant trend will always work in our favour, and simply zooming out like this can give a nice clear picture of a trade we should either avoid, or take with very minimal expectations.

Well speaking for myself (and I am unanimous in that) welcome you back to your old roots.

Look forward your future posts.

Mike

Dean, thank you for your observations.

Thanks guys, very much appreciate it, market open now, opened with quite a few gaps, interesting.

Trying to clean things up a bit, I have edited post 1 with the following

UPDATE MID 2016

As many know I had to abandon my sharing and livestreams for the funds I traded for a large Canadian Record Company, in my contract was areas that did not allow me to share or livestream my trading no more.

As of mid 2016, after a good many years trading the funds, I am back Trading my own funds and also some private funds within the UK.
I hope to become once more active again within this thread and share everything I have gained in knowledge since trading the large fund account.

The webinars and livestreams I did back in 2011, was one of the most transparent seen on FF, not only did I have my trading account on full show, I had everything I did on show, facebook, twitter, writing emails to family, people literally lived my life with me as an upcoming trader. I was a taxi driver at the time and the account opened at $200, when I left to trade funds the account stood at $4,265.44

I am trying to figure a way to once again do these transparent streams again, however, although I am not bothered by followers seeing how much money I have in my own account, since I trade private funds, from family members, to businesses, I cannot of course show these on the screen, so I am figuring a way round this to get something set up.

Proof of trading: Now this is an annoying one, my whole point was never to cherry pick and show everything live, this is why I livestramed it, nothing can show proof better than a livestream as it happens, the webinars were saved I thought forever, upon clicking them today it seems they do not work Many of my original followers will remember my early success and please chime in if you can, also if any of my early followers have screenshots, or even recorded my streams please get them posted up or mailed to me so I can put them up on page 1 for new followers to the thread.

My bread and butter is using daily charts with monthly and weekly areas marked, and 4 hr for entry. My original scalping method I started this thread of was used to show quickly the success of supply and demand without waiting hours for setup, the scalping of course still works to this day, but as a longer term trader I personally trade the higher timeframes.