Sam Seiden Levels in Current Market Conditions

[simond]

Hi everyone,

 

Trading Sam’s supply and demand model (Yen pairs) it seems to be getting increasingly difficult to find “clean” levels.

 

What is your tactic for entries in the current market conditions? I’ve been trading off of a 60min chart with “confirmation” type Stop order, which unfortunately means I can’t “set and forget”.

 

All the best,

 

Simon

[shabz]

Try the demand / supply levels formed at market opens. These can be periods of consolidation & breakout or can be reversals of previous trends ie. when previous S&D levels being reached.

[simond]

Try the demand / supply levels formed at market opens. These can be periods of consolidation & breakout or can be reversals of previous trends ie. when previous S&D levels being reached.

 

Thanks for your reply Shabz - funnily enough was watching EJ this morning (London open)

and the exact same setup you mention took place - gap up out of the 107.20

region with a pullback and buy around 3 hours later. I didn't take the trade

but good to watch and learn.

 

All the best,

 

Simon

Edited April 20, 2012 by simond

[oac2104]

Hi everyone,

 

Trading Sam’s supply and demand model (Yen pairs) it seems to be getting increasingly difficult to find “clean” levels.

 

What is your tactic for entries in the current market conditions? I’ve been trading off of a 60min chart with “confirmation” type Stop order, which unfortunately means I can’t “set and forget”.

 

All the best,

 

Simon

 

 

What do you mean by clean levels ?

There are several things market can do at Supply/Demand levels:

 

(1) Market reverse at S/D levels

(2) Market break through S/D levels

(3) Market attempt breakout and penetrate S/D levels and then fail and reverse.

(4) Market stalls at S/D levels and the go sideways.

[simond]

Hi oac

 

What do you mean by clean levels ?

 

I mean levels without excessively long wicks that one will often

hear Sam say to be careful of.

[ninjatrader]

Hey Simond,

3 choices;

-Try looking at a higher tf for clearer signal

-Trouble with long wicks then zoom on a smaller tf and look at candle development to ballpark your pending order

-Most important if your not sure then DO NOT TRADE (this saved me from some losses and winners but if it doesn't look right hold your money)

 

 

Hi oac

 

 

 

I mean levels without excessively long wicks that one will often

hear Sam say to be careful of.

[simond]

Hey Simond,

3 choices;

-Try looking at a higher tf for clearer signal

-Trouble with long wicks then zoom on a smaller tf and look at candle development to ballpark your pending order

-Most important if your not sure then DO NOT TRADE (this saved me from some losses and winners but if it doesn't look right hold your money)

 

Hi Ninjatrader,

 

Thanks for your reply. Out of interest, when zooming in to the candles what would be the smallest timeframe you would comfortably trade the spot?

 

In an ideal world I would prefer to only ever trade W1/D1/H1 but of course the Forex world is far

from ideal :)

 

All the best,

 

Simon

[JimmyAshey]

Amongst all the yen crosses, I favors the GBP/JPY exclusively. The TF I use is 4H, where I find Sam's method works best. However, I do make a little adjustment to his entry criteria for GBP/JPY, which is

1. I only enter at the mid of supply/demand zone to minimise my stop.

2. I only trade a fresh level.

3 I only consider a trend that moves over 250pips(preferably all bullish candles, but must not be a news-driven single candle) without a retracement deeper that 38.2% as a strong trend, and a demand base formed by it will be a reliable demand area.

 

Note: It is not holy grail :). but it is, in my opinion, the best way I have found so far to apply Sam's method to Yen cross pairs. Hope it could help you.

[simond]

Thanks for the tip Jimmy, will definitely keep it in mind and monitor during

this week's trading.

 

All the best,

 

Simon