There are quite a threads on supply/demand with a lot of people asking whether supply/demand trading works or not.
This question is a vastly simplified issue that most people find when they first run into S/D.
Does s/d work? Without a doubt.
Does it take a hell of a lot of skill to filter out most zones as pure pivotal highs/lows? MOST DEFINITELY.
One thing I would like to clarify is that when you are looking for zones that Sam Seiden talks about, is that you have to distinguish between those areas that represent profit taking and therefore less significant pivot highs/lows and between the areas where market participants actually agreed on the price for a few periods ie candles.
Profit taking moves can easily kick off trends, especially if the big boys take off their huge positions off. The herd mentality kicks in with the rest of the participants and voila - you have a trend. BUT! That doesn't mean that ANY high/low you locate will be suitable for a trade.
If I see a level on a Daily chart that is comprised of only 1 candle before a massive drop with lots of clean follow-through, before I jump in to mark it as an area of interest, I will go up and down through several timeframes to figure out if on any of them there was an equilibrium, a balance, a "base" at any one point.
Bear in mind that using purely Supply/Demand to trade intraday is incredibly tough without some kind of way of gauging INTRADAY SENTIMENT, which changes even session to session.
S/D alone fails miserably at this. Which is why I also use MARKET PROFILE to trade intraday AND to time my SWING entries. This is a method that I've come up with over the last 6 years of being a trader and the last 3 years of my career a professional proprietary intraday futures trader. By using my method I don't even need strong zones for my trades, I only need some kind of a demand that lines up with market profile sentiment.
EDIT 26th Nov 2015: I have finally finished my first ebook on the first part of the method which explains the concepts of S/D and Q points, along with how to accurately read trend and trend changes. I've honed my system over the last 4-5 years on FF and in prop trading companies I've worked for. Many of you have witnessed this development. This resulted in me eventually opening and running my own small prop trading company I have today with a few of my own traders I've mentored in the last couple of years.
Blahtech Market Profile MT4 indicator (from MQL5.com Marketplace)
Blahtech SD indicator
Blahtech Supply/Demand MT4 indicator on MQL Marketplace
This question is a vastly simplified issue that most people find when they first run into S/D.
Does s/d work? Without a doubt.
Does it take a hell of a lot of skill to filter out most zones as pure pivotal highs/lows? MOST DEFINITELY.
One thing I would like to clarify is that when you are looking for zones that Sam Seiden talks about, is that you have to distinguish between those areas that represent profit taking and therefore less significant pivot highs/lows and between the areas where market participants actually agreed on the price for a few periods ie candles.
Profit taking moves can easily kick off trends, especially if the big boys take off their huge positions off. The herd mentality kicks in with the rest of the participants and voila - you have a trend. BUT! That doesn't mean that ANY high/low you locate will be suitable for a trade.
If I see a level on a Daily chart that is comprised of only 1 candle before a massive drop with lots of clean follow-through, before I jump in to mark it as an area of interest, I will go up and down through several timeframes to figure out if on any of them there was an equilibrium, a balance, a "base" at any one point.
Bear in mind that using purely Supply/Demand to trade intraday is incredibly tough without some kind of way of gauging INTRADAY SENTIMENT, which changes even session to session.
S/D alone fails miserably at this. Which is why I also use MARKET PROFILE to trade intraday AND to time my SWING entries. This is a method that I've come up with over the last 6 years of being a trader and the last 3 years of my career a professional proprietary intraday futures trader. By using my method I don't even need strong zones for my trades, I only need some kind of a demand that lines up with market profile sentiment.
EDIT 26th Nov 2015: I have finally finished my first ebook on the first part of the method which explains the concepts of S/D and Q points, along with how to accurately read trend and trend changes. I've honed my system over the last 4-5 years on FF and in prop trading companies I've worked for. Many of you have witnessed this development. This resulted in me eventually opening and running my own small prop trading company I have today with a few of my own traders I've mentored in the last couple of years.
Blahtech Market Profile MT4 indicator (from MQL5.com Marketplace)
Blahtech SD indicator
Blahtech Supply/Demand MT4 indicator on MQL Marketplace
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