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Sam Seiden-Understanding The Exact Process Behind The Movement In Price

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Here is a video that changed mine whole view on trading.It made a one trick pony out of me when it comes to trading:)

Sam is tha man when it comes to simplicity and reality of markets and i am lucky that i had chance to learn from him and other instructors.

Hope it will help some one as it have helped me!

 

http://www.fxstreet.com/webinars/sessions/session.aspx?id=ce6ffc12-bae8-415f-bb23-13d3a6771192

 

Regards!

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Sam's videos are good for beginners. Solid basics and common sense. I wish the Fed had that much. I also wish every trader should/would watch Sam's videos. As I have traded, I have found a whole other realm of supply and demand zones. It's like 2nd generation supply and demand. It's really crazy and a little creepy how zones work out sometimes. IE:FreeStockCharts.com - Web's Best Streaming Realtime Stock Charts - Free

 

I've also really learned a lot about these zones from consult-fx.com and another trader by the name of Phil Newton! He's awesome too.

Edited by doubletop11

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In the video he gives an example of Supply and Demand on the trading floor. He states that the Supply and Demand can be seen on a chart, and you have access to the same information that the people on the floor have with the actual pieces of paper right in front of you.

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He also talks about the Bank Order Flow as being represented by a zone of consolidation. When you see that narrow band of consolidation in price on a chart, he says that it represents the Bank Order Flow.

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Sam is great guy,simple and without any crap in his thought flow when it comes to trading.He is also a very profitable trader.After couple of years spend in XLT with Sam and Steve i can tell that for me there is no better strategy out there.Simple,straightforward,can be used in any and all markets,any timeframe.I was lucky to stumble upon Sam in beginning of mine education.

When i see on chart indicators,oscillators,eliot this and fibo that...i just get dizzy,like motion sickness.I feel more than comfortable putting limit orders placed on key levels of supply and demand,just naked charts.

Someone said those videos are great for beginners.I would strongly suggest to anyone to watch his videos on FXStreet.Having eye on those levels while using any other strategy can save some money.

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When you see that narrow band of consolidation in price on a chart, he says that it represents the Bank Order Flow.

 

Most of stuff that we see on charts is representing bank order flow as banks are running the show in FX.

Area of consolidation is where it appears that supply and demand are in balance(they never are in total balance)

When strong move happens after some consolidation that is indicating imbalance of supply/demand equation.Stronger the move-stronger the imbalance is.Usually volume on best levels is low as few orders were filled.So when price comes back it usually meet significant amount of willing buyers/sellers.Those are trades that i am looking for.

When i sell,i sell to someone who is buying after rally in price at price level where supply exceeds demand.Other way around when buying..Basically,as Sam likes to say,we are identifying novice traders and those guys are other sides of our trades.

Cheers!

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Can someone tell me exactly how those pivot point highs and lows are defined? In that period of sideways consolidation, there are two lines. How do you determine exactly where to put those two lines? Are the lines based on the highest close and the lowest close within that area?

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Can someone tell me exactly how those pivot point highs and lows are defined? In that period of sideways consolidation, there are two lines. How do you determine exactly where to put those two lines? Are the lines based on the highest close and the lowest close within that area?

 

There's a software out there that does it automatically for you. It's called APA zones. I use it and it works really well.

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:( But I want to create my own program. Now I'm so sad.

 

No need to create a program to recognize those patterns if one knows what he/she is doing.

I see those patterns all over the place on any timeframe but that doesn't mean that i am trading every single one.Would go broke sooner than later by doing it so:)

In his FXStreet videos Sam explains how to draw lines around levels so if you are interested take some time and watch those vids.Better to hear it from tha man than from my self;)

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Here's a couple things with zone that Sam doesn't explain but I've pick up from other sources on the net like Phil-Newton, consult-fx.com. After you understand how to draw zones things will be easier. This is real support and resistance!

There's this thing with APA zones called confluence of zones. IE: multiple time frames have to have the same zone right in the same place. You need at least 3 time frames of the key timeframes for price to stick and start a new trend in a zone for intraday trading. about 95% of the time this will be the daily low/high. Bigger time frames hold more weight than smaller timeframes so unless you can consistently plot and keep track of the zones you may have some trouble with zone trading execution.

Secondly, bounce count is extremely important. The more times zones are retested the weaker the zones are. It's like chopping down a tree. Sometimes it hard to identify this when you are manually drawing zones and it goes outside of the zone range that you thought price would stay inside of. APA zones does a great job of this by changing the color of the zones for you after price as for sure left that zone.

Zones can be amazing conter-trend and very solid for entries in trend movements to if you miss the reversal. The reason being is they identify the real reason price moves. It's not because some indicator is overbought or over sold. It's all about understand supply and demand at its core. Personally, this stuff has proven its self time and time again. Pivot points, Fibs lines, channels, now all seem inferior to this level of zone theory. The sublime thing is how simple zone theory is. It does really help to know candle bar patterns and reversal bars. If you know strict price action trading, this system just helps make you extremely profitable. It really keeps you out of the market during the chop. and stops you from overtrading.

So concludes my dissertation.

Here's a quick example of the monthly zones and how it all works. The movement that we have seen in the past several weeks has been totally calculated. If you had subscribed to APA zones we all caught this thing down so far.

 

Here's my monthly charts FreeStockCharts.com - Web's Best Streaming Realtime Stock Charts - Free

Edited by doubletop11

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There's this thing with APA zones called confluence of zones. IE: multiple time frames have to have the same zone right in the same place.

 

Thanks, that makes sense.

 

Secondly, bounce count is extremely important. The more times zones are retested the weaker the zones are.

 

I hadn't thought of that before. That's good information.

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if you can imagine it,

visualize it,

quantify it,

articulate it,

you can code it.

 

I want someone to quantify and articulate it for me, and then post it here so I can code it, or begin to code it. Maybe I'll search the Easy Language website for some info.

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if you can imagine it,

visualize it,

quantify it,

articulate it,

you can code it.

 

I want someone to quantify and articulate it for me, and then post it here so I can code it, or begin to code it. Maybe I'll search the Easy Language website for some info.

 

you can start by describing your imagination and vision.

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If you had subscribed to APA zones we all caught this thing down so far.

 

Here is the unfortunate problem. I've become cynical and skeptical about subscribing to trading services and products. Now I have an emotional and psychological block that I just can't overcome. It's about trust. So even though I don't doubt the value of the product, I won't subscribe to it.

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Here is the unfortunate problem. I've become cynical and skeptical about subscribing to trading services and products. Now I have an emotional and psychological block that I just can't overcome. It's about trust. So even though I don't doubt the value of the product, I won't subscribe to it.

 

Can't help sympathising with you on this, Tradewinds.

APA looks impressive but will cost $99 / month - good value if performance reflects it. But I wonder if we would be able to learn and apply the principles ourselves to more or less match APA's performance.

Like other contributors to this thread, I admire Sam Seiden's work. But Sam has to be careful in these free presentations, that he doesn't give out information to the extent that he could offend his XLT course students who have paid a substantial sum for their training.

I am sure you have seen or heard him refer to his "odds enhancers", which are a list of conditions that he applies to give weightings to decisions on whether or not to take a trade. I think that is the area in which he has to be careful regarding the breadth and depth of his descriptions.

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Sam has to be careful in these free presentations, that he doesn't give out information to the extent that he could offend his XLT course students who have paid a substantial sum for their training.

 

Yes, it's a difficult balance. Sellers want to attract customers, so they need to provide something to convince potential buyers that their product is good. So we are all playing a bit of a "Cat and Mouse Game" with how much information we divulge, and what cards we decide we don't want to show.

 

The support and resistance zones look quite basic. Programing it would be more difficult. I already have a support and resistance indicator that I've posted, I'd like to try to modify it to show some of the major zones.

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Tradewinds,

Have you looked at Michael R. Bryant's CPDensity ("Consolidation Pattern Density") EL code?

I've never used it so not sure that it's applicable here - but maybe will help...

 

:crap:

I have some quality, open EL that extends TL's from (near) top and bottom of most recent 'congestion' - but I haven't been able to find it!!! Will keep looking... and will tell you if I've given up.

 

Does anyone know how Seiden would handle absence of these zones in recent part of chart?

 

zdo

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Does anyone know how Seiden would handle absence of these zones in recent part of chart?

If there is no quality levels at the moment or price is around sup/dem equilibrium then we wait until it comes to a level which meets our criteria.

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Tradewinds,

Have you looked at Michael R. Bryant's CPDensity ("Consolidation Pattern Density") EL code?

 

No I haven't seen that. Is it publicly available? I did a web search, and found a trading website for Michael R. Bryant and something about Adaptrade Software. If it's free and open to the public, where can I find it?

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Sam Seiden's information is very logical and generally quite easy to understand. It's basically attempting to identify high probability areas to buy and sell. Conceptually it's a little different than traditional support and resistance, but not that much. I like the fact that it quantifies with a numeric scale based on the 6 "odds enhancers" whether to pass on the trade, wait for confirmation, or trade with a resting limit order.

 

The assumption is that there is a higher probability that buyers will buy when price returns to an area where there was previous demand, and sellers selling where there was previous supply. Of course, if it were so simple, everyone would make money (or rather no one would, as there would be no edge if everyone wanted to buy at the same place).

 

Support/resistance, supply/demand, whatever you want to call it, is all relative. What is "wholesale" to one time frame trader (even a larger time frame) may be "retail" to another. In other words (particularly in currencies), there is no "low" and "high" that is absolute--it can always go higher or lower. What determines if price will rise or fall when price reaches that same previous level is not what happened before, but what the current market participants want to do. I would encourage anyone who appreciates the straightforward logic of this approach to try it, and notice how well it works sometimes, and how miserably it fails at others. In its basic form (that is, the information Sam presents in his free online seminars which I have watched almost all of them), the approach does not take into account current market sentiment, or any other factors relating to the "now" that is often so important in trading.

 

Personally I like to use volume in my trading and like to get a picture of prior activity based on a volume profile--Sam does not use volume in his trading, partly because he seems to be very forex-based. Of course, this is also only a picture of prior activity, and does not in itself say anything about what will happen NOW. Whatever approach one uses to identify where to take a trade is only half the story; identifying opportunities based on current market activity is, IMO, just as important to put together with location to make a good trade possible.

 

Either way, I think it's great that Sam gives away some good, free information, and would encourage anyone to check it out.

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I'm beginning to learn how to use volume in trading(primarily based on wyckoff ideas) and I am a pre med student first and a budding trader second soo... most of my money goes to you guessed it living expenses :D. So my available funds for trading aren't that large so I have a forex account to dabble in. To solve the volume problem I just use the futures which I think are representative enough of the spot thanks to arbitrageurs etc.

 

Great posts over at EL josh I am a mini stalker of yours. Partially because I like your approach to things. Sam Seiden stuff is pretty good and one thing good about his stuff is alot of it is available on the net free from webinars if one does a tiny bit of searching. And most of it is logical at least. Odd enhancers are nice for ideas too. Again based on logical premises like momentum from the level previously etc.

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