Sam Seiden's method of trading according to the supply-demand area is now well-known by many traders. Sam Seiden is also a blogger specializing in technical analysis of fxstreet, who also regularly organizes courses on his personal blog. Based on some articles on how to use the supply-demand area of Sam Seiden.

Use the supply-demand area on the low timeframe within the supply-demand area on the high timeframe (low timeframe inside the high timeframe).

One of the great ways to increase supply demand area accuracy is to find the supply demand area on a low time frame within a larger timeframe.

You may be asking the question: what time frame should traders use then? And how to combine them? My answer is up to you. Continue reading to understand.

A supply demand area on the daily frame can hold hundreds of the supply demand areas of frame M1 (the number may be larger), so it would be extremely absurd to use the time frame M1 to find entry points for the frame. daily.

The author recommends combining multiple timeframes with a moderate ratio such as H1 with H4, M1 with M5 (meaning the ratio is not too high, the range 1: 3 1: 4 is beautiful). The author has also backtested how to use these two frames within 1 year on EURUSD and noticed that if you only trade the H1 frame inside the H4 frame you will have a higher win rate if you only use the H1 frame and no more. Any other supporting factor.

Above we have the AUDUSD H4 timeframe chart.

Highlighted three supply demand regions in brown color, we will look more deeply at the supply demand regions of the H4 frame on the low time frame (H1) to find the supply-demand regions. We will use these areas to find entry opportunities.

On the H1 chart, we see the demand areas inside the H4 frame highlighted in purple.

Both demand zones are doing very well, and the price reverses very quickly when entering these regions. In the top H4 supply demand area (the brown area above) there are no supply demand areas of the H1 frame present inside.

In this figure, draw some other supply demand areas that are also in frame H1 but not inside the supply demand area in frame H4. You can manually compare and see how important the impact of "confluence" between multi-timeframe supply-demand areas is now.

Combined multi-timeframe supply-demand analysis (as in the case of the example H1 vs. H4) can greatly increase the odds of a successful reversal price forecast but also requires a lot of patience. This patience varies according to how traders choose to combine timeframes. If you choose the higher timeframe, the more opportunities are rare, on the contrary, the lower the time frame the more opportunities. But more opportunities also mean reduced accuracy.

Some ways to combine time frames for you to choose from:
  • Weekly and Daily.
  • Daily and H4.
  • H4 and H1.
  • H1 and M15.
  • M15 and M5.
  • M5 and M1.