B.S. Trading with Kenneth Lee

cherry picking

E/U i don't know why i am making this trade but the level looks interesting

AUD/JPY missed this one

very much got the hang of this now cheers
i want to use m30 as zones to trade. i was looking at a daily chart as the trend. what do you guys think, is the daily chart too big of a gap for m30 trading? if so, what do you think would work so i can try it out?

ps ive heard of going 4x the timeframe i.e 15m with 1h trend but im not very comfortable with 2h charts

Hi Kenneth,

Which one of the following supply area is the rigt one?

Meanwhile I would like to thank you for your wonderful teaching.

Thank you in advance..

Recommend you go through the thread carefully and read the PDF. If you do your questions will be answered.

Looks more like pivot zones than a supply area

My pending order was missed very closely (post # 3298). The price actually rallied to the supply zone, within few pips of hitting my order.

Though I did catch the opposite moves in E/U and U/C to compensate for the missed trade:-)

I took this long too, off the trend line bounce at the confluence of demand line (the short parallel lines in the chart). Caught some nice pips. Though I missed the AUD/JPY as well, apart from U/J

EUR/USD demand level around 1.3320 and USD/CHF supply level just above 0.9050 formed. Price is taking rest with Londoners, should feel energized after breakfast. These would be "with the trend" trades.

I'm watching :-)

Decided not to trade this third bounce off supply level. It's against the main trend too.. A psychological challenge for the future if price goes on to rally. On a 4H chart, that would mean quite a lot many pips. I am convincing myself to be okay with this for the sake of discipline to respect the higher trend as I am learning intraday swing trading method here.

very much got the hang of this now cheers
i want to use m30 as zones to trade. i was looking at a daily chart as the trend. what do you guys think, is the daily chart too big of a gap for m30 trading? if so, what do you think would work so i can try it out?

ps ive heard of going 4x the timeframe i.e 15m with 1h trend but im not very comfortable with 2h charts

I have read the document, now reading second time. I update the graph for my previous question.

I would like to hear your commets.

I took that same level on gold and didn't work out, looked a great level to me though.

Yes caj1986, it did not work for me either.

I wonder which supply zone is the right one. What do you think ?

trappist caji - im no expert but if you look on the daily and draw up some zones you both will see why it didnt work,

hope that helps

Buy PO filled at 1.3324 at demand level

also tht was a pivot point

hey bro,

on your chart i don't see anything like demand on your entry, no imbalance, no fight of bulls and bears, nothing...

but anyway the trade could turn positive for you nevertheless

i think the other guys would agree with me

Caj,

I'll share my understanding that would serve the dual purpose of sharing and validation by experts here.

The "origin" of sharp rally from a price level indicates point of highest imbalance in favour of bulls. That indicates victory of bulls (demand) which can happen only when all bears (supply) are "eliminated". That means there are no (hardly any) sell orders. Our task is to find that coveted price level within 5-10 pips range. Point of maximum imbalance. How do we find that? We find that out by looking at sudden and sharp rally after a consolidation of a few bars. Consolidation means business on both sides (buy and sell) going on. Sharp rise from a particular price level indicates that point of highest imbalance. There are still hungry bulls awaiting and they need fodder (demand), so price goes up. The key is point of maximum imbalance.

I draw my lines around the point where price suddenly shot up (without any noticeable retracement) on 4H and 1H chart. Then I drill down to smaller time frames, 30M, 15M or 5M to almost exactly pin point that price level of maximum imbalance. Thereafter I throw in 5-7 pips either side to mark the twin lines of that demand level. That's it. I get a stop loss of around 15-20 pips. The upper line will act as entry trigger for a buy trade and the lower line will (or could) be stop loss. The expectation is that price will meet the same fate if it revisits the spot again. So it become our sweet spot for profits (well it's supposed to).

Same thing applies to supply levels in case of sharp decline.

Conceptually I know what to look for, I am ironing out some rough edges in practical trading. I sometimes get carried away and end up drawing a few too many an S/D levels.

I hope some old timers with S/D trading will comment, correct and add.

Here is the 30M chart for the same level.. if you notice, there was a consolidation (bull-bear battle) just below the level. I marked the level (small yellow parallel lines) after drilling down to 15M and 10M (Oanda) time frames and observed that price shot up after struggle at that level. So I drew it there.

Yes, any comments would be appreciated.