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Day Trading vs. Swing Trading vs. Position Trading 85 replies

Attachments: B.S. Trading with Kenneth Lee
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B.S. Trading with Kenneth Lee

awesome lesson that #919 post Ken. Somehow, someway I have to cut losses sooner. Thanks, Steve
Hi Kenneth Lee!

Can you explain better how to use the swing high and low???

Which tf?
I don't understand well how to apply it even if i read your chart who explains it!
Hi

I agree that the value of this thread is to be taken in and understand the value of the candles.

Thanks Kenny

John from Durban
After some big moves yesterday, am finding it hard to find those big candles in a good area.
They're appearing everywhere, even in the middle of a move higher/lower, rather than moving away at speed from consolidation zones so not easy day of trading. Will mainly sit on my hands I think.

Best chart I can see out of my bunch is the eurjpy30min, lovely large candle right on top of a swap zone.
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Ken,

Post #919 contains more valuable S&D information & it is much appreciated. Trading S&D levels has been kind to me over the last two weeks & it is because of your great explanation of what S&D is all about & how to trade the levels.

As I have said before, I am focusing on three pairs, trade from the 30M tf, but always being aware of the Daily, 4H, & 1H charts. Trade with the trend, but will do counter trend on occassion & that is it for me. No indicators, not even a MA.

I don't want to get into pips gained, but across the three pairs I trade, the gains have been much better using S&D. Yes, there are still losers, but that is going to happen no mater how you trade.

Thanks again Ken for you time & willingness to share. Thanks to the others that share their charts, views & comments. We have a great bunch of trades contributing to the thread.

Have a great weekend everyone.
______________________________
Quoting bootsyjam
After some big moves yesterday, am finding it hard to find those big candles in a good area.
They're appearing everywhere, even in the middle of a move higher/lower, rather than moving away at speed from consolidation zones so not easy day of trading. Will mainly sit on my hands I think.

Best chart I can see out of my bunch is the eurjpy30min, lovely large candle right on top of a swap zone.
We are all sitting on our hands. You are not the only one. The zone on EJ is wide i narrowed it down if we talking about the same area. May not trigger, hell way price moving may consolidate all day after that big run.
Quoting nawlins51
We are all sitting on our hands. You are not the only one. The zone on EJ is wide i narrowed it down if we talking about the same area. May not trigger, hell way price moving may consolidate all day after that big run.
Phew so it's not just me then.
Quoting acetrader
Ken,

Post #919 contains more valuable S&D information & it is much appreciated. Trading S&D levels has been kind to me over the last two weeks & it is because of your great explanation of what S&D is all about & how to trade the levels.

As I have said before, I am focusing on three pairs, trade from the 30M tf, but always being aware of the Daily, 4H, & 1H charts. Trade with the trend, but will do counter trend on occassion & that is it for me. No indicators, not even a MA.

I don't want to get into pips gained, but across the three...
Happy to see you doing good bro. I had a loss yesterday on the OZ so it happens. But like you said the winners out weigh the losers. Ken is a frickin good guy to share this knowledge. Turned this mediocre trader into a better trader. Every day I am picking up speed. Its a good feeling having more confidence every time you open your charts.

have a good one too bro and everyone else this weekend
Quoting bootsyjam
Phew so it's not just me then.
No its not. I know a few more who are sitting idle as I type. Trust me i am fighting the urge to trade m5 for this session.
Don't know if anyone has any thoughts on this. Kenneth states that it's best to enter a trade the first time an SD area is revisisted due to the stack of unused orders left over from when price last moved violently out of that area.

As an example (not to trade with as not happy with charts today) on GBUSD, would this be a valid trading area (see chart), or on closer inspection would it fail to qualify?
The first chart is 30min, and the second chart is 15 min. My question is-after the price moves away violently, you'll see from the 15 min chart (and the 5 min chart after this post) it immediately comes back down and challenges the SD level before moving away again at good speed.

So my question is, according to Ken's rules, is this a valid trade, or does the fact that the price has returned to the SD level to soak up those precious orders before moving away again, mean that it is invalid?
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5 min chart from post above
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Quoting bootsyjam
Don't know if anyone has any thoughts on this. Kenneth states that it's best to enter a trade the first time an SD area is revisisted due to the stack of unused orders left over from when price last moved violently out of that area.

As an example (not to trade with as not happy with charts today) on GBUSD, would this be a valid trading area (see chart), or on closer inspection would it fail to qualify?
The first chart is 30min, and the second chart is 15 min. My question is-after the price moves away violently, you'll see from the 15 min chart...
I am not real high on it because price came back a few times. I did mark it for your reasons and would have to be comfortable with a nice risk:reward. No pending order on this level. However if you switch to H1 as in my chart that candle marked in black box is interesting to me.
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Thanks for the feedback yesterday. markets dead tonight not going to trade do some study time.
I can see what you mean with the 1 hour chart-seems like there's a very wide area for SD as the 30/15min chart have good zones but none of them seem to match up with each other. That means a wide stop if you're looking to trade it-think I'll pass.
Here's my analysis of EURJPY daily chart, using (what I hope) my understanding of the order book, the stack of sell orders that are used up whenever the supply level is hit. Please correct me if I'm wrong!

The supply zone is in blue, and it has been touched 3 times. Arguably, the first time price went near it (first arrow on left) it didn't actually meet the supply zone. Since then, the supply zone has been touched twice, the second time yesterday, and it's made a new high.

Using Kenneth's great visual tool of stacks of orders on a desk being used up every time price strays in to the SD areas, my analysis points towards price retreating to the Demand level on the 4 hour chart (second chart-SD level is blue rectangle-swap level are two horizontal lines).
This demand zone is also next to a Swap level giving it added strength, then price will reverse and continue higher.

Of course I could have this totally arse backwards so any input would be gratefully received!
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Nice move on this pair. Agree with previous posts on difficulty finding zones.
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  • Post #937
  • Quote
  • Edited 12:01pm Oct 28, 2011 10:53am | Edited 12:01pm
Thanks for keeping thread alive . Will get to the questions I can answer later this weekend. The Higher high and lower low question really comes int play at , this point after huge moves the market just seems to take a big sigh and relax a bit.

The swings can help you to see when trying to turn price is safer. I was long on oZ last night from 1.0656 demand level had to find it on the 10 min. But finally just bailed on it as it didn't move much over hours . I did scalp oz yesterday after the high for 3 good trades around 60 pips .

Look at the 5 min at 1.0745 , 1.0730 ,and 1.0720 I shorted the last two my first try was a continuation form 1.0720 demand before it swapped. The swings had changed form higher lows which is long to lower highs which is short.

This first appears on the fastest charts, and at times like this major moves swings are hard to see at all on the larger ones.

I know it is a busy chart but a lot to see on it , But remember your just looking for the next bit not all that at once..

See that OZ just popped up what i was holding for most the night then bailed arrrgh !
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Good Trading To All ; Ken Lee
Quoting nawlins51
If you switch to H1 its nothing more than drop base rally. Your zone is huge but nonetheless it is a zone. My question is how is it risky. The time its consolidating is low volume. I am not trying to offend you in any way I am just trying to see how its risky and pick some tips up from you. Thanks buddy and this is a good discussion.

Nawlins,

Sorry I did not notice this message sooner. The reasons I would not take it are that :

1. I look for a clear single exit from a zone.
2. According to Seiden, wicky-ness basically means that price has already traded there once and hence it is not a fresh level anymore. (Given that there is a zone right under it).
3. The reason I would either go down to a lower time frame / ignore it / take the lower level is to reduce the risk. Also, like Sam says, the deeper you buy in a level you are buying against dumb money that is selling after a steep drop in price.


Lastly, the reason I would ignore it is, the market already gives us plenty of opportunities, i'd rather take the low risk high probability trade based on zones that I find comfortable with as opposed to a slightly higher risk trade, at the end of the day, our number one way to make money is to ensure we dont lose money.

Hope this helps.

Sorry for the delayed response. Did not see that this message was replied to me.

AJ
less clutter ,

ps .You of course can try a short at the first failed high but you really don't know it is a failed high at that point so riskier. you can see many swings to the left that pushed right through the highs.
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Good Trading To All ; Ken Lee
Quoting arjuncora
Nawlins,

Sorry I did not notice this message sooner. The reasons I would not take it are that :

1. I look for a clear single exit from a zone.
2. According to Seiden, wicky-ness basically means that price has already traded there once and hence it is not a fresh level anymore. (Given that there is a zone right under it).
3. The reason I would either go down to a lower time frame / ignore it / take the lower level is to reduce the risk. Also, like Sam says, the deeper you buy in a level you are buying against dumb money that is selling after...
GOod points AJ. I am glad you responded back. Better late than never lol.
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