Ken's Continuing Successes with EO's system

Here is a Worksheet , That EO had made up to help with the analysis at the start of the day.

Thanks a lot Ken for the sharing once again!

I am going to read through the worksheet and go through your pdf once again, hope I can digest more of this great system!

Yep it is a lot to absorb , If you have been trading and have something that has worked sorta good for you. You should find one or two of the entries here that compliment that . Instead of trying to focus on all of it at once.

I am trying to figure out the best way to proceed with the thread other than after the fact reviews. I know those are good too ,as they can show the complete progression of a trade. I don't fell qualified to give calls and never would say enter here or there.

But might just give signal calls at levels then post the data sheet regarding that call untill we start to see it all in real time. That is My main goal to see the overall picture on all the time frames and get longer trades. Then take the smaller ones at the right times.

Even the scalpers if they start getting into the trades the correct way at the right locations will start to see the longer term profits that they leave on the table and gradually hold longer or learn trade management. I Know this system inside and out . It is time to put it to use and move on to the next level.

If we can work together and many eyes can see what others may miss. utnil it is second nature.

I will also continue to answer any questions regarding all the trades either long or short. As I know this system also lends itself to some great scalping trades that some prefer to do. But I will mainly focus on the longer entries in my posts. Which will normally show secondary entries as well.

Hope everyone has a great weekend and be safe, Happy Friday Ken

PS
If you would like some more trading calls using this system during the U.S session. Don't forget the original thread . When EO's in there it is some great information..

http://www.forexfactory.com/showthre...wpost&t=121761

Yay, honestly, this system is really not newbie friendly. It took me 5 days to go through all the documents for 1 time, and there were still some areas that I have yet to digest them. BUT, this system really gives you a lot of insights.....

I know the majority of us might have gone through the stage of searching for a holy grail system, I hope this is the one for me. I am really tired of learning different systems again and again, trying again and again, only to have found out either it's not my trading style or I just don't get a clue of why I win/lose....

Once again, deep appreciation to you Ken and all other great traders here for the dedication, patience and contribution. Happy Weekend and pipful trading everyone!

Ken! I gotta tell you that your pdf was very good and necessary for me. I have been using only monthly+weakly pivots and fibpivots before. I haven't realized how important just regular support and resistance are untill i read your pdf. I created a new chart and begin to put all the support and resistance i could see on monthly, weakly and daily. WOW! It is like the price that goes of from one line never turn around again until it has (almost) reached the next line (we are still talking on the daily chart offcourse. I could allso see that you could draw lines at 1989 and that they still are extreamly important. This has got to be the most usefall imformations you can get. If i would choose only one way to analyse it would clearly be support and resistance. I understand now how very profitable you can get if you use a system with S/R as the base.

I drew all the lines i could on monthly/weakly and daily charts pretty many years bak. How do you do with the support and resistance on the 4H chart. I mean how long back in time do you go? or u just use a couple of days on the 4H?

I also have another question. Let's say you have a support line bak from 1989 and its near to perfekt many many times untill mayby around 2008. (this is just an example). In 2008 it breaks it alot upp and down. Do you adjust that line for fitting the most previous data(price) then or how do you do. Because as we all know the more times a line gets respected the more significant it is. And the more it get's broken the less significant it is.

Thank

Like some many things that have to do with this thing called Forex Trading. I think trying to over think it is what makes most of us stumble and fall driving us crazy and wondering why others find it so easy and we can't. Like you said you can see the S/R as almost a fulfilling prophecy.

I don't go for all the history I can just what can be seen on a normal screen shot maybe scrunched up tight. I try to go over my charts during the weekend when I have time to do it without worrying about missing a trade. I only mark Daily and 4 Hr. S/R . It is my choice I find for our trading that the 4 Hr. is normally enough But knowing the daily levels which also would relate to a 4 Hr anyway . Is nice as they can care a little more importance. Because we all know that some only trade those maybe looking at even higher times for their levels.

We all know that there are other traders out there and if we should all agree that there are probably more longer term traders 4 Hr and up than lower. Most certainly more $$$$ . because I don't think many commercial traders are scalpers. I could be wrong thinking of the per pip gain of a billion dollar order.

But let us assume that is the truth, because most things I have read from people I believe to have been REAL commercial traders. Have looked at the same thing S/R on the higher time frames. Managing their accounts off the 4 HR information and targeting off the daily and higher but basically taking what was given without expectations. They also almost to a person also used lower time frame charts as low as 15 Min to gain the best entry with the least draw down. Does this sound familiar ?

This is why if we wait for those higher time frame signals we can usually get cleaner entries with little draw down. As you can see by the posted chart the longer we waited the less the stress. I believe it is because we have a greater number of traders interested in the level as the time frame chart increases.

This is why when we get in right on the 15 min candle we can get some whipsaw and draw down. But when the 1 hr closes those traders that have been waiting for that close then get aboard making the price move away from that area finally.

This has caused more people to get thrown from there trades with out any other reason than being to earlier. If we know to look at the higher chart to see if this is the case. and note the time of the next close. We can gain some insight to what is next. Plus this will give us the confidence to re-enter if we did get stopped out on a retest of that area. As we can see with this example once we got the touch of our S/R line even on the 15 Min it was all good another Prophecy fullfilled. So with that line it showed us the way withour it the 1 HR wasn't the best signal but the 4 hr left no doubts.

This is what we will learn to use to get this to the next level but we will still keep our eyes on those smaller trades because at times they can also provide some nice pippage. Also the levels the smaller trade happen is where we should manage the longer trades.

Hope this makes some sense to everyone. Ken

After posting that last set of charts and thinking about it last night and what I had noticed this last week. I believe I have had another EUREKA !!! Moment , I am very excited about this but unfortunatelly my platform is in maintenance mode. It goes along the same lines of those last charts how the longer time frames gave the clearer signal as it progressed .

It is probbaly Something everyone else sees all the time but something I have been overlooking. But as I keep saying this isn't suppose to be hard and it is the forcing ourselves to see things that aren't there that is making it so hard.

I believe this will be part of my turning point.

So stay tuned. I will post a few examples coming up from last weeks trading. It may suprise you or make you look for another thread . When you see how dumb I feel I've been.

Hope Your Weekend is going well Ken

I still don't have charts yet here is something to think about, Till then ..
This not a curren chart so don't freak out when the prices don't match up..

Hey Ken, I understand your concept about scaling the trade which is great. But isnt it good idea to hedge the trade ( with $1.00 ) in those positions ( I marked 3 blue arrows on your chart - PA reverse ). What do you think ?

Reducing your postition or hedging is basiclly the same thing. We in the U.S. can not hedge. Some traders do take counter trend trades in seperate accounts. Anyway, however we choose to accomplish this is fine.. But if you hedge don't just let one or the other run as they just cancel each other out. erasing the gains.

After posting that chart friday and then looking at it and thinking of the higher time frame entries I had saw this past week. It finally dawned on me what I had not been seeing or doing in the past .

If the chart is showing that as we progreesed up the time frame charts and got better entry signals. Aren't they also just supporting the position you had taken as well. We keep hearing and even say ourselves we are suppose to enter as a scalper and then trade like long term traders after the entry.

A scalper would take a opposite trade at any possible rejection or reversal area. A major fib, a S/R line a Large Number. Etc. But he would then grab his few pips and close the trade.

I posted that chart then started thinking about it . Then I remembered something Lucky Lady had said after a very good day of trading I entered then managed the trade off the 1 HR chart. That is when it struck me.
Just like those charts are showing that entry signals start at the lower time chart and then work their way up the chart and as they do they get stronger and more accurate. Because more traders become interested in them.

Also as we showed large players could just be adjusting large volume accounts in those same areas. For whatever reasons the higher time frame charts carry more weight. Why we are always hearing that lower times are just noise.

As you will see we have a lot of people that see the move start from a area of interest but because the entry is off the 15 MIn chart and they waited for it to start back from that area a bit before entering they get sttopped on a retest. But we can see time and time again that after the 1 Hr closes with the same signal, that the retest doesn't happen very often past that point. It is that first 45 minutes that is very risky.

I had said a week or so ago that instead of looking for the entry signals maybe look for the best stop location then enter as close as you could to it. That would lower your risk. This is what the major players are doing they see a area they have choosen . They see the turn take the trade place their stop the other side of that high + a couple of pips. if it breaks they lose 7 or 10 pips. But if the 1 hr closes with a signal that supports that move they will re-enter using it. But normally the first run on a level is the strongest and highest or lowest point. That is how we start to see PA in those areas.

But what we now need to do is after we get in a trade watch our trade start to progress up through the time frame charts. Also keeping in mind how the price may react at the different signals. We know the best entry is up the wick or body of a entry signal so a retracement up a 1 HR or 4 HR candle should not be a supprise. It should be a place we can manage our trade as we know what to expect. As we saw on that Fridays chart those areas are at places that correspond to levels we should expect price action to react at.

I will post some more charts sunday showing what I am talking about. But look at that Fridays chart and think thatif you had entered of that 15 Min signal at the top. Then started to notice the higher time frame charts as your trade progressed . Could you maybe feel safer staying in that trade longer. 1 Hr Pin. Then a engulfing . Also a DBHLC engulfing on the 4 HR. as support of thee short .

Here is the chart I was refrencing in the last paragraph.

I will have post a couple more showing clearer how we can use this .

Here as you can see we get dbhlc / IB on the 15 Min. But if you covered it to soon you get stopped out. But the 1 hr entry of that engulfing is at a better spot never being challenged. It is also a better entry than the 15 min gain extra pips. But even if we take the 15 min and notice the 1 HR we could feel safe to leave our stop above the 15 min high. As the 1 Hr closes. Then knowing we get a retrace up the engulging body we still hold the stop position.

Also after 4 Hr closes as a Engulfing as well , still supporting the short. Choice. And the 1 HR entry wasn't breached But if it had been moved it too soon it could get stopped as well. This is how if we watch our next chart up. We have a better idea would is goin to happen.

I am finding this hard to explain. I think exprienced traders will understand but newer will struggle to see it. But over time we will get it clear. So what we are showing now is the retracement up the 4 HR DBHLC. To our entry zone.

On the 1 HR it is a tradeable or Trade management move. It could be the beggining of a retracement. So to not at least adjut our trade to lock in some profits is foolish. But the 4 hr is a strong bearsih signal as well and we can see it did a very deep retracement then turned back in the correct direction.

Looking at the bottom of that 1 HR chart we also see again a engulfing body signal. and entry. plus we get a inverted hammer on the 4 HR. which results in over 100 pips move back up. I hoep you can see what I am talking about here.

We can take the trades off the 15 Min. But we should then watch the higher time frame charts for the overall goal of the trades. knowing how the price is suppose to react allows us to take counter trend trades with more confidence and less stress. Plus we see a retracement for what it is and don't mistake it for a reversal.

But taking the counter trend or hedging At known levels then watching the higher times again also helps us to be in correctlly when price does reverse.

So now your saying to your self well why don't I just wait for the 1 HR or 4 Hr signals. Because in some cases that wait can cost over 50 pips. and possiblly it was a scalp trade and not a reversal entry. This again will be shown by the higher time frame. If you enter off the 15 and then the 1 HR doesn't support that direction it would be prudent to cover that trade well. As you could see price come back against you.

Doesn't mean it wont continue could just be some consolidation. But it will be better to be on the safe side. Then when you get the continuation signal on the 1 HR. You should have a chance to add back to your trade anyway. Plus don't forget to look at your 4 HR . At times the signal on the 1 HR may not be clear but the 4 Hr is still showing a great possiblity. Until our trade entry zones are broken. We should expect price to turn within them.

Sometimes they can come all the way back to form a double top or bottom. But we are always waiting for PA to lead the way we will get our entry signals at the right places. So it isn't a guess we just now have narrowed down by a lot places to enter our trades. With a better edge, all we can ever hope for.

This is how I now see the best traders here have been taking these trades. You talk to them and they use no fibs or channels just S/R off the higher time frames . Yes they may Jump in front of the bus. But they do so with very tight stops. Then they watch the trades unfold on the higher time frames. If they don't start to show the reversals they then just take the profits given.

Also like I have said if they do get stopped out on the 15. They are not normally interested in getting stopped again and again so they will wait for the higher time frame chart to print a confirmation of that trade then try again. But at times they will try sooner if it is just to good a second signal to ignore.

I am sorry for these examples I know the are crap. I hope to explain better as we go along. But we should get the idea and maybe start to see it for yourself. Just don't try and over think it.

But hope it is a bit better than just saying look at your Higher time frame charts. I am trying to show why we are suppose to be looking at them and what on them is maybe the main issue.

A lot of times we just get the comment did any take the entry off the 4 hr. yet we know the trade had started a lot sooner and was now just a retracement. To another good entry level which is fine if we miss the first then the secondary or third chance should be taken easier.

Hi Ken

Just wanted to thank you for all these examples and explanations.
I am beginning to understand better I thought I did before just not in real time.
have read and reread these posts and went back over my charts and now I see opportunity where I was confused before.

Now to see and trust it in real time and I will be on my way to being a profitable trader not a lost newbie.

John

http://cdn.forexfactory.com/attachme...1&d=1264275682


Hello Kenneth,

I just want to say thanks for this particular chart. I had been thinking about something along this lines, but had no confidence. After reading your notes on this chart my confidence got a real boost.

Thanks for your work.

As I was talking about this weekend. the 15 Min GBP/USD printed a DBLHC / IB then the 1 HR printed a Hammer (Pin) and as we can see that long is now at a good covering point. Profit is adjusted at the MA's when trading towards them.

Hey Ken,
Thanks for these type of updates. Only one trade tonight for me....traded the opening gap in EUR/JPY 45pips. Watching the football game tonight and studing your thread.
thanks
Jack