Ken's Continuing Successes with EO's system

I would also say If you are basiclly just scalping this system that you start to scalp with the signals . That way as you start seeing what your leaving behind it will help you to move to bigger trades. I had been using some of my old scalping ideas along with those presented here a lot are nothing more than faidng big moves and large numbers at good levels basiclly agianst the trend of even the 15 min chart. So may only give 7 or 10 pips and if your not quick less.

But that will get you in the habbit of grabbing those small gains . I am now trying to force myself to only take the trades using the signals here then at least I am getting more gains per trade. Even taking less trades the total is greater and with less stress and as I see Myself leaving money on the table I tend to hold a little longer each trade.

We should also enter every trade with enough on it to be able to scale out . That way we can cover our trades with some profits or at the very least Break even and not take losses. I see some that only cover by moving their stops. If your in one of those areas that is bouncing around prior to the close of your next time frame close you can cover then get stopped Just to see price move off in the right way. You see it posted all the time. take a look at those charts when somebody says that . It is pretty clear that if they didn't move that stop it would have been a great trade.

This is why you will hear EO say he has covered . He basiclly covers by taking just enough profit off to cover his trade. IF you just remove a bit of profit . Your stop would be break even still past your entry level. example:

I will use round numbers to give calritiy. Your entry is at 00 price moves 20 pips you remove 1/2 to hit break even now price would have to go back to 80 before the 00. So you have covered by not moving your stop. I am just using 1/2 as a example I normally take 1/4 or 1/3 off. But it still gives you some room for it to move past your entry and still be Break Even.

So when we get into a trade. Start looking at the higher time frame charts to show you when the swing is ending.


OOps sorry thatb is a 3 Hour chart not 4 HR Oanda doesn't have 4 HR ..

You may look at the chart above and on the 1 Hr see that hammer doji Dragonfly doji. after the DBHLC and think the trade will fail but the next candle goes up the body and stays within our trading zone. IF we entered off the DBHLC or the 15 Min our stop should still be very safe above the top. But we can be confident as price turned in a known area of interest, our trading zone of that signal and we have confirmation of a MA as well.

If you had already covered by removing a bit of your trade. When price went up that body and started back down was a possiblity to add back that covered amount. this coule even be a better intial entry and your stop would be less as you wouldn't move it.

These are the things we need to notice to progress.

Most big traders wont even consider getting out of a trade until the 1 Hr starts to show that this swing is at a end. I use the term swing because to me a swing is a one direction leg of the trend. We can have a retracemnet and then price can continue making a lower low and the trend is still in tact.

Plus they still may just mange thier position then . Removing some profit and waiting to see if this would be a retracement or a reversal if it is just a retracement they would add back when it turns to continue. This is how they can have a position open for weeks or even months.

You can use this all the way up the chart time frames to the daily and even posiblly the weekly. Just a matter of having the skill to scale in and out of your trade. BUt if your original entry is never approached you could stay in. Also this is how you can make profits and if it does turn all the way back you have scaled out at different areas . That way you lockin profits as you go.

This all or nothing mentality does work for some but being flexiable within reason can give you a chance to make $$ while others just give it all back. We know the levels we know why it is turning back and about how far it should go. Why are we not using that to our advantage. It only has to move the amount of your spread to be a free entry. So if it is going to pull back 20 pips yes you can stay in but if it gives a signal or is at a area of concern why not be safe and book some profit then look to add it back increasing your trade size.

Hey, Ken, where are you?

I am here as always / I always pop in and out. All I have ever done to help with this systems is try and see what people wanted explianed then post some explanations. most of course were regarding entries, How i ended up in trouble LOL. Anyway My own goal has always been to progress to a longer term trader . Taking less trades and even at some point maybe maiking enough to only do this during the Asian session. That would leave my life to myself. I have never been in love with money it is just a thing we need to survive this world. I have seen too many people actually ruin a geat live over it.

Anyway. So those are the charts I posted over the weekend. Explaining what I am now looking at. But if anyone still needs help with entry points or anything else I am here to help but you must ask. As it has all been covered many times and most peole now have certains things they struggle with.

I am also thinkig of a new set of flash carsd to incorprate the use of all the Time frame charts. But thinking about it. This is going to be hard as when you get a entry on the 15 min your 1 Hr and 4 hr may not be in agreement, YET.. I will figure out a way to make this clear . I just need to think on it a Bit. But if anyone needs help just ask.

I was never one to post charts . Because my trades were not very long and I feel would be counter productive . When I get to a level where I am making longer trades I will show how I am managing them. This doesn't mean I can't show you where they could have been managed.

Hope you are all doing well .. Ken

PS . I also have scaled back and not doing Frankfurt/London for now. as lack of sleep doesn't help, When it becomes atuomatic then I might go back to them. Unless of course the U.S. session continues to be very bad.

Hi Ken,
I have a lot of problem in understanding the higher TFs correlation wth SMTfs sometimes I see these both are in real disagreement. It would be of great help if you can post some trades which u have taken and how u managed it in real tim..now im not asking here for signals ..please post some of the trades which u have taken for the day..and the reason u do so..if u hav avoided some of the trades like 62 ema and 35/50 for some reason ..posting it will also be helpful..I know Im asking too much from you..but if u can find some time for this,,, im really thankful.

Yes That is what I was saying that I am trying to figure out a way to show the actual Higher time frame candle as it unfolds during a trade. Becuase as you have said at times they disagree. This is true at the best entries as they are all making new lows or highs and could have just completed a big swing. Then all could be showing a very bullish pattern.

So the problem is I can only show charts of completed candles . Not how the 1 Hr looks when you could have taken the trade or the 4 HR as well. I will have to either take screen shots duirng the day to capture that or modify the candles in paint.


IF you look at e/j right now On the 15 MIN chart you can see it has consolidated and is now making lower highs but it is stuck on the bottom. I have taken this trade assuming that bottom will break at some point. There are a few entries on the 15 MIn there harami , Doji, Shooting Star . But what interested me was when the 1 HR closed as a shooting star twice.

Also my 4 HR also closed as a pin at 3:00 eastern 45 min ago. But if you had taken those trades off the first 15 min candles. The 1 hr would have been only 1/2 complete it was showing that it might close as that pin. But you can see the next candle On the 1hR went even highe before it also a made a pin.



Chart; Then green arrow is shwoing the 15 MIN 11:00 candle and the 11:00 1 HR candle .

When the 15 MIN closed it is showing a DBLHC a bullish pattern . BUT the Candle before the 1 HR labeled candle is showing a bearish PIN. The marked candle would not have had a wick yet Becaues ti hadn't gone up.

But we know that the best entry off a pin is up the wick . So we should expect that we COULD get a move up into the wick of that prior candle.

This is the signal we got on the 15 MIn chart the bullish signal to move up that wick.

But we still have 3 more candle to make up that 1 HR . That is marked . Price did move up about 30 PIps. On the second candle off the 15 MIN chart . The next candle third one formed a doji. A sign that p[rice has reached indesicsion and a trun maybe soon. Then the 4 th candle which completes the 1 HR as another shooting star. Does tke that doji Inside Bar signal and went short.

WE have to look at all the candles and Price Action around a area to see a overall picture. I could have closed this trade already with a small gaijn But in a efforet for more gains I am still holding after the 4 HR pin.

These aren't the best signals as I would have prefered for them to have red bodies. But as time progressed. I can see that price is continuing to test that shelf we seem to be seating on.

Hope this helps . If not let me know It is hard to create a visual for this .

Hi ken

just found your thread been regularly looking at eos and yes thought it was pretty informative

just going to add my thoughts on marking strong resistance points

If you open three hour charts ( i use oanda so they dont have four hour charts )

put a horizontal line in and place it where it is hit a minimum of 6 times. in a perfect world some hits some will be coming down to to the line and some up to it. It has to be exact to within a pip or 2
It might mean looking back a week or two but you might be suprised at how many times it bounces off to the exact pip

These lines once they are in can stay there for quite a while because historic prices have a habbit of being hit time and time wheather they are coming down to it or moving up to it.

I have them on the 8 major currencies and they work pretty well bang on a large percentage of the time.

At the same time I do it for the daily and hourly using different colors

Has to be six times on the three hour or not interested preferably more

Another point is that on the three hour charts its quite easy to see the big ticket news items and how the charts react. If the candels are moving in toward a point and a news major news item moves the market quickly it can pass by the first point and finish its move on the next point

just a few thought for anyone interested

Welcome Frenz :

Yes S/R are Used pretty much by almost every trader. There might even be some that are using them and not even aware they are. Just like some peole say they don't you use price action to trade but mark their charts with S/R areas..

They are nothing more than Price Action . Price has reacted in those areas Once and we are looking for them to POSSIBLLY react there again.

But without someway to then enter the market at those areas it is still just part of the puzzle. Yes there are those I am sure that just try to turn price at every level and with proper Money Management and Trade Management may be successfull. But why gamble when the price will let us know when it is ready to get a better edge of a entry.

Thanks for your insights on how you arrive at getting your S/R lines / Areas on your charts.. I use a similiar approach myself. I don't mark the 1 Hr as with wiode screen monitors I can see those levels pretty well on a regular chart . But daily are red and 4 HR are white Lines..

Hope your trading is going well . Ken

I'm glad i fund yr thread,

I had been folowing u on EO thread.

I found yr input very informative as well as very helpfull to us newbies.
well done.

The strong resistance points lets you know when something could be about to happen i.e change of direction
then the shape of the candels plays an important part .

and the time in the hour
something i have noticed is about 8 minutes out from the change of the hour
i.e my time in NZ 652 pm 752 pm as europe opens or london closes etc and so on there is a strong movement .that often leads to a direction change
probably more specificly just before the open or close of a major market

More casual observations but its worth looking at and somehow including in your trading stratergy

Yes I agree with that observation .. believe by that time most folks have decide that the 1 HR candles is going to close the way it has been forming. and tkae the risk to enter a bit early. But it can and does change in the last few moments sometime.

One reason I have been posting more 1 Hr charts in combination with the 15 Min entries as we can see just consolidate for 45 min then right before or at the 1 HR close it makes it's move..

Nice Post .. Thanks

Here is a trade I took and am still in.

I am still in that trade we have not had a close below the 5 EMa yet it is starting to consolidate though But as I am up over 30 pips at this area nad have taken most of it off I will hold unless it starts showing signs of making some lower closes. 1.5960 area was a resistance now support. So I will see what happens. Sress free trade.

That trade has now moved above and closed above the 62 ema . The next candle came back and retested the 62. Now we jope it stays above there and moves further. My target area for this is 1.6030 area. It may not make that as it is getting late in the rtrading session. But now being over 50 pips up I am willing to give it some room to see. As long as we continue to get closes above the 5 ema.

That is what I look for first as a sign it is running out of steam and may turn . You can see during that last consolidation that 5 15 min cnadles printed without much of a gain but still did not close below the 5 EMA .


It may not stay above that 62 though.. But the rule is still the same no close below the 5 no closing trade. Not that we might stay in if it does close below. But we can't get out until that at least happens. Rule to make bigger trades. (For myself )

We just closed below the 5 EMA but was a indescisive canlde all though the 1 HR is a big ole pin. I am giving it one more candle , Unless it just drops like a rock. The last run up looked like some type of reaction to news or something.

Or could have been stop running on short positions.

Out: it has turned enough I will look to get back in if it turns back-up

Hi ken good move on that trade

I watched it form up but wasnt alert enough to take it as | had just rolled out of bed at 4 am

Wish i was on the other side of the world

Hello Ken.

Nice trade. Don`t you think that after cross 1h62ma we got nice short opportunity. Look at character of that long white candle. Where was open of that candle. Price went so fast past pinbars ( rejections area ) and ended with small wick with ma cross. Plus open of the next candle was below open of previous one. What do you think ?

Cheers

Yes the 62 ema touch trade was a good short trade. Taken as the first candle started back. Not much and as you said we got a gapped open on the next candle. It was a good 62 ema trade. 30 pip max.. Still very nice quick trade.

If I had reversed there would have been awesome always some more to strive for.. .. LOL

But my main goal was to stay in the long trade till I got a sign to get out .
Plus I got the pips up to the 62 ,, which is equal to getting them coming down.. But both ways would have been better.