Ken's Continuing Successes with EO's system

Nice yeah the retest of the 35/50 area good trade. nice signal .. the hangman

But not a 35/50 cross reversal trade.

But a very good entry and trade just the same ..

signal the hangman Price action good loction retest the break of the 35/50 area.

here is a example of a 35/50 reversal trade.



EO; On the 35/50 reverse trade.
Volume in the market bro! Like the one that happend today during the US lunch time. The trend had been established to be a downward trend, she hit a nice low, 200sma on the h1 CIRCLE B and the 50sma on the h4 CIRCLE C. That sent her north to the 15m 35/50. Sellers started at the 21, 35/50, then bang she closed over the 35/50 and the 50sma was ontop,CIRCLE A sellers jumped on with drool and drove her back down. Those are your trend traders that jumped on her, their not the traders like Infinity, myself and others who went long from the bottom, they waited for the price, then pounced. The 35/50sma cross and reverse is excellent once the trend for the day has been defined like it had been for us from London. Will the cross and reverse work everytime, no, hell no, but it will once we come off a new high or new low.

Everyone remember today is NFP Non Farm Payroll. It can be the most voliatile release of the month , .. So be
carefull

Happy Friday.. Ken

I`m in GU short now ( with 35/50 ), consider leaving some amount of position -counting on strong move with news.

Good luck ,, But it is the unexpected which makes news really move.. Right or Wrong .. Nice entry by the way ... Ken

Here is something to think about. We don't look for long term targets on the 15 min. But what I am showing is that even the 15 MIN chart was in toatln agreement with the higher time frames. Yes we had some longs for the short term. But the best was a retrace into our trading zone. If you compare this chart to the daily I posted earlier in the wekk you will see that was the turning point . In our trading Zone.

Ken, how do I put the trading zones on my charts? Thanks.

Hi, all my firends
This is my third month of using this stategy. I still make a lot of mistake during trading, I post one mistake I made last friday before NFP.
Please give me your sugestions and advise. thanks!
We learn and improve from discussion!

[quote=KENNETH lEE;3433121]here is a example of a 35/50 reversal trade.
EO; On the 35/50 reverse trade.
Volume in the market bro! Like the one that happend today during the US lunch time. The trend had been established to be a downward trend, she hit a nice low, 200sma on the h1 CIRCLE B and the 50sma on the h4 CIRCLE C. That sent her north to the 15m 35/50. Sellers started at the 21, 35/50, then bang she closed over the 35/50 and the 50sma was ontop,CIRCLE A sellers jumped on with drool and drove her back down. Those are your trend traders that jumped on her, their not the traders like Infinity, myself and others who went long from the bottom, they waited for the price, then pounced. The 35/50sma cross and reverse is excellent once the trend for the day has been defined like it had been for us from London. Will the cross and reverse work everytime, no, hell no, but it will once we come off a new high or new low.[ /quote]
Hi, Ken
I have one question for discussion:
From 15m chart, It looks like it is down trend. but from 4H it was touching the bottom line of uptrend. a hammer on 4h, 50sma support form 4h. at the moment when we short, the price was 1.5200 area. both 1h and 4h were very bullish. So in real situlation, how can we handle low time frame with HTF?

Hi, Ken and all
Regarding 15m 35/50 mas retrace trading, I have some questions
1) Only 1 candle cross both 35 and 50 mas?
2) need the whole body cross both 35 & 50 mas after the candle closed? if, let us say, body cross 35sma with wick cross 50ema, can we consider 15m 35/50 retrace trading?
3) if Candle A cross 35, then candle cross 50, can we prepare to trade 35/50 retrace ?
4) if 35ma and 50ema are very near, one small candle can cross them, can we trade 15m 35/50mas?

thanks

Each entry was good, the only thing you could have done to improve things was to cover yourself, Eohater does it all the time. He would have taken some off the first trade at the resistance and left some of his trade running just in case it broke resistance, that way you have banked some profit, moved your stop to breakeven and then had no worries probably taken some more off after the doji. When it hit the other ma's if you had done the same thing again, each one of them moved down enough to bank profit and cover yourself.

Hello.

This week I made about seven 35/50 cross trades. ( I don`t stick only to GU - it`s works great at another pairs too ). Here is how I usually do it :

First I`m trying to spot some important PPA or 200/1h62ma that price could bounce after 35/50 cross. If you can`t see it no problem.
Second I sweach to 5M ( and wait for PA there- I usually go with pinbars ). Then when price go in my direction I grab 7-15 pips and cover ( depends on with pair i trade ). And now :
1. price could get back in area of my enter and form 15m hangman if it does i add to my trade becouse I wan`t to have full position on it.
2. price get back and go opposite - my trade end up with BE.
3. price go in my direction right away without pullback. No big deal as long I earn pips. Maybe later I add somewhere.

If you missed 5m entry and got 15m hangman formed you enter.

Here`s my two yesterday`s trade :

I will be back later to explian the Trading Zone but till then here is some Post I made years ago on a begginers thread about Fibboncia Retracements.

Hope Everyone is Having a Great Weekend. Ken

Fibonacci ??????? What The %#@@

You know we would have to get to it. Is Fibonacci Devine Intervention or Quatium Phsyics ? Do we care ? Does it only work becuase so many believe. Here is at little Information from The University of Georgia on the subject. Food for thought. This will be our next section.

The Fibonacci numbers are Nature's numbering system. They appear everywhere in Nature, from the leaf arrangement in plants, to the pattern of the florets of a flower, the bracts of a pinecone, or the scales of a pineapple. The Fibonacci numbers are therefore applicable to the growth of every living thing, including a single cell, a grain of wheat, a hive of bees, and even all of mankind.

Plants do not know about this sequence - they just grow in the most efficient ways. Many plants show the Fibonacci numbers in the arrangement of the leaves around the stem. Some pine cones and fir cones also show the numbers, as do daisies and sunflowers. Sunflowers can contain the number 89, or even 144. Many other plants, such as succulents, also show the numbers. Some coniferous trees show these numbers in the bumps on their trunks. And palm trees show the numbers in the rings on their trunks.

Why do these arrangements occur? In the case of leaf arrangement, or phyllotaxis, some of the cases may be related to maximizing the space for each leaf, or the average amount of light falling on each one. Even a tiny advantage would come to dominate, over many generations. In the case of close-packed leaves in cabbages and succulents the correct arrangement may be crucial for availability of space.

In the seeming randomness of the natural world, we can find many instances of mathematical order involving the Fibonacci numbers .
Don't Hurt Yourself thinking about this to Hard Ken Lee

You Want to Go Up Why go Down

When I started trading and wasn't paying attention and didn't know diddlly or His brother. I was constantlly jumping in trades only to have them go the other way. So of course I would change direction to go the right way.. WRONG WRONG WRONG , That is what is called chasing trades it will never work.

Another analogy.. Sorry.. You are on the 20th floor of a highrise , and you want to go to the 40th floor. There are 2 elevator cars both buttons are pushed one for up, one for down. One car is coming down from the 30th floor the other is coming up from the 10th floor.

They both arrive at the same time. The doors open and you get into the one that was coming up from the 10th floor only to have it start down. Darn what happened? You were not paying attention when the doors opened the signals at the top of the doors changed the car coming down was now going up and the car your in is now going down . In the wrong direction.

As you should have noticed in our swing section price comes back before it goes in it's intended direction. This common 101 science for every action there is a reaction. So the key is to pay attention to all the information available.

We will get into that more in our next section on what forms our swings. We will look even deeper into our charts and get down into the microscopic level.. You will see everything has a reason for being there, and all we have to do is look..

Good Trading To All Ken Lee

Iforex, There is nothing wrong with your trades . They did work for a bit. We all have to be comfortable with our trades. But here is some details that could help in the future make more gains.


Damn another mistake.. That isn't a engulfing on the 1 hr it is a IB or Harami.. Sorry ..

1 Yes it is suppose to be one candle through both MA's But at times the candle starts back before it closes. To take this early is your choic and risk.

2 Should be the body

3 Not really

4 if the PA supports it.

The 35/50 trades are retracemnet trades they also fit into the Trading Zone idea. I will be explian later. So watch that first and maybe you will ge a clearer Idea.

This is not part of EO's system he didn't use fibs. He may now I don't know. But it can help us to identify areas where price may tusn then looking for confirmation of a MA or S/R area can give us the confidence to take the trade and possibly stay in the trade. Because if the trade is supported by the higher time frame charts it is alos supported by higher time frame TP areas.

Hi Ken

Great Post with your play by play by play I am starting to see the big picture.

I tried to follow this last one on my charts.

But my chart looked different But everything came out the same.

Then I seen I had the wrong day.

I guess I was back testing without knowing it.

Please keep the explanations and charts coming I may actually get the hang of this yet

John

So now your probablly looking at the above information and thinking that is all good but how to I know where to apply it. If I draw the fib wrong it is useless.

The question is more of what do you want help to see. Are you looking for a area to see a possible entry on a signal candle on the 1 Hr ,4 Hr or Daily chart. Is it the overall weekly levels you more concerned with.

The thought behind the fib levels is to help define swings. If a swing is broken you can then bring the fib down to the next one.

So as you can see we can use this tool to help see Different areas of interest. It depends on your trading style . If your a scalper you could use it on the 15 Min chart just as well.

As we showed last week it can also be used on a single candle to help pin point the pullback into the previous candle prior to a entry signal. THis can be used on any time frame as well but better on the 4 and daily unless a very big candle.

This is just another part of helping to see the possiblities . The more confirmation you can develop will help to boost your confidence to take the trades. Also you can use these information to stay in the trades longer as well. Because the more you notice about the swings and where price normally goes from a level will show the possible Target areas as well.

A profit target should be a entry are heading the opposite direction in reality. Trader take trades from one swing to the next. The distance of the swing depends on the time frame chart you are using.

But just like the fib when one swing is broken we go to the next high or low and that should lead us into bigger gains. Unless price turns back and starts making new highs or lows against your trade . It could be in your favor to stay in.

The trade I took first of the week I had closed . But price failed to make a lower low and I left 60 pips on the table. It is a choice we all have to make on taking profit. But that is the difference confidence will help as we see our TP areas getting hit we will learn to trust those choices.

Hi, KEN
Now I can see further! and I can see deeper!
Now I know I need to wait for the interested area! So I increase my patience a bit!
Now I know I have at least 4 tools: PA, PPA, Fibo, MA. I feel I have confidence.

But, I know I need more practise to conbine using those tools.

I draw some Fibo on my 1h chart. I have one question regarding how to chose the top and bottom of Fibo. If you have time, please share your experience. Thanks.