Ken's Continuing Successes with EO's system

Also remember any change in direction will happen on the 15 min first.. Plus time of day comes into play if price has consolidated a false signal can form on any time frame. Also never forget the overall trends on you 4 hr and daily charts. Which has been up. Until sings start to get broken direction doesn't change and on my charts I see no new lower lows or highs on 1 hr or 4hr. since yesterday. The canldle next to your pin was indescisve having not made a higher high or low than the pin. It may have pulled up the wick then went back short which would have actually made a short but the failure of the break lower just renforces the buyers strenght. But could have beena nice countertrend trade.

Always watch for your trades to break swings to be long term trades. If the price stalls or turns back at the swing the trend is probablly continuing. And as it is a countertrend trade quick profit taking is crucial.

Hope this helps . ken

Hi, Ken
Thanks for all the effort you have done to teach us!
To make my question clear, I use one of your chart to illustrate.
I understand what you are talking about the S/R, 21 MA... 1 or 5 O'clock trading.
But everytime, when I try to enter this kind of trading (let's say short), the candlestick on 1H looks like bullish, I marked in the chart as area 1, 2, 3 .
Sometimes, I forced myself to enter the trade, but I got SL hit, then I started to regret that I neglect the HTF .

For 1h62ema trading, same issue happened in 4h chart.

I guess 15M35/50ma trading vs 1h chart, 1h62ema vs 4h chart. they will never point to the same direction.

By the way, thank you very much for the book you send to me.

I guess 15M35/50ma trading vs 1h chart, 1h62ema vs 4h chart. they will never point to the same direction.


Hi.

It is true. In general when 1h candle crossing 10 SMA look for enty with 35/50 cross, when 4h crossing 10 SMA look for enty with 50/62 cross. (Although they works best as a retracement trades ).

Soemtimes they will but very rarely. Noticed this morning early the gbp had crossed the 35/50 and bounced off the 62 ema but the placement wasn't great it was just because price had been consolidating in a tight range.

You wil see from time to time the 4 hr will give a pin and when price moves up that wick it can form a 35/50 reversal also the 62 ema can be in the same are as these are retracement trades and they can all aligne at once. It isn't common but happens you will here some say everything came together and those are the trades psople will jump on.

You can get a everything from the daily down looking the same . But it doesn't happen often. Most people look for enties that follow the trend on the 4 hr and daily charts. But keep in mind retracemnets which are countertrend trades. It is alot to remember but it gets easier with time and just requires a glance fom time to time. but once you start getting in the BIG moves the right way is when the pay offs add up.

I will try and remember to find some charts to show some of these. Ken

Why make yourself strugle here is a chart of e/j 15 min it has been in a down trend all week. and today was more of the same. Everyone pushes the gbp and e/u as the most traded pairs true they have more volatilty as they are more common curencies. But if you can spot one that is going one way without to much confusing why wouldn't you trade it.. Then if it gave you many easy entries throughout the day and even into the evening. again a no brainer.. I was suprised that the low of the previous day wasn't a better trade but you have to be ready for anything . It should have been a small gain and maybe stopped out. but those 2 pins a litle higher or even waiting for the next retest. If your really patient you could have just been short from the top period one trade.

Hi Ken,

keep up the good work. Your thread is a real gem.

Hi, Kodziro and Ken
Thanks for making it clear to me!
Now I know,, 15M 35/50ma and 1H62ema are against short term trend, but will follow the overall trend. NORNALLY

Hi, KEN
Thanks for your fantastic chart and analysis!
I did not spot any of the above opportunity. I went to short G/U and got SL.
I tried to find opportunity on E/J, but in my mind, overall trend for E/J in 4h is up. and "W" bottom was formed on daily chart.

what is the problem with me, can you please give me some advise?

here

Always remember to look at your swings lower highs and lower lows is downtrend. It will make a higher high and low on the 15 min before it does on the 1 hr. plus you can have a micro trend on the 15 that goes against the 1 hr and 4 hr. as you know it turns on the lower times first then the higher in sucession. So if your swings are intact you are good to look to conitnue the trend . It will normally retest the last low or high of the previous swing before it fails giving you the change to get out with some profit or BE at worst. trying to turn the trend is a killer.

KEN
Thanks, After you show me the above chart, Now I know the reason behind.
I can understand all those knowledge, because it was mentioned in your previous post. when you talk, I understand. But in the real time, I can not see those. I know we shoud be able to find the opportunity in the history chart, then we may have the ability to see the opportunity in the real chart.

Since you have already given us so much knowledge, I think we need to practice those knowledge in real time.

If possible, in the future, can you show us how you see the market in real time. then we can interact with you.

Hey Ken,

I have a question regarding your screenshot from post #465. I think I wouldn't have taken the trade in cycle 3. We had a harami/IB which was tested by a pin. The pin also bounced from the 80 area. The 1 hr chart formed a hammer with a 1 pip upper wick at 2 pm and the set up of your cycled trade was at the area of the lower wick of the hammer. I think Eo told once that a PA candle is in play as long as another candle doesn't close above/below the PA candle.
I can see the reasons for a short trade but I see reasons for not taking a short trade too.
My question is why you was confident enough to go short?

Ken, over what time span was this 15 min chart?

24 hr period mdinight to midnight eastern united states.

The red and blue areas are set to daily they mark the high and low of the day. If you don't have that option you should always mark these on your chart as that is one of EO's and many other peoles favorite trade. a retest of the previous days or sessions high or low.

Here are some more details on that e/j 15 min 24 hr period charts showing a few other hints. It is hard to trade against the higher charts but the higher chart was showing a countertrend trade that did play out. That is waht I mentioned last night as well be aware when what you see is not going with the flow. Just Like a beatiful pin on the 1 hr or 4 hr. Price can either head straight away in the desired direction or it can pull back into those wicks sometimes for 50 pips or more.

This is when we watch our 15 min for the entries as the higher time gave you two choices a pullback or straight away. some will enter straight off but I hate draw downs myself so I will use the 15 min for a tigher stop and then watch the higher for a bigger tp which I personnally stink at. entries great big gains not so much . But working on it. Just like evryone else.

Not all this has to do with this chart just some general information.. ken

But rule one is to be comfortable with your trades so skipping that one is fine. There is alwasy another trade.

Trade Happy Ken

Even the hammer that touched the Harami/ib low worked but the buyers lost steam. The trend then continued .

and today what do we see yet again..

Ken, seeing these current charts and your input is so helpful. Seeing it over and over again is really starting to help me spot some of these on my own. Thanks so much for the time and effort you put in to help us new traders!

Somebody wanted to know the thought process behind finding trades. To just post trades is not something I feel right about. I would much rather show you what to look for and in the process it reenforces my own skills.

You hear other senior trades give areas of interest yet so few can actually do anything with that information. I am not sure why. So anyway we pick a area it can be something found on a weekly or daily chart, that may not become of interest for days. But the key is you know about it. Just like your S/R lines. If your not putting those on your chart why not. It gives you areas of interest. It is targets for entries as well as tp. Just like these two retest in both cases you could have traded to that entry on the first you had a awesome hammer. second a I/B shooting star .

But you also are aware that you are heading towards a very strong area you know this by looking to your left. 1. it is the low of yesterday nothing broke it. Two the way the candles closed right on the line without even trying to break (NO WICKS) and 3 your going against the trend. So it is in your best interest to look for shorts. Quit trying to be the first in on a new trend. Even if this trade failed with all that in your favor it would have struggled to go against you and you would have had time to either cover or get out without a loss. That is the best thing about trading with the trend. Even when it is bad it is usually slow enough to let you weigh your options. Yes I know it isn't that way all the time sometimes it does reverse like a bat out of hell. But in general. it is much better.

I went and looked around and just noticed that this entry happens a lot on a bunch of nice pairs with low spreads and good mix of currencies not exotics. The ones that didn't look that good today was e/u and the gbp. funny aint it. But I also like Usd/cad. AUD/USD . NZD/USD Cad /Jpy . I really don't trade anymore than e/j and the gbp. But I will take another off one of these every once in a while.

Had the thought looking over these entries the last couple of days. If you just entered with a tight stop of 15 what the outcome would be? And if you watched say 6 pairs and only took that trade. Becoming a expert at it.

This is what I keep trying to get everyone to see you don't have to know it all become good at one thing first. This is a great trade to learn because a breakout trade happens at the begining of a lot of sessions. You just need to see it. BUt it cam be the start of the move that last all session.

Thanks for sharing this with us! keep it up

Regards