Ken's Continuing Successes with EO's system

"The 50 ema is the mid-level line on the 15. Above...look for longs, below shorts.... The 62 ema...is the mid-level line on the 1 hour..."

Ken, this is another bit of information I can add to my understanding of what each of the MA's is for. Thanks.

And now the 4hr we can see we are at a area that a choice needs to be made as we don't move the markets with our tiny orders we will have to wait for the big boys to make a choice. But we have already choose our options. These are initial targets and again when price aproaches we wil watch for Price Action to lead the way.

It should be clear where those targets came from always remember your trading zone levels in conjunction with S/R it is a powerful tool.

Yes . That is why the 35/50 and the 62 ema trades are listed as retracement trades and if the 35/50 0r the 62 ema aren't near the middle of a previous swing they tend to be a bit more of a gamble. If they fail then the trend can be looking to change. Then price would be on the otherside of them.

and the daily See how you can get your trading zone without the fib tool simple process of counting.

Hi Ken,

I asked myself if there's a way to weight PPA especially at the 15m tf. I think the most important factor is if the PPA occured at a HTF s&r. But when we see a PPA "in free space" and we only want to scalp a few pips it would be nice to know how probably it is that the price goes in the assumed direction because of the PPA in the same area. Do you think some PPA patterns are stronger than other?

I marked a failed trade on the attached screenshot from friday.
I went long because of the PPA (bullish outsidebar with the same low like the long wicked red candle), trend line bounce, 50% fib of the last up swing and bounce from the 50 ema. On the other hand the signal candle could not get over the faster MA's and the 1 hr looked weak. The previous engulfing (PPA) turned out as resistance. It would be nice when you would comment my trade.

What I see on the 15 min.. I really only look at my 1 hr for areas of interest and once in a trade to see if it supports my entry. Just like the 4 hr helps me see that this trend may be ending the 1 hr is the same . It can help you see a change of direction is near. But when I see a tradeable signal on the 1 hr I look for supporting entries on the 15 . Like if I see a DBHLC or a pin. I would look to the 15 to see if I am getting a pullback into the body or wick before it moves in the right way. But most times the 15 shows the entry first then 1 hr supports it.

one other item I missed .

This stuff on patterns is not stuff I made up it is common knowledge . Just do a bit of research , We don't use tons of things or do we need to. But the few we do use we should understand completelly. Every little bit helps. This isn't aimed at anyone but everyone. Knowledge is power in everything we do in our lifes. I posted most of the patterns in my PDF tyhe double top / bottome may not be there but the link to patterns is.

Thank you for your detailed answer Ken.

Sometimes the wish that something will play out is bigger than the facts I can see on the charts. I noticed the double top but I focused too much on a trendline/50% fib bounce. I have to work on it.

We all have our demons... KEN

Mcfly brings up a point. One way to handle this is to jot down all we see and what WE KNOW should happen. Like the double top maybe if we acknowledged it figured out the likely target and had seen the 62 ema and looking to continue our trend from a nice deep retrace. That could sway our thinking same as every day we look at our daily taking notice of any candlestick patterns or signals. Then projecting the likely areas that will come into play. It could be a area we see price possiblly turning or a conituation to a profit area. But write it down or better place a circle or mark on your chart remmebering this is a AREA. Then as the day progresses we do the same with the 4 hr. and 1 hr and finally the 15 min.

They don't have to all agree. As what we see on the charts a lot is mixed signals but they really aren't. price may look very bullish or bearish . but with a little thought you will see it is at a turning area and the first chart to turn will be the 15 min.

Little off topic but this is the thought process. You have a general idea how price is going to flow everyday and you can have two plans. One for each direction because you never know what fundamental can come out and screw it all up.

Just like the double top the Inv head shoulders on the daily gave a very good indication to where price was headed yes it shorted a bit but a single swing up isn't required and a shallow retrace and more up is common.

So make notes plot targets and then watch for the signals at the right place . Everyone jumps to soon sometimes but we should get a little better as we go along.

Hope everyone is doing well this weekend. Ken

Good quote Ken

I have been jotting down price areas through out the day, so when I wake up in the next morning I already have the info on my 4X6 index cards. This way if I see the set-up I want, then all I have to do is react.

This has helped to clear the noise in my head.

Just my two pips.

HOLLA

So we went through the charts for E/J Saturday. I did leave out the 1 hr. but plenty of information is there. To scalpers the information on the 15 min alone with possible entries off the 1 or 5 min may be all they want and if you can learn to cover trades and let them be.. You could hit some home runs. But most are looking for those bigger trades and gains. But also the smaller risk and that has always been the reasons behind this strategy enter like a scalper but profit like a swing or position trader.

So with that in mind go back and look at all those charts in the reverse order. Daily to the 15 min. That is what you should do everyday. Look at even higher your weekly now and have a thought of what that chart is showing you with the possiblities. Jot those areas down on paper then go to the next and do the same when you start to see confluence of areas on the different charts you will start to get a better idea of where the real areas of interest will accure and you will be ready for it.

Just like I marked 4 areas on that 4 hr chart. So looking at your 1 hr and 15 min. Once price starts moving Sunday or Monday. You have areas to look for a entry . Your saying yes but there are 4 anyone can do that. Yes but if it drops to the first area and turns back up you have a higher target if it continues to the first higher one and turns you have lower targets. Also remember when seing price reach areas you have interest in that resistance becomes support and support becomes resistance. That will help to show you that it will reverse or continue on to the next area.

But as price starts to move on the 1 hr and the 15 min you will start to see which will come into play first. Which is better than most traders. It will also help to keep you from just looking for a signal on the 15 min. You can also pick targets like on the 4hr on your 1 hr and 15 min and as you see them agree your confidence will grow.

Remeber your basics once support is broken it becomes resistance and when resistance is broken it becomes support. pay attention to the closing price of your candles. they give you loads of infromation. A candle may penetrate a line making you think it is breaking but then pull back and close the other side leaving the Support or Resistance intact.

Just like a entry signal you can see many attempts to break them at times where the candles will still pull back and close below the highs or lows leaving them valid. They also remain valid as seen as PPA so look left.

Put some marks on your charts for the previous days highs and lows really only need one most days depending on the trend but hours later it can and does come back into play. You can see a retest of those lines on the next candle and much later. But they almost always present a chance for a entry you can cover.

If your new and using these MA's trading away from them is the easist way. As they are support when below price and resistance when above. Until the major MA's are broken on each chart. Also once in a trade watch your lower value MA's for a sign that you may want to exit with your profits. But as long as price doesn't CLOSE the otherside of the 5 or 10 ema on the 15 or the 10 on the hrly you should hold for those massive gains . Even when the price and the MA catch up with each other you may want to draw a straight line below or above then wait for a break to close. Because most times when price consolidates it will break continuing the trend. Read up on your patterns to see this..

Ok that is to much already but it is time for a new week and we are ready to roll..

Good Trading to Everyone Ken

That is a great idea everyday doesn't have to start like you know nothing build on your knowledge and how the previous days flow was.

We see time and again that price just stalls or consolidates then gets right back to what it was doing and as you said knowing those levels that were important yesterday can only help you today.

Some people are great at remembering all those numbers I have to put them either on my chart or write them down. Writing something makes you remember it a great deal better than just looking at it.

Thanks for your Input. Hope school is going alright.. Spam King LOL Ken

More proof of one of the easist trades to take this time with 3 chances. Stop can be very tight so low risk. Plus I wonder will that line come into play yet again today we will see.

12 April 2010, E/J
Monday!
E/J open with a very big gap from 125.80 to 126.95!
Because this gap is very big, not sure it will fill this gap first or continue up. So just watch today!

E/U, Same a big gap 1.3498 to 1.3658
will watch the support of 1.3590 area which is the neck of W bottom

and what now with the gbp.

I originaly tried to close the gap on e/j but the PA was terrible so took a small profit and got out. E/U did better I shorted from near the top. and left it overnight with a moderate tp was hit. I don't normally trade e/u . But the gap was inviting. Yes kinda waitng now to see what the U.S. reaction will be

And between the confluence of the pattern and lower highs and lows. We had our trade a described. You could have used the 10 ema as a 5:00 O'Clock entry.

Hi Ken,

I was in this trade a bit ealier but the green candle which broke the 5420 moved back and closed above 20 made me want to go out. I went short e/j instead and got some pips.