Ken's Continuing Successes with EO's system

On 4h, it is a hammer, and on 1h a hammer plus a bullish bar. that is what i always facing when I trade 35/50. This is a typical 35/50 trade.

I did not take it.
With the candle that crossed the averages we broke the top of the Asian range and closed above. 1hr and 4hr looked too bullish to me.

I bought the pullback of the 5EMA after the 35/50 instead.

tdeu

GU

Are we forming a flag on M15? I have a trend line from today's lows and the M15 200 here too.

We're still in the 35 pip zone from the close of the last candle, that closed through the 35.

Or does the double top still rules?

Forgot the 4hr level at 5483.

tdeu

double top on GU is playing out nicely

objective for that would be around 538x, which is also the 62% retrace of the hammer from this morning

but there is this trend line between price and the target, that we're dealing with right now
drawn from the lows of the 13th - 3am and 3pm gmt

forgot the low of the Asian range at 5410 for some profit taking

tdeu

anybody can share with me this book : Reading Price Charts Bar by Bar: The Technical Analysis of Price Action for the Serious Trader.
I searched, but can not get a pdf for download.thanks

pulled my SL too close and got stopped

but the 35/50 south with the close at 5440 (just below the top of the Asian range) played out very nice

the entry candle broke the low of the Asian range too

tdeu

see private mail

tdeu, Thanks!

ken, kodziro & tude
I have some problems with my trading. please give me some advice.
1) I make 10 or 20 pips per trade. But I lost 80 or 90 pips per trade. At the end lose more pips than what I earned.
(sometimes, with about 10 green pips I do not take, but end up with SL hit)

2) I feel difficult to follow the setup (35/50 or 62ema). Either I do not the patience to wait for a good trade. Or when I see the opportunity of a trade such as 62ema, I start to hesitate because of some other factor like against the current trend, not at a fibo level, or against the daily candle.

Do you have a maximum S/L? How much is it?
How to exit a trade?

35/50 -62 ema trades should be the easist to take . the 35/50 is taken on the open of the next candle not thinking and no hesistation. The 62 ema is when the candle touches the 62 or crosses it then starts to pull back. They are bot reversal trades. That is why being at a decent FIB level tends to make them better to take.. I believe EO will use a 35 pip past the cross as a stop on those trades. Which is about the same as what people consider a clean break of a line. In other words if a candle closed 30 to 35 pips past a s/r or any line the chance is it may not even retest soon, as it has crossed that line strongly. I tend to use about 15 to 20 pips my self though which may be to tight but works for me.

On the other entries.Like the Pins , hangman and hammers. Those are signals showing the price has reversed. We are assuming that the turn has taken place hince the signal and the stop is past the high or low plus a couple of pips. Again if you got a good entry close to the top a 10 or 15 will give you a bit more room .

But if you notice those entries tend to be at PPA or S/R lines and if the stops are right on the edge of that area. So when a break accurs price tends to jump 15 or 20 pips because a stop level has been broken . So it is better to take a 10 or less loss and re enter if Price Acyion dictates .

That is the key . A stop being hit does not mean that a trade from the level is done it can only be that a final push has accurd and failed. Think of a mini head and shoulders.. One candle gives a signal. you enter on the next then the after you enter taps your stop but closes as a pin after going higher . so on the next if price doesn't go above that third candle that tapped your stop get back in..

Many times a failure to do that is why the best trades are missed. This is another reason we should trade at a level risk wise that doesn't affect our thinking . I have seen where up to 3 entries would have taken place before price finally turned and went the right way . If you look back at some consolidation areas you will see those spots to..

The third types of trades 1 and 5 oclock or entering on retest are a bit more suggestive of where to place the stop because there are many areas you could consider . But you have to decide why you took the the trade was it the retest of PPA or S/R line or a touch of a MA. The reason you choose draws a line in the sand for you. Then place a reasonable stop .. again I find 15 almost always acceptable But can stretch that to 25 but that is extreme as we are trying to go with the trend with these trades not reverse.

If you read EO's thread , You will here a lot of 7 and 10 pips stops being hit. Because they know the levels they want and thier entry was close to the line. 80 or 90 is to much think of that as a possiblity of 5 or 6 chances instead for the same risk. Even if a stop is hit by being to close is better than losing that much. AS you progress in trading you will find that controling the losses is actually how you win. Your profits will grow as you start having more and more trades where you are leaving money on the table. But if you keep getting hit with big losses that want happen as your always scared that is going to happen so you grab the profits to soon.

Another point I would like to mention. Is to follow your plan . The worst thing a person can do is to deviate from what they planned to do. Letting your stop run or adding to a loser is the worst. Because all it takes is ONE time for that bad behavior to go in your favor and you are doomed to a struggle you can not imagine. You will have placed a doubt in your mind that if you break the rules you could win. It is how many a crook is born and is of no difference., So if you have done it good luck breaking it and if you haven't, don't ever ever even think of it.

Hope some of this helps Ken

I will try and post a chart showing some stops. although it is all in the pdf and no where does it get close to 80 or 90 . Unless your trading the 4 hr charts then That is not my realm.. Maybe J16..

promised chart

and

So as seen above the number one thought continues to be prevailent that the same areas come into play over and over. A stop area can become a entry area a entry level can be a perfect are to look for a stop plcaement. Once you start to see this idea and make that one of your goals to spot them it will help you to see better entries with less failures.

If you see a entry but also see another area very close with some Previous Price Action (PPA) Maybe to hesitate a moment and wait for that PPA area would be best. You see many signals that don't work out but if you notice they had no supporting PPA or the level they were at was not in tune with what you were looking to do. Just like seeing pins stacked one after the other right on a major ma. You must look for other confirmation then as the primary rule of those is they must accure at the end of a trend. Not during consolidation yet you will find time after time people talking of failures after taking those signals.

Learn to see when a row of candles is trying to breakout and not showing turning. It is all there for us to see it has happened again and agian and will continue to happen long after most of us have given up. To not use what is in front of us is follly. To not know that price is at a major area of possible turning , A S/R line of a 4 hr or daily or even weekly chart is unforgivable. That is the first and foremost thing anyone should achieve picking those levels. MT4 can even do that for you.

Then add thos PPA areas I continue to highlight for you as entries. They don't have to be many trades it just showing that you have the chance to enter trades at many areas and times during the day. Just because your not awake at London open doesn't mean you can't have great trades.

Put vertical lines on your chart at the times you can normally trade and then highlight the possibilities in your trading times. You may find that you have the chance to get into trades that will continue to run untill the next major session giving as much or more gains than a choppy london or U.S. session. Some find that trading during off times is best. Look at Friday taking shorts off the 00 area in the afternon would have been worth 80 pips . two 20 pip trades and ended with a 40 pipper. and it started earlier with another 40 pipper so possible 120 when most say trading stinks. That was the GBP by the way.

Their are many ways to trade find your time and style and then improve on that .It is all here for you to see and if you would like another pair of eyes to help see the possibilities just ask and we will do what we cac to help. I try and simplifiy trading maybe to much for some but that is my way.

Hope everyone is having a geat weekend . Uncommon weather here cloudy and rainy looking . Not a tourist type of day..

Take Care Ken

Hi all!

Fantastic thread! Its so great to see the dedication and willingness people have to teach us rookies.

I hope its okey that I fire away a couple of questions.

What im struggling to fully comprehend is the 1 and 5 o'clock trades. From what I understand its basically when the mas are pointing towards the 1 or 5 o'clock we're going either long or short. The chart here is from 00:00 to 00:00 15 april, im gmt +1, iv marked what is to me 1 or 5 oclock trades. How does it look?

http://www.forexfactory.com/attachme...8&d=1271598940


Also another thing im unsure of is which ma we use. I know some on EOs thread say that its enough to just use the 5 and 10. In the Trade What You See pdf we add the 21 and we also want the ma and price to be established on one side and all the ma spread out in the correct order with no crosses for it to be a good entry. What are your guys thoughts on this?

One last thing is, right after the first 5 oclock trade on the chart, we have a 35/50 cross. What do we do here? Do we continue our 5 oclock trade? Or do we go long on the close of the 35/50?

Any help is greatly appreciated!

Learn to approach your trading from the top down. If you know the important areas on the higher charts then it makes a lot more sense to us why we are seeing a set of conflicting signals. If we are sitting right on a major line on the 1 and 4 hr with solid red candles. But get a long entry on the 15 min. the charts are in total agreement.

Unless your entering off the 4 hr chart they will almost always disagree, They will start to agree as your trade progresses but the intial entry will not most times. We use the 15 min entries to lower our risk and be able to have a larger position size for the same size account.

Takes a lot less $$ to hit 2% with a 100 pip stop verses a 30 pip one. Almost 3 to 1 . So you could trade a position size 3 times as the one traded with a 100 pip stop. Plus you stand to gain more in the same manner. A 33 pip gain on a 3 times the size order is the same as a 100 pip. If your in front of the computer anyway why use huge stops. You know if one level breaks it is going to the next so see how far that is and save the $$.. To get another monitor.. LOL

Lots of people veiwng but no comments . Hope it is of value to some.. Ken

I get a lot comments of people wanting to know how to see this in real time. If you look at any of the charts I post the lines that price reacts too come from the left of the chart. So when a level is created on the left just draw the line across your chart if you see it very close to another line you already have placed like a S/R off your higher charts. Then the interest will be even greater. If a trend has setup try and enter with it. So you may need to let price break and retest first if you see a strong trend. But if price is weakening candles getting smaller as it approaches those areas a possible turn can be in store.

This is one reason that the 15 min is nice it will show the momentum of the moves changing quicker that the 1 hr. Sometimes in hindsight the higher time frames may not even show a slowing where as the 15 can show a great retest entry. Sometimes that happens even on the 15 and the move could only be seen on a 5 or 1 min chart. But that is a bit extreme and most will stay away from that unless they are true scalpers. But our goal is great entries with awesome gains. Enter like a scalper hold like a swing trader.

So draw lines or take notice at areas that have already happened . Add any other data that can support a move . Trading Zone. S/R lines Trend lines. Pivots.MA's What ever it maybe for you and the more you have the less chances of a failure. You could then even draw a target circle for that area waiting for price to enter. Then wait for a entry signal and enter with full confidence.

Your chart didn't print . I will wait a bit for you to try and reload it As I like to use what others post to show it on their charts because me just posting a different setup may not get the point across in the right way..


But some basic info the 1 and 5 oclock entries arte in the opposite direction of a 35/50 as the 35/50 will be below or above the 1 or 5 . They are all retracemnt trades the 35/50 are just deeper retracements. You will find the BEST 1 and 5 oclock trades are the ones that retest the breakouts of the previous days range or sessions. Like after London opens a pullback to the Asian range will have the 5 or 10 ema sitting right on that same level. So that is your entry and it is a touch entry . Which a lot of times the ema has moved because price is coming at it . So you may have to enter where the ma was not where it is. Hope you understand I will try and show you on your chart if it comes back ;

The ma used is not as important as the PPA you should have identified, it is just the combination of all things considered that makes most of these MA trades good. You will sse a lot of times I post charts without any mention to the ma's. The movement of price is the same weither you have ma's on your chart or not. WE don't need to get bogged down with just ma's as I mentioned above it is when the ma weither it is the 5 ,10 or 21 . That is near a known PPA level that makes this trade a success. Just entering opposite at each touch of the 5 ,10 or 21. Would result in a bunch of failed trades. It isn't hard to see the ones that work out and we have plenty of history to learn from..

Welcome to the thread. Ken

Here is where I see some beter entries with supporting Previous Price Action

Hey Ken,

Gonna through your whole thread tomorrow. Will put EO's on hold for a day, as I need something else in my head.

Loving the flashcards..... one thing though, can you please send me your address to where I can send the invoice for all my black ink

Regards

Lee

Hello.

My first trade today. Took +25 and cover rest. ( EJ )

long with PA 1h ( 15 min entry ) and then 35/50 cross trade