Ken's Continuing Successes with EO's system

Are we start to seeing ??

I just took a scalp off the touch of that 125.80 s/r line for a few then when the shooting star formed I took another short to the 125.47 line. You can look on those charts I posted and see those lines before price reacted to them. just a bit of proof that the lines do effect the price.

Look left on the e/u for a similiar trade 15 min had many touches where it rejected.

Or maybe it is proof that price reacts at those lines. Whatever the lines work is the point.

And if you draw a line from the bottom to the top on your 15 min e/j and duplicate it you will see more of my reason for exiting there. Plus anytime we have strong levels if you close we almost always get a chance to re-enter on a retest of a break of those lines. So why give pips away or you could just take partial profits. But this didn't look like a long term trade to me.

But I have been wrong before and why I am not a great long term trader and don't give calls as people get mifed when they see all they left on the table.

Oh well lower high, trading zone ,broke that 125.47 line a retest and down she goes. New low would be around 124.80 if we don't double bottom

How did you get an s/r line on 125,80 level? My chart only goes back to 19/04 but i cant really see why we would draw a line there?

On the candle before the shooting star, we have a long black candle that closed past the 35/50, shouldnt we be going long here?

The 1 hr and the 4 hr on E/j not having made a lower low have me still looking long. I always look for the 15 min then the 1 hr to turn over break the swings to change trend. 15 has but the 1 hr is still above hte 62 ema a quick refrence and now it may make a double bottom.

Time of day will come into play as well because we could start consolidating shortly after London fix. But we always let price lead the way . But it is good to have some ideas in your mind of what price might do. That way your not caught off guard and struggling for a entry.

A pull back up into the trading zone and a alginment with a Line of some sort could give additional shorting signal. But wait for the signal. and protect your equity with tight stops.

the 125.47 line looks to be sitting right on the 50% 1/2 trading zone level.

yep 3 pips above it

well the 125.47 stopped it but that was about all . I tried a short but closed with a few no good signals and taking to long could become a flag and break higher . so i will wait for it to show it's hand.

here you go.

Hi Ken!
Thanks ever so much for taking the time to reply, really appreciate it.

Yea I don't know what I mustve been thinking regarding the s/r line, just went straight over my head, can see it clearly now.

On the 35/50 im actally refering to the long red candle, sorry about being unclear, but what do you mean with it being in the wrong position?

Hope im not being to demanding

The 35/50 is a retracement trade we were in a downtrend and the red candle was short so a long would have been the trade . Plus we look for the 35/50 are to be with in our trading zone. Like I mentioned earlier if the previous green candle had closed beyond the 35/50 it would have been a perfect 35/50 setup. You will see this a lot that the 35/50 will not happen just because of candle closing times. One will close before then the other opens and in this case formed a pin. Which at this level was a very good setup.

You will start to notice how these trades are very similar to eachother and just a bit of difference in location and candle signal is all that may make them different. It is all based around price action and the interaction of price at given areas. Like the trading zones , S/R major ma's . It will come to you in time.

Don't woryy about asking questions I may not anwser right away but will try and get to them when I can.

Hi Ken!

Great job you are doing here! - Got a question: how do you distinguish between a 35/50-crossover and a 35/50-reversal. The criteria mentioned in the pdf's are quite vague. Thank you.

There is only one 35/50 crossover reversal trade. One SINGLE candle crosses over both the 35 sma and the 50 ema . and you reverse on the open of the next candle. It is a retracement trade.

Interesting! The original pdf says:

"b) 15m-35-50MA cross and reverse:
When you see a close of 15m candle through the 35 and 50 with a short wick, trade a reversal on the opening of the next candle. In chart below green arrow points to candle that breaks through the MA’s and the red arrow points to candle you would go short on opening of."

and

"e) 15m-35-50MA spike through
The trade was really easy to take, the resistance and the major spike was through the 15m 35/50. If she spikes that hard through, even if she closes that high, she's going to come back down to atleast touch the 15m 35/50 before continuing her journey. A positive exit is about 90% in my eyes. I've not done the math, but it works."

And the 2d pdf says:

"There are actually 2 different trades that take place here.
The first is a reversal trade and price changes direction on the retracement and returns in the direction from where it came.
The second is a breakout trade, the price will sometimes only come back to the MA's as a retest then continue in the direction it was heading. This trade is normally found when the price isn't retracing but is trending in that direction and just crossing the MA's not pulling back to them (examples will
follow). Also sometimes as in all trading the retraces fail at the fib levels and price can continue also.
One way to get an idea if the trade is possibly a retrace reversal or a breakout retest is by how far the SINGLE candle went past the MA's before closing. A reversal normally close pretty close to the MA's, the breakout can close as far as 35 pips away. That is normally considered a clean break
of a line at that distance. The trade is still good but a tighter stop would be used and you would consider the touch of the MA's as the possible end of the trade. A retest.
So to see a good 35/50 coming up look for a retracement the leg or swing that price is approaching the MA's should be about ½ the length of the leg it come from the top or bottom off. Looks like a reversed check mark  If price isn't retracing then look for possible retest of the MA's as your 35/50 cross trade."

Like here. Beautiful spike thru, no reversal.

guess I should explain better. Just woke up. late to the party.

There is only the trade called a 35/50 crossover reversal. It is a retracement trade. The 35/50 ma's need to be in a decent trading zone to be the most effective. Doesn't menat it never works otherwise but better when it is.

Like any Line you have two choices a false breakout which we are LOOKING for or a breakout and a retest. The further the price crosses over the to ma/,s the more likeley it will only retest the break and continue. A cross of about 35 pips can be a clean break and it may not even retest. But alot has to do with how deep the price has retraced.

You can look on both the GBP and E/J and see this trade at work last night. You also can see that a lot of times that price doesn't wait for the close of that candle to reverse. It is the nature of the beast and is all about timing.

The whole idea about this trade and the 62 ema trade is one of trend on those time frames. the changing of direction once the mid level ma's are crossed . Price always tends to gravitate back towards the center and the ma's towards the price. you can see many times where price just bounces off the center ma's and continues. That is what we are looking for. But now and then if the retracement is deep or the ma's have caught up with price we then see a change in trend and price moves to the other side.

It is actual Fib retracemnet trading at it's basic but not using the fibs. just learning to notice the price in the proper placement and the ma's help to spot the entry just like most of this entry signals. they have different names but are all just trades used throughout the forums. Just simplified for ease of use.

To much failure in trading is the over thinking of trades. we can analysis trades till they are over and past. Still sitting there thinking what happened was a good trade or not. Someone took the time to figure out the realtionship between these MA values and many different Trade entries. I am sure it is no wonder that the 35/50 cross reversal and the 50% fib in cnjunction produce the best resuts , The same with the 62 ema touch trade and the 62% fib level.

This is why I am constantly telling folks to find something , one or two of these trades that are similiar to what you have been doing already and adding the ma's to that should make it a lot simpler to start using these ma's to take trades. Then add to that. Because these entries flow from one trade to the next in both directions and could have you in the market almost all the time once they are completely learned.

Or the main focus allow you to get the best entries of big moves with the least draw down which also gives you the greatest profits. with the least amount of risk.

Anyway blabbed on enough .. Hope trading is going well . Ken

Morning all,putting a chart up to show how nicely the fib trading zones have been playing out today,and to say thanks again for putting the e-book links up on post 411 on page 28 of your thread Ken.Had to do a bit of searching to find where they were and read some great info in previous posts whilst searching,keep up the good work,best wishes.

Ken,

sorry for jumping on you with all this shortly after you woke up.

So, if we got a cross over the 35/50 we always trade the retrace, possibly except for crosses around 35 pips away from the 35/50 as these tend to not reverse.

Is the "short wick" mentioned in the pdf's a relevant phenomenon? Where would you place your stop?

Eo' ahd mentioned that a stop 35 pips away from the crossed ma was a good option. So if the candles crossed 15 pips a 20 pip stop .

Yes the fib levels or the Trading Zone as I like to call it , So many find fibs hard to use . Combined with some known trading levles PPA give great results with little risk and great confidence. I have a line at 1.5408 on the gbp and that was a perfect retrace entry a 5;00 oclock EO trade 10 ema.

Gald to hear your doing well.. Ken