Ken's Continuing Successes with EO's system

Hi,

I have seen the set up but I didn't liked that this time the PA was below the 50 ema and waited for a short. The shooting star which spiked trough 35/50 was the sign for me to go short. I took profit after the inverted hammer.

Yes, shooting star was nice a sign to get out from long, and was supporting short.

Some nice trades guys but mainly nice to see everyone taking notice of things that is the most important then you can start to learn to trade with all that information. The shooting star below S/R 1.5343. was a good call to exit that long . It was worth a chance almost equal lows.

Then the retest of the asian low gave a 5;00 trade actually the best looking trade of the day and turned right on the 1.5252 line. plus the 200 sma was in that area.

Hope everyone has a great weekend.. Ken

Thanks for your time Ken, as you say good to us noticing signals. I have certainly had a profitable week and I hope you all have too.
As nanningbob says "teaching men to fish"

Good weekend y'all

Hope everyone is having a nice weekend , a big holiday in Japan this week. I am just going to ramble a bit about some different thoughts that have been cluttering the Old mind. A lot is things I have mentioned before but may be new to some. Forgive the spelling and grammar when I get on a roll it gets messy. My two fingers go to battle against each other seeing who can go first.

First is our ultimate goal. I think I can speak for almost everyone when I say we would like to be at least financially free with the least amount of stress required to achieve that goal.

Some of us are speculators which is us that don't mind having a bit of risk involved in trading. The others are more investors looking more for a nice increase in equity but not really willing to risk to much.

We speculators tend to be broker than the investors. Looking for those series of trades that will move us into the position of the investor. A investor has money to risk but has normally acquired by not doing overly risky things. He now wants to make money with his money but most conventional means no longer provide a worth while return.

The Speculators though in their search for big gains may risk to much let stops run a bit far . then close to soon as a positive trade is always wanted. The investor if he is very smart will enter with little risk and once price moves his way will protect his investment with a Break Even stop or maybe even a little gain to cover cost. This is the area where things change because he then looks for profit targets which could be even days to achieve.

This is going the wrong way. Let me tell you about a trader I know and this is happening now over the last few months. This trader is above average with his entries no where to look and enter. He covers his trades once they move into profit to BE. I have seen him take 11 BE trades in a row. Looking for that right entry. But the next part is the main idea here. He went on Vacation a while back and of course being on vacation he didn't want to trade all the time. But he was able to look at his charts during the London opening times.

So he would get a position get it covered and then enjoy some of his time away. Then come back and see that his trade or trades were worth 100'S of pips ended up being one of his best weeks ever. Then he gets off vacation and really struggles for the next couple of months. Trying to get the same results. But watching the charts full time he can't live through the swings of his trades and even tries reversing to soon which cost him trades. The only thing that has changed is that he is now watching the price fluctuations and they bother him.

So he takes a job but still has the chance to monitor his trades at work some what. Just like when he was on vacation his trading has again taken off like a rocket. Almost 2000 pips week before last. But the thing his that i saw him fall right back into the old habits Friday . Close a good trade worth 80 90 pips for 25. Didn't press him about it , as I know him and he would have a excuse. But the fact is that we all have demons to conquer.

But for most of us if we can see the fact that we will gain more by allowing those fluctuations then maybe we can move forward to the realm of the great traders. Yes we can still make a living scalping or day trading. But the gains will never match a trader who gets 2000 to 5000 pips a week. Some may be thinking that is bull no one does that much I know for a fact they do . Not every week but 3000 is a pretty good average.

So how do they do it ? Most look for entries at the beginning of each session. The price tends to trend in the same direction during each session unless news changes sentiment. The trade from one S/R line to another S/R line. They enter, cover and move their stops only when price has shown to make a new swing. Nothing worst than to enter a trade on a break of a area and get stopped out by the real retest.

They take trades against their initial entry either in a separate account (US Traders) or hedge else where. leaving the larger trade intact. This way if the second trade overcomes the first they are now in it correct.

The taking of profits along the way can still be done and adding to trades will greatly increase our equity in a hurry. The newer trader may take some profit even 1/2 at the first level not wanting to give it all back. Most of the best traders started that way. But as equity built they soon realized that losing the few that failed against the ones that moved greatly was good enough. So many now only protect with stops. letting it all ride. They use the higher time frame charts for targets also the ATR amount. If it is reaching the daily range look for a level to take profit.

It is this that the J16 thread tries to teach that the long term trade should be learned first as this teaches how to hold for profits. So we this is our goal to learn to look the other way when the trade is bouncing around. It is hard to do for guys that have a small account every gain is important but we have all been there where we exit and then moves 4 times as far .

I mentioned the other week or so that maybe opening a demo or but a few bucks in a micro account. Then try and trade long term with that account. Getting in at the right spot then letting it run to the next S/R level. We have to learn that it is more profitable in the long run.

It is the same as I mentioned that if you break a rule and do something your not suppose to do and it works out . It can start building a self destructive trading attitude making us more like gamblers than traders. So this is the other side of that fence. WE now want to build the idea that trading longer term is where the real money is at. So we begin using a demo then a micro. then hell just let the micro account build itself because once you get it down it will grow fast. Then the thought that your trading with house money could help hold them longer.

No matter how your start it is a good idea to try and pull your initial investment back to you as soon as possible that way if something goes terribly wrong you will have your trading stake still and can give it another go.

We show lots of entries off the 15 min chart but really during a session there should be only about 2 per pair. For long trades. i will post some charts to show how we can maybe start seeing these longer trades and how to mange them. It is all the same ideas we have been going over and over. So we will build on our knowledge and see if we can't get off the ground with better gains. Plus we could free up some time as trading doesn't have mean staring at the computer 24 / 7. You get positive 100 pips or so and protect it you can walk away for a moment. even set alerts . It will open a completely different trading lifestyle.

Enjoy your weekend I will try and post some charts today or tomorrow morning.. Cheers Ken

Hi Ken,

I'm a relatively new trader, especially to M15 and i'm trading eclayf's "Dance" strat. I have read EO's strat but I think it's a bridge too far for new traders but I do like to keep an eye on your progress here. I hope to add some elements of it to the Dance strat one day, when I feel comfortable, confident and ready.

Just wanted to say what an interest post this is. It's opened my eyes and i'd really never thought about things this way. I will be adding a link to this post in the chat group that we have for The Dance, i'm sure our group will also be equally engrossed. Thanks for posting, a very interesting read.

Once again great stuff Ken. During my R&D I noticed that the less I trade the more I make.

Going to school has helped me to not watch charts all day.

HOLLA

Is this some information we could use to focus on greater profits ??

how about the GBP ?

Ken, posts 825 (philosophy) and 828/829 (visual) most appreciated.

Thanks.

Don't just assume because of those two charts that it is a guarnteed thing. But it does show the possiblities and how price does move during sessions, and shows the higher gains available.

Caught off guard with these moves . Because of Japan holiday . But guess some euro news or the UK elections are causing some movement.

Trade Safe , have a Nice week.

Hi Ken,

how you define an interday trend. SMA10 on 1h?

Yes you could use that . I watch the swing highs and lows. Starting with the 15 min at first. Then hourly. !5 min can be the Intraday trading trend for a session the hrly will show the start of a bigger trend or change of trend. The 4 hr and daily can give you the ultimate direction that can help us to get in the right directions.

Look at the 4 hr GBP right now. End of last week hit a lower high within the trading zone this week opend gapped up almost 80 pips but conitnued that downward trend off that lower High. The 15 min suported that move with Lower highs and lower lows. The one hr. is now looking to print a lower high also.

For the trend to start to change the 15 will be the first to start printing higher Lows. and it is the higher lows that are important in a up trend and lower Highs in a downtrend. WE want to see the oppisite players start to take hold when the trend may be shifting. So buyers need to start to enter the market which will keep price from going lower. (Higher Lows) But sellers may still have stops in place and our resisance will be in place. But as long as the higher Lows continue those areas will be breached sooner or later.

Look at the gbp now we made a low at 1.5210 we tried to go lower but failed and closed higher a higher low. then price went and close above s/r at 1.5252. and is consolidating on the top of that now support. So we are carefull to sell on top of support. Because price could turn back here as well. But the s/r AREA may hold . So we are looking for another higher Low. To conitnue to go long.

Hope that makes sense to you guys. I will try and remmeber to find some examples to post later.

The chart

Price crossed thru the 35/50 but the ma's and the price weren't in the trading zone so no trade forme. WE made a lower Low and price retested the bottom of that area. WE would need a break of 1.5200 to get a lower low on the hrly. Time of day that may happen tomorrow or price could break above that bluse line area and go back long. There is always two choices.

But6 below the 50 ema I favor shorts . A bit late now the entry for me was that retest or the mini pin. Not reallt a signal wick is to short. B ut is red in color and I liked the location of it.

You can see that price on the gbp went back and touched that blue PPA line and the closes were below the 1.5252 s/r line I have on that chart . could have taken a scalp off it. Time of day probablly going into consolidation.

Your mentioning the trading zone, what are you refering to exactly then? Fib levels?

And as you say at the time of day gu tends to go into consolidation, on average how much of your weekly pipage would you say you get from this time of day? Do you get in some good trades or is mostly from when london and us is open?

Also I think its great to see people mention the trades they take throughout the day. Lot of work atm so cant be infront of the charts all day. However im writing up the trades I see taken here on my own chart and save them so I can study up when I get in some spare time. So, hopefully, ill be able to recognise equal trades when they pop up later

Yes it is also fib levels. I call it the trading zons and have taken a lot of time showing peole how to get that area without even using the fib tool. For some reason a LOT of people have trouble with that tool . Not knowing where the top and bottom should be . Using it upside down. Lots of variables.

Maybe you haven't gotten to that area yet it was over the last month or so. But yes it is the fib levels 25% to 75% . 50% and 61.8% being prime. (The Best)

Take a look at the e/j 15 min . I have a daily S/R line at 125.00 see how earlier today price used it as support for a while then this afternoon as resistance.. Trust your lines , plus it gives a no brainer plan for your stop.

Gump trading back and forth between the major ma 50 ema and that line could have netted you a couple of 15 pip trades or 4 if you went both ways. I took and held a short as it being below that s/r I was favoring shorts.

Charts