Ken's Continuing Successes with EO's system

Tnx Ken for your explanation. Interesting approach, from 15m to 1h and 4h. What does 5MA and 10MA on 15min chart mean to you?

What are the MA's in this trading idea they are floating S/R , What does that mean? It means that instaed of us drawing lines on our charts we are letting the price draw the lines for us. Just like when we draw our lines we give greater importance to higher time frame lines than we do to lower, the same is true here.

Take a look at the gbp the main MA on the 15 min chart the 50 ema. is virtually a straight line in that ranging market. Then broke out.

The fast ma's 5 ,10 and 21, React to price the fastest. they also will be the first crossed by price of course. Like our normal S/R lines that we draw. The lines drawnon a 15 min chart would be broken first.

The use of the MA's is the same as our hand drawn lines to get our attenion to possiblities, to enter trades the 1;00 and 5:00 trades and exit trades when price starts closing across the lower MA's is the first sign of a change.

That is how I view all my ma's just like S/R the higher the value the greater the importance. But I only use them to show areas of possiblities and to get my attention. Then use the PPA or PA to actually trade with.

Because it isn't the line that matters it is how price reacts at that line that does.

Hope that helps a little , Just like drawing lines everyones ideas are a bit different.

Chart , Yes this is a 5:00 trade taken off the touch of the 10 ema.

There were other items confirming that trade As you keep looking for these things it wll become easier as your not searching for then all at one time. You would see a lower low . Frist Clue, Once it turned back up you would look for a Trading Zone to enter. Second Clue. Then you see price , Trading Zone and the 10 EMA come together. Third Clue. You then look for Price Action you see good Previous Price Action at this area you have a good 5:00 entry. you ENTER. I have a s/r line at 125.00 so my stop is easy to place. right above that line plus right above the next ma the 21 ema. which is also a good place . The 200 sma is also in this area.

we just had another 5:00 trade off the 10 ema missed it was making that chart . 124.40 was entry area quick scalp as we see Price action at the bottom is getting reversal looking and the 1 hr is almost a hammer. So holding a short to long could not work right now but still with the trend. Or this could give you a reason to close or adjust your previous trade.

If you hadn't done so off those earlier 15 min candles

Also was a 5:00 trade on the gbp. same 3 clues. Lower Low. Trading Zone, and 21 ema. then enter at the 21 ema and ppa is previous days low retest.

entry was at 1.5210 area

was a earlier 5:00 on the GBP also at 1.5239 area same rules. This happens again and agian. They are good places to add to a profitable trade as well because your stop can be extremely tight.

This one was the 10 ema. was the big wick that touched it. messed around a bit but never neared your stop.

This one was really good. Got 15 min trend line there also.

When your looking at your s/r lines and you watch price get close to them. Take note of how that line was formed. Were the Touches mainly from below it or did the line turn priceback up from the top. This will give you some idea as what could happen. Some are better as support other Resistance. Plus if your a scalper you can tell if it is worth a quick fade.

I just woke up but got the retest of the 123.62 line (short) and faded ( take a reverse position) on the 123.14 line (long)

On the 4hr chart 123.14 has turned price many times back up . So it figures it was worth at least a small scalp but will take the 20. nice hammer on the 1 hr will see, may be a turning point.

Anyone else feeling a twang back to middleground after yesterday's surge?
Its been quite an aggressive last 2 hours northbound.

I would imagine you are all covered on your shorts right now if not closed already.

Hmmmm, 30 mins later, ouch

Had been ignoring the gbp lately and trading e/j mostly , So why did I take the worthless gbp short instead of the 80 pip e/j ,, AAArgghhh !!!

Did get a little out of the gbp but not 80!!! or more it is still going

oh well take both drop the under performer..

Oh well guess the bus just needed warmed up.. but the e/j is sweet.

I am really working on how to identify HTF support and resistance. Did anybody see 1.2858 on EU for a reversal?

I can really recommend to visit lovejoys trading journal in the trading journal section to learn how to work with htf s&r. If you have questions ask him because he is a nice guy.

E/J and G/U are falling like a stone.

Thanks

Sorry I don't trade EU moves to small. But e/j had a daily line at 120.69 plus a lower trend line on 4hr. But a lot of pressure on the euro so be carefull.

If you google S/R you will find some u-tube videos with examples how to pick your lines. It isn't hard just look for touches of peaks and valleys. the more the better and the higher the time frame the better.

IT does take a bit of practice and most peoples lines are bit different as we average them a tad different . Some people even let MT4 draw them . I don't use that platform so can't . Plus I like to see where they are coming from , how many touches, is it better support than resistance etc..

It isn't hard and you will pick it up quicklly. At first when your wandering around the threads notice other peoles lines and go to your charts and see if you can tell why they choose that area.

hope this helps . Would post a chart but still have ram issues and have to close my platform to do so. would rather trade. LOL

Hi Ken,
You have very interesting thread and you are excellent teacher.I didn't use Ma's as I don't understand I mean I didn't know how can be usesfull .I think is time to change and start to use after reading your thread.
Thanks for this thread.

To Ejiexe,
Go to thread J16 today was day how to draw R/S I am sure u can find there many good tips,how to draw them.