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Ken's Continuing Successes with EO's system

  • #881
  • May 12, 2010 2:56am May 12, 2010 2:56am
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On that candle im pointing to, if im not entirely wrong is a 1 oclock trade, we're above 35/50, ma pointing at 1 oclock and a retrace to our 5ema.

But what im wondering about is the fact that when i was looking at the start of the candle, price and ma was still pretty close and consolidating. But then as the candle progressed and went higher things started to look like a 1oclock trade and seeing as the ma are lagging the 5ma also touched our candle.

My question is really if we can then enter on that very candle or if we have to wait for the next one to touch our ma or retrace at least halfway back on the previous day?
And if yes does that also mean that it would be okey for us to enter on that candle if we just logged on and saw it as it is on the picture, taking it as a 1oclock?
  • #882
  • May 12, 2010 3:46am May 12, 2010 3:46am
Sometimes we just miss our entries or they aren't as cler as we would lik . Thta is why Patience is one of the best traits we can have. To be willing to wait for a proper setup. There are amny ways to enter that traade but not with what we see on the chart now. A bit sooner or a bit later but even those aren't great . It happens at times.
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Good Trading To All ; Ken Lee
  • #883
  • May 12, 2010 4:14am May 12, 2010 4:14am
Quoting chrismarkfx
Ken,
Can you send post a pic. of your 15m chart with the trading zone?.

I want to see if we are on the same page..

A Lot late , Thanks a bunch Deputy Dawg for posting that chart here is a current GBP/USD ,

Either of those swings could have been used i just tend to look for the one closest to 1/2 or 50%
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Good Trading To All ; Ken Lee
  • #884
  • May 12, 2010 4:31am May 12, 2010 4:31am
Nice breakout trade e/j almost a 1:00 trade .. Close enough for me.
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Good Trading To All ; Ken Lee
  • #885
  • May 12, 2010 5:07am May 12, 2010 5:07am
Hello.

My 3 todays setup. Sometimes you must force yourself to trade in the face of a candle moving against your desired direction , making your trade as close to important sup/res area as possible puts you closer to your stop placement. Price usually react to this level and your equity move to positive side. ( get you a better chance to cover quicker ( or take first profit target).

Cheers.
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  • #886
  • May 12, 2010 11:50am May 12, 2010 11:50am
Ken,
Thanks for posting the pic.. Do you have fibs drawn on this chart?. Are the fibs
drawn from 1.4720 to 105020? Also what 1:00 candle.. is that 1:00am est?
  • #887
  • May 12, 2010 12:04pm May 12, 2010 12:04pm
Quoting chrismarkfx
Ken,
Thanks for posting the pic.. Do you have fibs drawn on this chart?. Are the fibs
drawn from 1.4720 to 105020? Also what 1:00 candle.. is that 1:00am est?

No the trading zone is the same as fibs but i try and show the area without having to use the tool . It seems hard for somw to use. It is a simple matter of dividign the swing by 2 to get the middle then split that again to get the zone. Very simple visual thing.

You need to read the pdf if you don't known what a 1:00 trade is. Not to be hard but don't have time to descripe every trade setup in detail . Questions yes but one on one tutoring no.

So do your part and I will do mine.
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Good Trading To All ; Ken Lee
  • #888
  • May 13, 2010 6:41am May 13, 2010 6:41am
Quote Ken:
Sometimes we just miss our entries or they aren't as cler as we would lik . Thta is why Patience is one of the best traits we can have. To be willing to wait for a proper setup. There are amny ways to enter that traade but not with what we see on the chart now. A bit sooner or a bit later but even those aren't great . It happens at times.
Attached Thumbnailshttp://cdn.forexfactory.com/attachme...1&d=1273653949

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As allways I appreciate you taking the time to explain, I really admire your patience with us newbies

You say that the best entry was the black candle retest of the 35/50. If you look two more candles from the small black one we also have a candle that retested the 35/50, closed right on the 50ma. Wouldnt that be an equal sign for us to trade, just we would go short?
  • #889
  • May 13, 2010 9:12am May 13, 2010 9:12am
Quoting Storeball
Quote Ken:
Sometimes we just miss our entries or they aren't as cler as we would lik . Thta is why Patience is one of the best traits we can have. To be willing to wait for a proper setup. There are amny ways to enter that traade but not with what we see on the chart now. A bit sooner or a bit later but even those aren't great . It happens at times.
Attached Thumbnailshttp://cdn.forexfactory.com/attachme...1&d=1273653949...
All those candles in that area are dicey for shorts as they are equal to or higher than the previous high and outside our trading zone . Doesn't mean it will not work because double tops are a favorite trade setup. But only at a major s/r level. We see lot of these trades that according to the rules say enter but without more confirmation they are a higher risk. If you decide to tak the risk just be very protective of your equity. (tight stop). Also you can get in the habbit of taking more and more risky trades that are good for a few but be missing all those big trades.

To take a trade as a double top like to see some very strong rejection a pin is favored.
Good Trading To All ; Ken Lee
  • #890
  • May 13, 2010 12:49pm May 13, 2010 12:49pm
Hi Kennet-lee

i have been trading using EO method for a while.
I still am a newbie thou... and looking to inhance and improve my method and skills. I think that your idea of "trading areas" are very interesting. Looking forward to learn more about them and to test them.

Just wanted to introduce myself to u and to everybody

Green pips to all

Bye

Dario
I don't want a job, i want money!
  • #891
  • May 13, 2010 5:15pm May 13, 2010 5:15pm
Quoting dario1002
Hi Kennet-lee

i have been trading using EO method for a while.
I still am a newbie thou... and looking to inhance and improve my method and skills. I think that your idea of "trading areas" are very interesting. Looking forward to learn more about them and to test them.

Just wanted to introduce myself to u and to everybody

Green pips to all

Bye

Dario
There are just a few major things that a very large precentage of traders use most of the time. To ignore those few items can cause us a bunch of grief. Fib levels or as i call it our trading zone is one. That along with s/r can be very powerfull in itself.

Welcome to the thread any clarifactions just ask, may not answer right away but wiill do my best.
Good Trading To All ; Ken Lee
  • #892
  • May 13, 2010 5:29pm May 13, 2010 5:29pm
keep it up ken, awesome job
  • #893
  • May 14, 2010 1:44am May 14, 2010 1:44am
Quoting Kenneth Lee
There are just a few major things that a very large precentage of traders use most of the time. To ignore those few items can cause us a bunch of grief. Fib levels or as i call it our trading zone is one. That along with s/r can be very powerfull in itself.

Welcome to the thread any clarifactions just ask, may not answer right away but wiill do my best.

I saw that what u call trading zone are fibo's retracement... but it's very interesting how u place that. If i am not mistaken (and probably i am), u use to connect the last low (which wasn't broken) to the last high (which wasn't broken) and just use the area between 1/4 and 3/4 to look for a retracement, especially if some 1 o' clock or 5 o' clok is forming. Preferebly the "sweet spot" is located at the 50 fibo line, fine tuned if there is some major S/R near it. Is it close to be right?
I don't want a job, i want money!
  • #894
  • May 14, 2010 3:31am May 14, 2010 3:31am
Quoting dario1002
I saw that what u call trading zone are fibo's retracement... but it's very interesting how u place that. If i am not mistaken (and probably i am), u use to connect the last low (which wasn't broken) to the last high (which wasn't broken) and just use the area between 1/4 and 3/4 to look for a retracement, especially if some 1 o' clock or 5 o' clok is forming. Preferebly the "sweet spot" is located at the 50 fibo line, fine tuned if there is some major S/R near it. Is it close to be right?

yes correct. Like everything we should be doing in trading, the best we can hope for is have our tools to help us see possiblities. Then try and lower the risk by noticing combinations of things at these areas. the hard part is when we don't believe in what we are using. That is why it is so important for us to each pickout the tools we trust the most andd try and apply them to our trading . Then if something you have read about is starting to prove itself to be a benifit to you you can add that also but if it fails more than 1/2 the time I would toss it out.

If you don't get a edge from any tool or idea it is of no value as it can't be trusted. Who do we call when we need a hand with something in a timely manner the friend that always is ready to help or the guy that only shows up when he feels like it and doesn't even let you know if he is or not. Same with trading tools.

Like the example here fibs 1 and 3 used with s/r trendlines MA's allowed for a entry with a stop of 10 pips or less. To wait for the engulfing on entry A . Stop would be over 30 pips. But if we don't trust what we are using the stress can be to great. It is a personal choice . But as you can see with entry B To wait for a entry signal I would not take that trade as stop would be huge and risk to reward is no longer within a reasonable amount.

Personally i would prefer low stops with a bit of risk , But if we do our home work , We soon fine that we lose less by taking the rsik. The line is the make or break area no matter what you use to enter. That is the difference between longer term traders and us. If your waiting for a 1 HR entry imagine what your stop would be. But the same line is the make or break.

I have said in the past and will say it again. Find the spots you would place your stops at. then enter as close as you can to that line. That is how to get those awesome entries. Plus if you lose 10 or 15 pips. Compared to the way most peole trade you get 3 or 4 more chances for the same amount of one old type entry.
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Good Trading To All ; Ken Lee
  • #895
  • May 14, 2010 3:45am May 14, 2010 3:45am
E/J today`s setup. Do we really need to wait for 15 m tf pa ? ( best enter was with zero area)
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  • #896
  • May 14, 2010 3:46am May 14, 2010 3:46am
In the above chart can you see the pendant ? look at your 1 hr then. Pendants are 90% of the time continuaton patterns. Which in this case we did break down. So add that to your other observations. The trades get easier as we start to remember all this different things . The hard part is looking for them . That is why we had mentioned a possible checklist to gather information . Then you could even ad vakues to different things to come up with a trade or no trade total. I like to see at least 3 items in agreement to even consider a trade.

What could be on a list ?

Swing ( Uptrend or Downtrend)
Trading Zone
S/R
PPA
PA
MA ( Major or Minor) Higher value for major posiblly.
Trendline
Pivot
Previous days high or low
Previous sessions high or low
Patterns

The the more we have on different time frame charts would be even better.


The more you see the better the chance, as almost all are someones stand alone trading idea. So the more we see the more traders are joining the trade with us which only helps the move.
Good Trading To All ; Ken Lee
  • #897
  • May 14, 2010 3:53am May 14, 2010 3:53am
Quoting kodziro
E/J today`s setup. Do we really need to wait for 15 m tf pa ? ( best enter was with zero area)
No but it is a personal choice. The Ib on the 15 MIn was a good signal as well . But that 117.00 area was a good choice for a touch entry. Being a big number 00 also helps . At the least with previous PPA we would have gotten a good bounce. time enough to cover.


That is something else if your worried about these entries . Get covered soon. But if you move to positive to soon you can get stopped on a retest.

Learning to reenter a trade is a very good practice to have . We see price consolidate at areas all the time yet when it happens at our entry areas we freak out. Be calm be rational and reconsider . then reenter.

That is why we demo or trade micro so we can learn those skills without emotions coming into play.

Nice one Kodziro
Good Trading To All ; Ken Lee
  • #898
  • May 14, 2010 4:12am May 14, 2010 4:12am
Did you see the retrace on the gbp right up to the 5/8 (61.8%). 35 sma , 1.4600 Big number, PPA look left see the consolidation area. But again the signal wasn't there it just turned and dropped 40 pips.
Good Trading To All ; Ken Lee
  • #899
  • Edited 8:09am May 14, 2010 4:25am | Edited 8:09am
the continuation signal on e/j not deep enough for a retrace but a good 1:00 trade off the 5 emabig number s/r ppa.


oops should be 5:00 pointing down hope i didn't confuse to much ..
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Good Trading To All ; Ken Lee
  • #900
  • May 14, 2010 7:11am May 14, 2010 7:11am
Quoting Kenneth Lee
the continuation signal on e/j not deep enough for a retrace but a good 1:00 trade off the 5 emabig number s/r ppa.

Hey Kennet. Actually i took that short on EJ for couple of reasons... FIRST OF ALL it was a 35+35 kind of trade (which i find very accurate... even though SL has to be not less than 30 pips (but most of the times it gives u from 20 to 100 pips.. then it depend how ppl manage your trade). Then the support was tested 2 times, then PA went to touch the DP and then come back and was able to pierce the support line (which was also yesterday's low), and it was heading to some descending trendline (which was my TP) + the help of 5 o' clock which would have given some 20 pips better entry. As far as it depend on higher TF, if i am not mistaken the rule is ... check for price action on the higher TF (or S/R, or trendline, or ..eventually... fibo or pivot, even if the last 2 tools were not part of the method), and then look for an entry on the lower time frame, which seems rather reasonable. So stop loss is placed according to your entry, which is just supported by higher TF. Anyway, as i said i am still learning and working on it, so maybe i understood it all wrong
Anyway, again.. wish green pips to everybody
I don't want a job, i want money!
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