Ken's Continuing Successes with EO's system

Kewl nice trade. yes it isn't so much what any system says it is more of how and what you see and believe. Any system can work as long as you manage them correctly.

That trendline is working today will have to keep a eye on those for a bit to see their value if any. They tend to work by default anyway because the points we attach them to are s/r or PPA areas anyway. But those two entries right where it reversed would be sweet.

I was one minute late checking out the candle close on that one and it had already plummeted.

This is one of the few threads I'm following that has live-trading posts. Much appreciated.

Hi Ken,

I have played the same candle. I was a bit unlucky yesterday when I went short e/j two times because of a similar set up.

When was that? Was it the one right before the huge drop down?

I have marked the trades. It wasn't such a nice set up like today but hey I thought a retest is a retest

First one would have been OK with a break even stop loss. Maybe should have looked for a break downwards after the double bottom candles that came before your second attempt.


I'd like to know if anyone has any thoughts at this pin/hammer that just formed in EURJPY near a previous retrace spot. Would have thought long on that.
Same thing happened on AUDJPY same time.

Yes after a large move , is when it is the hardest for the rules to work. Keep your mind on the ATR those trades you were trying to take after a 200 pip drop. You can try and turn them and it will continue down. It is when I either wait for some retrace or another breakout lower a nice floor got formed off those candles. But as you marked the retrace to 117.00 was the next play.. As long as we win more than we lose we still win. Why I like this type trading with tight stops.

Just always try and get everything offered profit wise and you will do ok. all these big drops lately . we caould use the 5 ema as a guide to stay in hasn't even got close to closing the ohterside of it on these drops.

I am sorry I guess you posted it when I was writing my response I missed it.. But it was probably due to the news at 9:55 consumer sentiment. Why we have to be careful or well covered during those releases. Everyday start of your trading look at the calendar for all red and orange events. Then kepp them in mind when you think of taking a trade . You can get some signs of a good trade. Right before news comes out.

Hope everyone has a great weekend..

And don't forget to party

Happy Saturday everyone. Hope all are well.

Just want to explain a few things this morning, I have been learning to trade for over 3 years now. I have only focused on price action trading using as few tools as I can as I believe that all we need is what the price is doing on the chart. The use of Fib tools the way we use ma's here . Pivots and the such should just be for helping us to see areas of possiblities.

I think some have the illusion that they are entry signals in themselves they are not. The entry signals are the candle stick patterns or the Price Action that is unfolding at a given point. Remmebr Previous Price Action (PPA) is what happened right here in the past and Price Action (PA) is what is happening now.

When I started I learned some basic price action trading using fib levels and their exstentions, and tendlines and s/r . That was all. I forced myself to stay the course never searching for the indicator which would basiclly make my choices for me. Relieving me of all responsability for my trades. Plus I saw that how some using this few tools were doing very well with them.

At the time the way I was learning was only looking for a single type of PA entry and they were a two candle setup. Requiring some large stops even on a 15 min chart. Then Pippin mentioned EO's system and the MA's.

I was skeptical. But I put a few of the MA's on my charts and started to see that they showed where some of my entry levels were and coud even give a better entry by forgoing the 2 candle entry. But for me anyway it is showing what I already new so was just more confirmation of trades I would have taken anyway.

I the pdf I put together in the index. I listed the the entries in sections that they fit into. They are standard ,common, and simple trading entries.
35/50 cross reversal. is a Fib retracement trade .

62 ema touch reversal (1 Hr.) is the same

1 and 5 O'clock are Breakout Trades

The hammers and hangman are major S/R reversal trades. Which are
the hardest actually but also the simplest. The hardest part is if your entry is wrong you get stopped out then watch it go without you. the simplest becasue all your using is a s/r line and a entry candle or as some do they jump on every major line with a tight stop. As close to the line as possible with the mental ability to stay in profitable trades this is the best trades we have. So even a few losses of 10 or 15 pips is no big deal to them.

EO's system is nothing more than someone has taken the time to play with the MA's to find the ones that corrrespond to the price action on the charts. Giving a visual refrence to these trades. Is it any wonder the 35/50 and the 50 FIb are very common, or the 62 ema and the 61.8% fib . I don't think so.

Some of the trouble comes when people start trying to over analysis these MA's as if they are like any other MA system. Most Ma trading strategies involve one MA crossing ove another. Then you enter. normmally like a fast ma crossing a slower one. Just as our 62 ema on the 1 hr tends to be our midlevel and when price crosses it our trend can be changing. The idea is wheh the faster crossed thiat is confirmation.

But as we should all know by now the MA is following price. like all indicators it lags. So one of the key elements of this system is that we don't wait for the lagging indicator. You can make some profit and be out of a trade when others are just getting that entry.

But you have to be able to understand where price is in the cycle. Price moves in a zig zag pattern across our charts . It is amazing that it seems so hard to understand that. But you hear it all the time the ones that think there are only longs or only short trades. To be blind to natural flow is truelly a disaster waiting to happen.

I have been lately focusing more on just basic price movements and the reactions at s/r. But Maybe I am not doing justice to the effort. I was looking at another thread this morning. Dude hasn'r posted any rules for what he does but it is so clear. maybe you can take a look and see what you think.

http://www.forexfactory.com/showthre...91#post3726591

Also here is a pdf on Peaks and Troughs ( the wave of the market) More basic understanding.

I have posted many very simple basic no thinking ways to trade , The 1 min scalping method pdf is dead simple. but we can over think and over complicate anything in our life's. You can have a minor illness and think yourseelf to death over it. This is no different.

The biggest moves are the simplest ones. I will be going over that later this weekend . Maybe the light will come on for more of us. Bu you really do hear it over and over from the successful traders. Trading is simple and they mean it. Why do you think you don't see tham after a while they can't believe we are so dumb as not to get it.

I see it but still struggle with emotions , which may be unsurmountable for me. I hope not but it is a private battle of wills. But at least I am past the point of thinking it is a strategy issue. That is the worst I think those that are like wondering from town to town looking for a long lost lover.

We first must be honest with ourselves are we doing something wrong ? Is my stop right am I allowing the market to give me what it wants to and it truely wants to give us the money. We aren't cheating or stealing we are just good a playing by the rules.

Enough for now.I will be back later.. Take care and enjoy life. Ken

Hi Ken,
Thanks for great post.
Have a nice weekend.

Hi Ken

Thanks a lot for all the informative posting.

I am a member of "IA" "Indicators Anonymous".

I used to rely heavly on indicators, so much so that I became fixated on them and not price. Like you were saying most indicators are trailing ones.

Fibonacci, pivots, trendlines, and S/R when used properly are all leading indicators. Now I am a fibaholic. If I can put a fib on it, it gets it. I even trim houses with fib ratios when I can.

Anyway, I am enjoying your thread and its easy going style. The Forex is supposed to be easy and boring when we get it. I think I am almost there.
My hang up now is to much time at work and not being able to be consistent with the market. This upcoming week though I should see more available chart time.

Thanks again and have a great weekend.

Rufus

ps. This ones on me

Hi Ken,

I like the way how nasir takes in this journal http://www.forexfactory.com/showthread.php?t=236448 trades with a confluence of factores.

Dave79's thread looks interesting. I hope he'll share.

This guy wants to sell something. On every screenshots is a link to a payside, You will learn nothing from this guy that is valuable.

You are right, I know this guy from Polish forex forum. Don`t waste your time with him People.

Ken, currently i am not fully absorbing the valuable lessons of this thread like i should due to my limited forex knowledge and experience but with each passing day it is getting easier.

thanks for sharing. really appreciate it.

Hi,

I would strongly recommend that you learn the lessons of babypip's the school of pipsology http://www.babypips.com/school/

After that you should try to learn a bit more about candlestick patterns. When you finished to work through the stuff you are ready to start with the thread.

Hi Ken
Just wanted to say HI I havent looked at or posted in the forums for months. Really working hard at being mechanical and emotionless as possible and trading with no outside influence what so ever not even the calender. Hope your trading is going well, here's a couple charts from friday off the previous days lows and round numbers that new traders should burn in their brain. Those retest trades are super high % and get a reaction more times than not. Fiber did the same thing Thursday morning as well easy $$$$. I see parity for the euro and will continue to short, when the bottom is found I'll look for a retest of the daily 50ema. Take care Ken!!

Hello.

Nice short opportunity, got fibb, daily low and trend line there. Enter with 15m doji, although we could missed part of the move so sometimes we have to consider PO at those type of area.

Sounds somewhat scary, man! Hope u still eating!