Ken's Continuing Successes with EO's system

http://www.forexfactory.com/showthread.php?t=155431

Hey Ken,I stumbled across this thread and I think it is an excellent addendum to the information you give us all here in your own thread.

There really are some pearls of wisdom in the first few pages of it alone.

If you don't want it posted here,please feel free to remove it,just thought it would be helpful and intresting to the folks here.

Let me think on this one , It is a pretty open ended question.. But will respond later.

Yes as it should with everyone. I at first notice where consolidation is , In regards to S/R -PPA levels. It normally has a line on one side or the other when it starts as a large order whter it be a stop or someone buying or selling is what has caused the stalling intially.

As time progresses just a growing lack of interest can enter the game. But if we are attentive and look closely this is when we see our trading patterns start to develop. They in themselves are very tradable things.

You will see that when the pattern started it was let say below a s/r line and then starts forming a flag these would give strength to the idea that 90% of the time a downard move that consolidates continues down when it breaks. The price can and does angle away from the move and can break the other way but over time it is very clear that they normally continue.

So going off this histpric data we can find entries off the extreme levels trading towards what we expect to be the breakout direction. We could also take the opposite trade but with more risk. The key to trading any consolidation is to make sure you use very tight stops. Your line is defined and so shoudl the stop. If it breaks and you get stopped and pops back that is just part of the game . But just a bit past the last high is normally plenty.

Use the trendline to help you see where the stop goes. Some traders will just wait for the price to breakout from consolidation. Lots of very good traders advise that . But at any rate what you decide should be based on fact not wishfull thinking. study some charts from the past that are showing the same type of consolidation your now seeing and use them as a road map to the future.

Just looking at patterns and descriptions by others sometimes doesn't have the credability we trust..

If this isn't clear ask for more clarifacationof any part. Ken

Thanks for the post I personnally don't use MT4 but many do. GFT has the aleert like that built into their platform as well. But Oanda has nothing. Alertfx.com is just for those without anything.

Thanks again Ken

Yes just scanned over the first few post looks very interesting should be a good read. Thanks for Posting the link.. Ken Hope your doing well..

Yes that can be a struggle if I could give any advice on this . Try and err on holding to long than closing to soon. Once you start to see where the trades end you will get better. It is just a matter in trading of being a great observer and rememebering next time what it looked lik when the trade died and not just a stall.

Price can stall and it does at time a lot. It can't just keep going all the time, we wish.. So we just watch for it as long as it isn't turning against us signifcatly we can hold and wait for it to continue. This is what is hard for many of us. so we end up closing to soon just to see it print another 100 pips or so.

Trading in the zone is a good read and can open your eyes to other aspects of your life as well. You should also enjoy Emotion free Trading. More nust and bolts on trading .but with a mental control aspect to it.

Trade well and just keep it up.. Ken

You are wellcome.
I am happy if I can contribute something useful to your thread in order to "pay the debt" for the knowledge you have given us. I know that the system has been set by EO and Infinity. But from my level of knowledge it is like PhD of trading and I am still in primary school. So it is very very helpful if there is someone like you who understands the system , who has "digested" it and who passes it on by his own words on the level which is easier to understand for the begginers. If I will ever master the system then it will be thanks to you.

chart

Wicks can give us a great insight into what the other players in the market are considering. As seen in that last chart long wicks at the top can tell us that there is one of two things happening at that level. One there are a lot of stops there. or two and more likelly some feel that this is the highest price for this currency and are selling here.

This is why you will see many systems that revolvoe around pins . (shooting stars, Bearish and Hammers Bullish) also the DBHLC and DBLHC combined form wicks as well another reason they are considered good signals. Any pattern that shows us rejection of a movement if taken with the trend especially is a good thing to watch for and you can build a system around it.

As with almost everything we use in trading all these ideas where first designed and considerd around basiclly Daily candles. That is why hte same signal or pattern on a higher time frame chart can be more succesfull than off a 15 min or even hrly.

This is also why we should look for the same signals across all our charts then entries off the lower will give us the greatest profits.

That chart was the usd/cad 15 min from Friday.. just showing you don't need anything to see this stuff just Price Action

The green arrow is pointing to the entry of the 62 ema trade. on all time frames. !5 Min 1 Hr and 4 Hr. It was the exact price on that daily at the 50% fib level in our zone of interest.
But say you weren't up or missed it for whatever reason.That green arrow on the 4 HR. is pointing to the second candle of a DBHLC . The orange candle is the Pull back on that Signal then the entry. You might think that is risky but it is a entry off that 4 HR . your stop would be above the top of the last 4 HR. the 62 ema green arrow entry. About 20 pips. Or you could wait for the close of the next 15 min engulfing candle then enter but your stop would be about the same.
Well I missed that one too you say. That orange entry is the first candle of a DBHLC on the 1 HR. MY MY. this is to easy. Then the entry is the next candle pulled back just barelly. But on the 15 MIn it is a retest of yesterdays low and a 5:00 o'clock trade.
This how use our higher time frame charts for entry and how they give us confirmation of our lower entries.
If you had taken the trade off the 62 ema. a 60 pipper you would have covered well and taken plenty profit by the time you hit the 200 sma on the 1 hr. tghen could add back at the orange arrow. same when it broke the low you were covered and could add that back when it retested at the blue arrow.
The other day we had pin after pin to help with our trades today DBHLC on two time frames. We just need to see these as they are printing then look for the entries. When we use the signals on the higher time frame chart we also expect profit targets from those charts as well so we know they aren't scalps. So we will hold longer.
　
If you don't under stand ask. While this is a current chart..

This is not current any longer sorry .. Old stuff out of my archives

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Just some stuff newer people may have not seen . so reposting I am always reviewing past things i have written to keep focused on what I am looking for.