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Ken's Continuing Successes with EO's system

  • #1,521
  • Aug 12, 2010 8:15pm Aug 12, 2010 8:15pm
I haven't been trading a lot . Just looking for one or two a day. I am currentlly short USD/CAD off the triple top 15min. or a mini head shoulders with a shrunking head. More than likelly just another selling interest that was filled piece by piece. But nice solid resistance area ( Solid stop area) to give it ago. daily may give it some short strenght tomorrow. might close a partial but leaving some on it to see.

To know where a stop should go is most important to me . Entering a trade on the fly without some idea of your risks or limits is like driving at night on a winding mountain road without lights. Good Luck
Good Trading To All ; Ken Lee
  • #1,522
  • Aug 12, 2010 8:24pm Aug 12, 2010 8:24pm
Found it,, or part of it.. anyway.. Just because a currency is gaining ground against the others isn't always good.


http://www.usatoday.com/money/world/...llar-yen_N.htm
Good Trading To All ; Ken Lee
  • #1,523
  • Aug 14, 2010 1:48pm Aug 14, 2010 1:48pm
Hello.

About ppa and important area on the higher tf :

Like you see at picture it comes down to classic trades: breakouts, end of the wick buy /sell (tripple - double bottom/top on lower tf ), turning (key reversal) candles, pattern candles retested with previous ppa line ( or zero area) , bounce of important ppa line ( daily l/h ).

We should always want to trade at potential turning point and buy/sell at res/sup or very near with lower tf pa because of risk reward ratio.
Sometimes if you see trade setup ( candles pattern ), identify the level of sup/res where you think price bounce/hold.

Cheers
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  • #1,524
  • Aug 15, 2010 9:30am Aug 15, 2010 9:30am
Quoting kodziro
Hello.

About ppa and important area on the higher tf :

Like you see at picture it comes down to classic trades: breakouts, end of the wick buy /sell (tripple - double bottom/top on lower tf ), turning (key reversal) candles, pattern candles retested with previous ppa line ( or zero area) , bounce of important ppa line ( daily l/h ).

We should always want to trade at potential turning point and buy/sell at res/sup or very near with lower tf pa because of risk reward ratio.
Sometimes if you see trade setup ( candles pattern ), identify the level...
Weekend is always the perfect time to analysis the market, the more we practice, the faster we can recognise the immediate market trend in quick manner during trading days

Eric
  • #1,525
  • Edited 10:42am Aug 15, 2010 10:20am | Edited 10:42am
Quoting kodziro
Hello.

About ppa and important area on the higher tf :

Like you see at picture it comes down to classic trades: breakouts, end of the wick buy /sell (tripple - double bottom/top on lower tf ), turning (key reversal) candles, pattern candles retested with previous ppa line ( or zero area) , bounce of important ppa line ( daily l/h ).

We should always want to trade at potential turning point and buy/sell at res/sup or very near with lower tf pa because of risk reward ratio.
Sometimes if you see trade setup ( candles pattern ), identify the level...

Nice chart and explanation. Thanks


Now remember guys that is a 4 hour chart he posted. and if your stretched for time. those entries can be set using PO's like Kodziro does. But for those sitting and watching or scalping like City does.

The levels give us the places for quick scalping gains or even better lets us know where a nice fat trade may start from.

You can take his lines off that chart and extend them to the right of your chart and in the future you will see those same areas (levels ) effect price.

One of the last posts made by EO was showing a screen shot of a setup. he and others have been using. Using just a 4 hr for interested levels and a 15 min for entries. Then once in and the trade is in profit and stop is at Break Even or better they just let it work for them..

Same as we should try and achieve. Grabbing 100 or 200 pips a day scalping is fine and I personnally find it to be real exciting. Almost like a sport or video game. But it requires lots of our time and the older you get the more you realize that time while your healthy and phsyicaly fit to do the things and see the stuff you want to is worth more than the tallest stack of money.

So my goal is still to this day to get to that same level. Of trading profitable with the least amount of time required..

Thanks for all the input guys.. hope we have a great profitable week ahead. Ken
Good Trading To All ; Ken Lee
  • #1,526
  • Aug 15, 2010 10:38am Aug 15, 2010 10:38am
This is the Post I was talking about , Watching many pairs in this fashion isn't as hard as it may seem just for entries off one or two . Do the homework before week begins then set alarms after each days trading at the best entry levels . Alarm signals, take a look if it develops a tradable signal on the 15 minute take the entry. Once it moves far enough to cover, forget about it the idea is that it will move to the target or beyond. It isn't a replacement for your the other trading but can be in addition to it.

Might be a project to run on a demo or with very small risk to check results. But we may find that with the law of averages that it could be the way you only trade in the future.
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Good Trading To All ; Ken Lee
  • #1,527
  • Aug 16, 2010 3:47am Aug 16, 2010 3:47am
Quoting Kenneth Lee
This is the Post I was talking about , Watching many pairs in this fashion isn't as hard as it may seem just for entries off one or two . Do the homework before week begins then set alarms after each days trading at the best entry levels . Alarm signals, take a look if it develops a tradable signal on the 15 minute take the entry. Once it moves far enough to cover, forget about it the idea is that it will move to the target or beyond. It isn't a replacement for your the other trading but can be in addition to it.

Might be a project to run on...
Hey Ken,

I was actualy going to start a thread on this....... for everyone to contribute too. I have had some good success with this, though the stops are tough on a small account - I find I am regularly using 35pip, but that can be improved through better entries.

Regards

Lee
  • #1,528
  • Aug 16, 2010 8:00am Aug 16, 2010 8:00am
Quoting leemonk
Hey Ken,

I was actualy going to start a thread on this....... for everyone to contribute too. I have had some good success with this, though the stops are tough on a small account - I find I am regularly using 35pip, but that can be improved through better entries.

Regards

Lee

Yes I know Pipin has said he does use stops up to 30 using this idea ,, Which is HUGE for him , He normally uses less than ten. But also is good at re-entering if the levels hold but just got shaken off by a stray spike or such.

using Po's would require bigger stops of course because your not there to see the price action unfold. But if you look you can see that the first run up ( or down) into those areas are normally the most extreme. like it goes a bit to far until the traders notice and then they react. Also look at your history to see the extremes then with some counfluence off the daily maybe or even weekly , you can take trades when price start to reverse. this is why you see some get perfect entries right on those lines.

Your own thread would be great , and might get you some other input from traders using that idea . but feel free to pst here if you want.

Might look at Wormboys long term trading but beware he uses stops to the moon at times . but they work for him..

take care ken
Good Trading To All ; Ken Lee
  • #1,529
  • Aug 16, 2010 8:55am Aug 16, 2010 8:55am
Hello everyone,
First off Thanks Ken and everyone else that contributes to this thread. It truly is a wonderful help.

I have been following EO's thread for that last several months and was getting worried since it is not updated much anymore. I just recently found this thread and it is awesome to continue what I have been learning. I have been reading over the PDF's and the past posts and have had a couple of AHA! moments. So thanks for making it flow a little better for me. I still need to finish reading the rest of this thread, but wanted to jump in and introduce myself and hopefully start a relationship with the other members of this thread.

I never replied much on EO's thread as I wanted to read and learn all I could. But I think I am ready to start participating in the thread and hopefully make strides to having a great time trading forex.

So again thanks and I look forward to what the future holds.
-Siddhi
  • #1,530
  • Aug 16, 2010 9:15am Aug 16, 2010 9:15am
Hello

My second long with this ppa line today, although don`t think it will produce more pips like earlier, will see.


Cheers
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  • #1,531
  • Edited 11:10am Aug 16, 2010 9:55am | Edited 11:10am
Quoting kodziro
Hello

My second long with this ppa line today, although don`t think it will produce more pips like earlier, will see.


Cheers
Kodziro,

I do admire your ability to take these trades. I am sure you havea answered this previously, but I am slowly working my way through this thread from teh start (again for the 3rd time)..... so it will take me a long time to get to an answer

When you take these trades, do you set a PO or will you trade off 5/15/1hr PA?

I am not sure if you just post the good ones and leave the bad ones, but you seem to pick the tops and bottoms extreamely well......

Please do not read anything bad into the above comment, I am just intruiged as to your entry style and your success with it.

As you may have seen from my last few posts here, the 4hr is becoming more and more important for me to trade recently, so your record is VERY interesting to me.

Regards

Lee
  • #1,532
  • Aug 16, 2010 11:15am Aug 16, 2010 11:15am
Yeah that third touch of the same area can be a pain.. i am always wary of taking a third touch .. the old saying 3 times is a charm. This ranging is tough . But consolidated on daily. but a few higher tries..

But still could be the bottom again. so worth the risk. It is all about the risk .. I know your posted the other day you were using PO's for most entries with around 15 pip stops. only risking that little it would almost be a crime not to try those entries.

to wait for a better 4 hr signal would require 3 times that normally or more . .. Great trading see it hasn't taken off YET but it is the slow period may be a Humm Dinger yet..


Trade Well Ken
Good Trading To All ; Ken Lee
  • #1,533
  • Aug 16, 2010 11:24am Aug 16, 2010 11:24am
Quoting Siddhi69
Hello everyone,
First off Thanks Ken and everyone else that contributes to this thread. It truly is a wonderful help.

I have been following EO's thread for that last several months and was getting worried since it is not updated much anymore. I just recently found this thread and it is awesome to continue what I have been learning. I have been reading over the PDF's and the past posts and have had a couple of AHA! moments. So thanks for making it flow a little better for me. I still need to finish reading the rest of this thread, but wanted to...

Welcome.. You will see that I don't post a lot on the specific EO ma entries much more. The reason is that so many miss understood their use. I basiclly just go over price action trading the basis of all trading ( To Me Anyway) No matter how why we take trades indicators or candlestick patterns. If we are fighting the price action, ( Going Against the Tide) We will find ourselves a drift in the Doldrums).

But that being said if you want any or need more specific information feel free to ask.. I will do best to answer to the best of my ability. I don't spend as much time on the computor as i have in the past. So be patient i will reply. Plus thier are others that have as much or more knowledge than I do.

anyway welcome and feel free to interject what you want.


The ultimate goal is to be happy not rich.. But both is not frowned upon. Ken
Good Trading To All ; Ken Lee
  • #1,534
  • Aug 16, 2010 11:33am Aug 16, 2010 11:33am
Try this exercise look around the thread to your favorite traders sites. Open their chart attachments fully 3 clicks usually. Then copy and past to paint. then where they show the best entries see if you can find ppa on your charting package or at times right on their chart. Plus if they use trend lines see if the touches of the trend line are on ppa levels as well.

You may be surprised how everything is the same just a bit different view. But with that knowledge and then maybe their system as well you can gain a edge that could make your entries even easier to take.
Good Trading To All ; Ken Lee
  • #1,535
  • Edited 12:05pm Aug 16, 2010 11:48am | Edited 12:05pm
I do have a question about a trade that went against me this morning. Price had moved down to my support area (magenta line). I got a long legged doji/pin bar and I waited for it to close. I waited for the pull back and took a long position at the blue arrow. I set my stop 4 pips below the previous candle (pin) and let it run. I got several (what I thought) confirmation candles and then it dropped below my TL and stopped me out at the red arrow.

I checked for new events and there was not any coming up so I took the trade. Also the 1 hr at the time was showing a hangman. Was this a poor call/entry or was it good entry and price just did not work out? I can live with the later, but if I made a bad entry any insight would be great!

I looked back at the trade and it is currently holding below my TL.
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  • #1,536
  • Aug 16, 2010 12:10pm Aug 16, 2010 12:10pm
I went and looked and see where you got your support from. No issues there, The only thing i could say it is a lower low hadn't made a lower high until after your entry actually th break of your support and the retest was the lower high and then pretty wimpy one. In other words a strong downtrend. Just like Kordziro's trade above. To not take this trades off good S/R- PPA with a tight stop is almost a crime.

But once your level was breeched , you can see the short oppurtonity and that is where most find the hardest part of trading. As new traders we ALL want to turn price at the bottom or top. But the safest and best trades are the ones that follow some type of signal that price has truelly turned. Like now to go long a higher low would be required.

But back to your trade. it was a good level with a good signal. Nothing you could have done differently. But when it failed did you go short when the long green candle failed to close back above 81.85 ?

That is the differnece that can make a awesome traders, the ablitity to change direction as fast as the market. Being it pretty much died after the short . but you could have made back your loss and a few with it as well. Plus it was with the trend and price can still continue down. Higehr lows and lower highs is consolidtaion forming a triangle which normally breaks in the same direction.

Good trade ,, Your entry was good your stop was alright as well.. So just one that didn't workout.. just as soon as a trade fails especially at a good level look for that trade that continues against your original trade.

Because once a area changes from support to resistance it is now a top. and the next target could be the next support level . But always cover your trades as you can get caught in a stop hunt as well. the area being good support it maybe just be some pushing price below to grab some entries at a better price. but there was time to cover a short.

Hope that helps. if not clear ask away.. Ken
Good Trading To All ; Ken Lee
  • #1,537
  • Aug 16, 2010 12:27pm Aug 16, 2010 12:27pm
Ken,
Thanks for the quick reply.

I did not take the trade the other way. After I got stopped out I was a little caught off guard and took a step back to re-evaluate.

So where would have been the best entry to take a short? Could I have taken the short after price closed blow my support TL? Do I just take the short as a continuation? Where would you have set your stop?
  • #1,538
  • Aug 16, 2010 12:34pm Aug 16, 2010 12:34pm
chart questions ?
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Good Trading To All ; Ken Lee
  • #1,539
  • Aug 16, 2010 12:37pm Aug 16, 2010 12:37pm
One of the good uses for the ma's off EO's thread is to use them for Targets when going towards them as we have trades that we take away from them . And also when trading away from the ma's use them as places to put your stop. Just helps to keep you from having to strain your mind. Like on that short stop above the 21 ema would have fit the trade ..
Good Trading To All ; Ken Lee
  • #1,540
  • Aug 16, 2010 12:45pm Aug 16, 2010 12:45pm
On the same note I just closed a GBp/USD short on the 21 ema . Like I said used for a TP spot. BUt also My goal was only for a quick scalp of around 20 pips. made 22. Bit early on my entry so had a bit of drawdown. but expected the test of the 00 area when we get that close it is hard for some to resist pushing it past those big numbers.
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Good Trading To All ; Ken Lee
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