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Ken's Continuing Successes with EO's system

  • #1,581
  • Aug 18, 2010 5:50am Aug 18, 2010 5:50am
Quoting kodziro
Hi.

Here`s my opinion.

Yea I guess the first arrow there is a pretty good trade, just hard like others have mentioned to take them at the touch. Po might help with that. Set and forget.

On the second my thinking in hindsight was to actually just put the sl behind the support line, thereby cutting my sl in half. Again very interesting to hear how you use po. And as you said the long red candle did create a good ppa line, was where I took my next long from just befor the first big green candle.

Thanks alot kodziro, your insight is allways much appreciated!
  • #1,582
  • Aug 18, 2010 11:19am Aug 18, 2010 11:19am
Quoting leemonk
The one thing that is really working for me, and you're gonna hate it, is to re-read the manuals to the threads that you like AND re-read the threads too.

Once you start learning things and things start making sense, you should re-read the thread and manual!

I promise you, it will read like something new, like something you have never read before. The simple reason being that you are now looking at it in a different light...
Lee -- We seem to learn in a very similar way. I've always found that to really comprehend something technical, I' have to re-read it a few times, because the first time or two you are generally still putting together the "big picture" in your head. And until you've got the big picture down, it's usually impossible to fill in those details (which are obviously crucial when trading) -- or for me anyway, it seems that some people learn the exact opposite and get the details first and the big picture later.

I've read EO's manual a couple of times, a good portion of EO's thread, Ken's thread here, and all of Ken's material from BP (which is where I've followed him from.. Don't worry Ken I'm not stalking!). I've gotten to where I'm profitable overall but I've still got a long ways to go to hit a consistent 10%/week.

I know I need to reread EO's manual, EO's thread, and Ken's thread a couple of times. Also I've saved all of the charts Ken has been posting to a photo album program so I'm going to go through those a couple more times. Those charts have been very, very helpful for me and I'll never beable to thank Ken enough for them.

Is there any additional material that you or Ken recommend reading? I like to break up rereading with reading so that it's not so monotonous.. i.e. like 30 minutes of re-reading then 30 minutes of reading something fresh. I saw that Ken recommended that Martin Pring book and also Trading In The Zone both of which I've ordered. Also I noticed he mentioned that Tess thread on Alternative Technical Analysis or something like that on BP. I had that bookmarked anyway so I'm going to check it out. Any recommendations for additional books/threads on price action would be appreciated.

Anyways, thanks guys and especially Ken, great thread. I have gotten a lot out of this thread as well as all of Ken's prior material and EO's material.
  • #1,583
  • Edited 11:55am Aug 18, 2010 11:35am | Edited 11:55am
Quoting dr mongolia
Lee -- We seem to learn in a very similar way. I've always found that to really comprehend something technical, I' have to re-read it a few times, because the first time or two you are generally still putting together the "big picture" in your head. And until you've got the big picture down, it's usually impossible to fill in those details (which are obviously crucial when trading) -- or for me anyway, it seems that some people learn the exact opposite and get the details first and the big picture later.

I've read EO's manual a couple of times,...

I have reread some of my stuff from baby pips and a lot of that may need deleted. LOL. Just as you grow you change.

I don't recomend to much to read as I feel that one of the problems is a overload of information . Especially if it isn't on topic. I do suggest reading material that can get you in tune emotionally as I know that has been my biggest challenge . But you first have to believe in your trading methodology before most can even consider that maybe the missing piece is within.

I like, trading in the zone, emotion free trading, and think and grow rich,

Ed Ponsi's book

Forex
Patterns and


Probabilities

Also anything on Patterns or candlesticks could be usefull. Just if you have started to see the light using a certainidea try to add to it not make a left hand turn into never never land..
Good Trading To All ; Ken Lee
  • #1,584
  • Aug 18, 2010 11:57am Aug 18, 2010 11:57am
Quoting Kenneth Lee
I have reread some of my stuff from baby pips and a lot of that may need deleted. LOL. Just as you grow you change.
Haha thanks I will avoid reading it again then. I did think the basics were very good though, it was a good introduction into PA trading. It probably seems way less relevant to you now because you have already mastered that stuff.

Quoting Kenneth Lee
Also anything on Patterns or candlesticks could be usefull. Just if you have started to see the light using a certainidea try to add to it not make a left hand turn into never never land..
Yeah that's what I meant, just some additional reading on patterns, candlesticks, fibs, S/R. Nothing new, I just need a lot of repetition to learn. I think that's why reading both your material and EO's material has helped me so much -- I get two different perspectives on the same system, which hammers it in a lot better than a single perspective.
  • #1,585
  • Aug 18, 2010 5:05pm Aug 18, 2010 5:05pm
Hello People

couple words about s/r with fib ( todays AU example )
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  • #1,586
  • Aug 19, 2010 1:39am Aug 19, 2010 1:39am
Quoting kodziro
Hello People

couple words about s/r with fib ( todays AU example )
Hey man!

I'v also started to implement looking at alot of different pair. Au is one of them.

So an addition to your trade, the swing itself where price went south down to your one was actually a pretty neat trade as well. At least in my opinion that is Confluence of tl, ppa and fib.
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  • #1,587
  • Edited 5:20am Aug 19, 2010 5:07am | Edited 5:20am
Quoting Storeball
Hey man!

I'v also started to implement looking at alot of different pair. Au is one of them.

So an addition to your trade, the swing itself where price went south down to your one was actually a pretty neat trade as well. At least in my opinion that is Confluence of tl, ppa and fib.
Yes it was nice setup. Good eye .

I look at all of majors. I look mostly at 4h tf now( every 4 hour minimum ), and I realy enjoy that. I think that for those who have a day job this is best way to trading.Trading after work is very exhousted, plus we should rest or enjoy things rather than stick to the charts.

Most difficult part is to know at what are you waiting for. You gain mental advantage when you expect something and it happen and then you act with your strategy. I have 3-4 setups that repeats itself over again. Those setups in nothing new, there are based on pa and s/r. I believe that Kens description( explanations ) of them is perfect in his pdf ( and thread statements ).
  • #1,588
  • Aug 19, 2010 5:42am Aug 19, 2010 5:42am
Quoting kodziro
Most difficult part is to know at what are you waiting for. You gain mental advantage when you expect something and it happen and then you act with your strategy.
That last one is as spot on as can be! Almost like an echo of my own thoughts lately. Its funny how often you'll find things just pops up at you when your thinking about a certain topic. But it really hits home especially since i'v begun looking at different pairs.

Im actually in the process right now, to write down the trades i know works for me and that I can identify properly. Writing them down, printing them out and im going to keep it next to me while trading. Sort of like a checklist if you will, making things much more specific in what im actually looking for instead of just my thoughts being all over the place. Just like you said as well. I think its key.

What im going to type out is just something so easy like,

s&r lines on htf, enter with 15 min candlestick pattern.

ppa on 15min, enter with 15 min candlestick pattern.

Candlestick pattern close on htf, enter with candlestick pattern on 15min.

Touch trade if area is pefectly defined with ppa fib, possible add tl.

On the sheet im making its a bit more detailed and contains a shreenshot example, but in essence thats what its going to look like.

Would you mind sharing what your 3-4 setups are?
  • #1,589
  • Aug 19, 2010 11:09am Aug 19, 2010 11:09am
Quoting Storeball
Hey man!

I'v also started to implement looking at alot of different pair. Au is one of them.

So an addition to your trade, the swing itself where price went south down to your one was actually a pretty neat trade as well. At least in my opinion that is Confluence of tl, ppa and fib.

Yes great trade steup there. This is why i have said in the past don't think you just have to trade the gbp/usd and eur/usd , because that is the ones most trade. That is also why they are the most volatile and can be a bit weary on your mind.

Thye can shake you off and then do wat your were planning just off one traders choice to runstops or take profits. So keep a open mind and spend a moment to decide on a couple or few pairs. Like E/J is one of my favorites but has been terrible latelly with the usd/jpy action getting in the way.

But once you have just a few . make quick little notice of the important areas and then check them from time to time. even to check every 15 min close shouldn't take more than 30 seconds clicking from chart to the next
if one is in the zone or your area. Then watch that one the closes.

Like the gbp/cad last night GBP news sent everything flying . but the gbp/cad was one of the few that had a nice 61.8% retracement . Then back north then cad news pushed it even higher and at that point you would have been covered and could ahve left it safely and caputerd that news run, A think that is nice when you can get it.

That chart also explians some of the questions lee had about s/r and trendlines intersecting.

I will still find some good examples and through them out for your review.

Good Trading , And great eye. We learn , we start seeing after the fact, we start seeing as it unfolds and we then start taking the trades when they present themselves.

Good Trading To All ; Ken Lee
  • #1,590
  • Aug 19, 2010 11:19am Aug 19, 2010 11:19am
I've been thinking the same thing. Right now I trade E/J, G/J, and G/U intraday. I'm thinking about adding maybe 4 or 5 other pairs but only trade them based off of the 4H (and drop down to 15M for entry). That way there's always a good setup somewhere, and you don't have to force anything. Plus you get more practice analyzing potential trades, S/R, trendlines, etc.
  • #1,591
  • Aug 19, 2010 11:20am Aug 19, 2010 11:20am
One of the first things I do when I sit down is to look through my pairs and see those that are acting in a tradeable fashion . Then looking at the price action see where within the cycle is the price now.

Then try to visualize what the most common next move would be.

There are not many choices ..

you will get better at this as you trade longer . But we have to force ourselves to look and learn. Even just write down or mark on your chart what your next choice for a trade would be . Then look later and see how you did. You find your selve picking the next trading area more and more.

There are only 3 trades in reality. 1. A reversal 2. A retracement whic can be a 1. and 3 a continuation which normally contains a 2.
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Good Trading To All ; Ken Lee
  • #1,592
  • Aug 19, 2010 11:38am Aug 19, 2010 11:38am
Quoting Kenneth Lee
Yes great trade steup there. This is why i have said in the past don't think you just have to trade the gbp/usd and eur/usd , because that is the ones most trade. That is also why they are the most volatile and can be a bit weary on your mind.

Thye can shake you off and then do wat your were planning just off one traders choice to runstops or take profits. So keep a open mind and spend a moment to decide on a couple or few pairs. Like E/J is one of my favorites but has been terrible latelly with the usd/jpy action getting in the way.

But once...
Hey Ken!

Hope your having a good day!

Id say 99% of what I'v learned from trading comes from your teachings, so impossible to thank you enough! With that said im still faily new so got a great deal left to learn

But it is coming together bit by bit, and for me just making the changes of adding a coupple of pairs and really writing down and focusing on the trades i do know works for me, its as I can allready feel a change in my trading mentality. Like I can trust myself more, because im specifically looking for a set of criterias. So instead of becoming anxious about missing a trade im just doing what i'v planned to do.

Its actually really basic stuff though that you have said over and over again but something iv never implemented, and now when I have I wonder why I havent done it sooner
  • #1,593
  • Aug 19, 2010 12:05pm Aug 19, 2010 12:05pm
Quoting dr mongolia
Lee -- We seem to learn in a very similar way. I've always found that to really comprehend something technical, I' have to re-read it a few times, because the first time or two you are generally still putting together the "big picture" in your head. And until you've got the big picture down, it's usually impossible to fill in those details (which are obviously crucial when trading) -- or for me anyway, it seems that some people learn the exact opposite and get the details first and the big picture later.

I've read EO's manual a couple of times,...
Hey DM,

Welcome..... to Ken's thread .

The Martin Pring book is great..... it's like a trading bible. I am still at the early stages of it, but you can quickly refere to it when you think you 'see' something on the charts.

He explains things very clearly and it is certainly worth reading.

It's been a disasterous weeks trading for me (well.... I say disasterous, I trade with 2% risk and have had 8 or so losses, just to put it in perspective). So I will be learning tomorrow and resisting the urge to trade.

I keep jumping the gun to early.
  • #1,594
  • Edited 1:56pm Aug 19, 2010 12:09pm | Edited 1:56pm
Apologies Ken, but can you please clarify this point. Are you saying that with this you effectively have three lines(if only one is draw). If price is dropping then you look for a reaction betweent he bodies and the middle line. If price is raising, you look for a reaction between the lower bodies andthe middle line?

No, I never have three lines I just know that a line does nothing but show a area. But if there are long wicks it can help you to have a idea of how wide that area maybe. You can even come up with a set figure if you wanted. Like 7 pips each side of the line..

We are getting into the same problem that trying to teach the MA trades that was bogging people down. IT IS NOT THE LINE , trend or S/R, It is the price action that happens at the line.

If price approcahes a area you have marked by a s/r or trendline. That is your cue to watch how price is acting. Then look for a candlestick pattern or a push above or below. Without the lines, we see many entry signals that fail.

Like a pin on one side of a line verses the other can have the exact opposite meaning. A pin below a area could be price trying to break through and being rejected. like a shooting star. above it could be like a hammer The bottom being the support. this is why many have failed trades. and the description says that those signals need to be at extreme levels because when they are in consolidation the meaning can be different.

But you wouldn't draw your line any lower? You would simply consider a short to be a stronger trade?

Just like a head and shoulders , The trade is a short, But the head Middle price action has to push above our resistance to form, this is considerd the last drive up. We can get a retest of that break even. But the rejection of the left shoulder and possiblly others points. Give us a better view that this is a resistance level not support and a short is our preffered trade.

Again I could have a line the top of that left shoulder and from past rejections. But I also that there is many reasons why price can just poke through then turn back. just a stop hunt could happen. Or price gets extended due to some news release that overpirces the currency for a bit.

If when your looking at your charts . quit looking for just entries. start thinking about why price could be doing what it is. Check the time and your news calendar. is London closing or Asia opening.

If any of you are students . Take a course in Macro economics, Could put you way ahead of the rest of us old dogs that can't learn. LOL

May help to know why one day inflation is good another not so good. To understand fundamentals can only help. but trading the charts that truly do show the traders emotions can be done as that is the way most of us trade. Book Dumb but we can track the beast.

Sorry got off topic.

My concern with this, and I know this changes as I become more experience, is that I have HUNDREDS of Trendlines......

It isn't the amount of lines you have that should be your concern it is knowing which ones are the most important. This is why I have suggested a color coding scheme to identify the diffenrent ones by time frame charts.

You could also do them but amount of touches. But in reality there should only be one trendline per time fram chart and even then the one on the smaller time charts could be the same as the next time frame chart. Because a extreme price on a 15 min is the same as the extreme on the hrly .

I know some that use the MT4 trendline drawing tool that uses the last to points on each time frame . but color codes them for each chart so on your 15 min trading chart you might have 8 lines two for each chart.

But they are color coded for each chart . 15,hrly,4hr and daily. That way you give more importance to the different color that relates to the next higher time frame.

But just as we talked before it doesn't really matter it isn't the line it it the price action or tradeable signals you are getting at or near that line. It is a alarm to warn us that the POSSIBLITY of a trade is at hand and be ready for it.

Hope that helps some if not maybe post a chart with specific concerns.

Trade clear headed, as a clouded mind is the same as a storm at sea. blocking our vision. Ken
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Good Trading To All ; Ken Lee
  • #1,595
  • Aug 19, 2010 12:20pm Aug 19, 2010 12:20pm
Quoting Storeball
Hey Ken!

Hope your having a good day!

Id say 99% of what I'v learned from trading comes from your teachings, so impossible to thank you enough! With that said im still faily new so got a great deal left to learn

But it is coming together bit by bit, and for me just making the changes of adding a coupple of pairs and really writing down and focusing on the trades i do know works for me, its as I can allready feel a change in my trading mentality. Like I can trust myself more, because im specifically looking for a set of criterias. So instead...

Yes this why more skilled traders get to the point that trading is actually boring as they find just a few things that they look for not hundred to shift through like most people learning do.

Then they develop their personal skil to take what they want from the market . That is where alot of the differences in trading comes from . Some love to scalp for quick small gains others like trading for weeks at time .

It is what you FEEL the most comfortable doing. I guess the biggest issue is that most start out with a small account and the quicker trading with a bit more risk is how they feel they can get gains faster when in reality. If they used less % and took more trades with proper Money and Trade management they would be better off in the long run.

I will be adressing this very issue soon. As I unlike most have the need to build my equity quickly and I am unwilling to do it through a deposit.

I am glad it is starting to click for you and it will get clearer as you continue.

We choose to be Happy or Mad, Just as we can choose to be Poor or Rich. Make the right choices. Trade Happy Ken
Good Trading To All ; Ken Lee
  • #1,596
  • Edited 12:46pm Aug 19, 2010 12:30pm | Edited 12:46pm
Quoting leemonk
Hey DM,

Welcome..... to Ken's thread .

The Martin Pring book is great..... it's like a trading bible. I am still at the early stages of it, but you can quickly refere to it when you think you 'see' something on the charts.

He explains things very clearly and it is certainly worth reading.

It's been a disasterous weeks trading for me (well.... I say disasterous, I trade with 2% risk and have had 8 or so losses, just to put it in perspective). So I will be learning tomorrow and resisting the urge to trade.

I keep jumping the gun to...
I am guilty of that myself "Jumping the gun " The thing then is did you jump the gun to early on a good trade or did it then unfold as a bad trade? If it is the first then normally a bit larger stop might help but if it puts you in a bad money managment situation or makes you start to have emotions about the trade nervous angry anything but pure calm. Get out and look for a new trade.

We can learn to trade from our feelings they can tell us quicker than anything that we are doing something wrong. It is another reason that trading with a lower % Until we find our pace. is better then we find it easier to open and close trades based off what the charts are showing verses what we feel we need.

Not a personal answer or anything about your trading just some random thoughts.

8 losses is not good though using these ideas I rarelly get 2 in a row. 3 scares the (%@! outa me.

But it will come just trade conservatively when learning and if you can treat a dmo like real money use that . I never can though.

Cheers Ken
Good Trading To All ; Ken Lee
  • #1,597
  • Aug 19, 2010 1:01pm Aug 19, 2010 1:01pm
Quoting Kenneth Lee
Yes this why more skilled traders get to the point that trading is actually boring as they find just a few things that they look for not hundred to shift through like most people learning do.

Then they develop their personal skil to take what they want from the market . That is where alot of the differences in trading comes from . Some love to scalp for quick small gains others like trading for weeks at time .

It is what you FEEL the most comfortable doing. I guess the biggest issue is that most start out with a small account and the quicker...

Looking forward to it, know its gonna be good!

"We choose to be Happy or Mad, Just as we can choose to be Poor or Rich. Make the right choices."

So true! Exactly what napoleon hill goes through in his book as well
  • #1,598
  • Aug 19, 2010 1:21pm Aug 19, 2010 1:21pm
Quoting Kenneth Lee
Not a personal answer or anything about your trading just some random thoughts.

8 losses is not good though using these ideas I rarelly get 2 in a row. 3 scares the (%@! outa me.

But it will come just trade conservatively when learning and if you can treat a dmo like real money use that . I never can though.

Cheers Ken
Buddy,

Your Teachings aside, the one thing you ALWAYS manage to do is bring me back into perspective, whether from a good place or a bad place, you bring me back.

You stop me getting to cocky and stop me from slitting my wrists (metaphorically speaking of course ).

I was having a similar conversation with Luckylady. I am trying to many different things right now and doing none well.

When I focus on the original EO thread (and your teachings from the beginign) I do well with that - I had a whole week with no losses last week!

When I do ONLY the 4hr charts with 15 minute entries, my trading is mixed, but I alwats end up nice and positive (wins outgun the losses).

HOWEVER when I try and do both (this week), it gets real bad and then I just start throwing in trades and wondering why the hell I just did it.......

I shall refocus my efforts tomorrow and come back a new man!!!!

Cheers Bud.......

ps..... I will re-read your detailed reply to my question from yesterday tomorrow..... I have read it three times tonight and it may as well be in latin. (I don't speak Latin.... just incase you were wondering).

pps.... that trade reference chart is GREAT!! printed a few copies off already.... one minor thing though... is the labeling for the 1 & 5 o'clocl the correct way around? I thought 1 o'clock was going up as the MA's were pointing towards the 1 on the clock........ Not that it makes much difference.....
  • #1,599
  • Aug 19, 2010 1:40pm Aug 19, 2010 1:40pm
Quoting leemonk
Buddy,

Your Teachings aside, the one thing you ALWAYS manage to do is bring me back into perspective, whether from a good place or a bad place, you bring me back.

You stop me getting to cocky and stop me from slitting my wrists (metaphorically speaking of course ).

I was having a similar conversation with Luckylady. I am trying to many different things right now and doing none well.

When I focus on the original EO thread (and your teachings from the beginign) I do well with that - I had a whole week with no losses last week!

When...

Just be carefull of Freaky Friday .

Yeah I thought I had changed that already twice LOL 1 and 5 think.

Think I will just leave it now .See how many catch it in the future.


The reply wasn't that complicated my spelling didn't help tho or my grammer or lack of, I should say.

So I went back and corrected some of my spelling which suxs.

Try to answer to complicated I guess and can't type so it gets scrambled . sometimes.

Have a great day ,, ken
Good Trading To All ; Ken Lee
  • #1,600
  • Aug 19, 2010 1:44pm Aug 19, 2010 1:44pm
Quoting Kenneth Lee
Just be carefull of Freaky Friday .

Yeah I thought I had changed that already twice LOL 1 and 5 think.

Think I will just leave it now .See how many catch it in the future.


The reply wasn't that complicated my spelling didn't help tho or my grammer or lack of, I should say.

So I went back and corrected some of my spelling which suxs.

Try to answer to complicated I guess and can't type so it gets scrambled . sometimes.

Have a great day ,, ken


I wasn't refering to your grammer.... I was refering to my noggin (head).

I think I got a bad case of A) bad trades and B) Hayfever.

Can't concentrate at all.
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