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Ken's Continuing Successes with EO's system

  • #1,621
  • Aug 22, 2010 10:00am Aug 22, 2010 10:00am
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Good Trading To All ; Ken Lee
  • #1,622
  • Aug 22, 2010 10:16am Aug 22, 2010 10:16am
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Good Trading To All ; Ken Lee
  • #1,623
  • Aug 22, 2010 10:27am Aug 22, 2010 10:27am
Hi all.

Back to the Asian drift.

The individual I was speaking with did not trade it specfically. He used his awareness of it as a potential entry point. As you see from the charts I have posted it doesn't always do the same thing. Sometimes it marks the bottom of a small swing. Others it is just a nonevent, or a pull back.

I like to think of it as a battle or a Chess game... Each currency on each side of a line (The Exchange Rate) As different pieces get moved around the dynamics of the situation changes. The exchange rate moves. So if London is repositioning themselves with offensive or defensive maneuvering this can give us an entry. My goal is to be on the winning side of this battle and will flit back and forth to be there. There are Trillians changing hands every day. All I want is a very small piece.

I guess what I am getting at is. It would take a lot of research to know exactly what will happen every day when London closes. What will happen if the market is flat?...Strong trend?....Weak trend?....Choppy?.... I don't know if you can always know the answer so that you can take a position. Like all that we are doing it will get down to price action, then maybe the folks at London will be so kind as to give us a pullback to jump on.

Shoot even the names of the candlestic formations often have a military meaning.

This is fun stuff/

Rufus
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Illegitimi non carborundum - Noli pati a scelestis opprimi.
  • #1,624
  • Aug 22, 2010 10:30am Aug 22, 2010 10:30am
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Good Trading To All ; Ken Lee
  • #1,625
  • Aug 22, 2010 10:39am Aug 22, 2010 10:39am
Quoting Rufus
Hi all.

Back to the Asian drift.

The individual I was speaking with did not trade it specfically. He used his awareness of it as a potential entry point. As you see from the charts I have posted it doesn't always do the same thing. Sometimes it marks the bottom of a small swing. Others it is just a nonevent, or a pull back.

I like to think of it as a battle or a Chess game... Each currency on each side of a line (The Exchange Rate) As different pieces get moved around the dynamics of the situation changes. The exchange rate moves. So if London...

I agree 100% nothing is ever a guarntee, Just imagine if we could find one thing that happened the same way everytime. That isn't a edge that would be a miracle.. LOL,

Yes but in my studying and watching the close of London and the afternoon of the U.S. like most trading if you use proper trade and money management, and get that entry at the London Fix should deliver more gains than losses.

I do watch e/j and Gbp for these and Like I said it may take as long as 3 hrs to unfold. I think it is the thinning of the market as well that might be a factor. Some of us find the slow times easier to trade.

But I find with a tight stop they can be a tool in our trading toolbox.

Thanks for following up with that information Rufus..

Plus it can trade up as well as down. it is just a slow trade for otherwise dead times and one that doesn't deserve to much watching . Get in get covered check back right before Asian open and if the powers that be smile on us Asia can continue that drift with greater gusto.

But beware if it makes all the way to frankfurt or London open you can lose your gains in a hurry, If they disagree with the sentiment.

Trade well ken
Good Trading To All ; Ken Lee
  • #1,626
  • Aug 22, 2010 11:28am Aug 22, 2010 11:28am
Quoting Kenneth Lee
I agree 100% nothing is ever a guarntee, Just imagine if we could find one thing that happened the same way everytime. That isn't a edge that would be a miracle.. LOL,

Yes but in my studying and watching the close of London and the afternoon of the U.S. like most trading if you use proper trade and money management, and get that entry at the London Fix should deliver more gains than losses.

I do watch e/j and Gbp for these and Like I said it may take as long as 3 hrs to unfold. I think it is the thinning of the market as well that might be...

You know. It could be that with the GU and EJ that you get more reliability with this drift. They have less trading volume then EU, so may see more of an effect with London closing up shop.

Rufus
Illegitimi non carborundum - Noli pati a scelestis opprimi.
  • #1,627
  • Aug 22, 2010 12:12pm Aug 22, 2010 12:12pm
Quoting Storeball
Hey Kodziro!

Another neat trade for sure, and as you said a coupple of good examples in the thread as well (great one from ken coupple of pages back). This is pretty close to what i too look for if im going to take a touch trade. Good fib level with a clear defined support or resistance area for putting tight sl.

Just one thing though, your saying psych level, from your other post i just assumed it was a basic ppa line but here its two different things. Would you mind just clearing up the difference between the two? Round number?

Thanks again...
Psych. level it`s ppa line but not basic, check my definition. Take a look at following uch example.
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  • #1,628
  • Aug 23, 2010 12:21am Aug 23, 2010 12:21am
Thanks alot the charts Ken!

Kodziro, yea I just got my self confused there, so a psych line is really just that its a line, more specific, while ppa is a more often drawn from a longer perspective and is an area of interest.
  • #1,629
  • Aug 23, 2010 3:20pm Aug 23, 2010 3:20pm
Hello

4. PA entry ( work nice also at 15m tf )


a) In general ( anywhere )
b) with respect some ppa line

After PA we look for trade at pullback to some ppa line. ( daily line, psych level,zero area ... )
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  • #1,630
  • Aug 23, 2010 4:36pm Aug 23, 2010 4:36pm
Todays Asian drift on E/J
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Good Trading To All ; Ken Lee
  • #1,631
  • Aug 23, 2010 4:53pm Aug 23, 2010 4:53pm
now the Hrly ,,View
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  • #1,632
  • Aug 23, 2010 5:26pm Aug 23, 2010 5:26pm
10 ema for profits
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  • #1,633
  • Aug 24, 2010 1:52am Aug 24, 2010 1:52am
Good Morning ken and everyone!

Nice chart and example thanks

Hope your not to tired of me posting yet

Got a little quicky, which i guess is a pretty basic question actually. The charts here are two trades on usd/chf yesterday. The green line is 4h resistance and the red arrow is my trigger, opened on the next candle. What im hoping i could get some input on though is leading up to my entry, on both trades, we got higher lows. How should that effect the entry, if it should at all? Are we just potentially looking for a small scalp gain? Should we wait for more confirmation, possibly from a swing break before entering? etc

Any input would be greatly appreciated!
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  • #1,634
  • Aug 24, 2010 7:04am Aug 24, 2010 7:04am
Quoting Storeball
Good Morning ken and everyone!

Nice chart and example thanks

Hope your not to tired of me posting yet

Got a little quicky, which i guess is a pretty basic question actually. The charts here are two trades on usd/chf yesterday. The green line is 4h resistance and the red arrow is my trigger, opened on the next candle. What im hoping i could get some input on though is leading up to my entry, on both trades, we got higher lows. How should that effect the entry, if it should at all? Are we just potentially looking for a small...
When I see higher lows with price making a straight line across resistance , If you notice on your 4 hr chart below the line you have drawn , We are forming the ascending triangle pattern which is a long continuation pattern.

The pattern shows that although the sellers continue to tryand push price lower each consecitive time it fils to go lower than even the last try. But the horiziontal straight top is also showing that there is still a level being protected ( that some traders feelis the shortterm top)

So we are in a tug of war of sorts. But with the higher lows I expect a break north as the pattern has a good chance of coming through, works most the time.

That being said if you take the short the first thing you look for is a break of the last swing or the last higher low. This would signal that the sellers are gaining some ground and maybe the trade will get some momentum behind it.

The best we can ever do is use the price action , candles patterns lines of all sorts, To give us a hint of what is a possiblity . But that allows us to have a plan of action in our mind and not get taken by supprise.

Always think about if the higher lows hold what then?

Not the cut and dry anwswer you were hoping for probably but it is how I approach it. Plus I would have been looking for longs at the higher lows swings until I got a lower high .

Cheers ... ken
Good Trading To All ; Ken Lee
  • #1,635
  • Aug 24, 2010 7:33am Aug 24, 2010 7:33am
Quoting Storeball
Good Morning ken and everyone!

Nice chart and example thanks

Hope your not to tired of me posting yet ...
Hi Storeball,
on that pin bar u had tons of conflunces:daily tl,4 hr resistance,psych level xx50 and div,and very small SL.
As Ken said bloody momentum was up and very strong prior bull candel.
FX
  • #1,636
  • Aug 24, 2010 8:23am Aug 24, 2010 8:23am
Good morning everyone,
I have a quick question about getting back in after my SL is hit. Below is the GBP on the 15min. I took a long after the hammer at the green line. I took off half my position at +10 pips and move my SL to BE +2. It did come back and take me out. My question is where would you look to get back in this trade if you think it will still move up? I was thinking the 35sma (Orange MA). If it closes above this level then it might move on to the 50ema. My last 4hr was a inverted hammer and was making a pin on the current 4hr. The 1hr was showing showing a spinning top at the time.

I have trouble with getting back in after I have been stopped. Or if it is not a clear PA candle. I am not real good at picking an entry if price is in the middle of the MAs. If Price is leading one side or the other I am pretty comfortable with my entries.

Any help would be great!
Thanks,
-Sid
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  • #1,637
  • Aug 24, 2010 9:55am Aug 24, 2010 9:55am
Quoting Siddhi69
Good morning everyone,
I have a quick question about getting back in after my SL is hit. Below is the GBP on the 15min. I took a long after the hammer at the green line. I took off half my position at +10 pips and move my SL to BE +2. It did come back and take me out. My question is where would you look to get back in this trade if you think it will still move up? I was thinking the 35sma (Orange MA). If it closes above this level then it might move on to the 50ema. My last 4hr was a inverted hammer and was making a pin on the current 4hr. The 1hr...

The simplest and easyest to remember is that a entry signal is good for as long as it last,(doesn't get broken) So if price goes back into the wick , when it start to turn back you can re-enter basiclly getting a better entry.

We can see right after you were stopped a DBLHC (engulfing took place) neither the candlestick pattern or the the pullback into the engulfing green broke your original entry signal. so either entry would be fine.

Your stop if allowed by money management could be the extreme low of the big number 80, plus a few. So the second entry lower would get you a tighter stop and would survived the last pin that retested that low. On the hrly you can see the consolidation zone. and the 50 ema on the daily is one MA that is used by many . That and the 200 sma. You hear talked about on most finance news channels.

Anyway that is what Works most times.. If you read a lot of EO's thread you will see Infinity talked a good deal about using previous entry signals even if they were from the last runup hrs or days before. The entry signals are just another sign or alert that we are at a area that is important to traders.

So if it was importantt in the past it is normally still importanedt now..
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Good Trading To All ; Ken Lee
  • #1,638
  • Aug 24, 2010 9:59am Aug 24, 2010 9:59am
Quoting Siddhi69
Good morning everyone,
I have a quick question about getting back in after my SL is hit. Below is the GBP on the 15min. I took a long after the hammer at the green line. I took off half my position at +10 pips and move my SL to BE +2. It did come back and take me out. My question is where would you look to get back in this trade if you think it will still move up? I was thinking the 35sma (Orange MA). If it closes above this level then it might move on to the 50ema. My last 4hr was a inverted hammer and was making a pin on the current 4hr. The 1hr...
Just noticed the green line you placed .. all the thing said still are importnat but see your entry was after all that. your second entry would be the retest of the 35 sma Line , but was very close to the news release which could send price either way. A move to BE is fine but if your scalping maybe take it all. If not wait for a bit further of a move at least a break of the next importnat line like the 35 or 50 ma..

Sorry I veiwed your chart wrong,. Ken
Good Trading To All ; Ken Lee
  • #1,639
  • Aug 24, 2010 10:30am Aug 24, 2010 10:30am
Quoting Siddhi69
Good morning everyone,
I have a quick question about getting back in after my SL is hit....
Hi.
Maybe not really involved with your question but I want to point at something. Take a look at 1h tf. After series of inside bars always pay attention ( expect ) to trade at end of the wick. So PO or waiting for 15m pa there are worth to consider. That trade type usually have some potential.
Cheers.
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  • #1,640
  • Aug 24, 2010 10:49am Aug 24, 2010 10:49am
Thanks Ken for the explanation! I sometimes get caught chasing the market with my reentries. It is like I am pretty sure where price is going, but I jump to soon. And most of the time I pay for it. I am trying to learn patience and only take grade A trades. So knowing what those are definitely helps.

I did reenter that long after the close of the 35sma at the retest for a nice gain.

I know when we first spoke you said you do not try to teach the MA trades much anymore. Does this include the 1 and 5 o'clock trades? The reason I am asking is that one thing I need to understand better is how do you find entries during a good move up or down. The 1 and 5 trades seems like a way to ride price one way or the other without to much risk. What continuation patterns would you recommend learning to trade? Do most traders trade bounces or reversals? This is basically what I know to do.

Basically I always wait for price to top or bottom then I look for reversals (In doing this I miss out on a lot of pips). Or try to find a trade at a good S/R level, but I am about %50 hit/miss with these trades.

Any guidance would be wonderful.
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