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Ken's Continuing Successes with EO's system

  • #1,641
  • Aug 24, 2010 10:58am Aug 24, 2010 10:58am
Hey Kodziro,
Thanks for the info. Would you mind explaining what you mean with a little bit more detail. What are you calling an inside bar? I think of an inside bar as when a candle body is inside the previous candle body. With the series you have mark some are not inside the bodies.

Also would you mind telling me what do you mean about "expect a trade at the end of the wick"? I am guessing it means to take a trade after price breaks the wick of the first inside bar. And I a guessing that I need to wait for a close of the breakout candle. Will price try to pull back like with a hammer or do I just take the trade on the open of the next candle?

Thanks for the help you have my attention!
  • #1,642
  • Aug 24, 2010 11:59am Aug 24, 2010 11:59am
Quoting Siddhi69
Hey Kodziro,
Thanks for the info....
End of the wick trade i mean trade with level high/low of candle that contain others candle ( not always care about shadows most important is open and close). I tell about series candles ib`s ( min 2 ) not just one. Best works opposite to the previous swing. Maybe inside bars as a common forex definit. don`t fit to what I describe so think of it like setup.
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  • #1,643
  • Edited 12:55pm Aug 24, 2010 12:43pm | Edited 12:55pm
Quoting Siddhi69
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...
If your trade and money management is right 50% can make you a very rich man..

Yes the 1 and 5 oclock trades, are some of the best for JOINing a good trade with little risk. When I say I don't teach the MA trades, I mean I don't talk much about them but if you you start to notice how we discuss Price Action around the levels of interest then look at the chart showing the different trades. You will see the MA trades.

The problem is with a lot of different systems as well , People just tend to see what they want of a trading idea and sometimes miss the biggest part. The MA's are to help see where price action accures. Not price action showing ma trades.

Once you start to understand more about the price action and it seems your on your way. When you scroll through your charts with PREDETERMINED areas marked and you notice price at a certian MA. And know what that certain MA trade is . It is very easy to quicklly see a possible entry or not.

That is the purpose of the ma's Just more confluence, but also a quick visual of "Hey Look At Me !!!"

But the 1 and 5 oclock are normally our breakout/retest of a ranging market , previous session high/low or daily, Which gives us a chance to get in a continuation of a move after consolidation or it can be just a bit of profit taking or stops hit at a level during a run .

You can see one of those on the gbp after your 35 sma entry and the news, price hit 1.5480 then retraced to 1.5445 area with the 5/10ema pointing towards 1 , I took that for a small scalp as it didn't get nowhere, But it is forming a ascending triangle and could break north. actually looks like it is trying now. But almost work time for me.


If you have questions about any of the different MA trades feel free to ask. I wil explain as best I can.. Ken
Good Trading To All ; Ken Lee
  • #1,644
  • Aug 24, 2010 12:53pm Aug 24, 2010 12:53pm
Quoting Kenneth Lee
If your trade and money management is right 50% can make you a very rich man..

Yes the 1 and 5 oclock trades, are some of the best for JOINing a good trade with little risk. When I say i don't teach the MA trades I mean I don't talk much about them but if you you start to notice how we discuss Price Action around the levels of interest then look at the chart showing the different trades. You will see the MA trades.

The problem is with a lot of different systems as well , Peole just tend to see what they want of a trading idea and sometimes...
Hi Ken,

I read some pages of this thread and looks good but i will love to see mz formation on your template becouse i see many posibilites with my fomration and maybe can help you in your trading style.I didnt see tpl file in your first page,if i can get tpl than i will show you what i mean ...


CHeers and stay diciplined as like before becouse i read some pages and you are diciplined trader i love to see that..


Petar
"Buy on fear, sell on greed !!!
  • #1,645
  • Aug 24, 2010 1:00pm Aug 24, 2010 1:00pm
Quoting Petar_Serbia
Hi Ken,

I read some pages of this thread and looks good but i will love to see mz formation on your template becouse i see many posibilites with my fomration and maybe can help you in your trading style.I didnt see tpl file in your first page,if i can get tpl than i will show you what i mean ...


CHeers and stay diciplined as like before becouse i read some pages and you are diciplined trader i love to see that..


Petar

I don't use any template, my platforms are not MT4 , All trading is done manually or through PO's (Pending/Limit Orders) Thanks for the offer though.. I just like to see with my own eyes what is happening and make my calls from that . Ken
Good Trading To All ; Ken Lee
  • #1,646
  • Aug 24, 2010 1:02pm Aug 24, 2010 1:02pm
Quoting Kenneth Lee
I don't use any template, my platforms are not MT4 , All trading is done manually or through PO's (Pending/Limit Orders) Thanks for the offer though.. I just like to see with my own eyes what is happening and make my calls from that . Ken
OK my friend i just tried to help
"Buy on fear, sell on greed !!!
  • #1,647
  • Aug 24, 2010 2:35pm Aug 24, 2010 2:35pm
Thanks Kodziro! I think I understand what you are saying. When you have multiple candles inside each other look for a break above or below the "pseudo candle range" and play the trade out of that break.

Ken,
I do need to learn price action trading better. For the longest time I had trouble understanding what price action was. It was a term you hear all the time, but I could never get a good understanding of what it meant. I know now by just being around forex (and tons of reading) that it is just the formation of the candle (i.e. doji, hammer, shooting star). How price moves!! I need to learn maybe the psychology of the candles. What are the people (who make price move) thinking? Why is a particular candle forming the way it is. Over time this is getting easier, but that has been one of my struggles. That and over thinking it.

I have added a chart and I think the area you are talking about is where the big red arrow is pointing. If this is correct I have a couple of questions. This is the type of trading I want to get better at. I think it will help me all the way around. Actually everything I learn helps me more everyday.

1. When price is coming down to the MA (in this case the candle before the one with the big red arrow coming down towards the red line (5ema)). Do I wait for a particular type of candle or do I trade it as a touch? And I guess I would put my SL at the next MA down the line (in this case the blue line (10ema))? Where would a reentry be? Or would I start looking for a reversal of the overall trend and be looking for a short?

2. Are the MAs stronger if they are more spread out and in order?

3. Should I look left and see which MA tends to hold better? If that MA held better in the past (say price moves through the 5ems but holds at the 10ema). Do I give the 10 more value?

4. And then do I scalp 5-10 pips and then wait for it to move back to the MA before reentering? Where is my exit? Also I would imagine the entire time I would be waiting for price to move toward a key level (S/R) to get me ready for a reversal.

These are just a couple of questions and I hope I am not taking to much time away. I see this could be a very nice trade setup if I can get it down.
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  • #1,648
  • Aug 24, 2010 5:21pm Aug 24, 2010 5:21pm
GU 4h setups
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  • #1,649
  • Aug 25, 2010 8:14am Aug 25, 2010 8:14am
Quoting kodziro
GU 4h setups
Kodziro,

Can I ask what makes you so sure that price is going to be rejected a second time?

You indicate in your chart that we have been given a second chance, however, I always get worried when I see price start moving back up to retest the same area........... infact this is where many of my positive trades end up at Break Even.

My entry is normaly okay - probably a few pips early (as usual). When price moves with me and then comes back up to the original area I entered, I will often move to BE and get stopped out.

My question isn't about the BE part, I was just trying to explain my mentality behinmd it, but it's from a point of view of be confident of another reversal/rejection.

Regards

Lee
  • #1,650
  • Aug 25, 2010 2:11pm Aug 25, 2010 2:11pm
Quoting leemonk
Kodziro,

Can I ask what makes you so sure that price is going to be rejected a second time?

You indicate in your chart that we have been given a second chance,...
I wasn`t sure about this reject, but I always expect and trade with sytuation like this. This was psych. line. Look at my example from the previous week.

As for BE if your entry is good i will not move SL, but only if your risk reward ratio is good. You could also take some and later if price get back to your entry add to orginal amount of position. This will reduce your loss or let you be still in the game.
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  • #1,651
  • Aug 26, 2010 9:15am Aug 26, 2010 9:15am
1. When price is coming down to the MA (in this case the candle before the one with the big red arrow coming down towards the red line (5ema)). Do I wait for a particular type of candle or do I trade it as a touch?

The 1 and 5 O'Clock trades are touch trades they allow us to get into a trending market. They are considered low risk as we place our stop the other side of the next MA. So if we get into this trade off the 5 ema our stop would be the other side of the 10, But use some common sense also if they are all bunched up maybe the the other side of the 21 ema, Just use a sensible stop.

And I guess I would put my SL at the next MA down the line (in this case the blue line (10ema))?

Yes.. See above.

Where would a reentry be? Or would I start looking for a reversal of the overall trend and be looking for a short?

Only the price action can dictate if we are looking for a reversal or is price just consolidating. The small retrace entries like this can be the start of a reversal or the start of a continuation pattern like a ascending triangle. but even the best pattern (asscending triangle ) can fail as I believe this one did. Not sure but believe this is the one that turned short.

But with the correct entry your loss would be small and then you start looking for the short entry. After you get a lower Low , Look for the lower high for the entry. A lot of times that will be the same area as your long entry just retesting the bottom of it.



2. Are the MAs stronger if they are more spread out and in order?

We are not really using the MA's in this fashion , but for this particular trade if they should be in order and the trend is stronger when they are spread wide apart.

3. Should I look left and see which MA tends to hold better? If that MA held better in the past (say price moves through the 5ems but holds at the 10ema). Do I give the 10 more value?

No !! We look left for price levels that have held . not MA's.

4. And then do I scalp 5-10 pips and then wait for it to move back to the MA before reentering?

If you only look for 5 or 10, you will be losing a lot of pips, as we said this is a lot of times a great entry to join a trend and can happen just a the beggining of the move , The one you picked to show just happens to be when the move has started to end and price is losing momentum,

But at the start of a move price will break a major level ( Previous dayshigh, asian session high, Brek of a consolidation zone) so we will see a small retrace due to stops being taken out and the like, It will normally retest the top orbottome of those levels , This is where these entries are the most important.

Where is my exit?

Depends on the trade . If like the one you showed. We look for price to break where it had turned back down first, (last swing). If it fails then we look to exit as high as we can. On your chart you can see that it gave you 3 chances ot exit after failed to go higher than the first run up.

This is a common accurence that price goes the highest or lowest on it's first attempt. This why we can use that as a stop area for our trades. But we can also use it for our exit strategies.


Also I would imagine the entire time I would be waiting for price to move toward a key level (S/R) to get me ready for a reversal.

Yes in the best entry of this type trade. Price would push above the last swing, Then we would target the next major S/R level. This is where your own personality can make the different traders. If your looking at levles off a 15 min or 1 hr chart it can be closer than if your looking at levels off a 4 hr or daily.

But until your use to trading the 4 hr and daily those big retraces that happen can be hard to take. That is one reason the J16 thread teaches long term trading before anything smaller as it is hard to go from scalping to swing trading.

A scalper that is happy grabbing 10 or 15 . will find it hard to watch 40 or 50 pips vanish. But you can temper that by entering your position with multiple entries and scale out of them at different levels then adding them back at the retracement areas.

That is all in the pdf ..

Hop this helps. You might want to re-read the pdf. as I notice some errors on this 15 min chart regarding the MA's you have.

Trade Well Ken
Good Trading To All ; Ken Lee
  • #1,652
  • Aug 26, 2010 11:47am Aug 26, 2010 11:47am
Thanks Ken for the great response. You answered my questions with the detail I needed.

I will reread the PDF. I have read it a couple of times and I pick new things each time I read it. I am not sure which errors you are talking about. I know I have changed some of my colors to my liking and I have added the MACD. I have a couple of range break trades that I use from another system and these help me with those. If it is something other than those I would appreciate the input so I can make note of them while rereading the PDF.

Thanks Ken!
  • #1,653
  • Aug 26, 2010 11:53am Aug 26, 2010 11:53am
Quoting Siddhi69
Thanks Ken for the great response. You answered my questions with the detail I needed.

I will reread the PDF. I have read it a couple of times and I pick new things each time I read it. I am not sure which errors you are talking about. I know I have changed some of my colors to my liking and I have added the MACD. I have a couple of range break trades that I use from another system and these help me with those. If it is something other than those I would appreciate the input so I can make note of them while rereading the PDF.

Thanks Ken!
62 ema is only on the hrly.

a 248 ema 62 x4 can be used on the 15 to let you know when your getting close to the 62 on the hrly..

Oscilator is your choice. I still have a slow stoch on some of my charts , not sure why as I never look at it..
anyway all good ... Ken
Good Trading To All ; Ken Lee
  • #1,654
  • Aug 26, 2010 12:02pm Aug 26, 2010 12:02pm
I did not know about the 248ema. I will add that one. Unfortunately since I use Onada the 62ema shows up on all timeframes. I cannot just have it on the 1hr without it being on the 15min. I just ignore it on the 15min. I always stay on the same chart and just switch between the TFs to see the different ones.

I have been trying to figure out how to get an MA on the 15min. that will give me an idea about where the 1hr 62 is. I never thought about multiplying the 62 by 4. Makes sense now! Thanks for that!
-B
  • #1,655
  • Edited 1:32pm Aug 26, 2010 1:17pm | Edited 1:32pm
Quoting Siddhi69
I did not know about the 248ema. I will add that one. Unfortunately since I use Onada the 62ema shows up on all timeframes. I cannot just have it on the 1hr without it being on the 15min. I just ignore it on the 15min. I always stay on the same chart and just switch between the TFs to see the different ones.

I have been trying to figure out how to get an MA on the 15min. that will give me an idea about where the 1hr 62 is. I never thought about multiplying the 62 by 4. Makes sense now! Thanks for that!
-B
I use Oanda as one of my platforms as well, But have all the different time frames setup as some have different ma's, You cna set them all up and they will just be tabs at the bottom of your screen. Or if you have mulit screens you can have them open on them..

But i understand. But it is nice to see the higher time frames without all the clutter
Cheers ken
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Good Trading To All ; Ken Lee
  • #1,656
  • Aug 27, 2010 2:07am Aug 27, 2010 2:07am
Quoting Kenneth Lee
I use Oanda as one of my platforms as well, But have all the different time frames setup as some have different ma's, You cna set them all up and they will just be tabs at the bottom of your screen. Or if you have mulit screens you can have them open on them..

But i understand. But it is nice to see the higher time frames without all the clutter
Cheers ken
Hi Ken,

Same here i use Oanda for my trade and on my second screen i use one MT4 platform (i put my SR, Pivot....) i divided my mt4 platform in 10 square, each pair 2 squares (15m and 1H) GU,GY,EU and ej the last 2 squares USDX.

And if i want a bigger view i only restore the TF/pairs, but your screen look good with Oanda.

Nice thread ken

Green pips to you.
Trade with the momentum
  • #1,657
  • Aug 27, 2010 7:47am Aug 27, 2010 7:47am
I did not know I could setup Oanda with tabs at the bottom. That might be better for me. I will check it out. I use Rumus 2 for my higher TF like 4hr and daily. I also you MT4 but it's candles close different due to the time of day they start. So I only do my range break out trades on it. Then I open the trade in Oanda. I wish I could find a broker that has the same 4hr and daily close as Rumus. I have tried all I could find but there is always a difference. I love MT4 as I know that platform the best. I do all of my back testing on it as well as you can take trades (demo only of course) and everything with past data.
  • #1,658
  • Aug 28, 2010 9:38am Aug 28, 2010 9:38am
Somebody sent me this link. What I found most interesting while watching it was look to the left and you can see the key areas he is talking about are key s/r-ppa areas that he has tools he uses that help him to see them as well.

Plus he mentions the key areas on a few occasions.

Just goes to show that the basics no matter how you decide to find them work the best and that there isn't any wrong way to trade. Just keep your eye on the levels.

http://link.brightcove.com/services/...d=597267805001
Good Trading To All ; Ken Lee
  • #1,659
  • Aug 28, 2010 9:54am Aug 28, 2010 9:54am
Plus a lot of his trendline targets that were hit and may be hit are s/r- ppa +fib levles plus trendline. CONFLUENCE.
Good Trading To All ; Ken Lee
  • #1,660
  • Aug 28, 2010 1:09pm Aug 28, 2010 1:09pm
I was looking at the worksheet and did a revision to make it flow better in my mind.

Since we read charts from HTF to LTF, I wanted the worksheet to reflect that.

Also changed around the m15 part.

Please take a look and let me know what you think. All input is welcome.

HOLLA
Attached File(s)
File Type: pdf 2010 Intraday Trading Worksheet2.pdf   290 KB | 665 downloads
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