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Ken's Continuing Successes with EO's system

  • #2,201
  • Oct 26, 2010 8:18pm Oct 26, 2010 8:18pm
Just got an E/J scalp as well.. I can't find any big setups this Asian session but for once I've just let it go and started grabbing the smaller moves that have some nice confluence to them.

I see potential for a couple big moves -- E/J is wound up tight but I'm not sure if its going to pop up off the 4H/daily TLs and S/R or continue downward with 1H TL and 62/50 MAs. I've got a short covered so I'm going to let that run, but if I can find a long entry I'll probably take it as well, I don't want to miss this. Also, AUD/USD has fallen to a level of pretty strong support BUT its below every signal MA.. so I think I'm going to sit this one out (EDIT: Well it's still got the daily and weekly MAs below it, just noticed that.. but I'd want a lot of confirmation to jump in front of this train)
  • #2,202
  • Oct 26, 2010 10:25pm Oct 26, 2010 10:25pm
Quoting kodziro
Ken how do you define Fading zeros scalp trade opportunity ? ( Price must respect it in the past or close htf candle under/beyond and later test it or maybe some small tf retest after breakout zero area or as a pullback of high momentum move ??? )

usually you look for price to cross the 00 depending on the pair . Some may only cross 10 or so, Others yen pairsd as much as 20. Then you take the trade in the opposite direction. Even if price continues it will normally pull back to at least the 00 if not further. This can be caused by stops placed the other side being hit as well as other trades thinking it will turn here and wanting the best entry.

Just watch that you don't close one that is turning. as this is soemthing I do to much off. But as we mentioned earlier today. yen pairs being big movers have a lot of ppa-s/r at the 00 and 50 . One reason the fade trades work so well. Just look back on your charts and you will see them. Someyimes you may not unless you look at a 5 or 1 min chart as it can happen during 1 , 15 min candle at times ina strong trending market.

Just another tool in the ole' tool chest also a way to not get caught taking a breakout of a big number to soon wait for that fade to take place then look for the continuation.

Hope this answers your question. Take care Ken
Good Trading To All ; Ken Lee
  • #2,203
  • Oct 27, 2010 2:58am Oct 27, 2010 2:58am
Quoting dr mongolia
I got a lucky 35/50 reverse on AUD/USD a few minutes ago. I'm not sure what happened, maybe news but I couldn't find anything relevant.

Here's the 15M chart, entry was at the opening of the candle with the red arrow above it. I was just expecting 10-20 pips.
Wow, you just have to love it when that happens! I haven't had a great deal of joy with these trades (35/50 cross) and began to wonder if they still work the way that EO used to trade them (i.e look for a cross with little wick and then take the reverse back to the mas).

Have you taken many of these?
  • #2,204
  • Oct 27, 2010 3:00am Oct 27, 2010 3:00am
Very interested in finding a good point to get into EJ long here, seems to be reacting off the previous buyinh zone and H4 trendline nicely.
  • #2,205
  • Oct 27, 2010 4:33am Oct 27, 2010 4:33am
Quoting dr mongolia
Quick GU scalp for 30; 4H chart shows the obvious line where buyers are hanging out, 15M shows the exact entry
took this trade also, unfortunately held on to it thinking it was a breakout and watched my pips slip away... thought i had stopped doing that!
  • #2,206
  • Oct 27, 2010 4:55am Oct 27, 2010 4:55am
Quoting Kenneth Lee
usually you look for price to cross the 00 depending on the pair . Some may only cross 10 or so, Others yen pairsd as much as 20. Then you take the trade in the opposite direction. Even if price continues it will normally pull back to at least the 00 if not further. This can be caused by stops placed the other side being hit as well as other trades thinking it will turn here and wanting the best entry.

Just watch that you don't close one that is turning. as this is soemthing I do to much off. But as we mentioned earlier today. yen pairs being...
Thanks for reply, i will keep that in mind
  • #2,207
  • Oct 27, 2010 5:21am Oct 27, 2010 5:21am
about zero area here`s uc trade, left some in both positions
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  • #2,208
  • Oct 27, 2010 8:00am Oct 27, 2010 8:00am
Not my best trade in terms of confluence but I just couldn't resist this long up to the mas.

Had a small loss this morning on EJ also, that i'm too ashamed of to post up (lost trades will be shown though), so now have a small profit for the day, hoping for one more good setup before London close and that'll do me.

Might stay away from EJ though, I may have got all that I will out of her today.
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  • #2,209
  • Oct 27, 2010 8:02am Oct 27, 2010 8:02am
Quoting kodziro
about zero area here`s uc trade, left some in both positions
Hi Ken
Nice to see you again and your "trading house". I hope to visit it frequently as I did with EO`s former (wich look like inactive now... ??)
Best regards
"Even A Thousand Mile Journey Begins with the First Step"
  • #2,210
  • Oct 27, 2010 8:07am Oct 27, 2010 8:07am
Quoting analizer
Hi Ken
Nice to see you again and your "trading house". I hope to visit it frequently as I did with EO`s former (wich look like inactive now... ??)
Best regards
Threads seem to go that way, more is the pity. When Ken finally retires to his 300 foot luxury yacht in Monaco, i'll start a "Trotty's continuing struggles with Ken's Continuing Successes, formally Ken's Continuing struggles with EO's System thread"
  • #2,211
  • Oct 27, 2010 9:30am Oct 27, 2010 9:30am
Quoting Trotty
Wow, you just have to love it when that happens! I haven't had a great deal of joy with these trades (35/50 cross) and began to wonder if they still work the way that EO used to trade them (i.e look for a cross with little wick and then take the reverse back to the mas).

Have you taken many of these?
They definitely still work, but I've found that they are a lot more complicated than the PDF at the beginning of the EO thread lets on. And I don't mean to bash the PDF at all.. I think it was just meant as a set of notes for those who had already studied the entire thread page by page. I read the PDFs before I started reading the entire thread so my initial take on all the trades was very different.

In a ranging market, EO will take the 35/50 if he's got a definite range in mind with strong S/R at the edges. A lot of times you'll see him wait a candle or two after the close through the 35/50 because he is waiting for a better entry at the edge of the range. Also, as macc points out several times in the EO thread, EO's concept of "35 pips on either side of the 35" is very important to this trade when price is ranging and its why you see him recommend a 35 pip stop -- if price is within 35 pips of the candle that closed through the 35, it tends to stay in the range. If it goes outside this area, it tends to breakout. I have found this to be true although you have to take the volatility of the pair/session in mind, so if you're trading say AUD/USD in the Asian session you might want to be thinking 20-25 instead of 35 for GU during London.

In a trending market, the trade is totally different. You are looking for an entry after price has made a new swing high or swing low -- a retracement trade. EO is eyeballing these to make sure they are in the appropriate trading range but as Ken has said using fibs helps a lot until you can eyeball it perfectly. I've noticed that these trades are often taken on a touch of the 50 instead of a close through the 50 (which almost makes them a separate trade entirely.. but they are relying on the fact that in a trending market the candle has a high probability of either touching the 50 and bouncing, or closing through the 35/50 and then bouncing). Ken has mentioned the 50/50 trades several times (when the 50M and the 50% fib line up), they are very effective. So basically in a trending market I look at the 35/50 trade has a hybrid between a true 35/50 trade and a 50/50 trade. But of course a lot of this depends on PPA, where the fibs are located, etc.
  • #2,212
  • Oct 27, 2010 9:31am Oct 27, 2010 9:31am
Quoting Trotty
Threads seem to go that way, more is the pity. When Ken finally retires to his 300 foot luxury yacht in Monaco, i'll start a "Trotty's continuing struggles with Ken's Continuing Successes, formally Ken's Continuing struggles with EO's System thread"
  • #2,213
  • Oct 27, 2010 9:41am Oct 27, 2010 9:41am
Quoting dr mongolia
They definitely still work, but I've found that they are a lot more complicated than the PDF at the beginning of the EO thread lets on. And I don't mean to bash the PDF at all.. I think it was just meant as a set of notes for those who had already studied the entire thread page by page. I read the PDFs before I started reading the entire thread so my initial take on all the trades was very different.

In a ranging market, EO will take the 35/50 if he's got a definite range in mind with strong S/R at the edges. A lot of times you'll see him wait...
That's a brilliant explanation Doc , really appreciate yout aking the time to do that.

I've mentioned a few times that I turned to the original "Dance" thread (now CHOROS) following on from trying to get my head around EO's thread as a new trader. I read maybe a tenth of the thread and it hurt my head! In the Dance strat, you take the touch off the 50 in a trend and you are looking for a 45 degrees or greater angle on the ma for it to be suffiently trendy to take the touches (two bar retraces only though). So your distinction between trending and ranging makes total sense mate!

I wish I had read the whole thread but it's just too daunting now. I've read so many massive threads on so many forums that I don't have the energy any more. The reason for staying with Ken is because he admits himself that he's still learning so we can learn with him but learn from him at the same time - but with a nice and comapct thread!

I'm waffling now but I think i'm basically saying that i'm envious that you've read the whole thing, damn you!
  • #2,214
  • Oct 27, 2010 10:05am Oct 27, 2010 10:05am
Oh but you missed the key phrase.. "I read the PDFs before I started reading the entire thread"

I've got atleast another week until I'll finish but probably longer since I tend to skip a day here or there. I settled into a routine of reading about 50 pages a day and it's not so bad since a lot of the thread is just a few guys passing the time while waiting for a trade, easy reading. But I definitely learn something new every 10 pages or less, and every 20-30 pages you find a real gem that you wish you would have known about all along. I'm hoping to compile some solid notes after I finish reading it plus re-reading this thread so if they end up being any good I'll make a PDF and upload it.

Also, I completely agree -- The great thing about a thread like this is that everyone is still learning/reading/studying, and everyone's got a different perspective on every trade, so there's tons of knowledge to go around.

Looks like E/J is finally breaking out!
  • #2,215
  • Oct 27, 2010 10:18am Oct 27, 2010 10:18am
Quoting dr mongolia
Oh but you missed the key phrase.. "I read the PDFs before I started reading the entire thread"

I've got atleast another week until I'll finish but probably longer since I tend to skip a day here or there. I settled into a routine of reading about 50 pages a day and it's not so bad since a lot of the thread is just a few guys passing the time while waiting for a trade, easy reading. But I definitely learn something new every 10 pages or less, and every 20-30 pages you find a real gem that you wish you would have known about all...
Not a bad idea that, break it down into small chunks. 50 pages a day, job done in a month and a half. Hmmmmm
  • #2,216
  • Oct 27, 2010 10:34am Oct 27, 2010 10:34am
Quoting dr mongolia
Oh but you missed the key phrase.. "I read the PDFs before I started reading the entire thread"

I've got atleast another week until I'll finish but probably longer since I tend to skip a day here or there. I settled into a routine of reading about 50 pages a day and it's not so bad since a lot of the thread is just a few guys passing the time while waiting for a trade, easy reading. But I definitely learn something new every 10 pages or less, and every 20-30 pages you find a real gem that you wish you would have known about all...

Same way my PDF came to be. Everyone should do something similar at least for themselves . It will really help you to see what it is you understand about each type of trade. Plus you can then see the ones you like the most . Then add your own touch to it.

Maybe start yourselves a document with a different chapter for each trade. Then as you study this or any other thread that has information that will help you see your trades better you can add it to your doc.

Then as you have time and gain more understanding you can write it in your own words and that maybe the worlds best document , that everyone can understand.

Great information ,, Ken
Good Trading To All ; Ken Lee
  • #2,217
  • Oct 27, 2010 12:25pm Oct 27, 2010 12:25pm
We might get a big double bottom here on the AUD/USD.. It's testing last weeks low right now, right off the daily 35MA .. It it breaks then the hangman on the weekly is in play, so either way I think we've got a huge move coming up
  • #2,218
  • Oct 27, 2010 1:07pm Oct 27, 2010 1:07pm
Quoting dr mongolia
We might get a big double bottom here on the AUD/USD.. It's testing last weeks low right now, right off the daily 35MA .. It it breaks then the hangman on the weekly is in play, so either way I think we've got a huge move coming up
Got in after the 15M hammer and covered.. If it gets above the 1H 10MA should be good for a runner..
  • #2,219
  • Oct 27, 2010 1:07pm Oct 27, 2010 1:07pm
Quoting dr mongolia
We might get a big double bottom here on the AUD/USD.. It's testing last weeks low right now, right off the daily 35MA .. It it breaks then the hangman on the weekly is in play, so either way I think we've got a huge move coming up
Yes it would be nice, my PO there at weekly line 0.9661 was filled and just took large portion of position near zero area
  • #2,220
  • Oct 27, 2010 1:44pm Oct 27, 2010 1:44pm
Quoting kodziro
Yes it would be nice, my PO there at weekly line 0.9661 was filled and just took large portion of position near zero area
15M until close.. I think we may get our wish
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