Ken's Continuing Successes with EO's system | Page 112 | Forex Factory

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Ken's Continuing Successes with EO's system

  • #2,221
  • Oct 27, 2010 3:14pm Oct 27, 2010 3:14pm
Well we couldn't have asked for a better 4H close .. nice pin, got some buyers jumping on top after we crossed the 35/50 as well.. we have some traffic around 973x but if we can get above that I think we're clear until we hit the the major MAs, 1H 62/50 and 4H 50
  • #2,222
  • Oct 27, 2010 3:22pm Oct 27, 2010 3:22pm
Quoting dr mongolia
Well we couldn't have asked for a better 4H close .. nice pin, got some buyers jumping on top after we crossed the 35/50 as well.. we have some traffic around 973x but if we can get above that I think we're clear until we hit the the major MAs, 1H 62/50 and 4H 50
Sweet, sweet trade guys.

I was busy playing squash
  • #2,223
  • Oct 27, 2010 3:44pm Oct 27, 2010 3:44pm
Quoting Trotty
Sweet, sweet trade guys.

I was busy playing squash
Haha me to!

Squash is the bomb but man it knocks your breath away!
  • #2,224
  • Oct 27, 2010 5:03pm Oct 27, 2010 5:03pm
finding it a bit of a swine to trade this system on oanda.... i have to open seperate windows for each tf to put the different ma's on, but my s/r lines off the higher tf's then dont show on the others? if that makes any sense!

i dont suppose anyone uses oanda or has some advice on a trading platform for this system....
  • #2,225
  • Oct 27, 2010 5:08pm Oct 27, 2010 5:08pm
Just an observation, A/U, E/J, G/J, and G/U all hit bottom within 5-10 minutes of noon CDT (11 EDT), with the slight exception of E/J which was retesting the bottom at that time. All of them are also showing the "Asian drift" as Ken calls it. Interesting.

I had entries near the bottoms on E/J and G/J that I closed way early .. I thought they were stalling too much for comfort, and now they're up another 20 pips each. That would have allowed me to cover and have two free shots at hitting a breakout in Asian/London. Another lesson learnt I suppose.. the market is full of these
  • #2,226
  • Oct 27, 2010 7:42pm Oct 27, 2010 7:42pm
Quoting darrenlittle
finding it a bit of a swine to trade this system on oanda.... i have to open seperate windows for each tf to put the different ma's on, but my s/r lines off the higher tf's then dont show on the others? if that makes any sense!

i dont suppose anyone uses oanda or has some advice on a trading platform for this system....
I mainly use Oanda to place orders, but I don't use their charts.. Personally I use ProRealTime for charting because I am used to it, they do charge monthly fees though. A lot of people that trade with Oanda use a demo MT4 account for their charting, that's an easy (and free) what to do it.
  • #2,227
  • Oct 27, 2010 10:18pm Oct 27, 2010 10:18pm
Quoting darrenlittle
finding it a bit of a swine to trade this system on oanda.... i have to open seperate windows for each tf to put the different ma's on, but my s/r lines off the higher tf's then dont show on the others? if that makes any sense!

i dont suppose anyone uses oanda or has some advice on a trading platform for this system....

But once you get them setup you save the layout and it opens all the ones your using. I have more than one screen so not a issue for me. But once you plot your levels it is pretty easy to toggle from pair to pair once the aproach those levels you identified.
Good Trading To All ; Ken Lee
  • #2,228
  • Oct 28, 2010 3:11am Oct 28, 2010 3:11am
Quoting darrenlittle
finding it a bit of a swine to trade this system on oanda.... i have to open seperate windows for each tf to put the different ma's on, but my s/r lines off the higher tf's then dont show on the others? if that makes any sense!

i dont suppose anyone uses oanda or has some advice on a trading platform for this system....
The best advice I could give anyone serious about trading as a business is to make a business investment and buy an additional screen or two more.

I have 3 screens, one with the Oanda charts on, ready to execute and the others with Alpari MT4 charts on, I have a small account with them but unless there is a problem with oanda, I use these for charting only.

You can download an unlimited trial with Alpari or most other MT4 brokers, you will find it much easier than using Oanda.
  • #2,229
  • Oct 28, 2010 3:13am Oct 28, 2010 3:13am
Quoting Storeball
Haha me to!

Squash is the bomb but man it knocks your breath away!
Ha! What were the chances of that?

It's a great sport but as the saying goes, "You don't play squash to get fit, you have to bit fit already to play squash".

Never a more true word spoken.
  • #2,230
  • Oct 28, 2010 5:02am Oct 28, 2010 5:02am
Quoting Trotty
Ha! What were the chances of that?

It's a great sport but as the saying goes, "You don't play squash to get fit, you have to bit fit already to play squash".

Never a more true word spoken.
Great minds just dont think alike, they also act alike??

Did you get the ej long? Almost exact same setup as you had a chart on yesterday Also had some htf support to support it.

edit: lol support to support it, thats a killer
  • #2,231
  • Oct 28, 2010 5:08am Oct 28, 2010 5:08am
Quoting Storeball
Great minds just dont think alike, they also act alike??

Did you get the ej long? Almost exact same setup as you had a chart on yesterday Also had some htf support to support it.

edit: lol support to support it, thats a killer
Ha ha! I didn't catch that little beauty but I caught EU long instead, right off the 50 ema
  • #2,232
  • Edited 11:26am Oct 28, 2010 10:27am | Edited 11:26am
Well, anyone who went short on EJ like me this morning has had a fun day!

A trade that started at 11.00am (UK) this morning has finally just ended at BE (4.30 pm my time) . Been in a 30 odd pip range range all bloody day.

May still take another if it breaks out anywhere but damn i've used a lot of my energy on nothing there!
  • #2,233
  • Oct 28, 2010 11:14am Oct 28, 2010 11:14am
Quoting Trotty
Well, anyone who went short on EJ like me this morning has had a fun day!

A trade that started at 11.00am this morning has finally just ended at BE. been in a 30 odd pip range range all bloody day.

May still take another if it breaks out anywhere but damn i've used a lot of my energy on nothing there!
I wish I would have been up this morning to take those E/J hammers long, the first one was at 2:30AM local time for me (CDT, 7:30 GMT) and usually I'm on for those trades but I had a problem with my video card this morning on my computer

I closed out my A/U long from yesterday and got a couple good shorts on it but nothing great. I'm going to post a E/J chart in a few minutes, I think it helps to illustrate what I was trying to explain about the 35/50 cross. The trade could even fail, but it'll still be a good example because it shows the strong resistance at the edges.
  • #2,234
  • Oct 28, 2010 11:25am Oct 28, 2010 11:25am
Quoting dr mongolia
I wish I would have been up this morning to take those E/J hammers long, the first one was at 2:30AM local time for me (CDT, 7:30 GMT) and usually I'm on for those trades but I had a problem with my video card this morning on my computer

I closed out my A/U long from yesterday and got a couple good shorts on it but nothing great. I'm going to post a E/J chart in a few minutes, I think it helps to illustrate what I was trying to explain about the 35/50 cross. The trade could even fail, but it'll still be a good example because it shows the...
Well done on AU mate.

I wasn't quite at it in time for the EJ long either but would have been on that in a flash had I.

I have just been waiting for the breakout on EJ to retrace a little further as had a PO at a nice confluence point around the 200 ma for the long trade but it never got that far. Frustrating day but a profitbale one, whihc is what matter I suppose.
  • #2,235
  • Oct 28, 2010 11:29am Oct 28, 2010 11:29am
Yeah I think it's stuck between the 35 and 50 on the daily.. whichever way it breaks we should get a nice run because it's been winding up for so long
  • #2,236
  • Oct 28, 2010 11:34am Oct 28, 2010 11:34am
Quoting dr mongolia
I'm going to post a E/J chart in a few minutes, I think it helps to illustrate what I was trying to explain about the 35/50 cross. The trade could even fail, but it'll still be a good example because it shows the strong resistance at the edges.
I'm waiting a few more candles for this chart, it's turning out perfect as an illustration
  • #2,237
  • Oct 28, 2010 12:02pm Oct 28, 2010 12:02pm
Quoting dr mongolia
I wish I would have been up this morning to take those E/J hammers long, the first one was at 2:30AM local time for me (CDT, 7:30 GMT) and usually I'm on for those trades but I had a problem with my video card this morning on my computer

I closed out my A/U long from yesterday and got a couple good shorts on it but nothing great. I'm going to post a E/J chart in a few minutes, I think it helps to illustrate what I was trying to explain about the 35/50 cross. The trade could even fail, but it'll still be a good example because it shows the...
http://cdn.forexfactory.com/images/icons/icon14.gif It was nice run at A/U with this long, holding short right now at 9814 with weekly pivot ,ppa line and major MA -( on the fibo zone )- although not enter by first touch ( missed it ) only with PO there after 1h pa rejection.

PS. is someone play with zero area + ppa at ECH today ?
  • #2,238
  • Oct 28, 2010 12:18pm Oct 28, 2010 12:18pm
Quoting kodziro
http://cdn.forexfactory.com/images/icons/icon14.gif It was nice run at A/U with this long, holding short right now at 9814 with weekly pivot ,ppa line and major MA -( on the fibo zone )- although not enter by first touch ( missed it ) only with PO there after 1h pa rejection.

PS. is someone play with zero area + ppa at ECH today ?
I dont watch that pair, but just checked it out. Nice trade, 3700 and yesterdays high as well. You had a po there?
  • #2,239
  • Oct 28, 2010 12:36pm Oct 28, 2010 12:36pm
Quoting Storeball
I dont watch that pair, but just checked it out. Nice trade, 3700 and yesterdays high as well. You had a po there?
It will test it for the third time today ( if price gets there ), but got PO there , I dont think that asia will make new high later

PS. waiting for EJ 1h close, wonder if it close under 112.86
  • #2,240
  • Oct 28, 2010 12:49pm Oct 28, 2010 12:49pm
Okay this goes along with what I was talking about yesterday. I've got a few 15M charts illustrating what I believe are the "key concepts" of the 35/50 reverse trade WHEN the market is ranging (in my opinion, it's an entirely different trade when you are outside of a range). First a few points:

I know that EO's PDF says to reverse on the next candle, but in the thread you'll see that he usually doesn't trade it this way, and unless the market is ranging VERY tightly, or the candle closes right on S/R, there's really no need to trade it this way because you have a 35 pip range to play with, so take the trade at what you determine is the best entry point inside that 35 pip range.

Here's the first chart. I tried to put everything on one chart but it looked like crap so I'm breaking them up. It's 15M E/J. At 14:00 GMT (immediately to the right of the vertical white line) we get a nice momentum candle crossing and closing past the 35/50. I have marked where the 35 SMA was at this point and also +35 pips and -35 pips from it. You'll see that the +35/-35 numbers line you up almost perfectly inside the trading range, and this is why EO uses that +35/-35 number. You'll hear him say to put your stop 35 pips past the close of the candle and thats to take spikes outside of the range into account. In my opinion, this is the most important part of the 35/50 trade -- the positioning of PA in relation to the 35 SMA.

So now you've gotten your 35/50 signal, and you can clearly look at the 15M plus the HTFs and see that the edges of the range are strong. As long as we stay in a range, they are very likely to hold the PA. After this point I'll wait for best entry that I can find inside that 35 pip area below the 35SMA. I was looking for anything below 112.40 because I didn't think we'd make it back to the edge of the range without a bigger momentum candle through the 35/50, and there's a lot of support at 112.3X (I can see big S/R on the H4 plus we got the daily 50 and I can even see S/R on the daily). It very well could have continued on to the bottom of the range and I would have had a 15 pip drawdown but that's okay because to take a 35/50 you have to trust in the strength of the edges of the range in the first place.

Once price bounced off of 112.38 the first time and gave us that red pin I entered long on the opening of the next candle. I closed early and only got 30 pips on this trade (closed at the green spinning top, didn't like how the momentum slowed so drastically) but it at least got me into the market and made me some money after I missed that obvious hammer trade earlier due to computer problems. I think "optimal execution" on this trade would be to take some profit and cover one price passes the 50MA again, to take more profit toward the top of the range, and then to leave the rest to run incase we break out from the range.
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