Ken's Continuing Successes with EO's system

Don't forget your trading zone..

Long off friday low, 50 fib and spinning top gu. At be now.

Edit: Missed 6015. Stopped at be.

No mate, bit hesitate to jump in right on closing of Berlin market, then sharp to a bath..........

The EO thread has a lot of very definite entries and trading Ideas. When I found that thread I had a good understanding of price action to start with . To see a group that was trying to capture almost any movement of price through out the day interested me grreatlly. because I have always thought that with the correct ideas and mind set that should be a possiblity.

The entries in the pdf based off EO's thread are very good entries and a person with no knowledge but a keen eye could make a lot of money just taking those entries everytime they saw them.

What I have always done and continue to do is try and show WHy those entries are good and the places they are the best, The different People in the thread do the same. Although they use different tools to see different things.

I have mentioned before that you can take a chart from almost any profitable thread and mark the areas of the best entries and they will corespond to our PPA-S/R levels.

EO was not a person that used fibs at all. yet more than half his entries are best taken within a major fib level. Infinty who I believe was instrumental in the thread as well . Did use fibs.

the use of fibs and S/R have always been the very best in stand alone trading. They provide the levels to enter as well as the places to put stops.

There are only a few actual entries to any system. A bounce off a area a breakout and retest and a retracement. the key is to have a good idea of which one is next to look for and where the best stop location would be.

Control of risk is the only thing that seperates a profitable trader from the rest of the herd.

I have always wondered why people don't ask questions about the EO entries but will gladlly answer any questions you or anyone may have.

but with time you will see that a lot of the entries that people post here
are the EO entries they just don't call them as such. the important thing isn't the label but the vision.

like the guys are now calling ma's noodles. This is fine but a new person to the thread will be lost till they figure that out. .

Welocme and if you need clarifaction on ANY point just ask . Sometimes takes me time to respond but I try to . Ken

I hate myself to give up too early on this long

entry IB outbreak, closed at 1.603 around, my marked s/r

You and me both mate. I was just worried (FEAR) it was driven by the news and would reverse on me. Oh well

Well, 20 is 20, better than negative!!

Good night Ken and all (0130 my time), nice to trade in your room with those nice guys.

Tmr will most likely take a day off on trading, too many official meetings, see you all next week.

Trade safe!!

Cheers
Eric

cu I'm out too.

Did anyone FADE the 00 on e/j had a 4 hr line at 114.116 also so pretty save, and now with a lower high and a lower low safe to cover it. might look for a TP off the 4 hr , pull a fib and 113. look likelly or a bit above.

Will try to rememeber to post a chart later .. off to work runnig out the door ..

This might be a little bit of rambling but the above quote resonated with me because my biggest problem is seeing the "where":

I think a lot of people that start with EO's method begin by taking all the entries regardless of where they are on the charts -- like taking a pin reversal during a strong trend with no HTF area above it, or taking a 1/5 o'clock trade when we are about to hit a key level. I know that's how I started, and I still find myself doing that all the time. It's definitely my biggest problem as a trader -- I don't always read the charts will enough to understand "where we are", and instead of sitting aside that those points I jump right in.

Likewise doc and also, like today on the GU short talked about, sometimes blending two TF's together (M15 and H4) but forgetting others (D1). You've got to include all the ingrediants if you want the cake to taste right!

Sometimes it's not so much the knowing, it's the remembering. Trading isn't hard, trading really, really well is hard. Like so many things, time and practice will bring the familiarity needed to go from competance to skilled and maybe one day to great.

I learn something new almost every day.

Trotty put it good. Trading is not hard, trading well is hard. It takes effort to get good. But its also important to remember that in reality if we break down each component we use then trading is not hard, its easy to make it complicated in our minds.

If we we're to break down what we do here in small bits and pieces what do we really have? Or what do we use to help us read the charts:

Support and resistance (ppa)
Candlestick formation
Moving averages
Trendlines
Fibonacci retrace

So in and of itself each component we use doesnt take a very long time to understand properly. If we look at each one

Moving averages - They are just lines that are calculated for us, we do nothing with them. Not hard to understand. We use them for confluence, and we know at times price will bounce of them. So we take that into consideration when price is at one of them.

Candlestick formations - It will take you a very short time to learn the formations we use here. Its just to read through the pdf that ken made a coupple of times and you'll know how they look like and what we expect them to do.

Fibonacci retrace - This is also another tool that is not hard to use. You find your swing low and high and draw it from them. Shouldnt take you long that either to figure out how to use it properly.

Trendlines - This and support and resistance is probably the only two components of this method that will be a bit subjective. But shouldnt be by alot. But in essence your only connecting highs and lows.

Support and resistance - Again something thats not as specific as the others but again its not something that is hard to do. You see price dropped from a certain point, then the base of that drop is where resistance is. You see price shot up from one place, then thats the place price will find support again. Its not hard to see after a while.

So if all of our components are so easy to understand by itself, why do we struggle so much when we put them toghether?

It shouldnt be hard, as i just said we have two things that are slightly subjective the rest is pretty set in stone and will appear the same no matter who does or has it.

I mean doing an analysis of price shouldnt be hard when the things we do are so specific. We draw our fib from swing high to low, look at the levels, take notice of where our moving averages are, look to the left to see if its a place price has jumped up or down before and therefor creating ppa and then if we're happy with what we're seeing we can take an entry, and if we're uncertain then we can wait for a candlestick entry to line up.

This is probably something a child could do its so simple. Everyone who has done a little bit of study of the things we use should have no problem going through that process. It should be 100% methodical, we should be able to do it as a robot. In the original thread you could read about eo talking about how he sits and watches tv while trading or how its no problem for him to combine forums and trading, he could do that because he knew exactly what he was looking for. He was specific about what he did. Thats key.

Of course we have to take the whole picture in to account when we're trading. As dr said we dont want to take a 1oclock trade directly in to htf resistance as an example. But again the process is so simple. If you look at your 15min that price has broken out of its range and pulls back to the 10 ema all you have to do is look at your htf charts and if its a line there saying hey its resistance up here, then you dont take the trade because as we have a basic understanding of s & r we know price has a tendency to change its path there.

This is just rambling from the top of my head and the funny thing is that i still have a huge tendency to clutter up my own mind. But when I take a step back or two and really think of the different elements we use in trading, i just cant stop thinking of how simple and easy they really are.

What ken said earlier rings true with this as well imo. He said that basically every system out there is just different takes on the same type of trades.

The only trades there is are pretty much just, retracement trades, breakout trades and counter trend trades. But the tools we use are still the same.

When price breaks a high or a low and starts to come back its a retracement trades so we'd pull out our fib retrace, see if we're near ppa, check where our ma are and be observant of candlestick formations.

If we see price ranging or being confined we draw the lines which holds price, then could gump trade it from side to side, or wait for it to break out and retest the line.

If you see price making higher highs and higher lows and want to go short, you wait for price to hit resistance, watch again on your ma and see if you get a candlestick entry. If you feel that is risky wait for a lower low to happen, then its basically just back to retracment trading.

So just going quickly over the different aspects of this trading type then its not something that is complicating at all. Its just strange how we can make it so hard on ourself when we're infront of a live chart.

Again im just writing this more to explain to myself what im trying to accomplish then anything else as I still am far from developed as a trader. But I find again for myself, that the more im able to make things specific and simple in what im looking for and in the way I analyze what price is doing, the better im able to execute good trades. Every time I find that im getting confused I just go by it step by step, look at my ppa, draw my fibs, see if they line up with something, watch the ma and then see where things come together that makes for a natural place to enter. The more simply I can approach trading the better I get I find.

Late night ramble is hereby over

I've only recently started following this thread, and I find this summary amazingly useful. Thanks so much for your thoughts.

Great post Storeball,
From my experience all simplisity complicate emotions(greed and fear)These two things make me blind and all factors for entry or for exit I can see easyli after action or just make me slower to do right desicion and timing my entries is important as exits are.
Happy trading guys.

Awesome posts guys! Storeball, that was a beautiful summary and I'm sure that will help a ton of people out. I've got that post saved into my notes.

One of the key points Storeball was making that I can really relate to was the "simplicity in isolation" concept -- when you think about any of the pieces of the trading method in isolation, it is very simple. It only gets hard when you start trying to keep up with all those little pieces mixed together in realtime. This is just like any other skill, though, like say learning how to drive (Ken has used this analogy a lot). When you teach a teenager to drive you can show them where the accelator is, teach them how the break works, explain how to steer, etc, but they will still experience the "fog of war" when they start trying to put it all together at once in realtime. They'll have people dashing out in front of them, ambulances whizzing past, horns honking, and all sorts of "unusual" scenarios that add up, in their entirety, to be a "usual day" of driving.

I've been sort of sick this week -- nothing serious, just the typical head cold sort of thing where you get congested, feel tired/lethargic, can't think straight, etc. Ironically it has been sort of a blessing in disguise for me because I think it's really underscored my faults as a trader. Due to the cold I've had to really try to focus this week to make any sense of the charts, and I've realized that I have to focus much more then I should because I never bothered to simplify anything -- I don't have my trading organized into a series of steps, like which things to check or look at in which order. There's no pattern to it, no "pre-flight checklist". I never bothered to try and systemize all the pieces that Storeball was talking about, and instead I just start looking and see what jumps out. I miss out on a lot of setups like this (I'm too busy analzying to enter), and I get in on at least a handful each week that I shouldn't have taken (didn't see a HTF line, etc).

We've discussed pre-entry check lists here before, and I'm going to do a search to find the posts so that I can reread them. I'm not really looking for so much of an entry check list though as a trading routine. I think it'll help me to organize all the little pieces into the "big picture" and take everything in. I'm not sure where to start it yet.. probably an acknowledgement of where price is in relation to the daily/weekly candles and session levels, then check for the big patterns on each TF (like H&S), and then look for the setups that are appropriate for current price in relation to the session/daily candle. If I come up with anything good I'll be sure to post it.

Great post storeball, not a ramble like you thought. lol

Chart of that fade trade, I covered by taking off position size but left my stop above that ppa- s/r line above the fade area. Might not go much further might have left it to long but just got home.

What my levels look like over the weekend I will ad some more 4hr as we are moving above what i have. I never remove a line . Just add if neeed be. I also know that lines are ares not pinpoints.

These are very interesting trades.. I have just started to pay attention to the area between 00 and 20 instead of only looking at 00 itself. I never realized how much this area comes into play. Just in the last few hours we had these type of trades on G/J, E/J, A/U.

Brilliant post that Storeball, very thought provoking stuff.

Regarding the thing that Ken said about entries basically being either retracement trades, breakout trades and counter trend trades, I think this has been and probably continues to be one of the problems for me.

Sometimes you think you are in a trend on M15 but actually it's just a retracement on H4. But then you look at W1 and realise that the trend on H4 is actually a retracement on W1.

Then you think you might be in a counter trend trade on M15 but you have actually found the start of a new swing back into the main H4 trend.

A breakout may look like a breakout but it's not, it's stop hunting by the city smart money.

As simplistic as all the elements really are, blending them all together to actually make sense of exactly where you are and where you might be headed can sometimes be the hard thing.

But of course, the most difficult thing of all in trading is the mastery of yourself and your own emotions. We can be the most learned master of the technical’s alive but until we bring our own emotions under control, we'll always be held back from getting to where we need to be.