Ken's Continuing Successes with EO's system | Page 149 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

The System Behind the System, by Merlin Jeffries 16 replies

FX Trading Journal & Continuing Education (warrensapp) 2 replies

Continuing Direction following new Daily Low or High at Close 5 replies

Just basic question on trading successes 10 replies

Would you trade this system? New system #2. 10 replies

Attachments: Ken's Continuing Successes with EO's system
Exit Attachments

Ken's Continuing Successes with EO's system

  • #2,961
  • Nov 23, 2010 11:03am Nov 23, 2010 11:03am
Quoting dr mongolia
Did he ever give this thing an official name? I'm not talking about the classical DBHLC/DBLHC, although he definitely payed attention to those as well. This one was sort of a subset of those but he gives visual examples of this particular type all over the thread and keeps calling it a DBHLC/DBLHC, but it's really his own personal adaption. The first candle in the setup is a larger candle showing a little momentum followed by a second candle that's smaller, which has an equal or higher low and a higher close (around the halfway point of the first...

That signal was used a lot in the J16 trading and that is where the diagram I have is from , But evne the defintion they give doesn't match the Imge they posted on the JPG,

It is a very classic widelly used entry . The IB or Harami . then the Engulfing the engulfing is a better signal but would have a larger stop as it was rejected further.

The first system I ever learned looked just for IB's for entry. They are also called traintracks or tweezers which are mentioned in EO's thread. Basiclly the following candle gets no higher or lower then rejection sets in. IF you combine both candles you will get a pin formation of some sort. The bigger the wick and if the body chances color the better.
Attached Image (click to enlarge)
Click to Enlarge Name: DBLHC explianed.JPG Size: 59 KB
Good Trading To All ; Ken Lee
  • #2,962
  • Nov 23, 2010 11:04am Nov 23, 2010 11:04am
Dont'forget to keep your eye on your levels
Attached Image (click to enlarge)
Click to Enlarge Name: tuesday b.JPG Size: 248 KB
Good Trading To All ; Ken Lee
  • #2,963
  • Nov 23, 2010 11:05am Nov 23, 2010 11:05am
Tks Ken,

For me both you highlighted (GU & EJ) are good short trades, but I'm trying to stop trading 1600 London these days. Not a hard rule but it just too late for me, well now is 01:00 my time.

Got to sleep now, see you all.

Happy trading and play safe.
Cheers
Eric


Quoting Kenneth Lee
Sorry can't find it,

But the idea is that a few buyers came in or a bit of profit was taken and espicially with the Resistance right at the top of the wick and then the candle rejected.

I remember the post as I had marked similiar candle as a inverted hammer looking for a long. And he said without the lower Nip or bit of wick on the bottom he would look for a continuation.

That and where it happened another good spot for a safer 5;00 entry
  • #2,964
  • Nov 23, 2010 11:14am Nov 23, 2010 11:14am
Quoting Kenneth Lee
I remember the post as I had marked similiar candle as a inverted hammer looking for a long. And he said without the lower Nip or bit of wick on the bottom he would look for a continuation.
Thanks, I'm trying to learn the finer points on these types of trades. It's amazing how much is in the details.
  • #2,965
  • Nov 23, 2010 11:15am Nov 23, 2010 11:15am
If the second candle has a lower low that's okay as well as long as it's not by much (a quarter of the first candle's size or so) and the close is a little bit lower as well (around 1/3 up).

The classic or standard Inside Bar. refrences just the Body of the candle not the wicks. So a lower over all wick would be ok. The key is that the body is inside the previous body. That is s till showing rejection based off the CLOSE od the previoous candle, We continue to mention that the close of candles is very important. Not just the highs or lows.

A formation or candle is not formed until it closes. A good pattern can be wrecked in the last few seconds. Especially if a 15 min candle is closing at the change of the hour as well. There are things going on in the markets that have definite times attached to them expiring orders and such that wait for those times . Why sometimes price seems to be hoovering around a certian price for a while as it is to someones avandtage to do so. and they have the money to keep it it there.

Just keep looking and learning but you are on the right track with those entries they are and will always be worth a try.
Good Trading To All ; Ken Lee
  • #2,966
  • Nov 23, 2010 11:17am Nov 23, 2010 11:17am
Quoting Buildcity
Tks Ken,

For me both you highlighted (GU & EJ) are good short trades, but I'm trying to stop trading 1600 London these days. Not a hard rule but it just too late for me, well now is 01:00 my time.

Got to sleep now, see you all.

Happy trading and play safe.
Cheers
Eric

Take care have a good evening . Ken
Good Trading To All ; Ken Lee
  • #2,967
  • Nov 23, 2010 11:35am Nov 23, 2010 11:35am
Quoting dr mongolia
Thanks, I'm trying to learn the finer points on these types of trades. It's amazing how much is in the details.
Ain't that the truth.

I've accepted now that only time will do it. No amount of forcing it, rushing it or just being really, really determined to "get it all" now will work. You just have to let it all seep in and stick in it's own sweet time.
  • #2,968
  • Nov 23, 2010 1:03pm Nov 23, 2010 1:03pm
Need a challenge or goal , here is one.. Covered and added more, the additional positons are risk free, but as you can see if it moves your way the gains are insane , Everyone likes doing the compounding do the math.

bit of a chat with 2 other traders.

[1:47:05 PM] ????????????????: I aM killing gu have 3 positions on her +263 +200 +180

[1:47:26 PM] Kenneth Lee: Awesome, Load of lots per position

[1:47:45 PM] ??????????????????: 15 lots per position

[1:47:52 PM] Kenneth Lee: Incredable

[1:47:53 PM] !!!!!!!!!!!!!!!!!!!!!!!!!!!: nice, closed my eu for 300 and reenterd. have a short gu still running as well

[1:48:15 PM] ??????????????????: going to take most off soon

[1:48:43 PM] ??????????????????: closed a short on gy for 302 earlier
Good Trading To All ; Ken Lee
  • #2,969
  • Nov 23, 2010 1:29pm Nov 23, 2010 1:29pm
Now do some work and figure this out ,

Take those numbers and the time and go to your GBP/USD chart and look and find the where and then why , he added where he did.

A trade or two like that and you will forget the 20 and 30 pippers.

although this trader does scalp when the market is tight.

I will let you know later off to work for me.
Good Trading To All ; Ken Lee
  • #2,970
  • Nov 23, 2010 4:08pm Nov 23, 2010 4:08pm
Quoting Trotty
I've accepted now that only time will do it. No amount of forcing it, rushing it or just being really, really determined to "get it all" now will work. You just have to let it all seep in and stick in it's own sweet time.
Yeah, it appears it's all about the repetition. It took months of repetition for the gist of the overall method to sink in, so it'll probably take weeks for each specific detail to really sink in. I do think there's little ways here and there to help speed up the progress though -- for example, I've been thinking about going back through EO's thread, finding the days when he was really active with his intraday trading/posting, and pulling up a trading simulator (like Vhands or Forex Simulator) on those days to take all the trades "in realtime" as narrated on the thread. You can fast foreward and rewind the simulators so 7-8 trading days could be knocked out easily on a Saturday.
  • #2,971
  • Nov 23, 2010 6:15pm Nov 23, 2010 6:15pm
Since we've been talking about details and putting it all together, etc, here's my take on A/U going into the new Asian session.. Attached is the daily chart first, then 4H, then 15M.

The GMT Daily candle just closed above the 50MA, and the final 4H candle of the day gave a DBLHC off a trendline. The 15M is showing a mini double bottom of about 38 pips between the low and high. If we break above that bolded red segment (which is right on the 50EMA/SMA as well) I'll buy on the retest and aim for 38 pips from the line (playing the second half of the double bottom formation). If we fall to 0.971X I'll buy with a very tight stop for a potential tripple bottom targeting the red segment. If the tripple bottom fails I'll sell on the retest and aim for 38 pips from the line (playing the second half of the double top formation).
Attached Image(s) (click to enlarge)
Click to Enlarge Name: AUD_USD Daily.png Size: 21 KB
Click to Enlarge Name: AUD_USD 4H.png Size: 27 KB
Click to Enlarge Name: AUD_USD 15M.png Size: 24 KB
  • #2,972
  • Nov 23, 2010 6:33pm Nov 23, 2010 6:33pm
Sitting out G/U, can't make heads or tails of that one.. But here's E/J, 4H first then 15M. Price couldn't close lower then the last 4H DBLHC that sent us up to 115, and instead we got a hammer. If 15M PA can close above 111.56, hold, and retest then I'll buy.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: EUR_JPY 4H.png Size: 42 KB
Click to Enlarge Name: EUR_JPY 15M.png Size: 22 KB
  • #2,973
  • Nov 23, 2010 6:40pm Nov 23, 2010 6:40pm
Quoting dr mongolia
Since we've been talking about details and putting it all together, etc, here's my take on A/U going into the new Asian session.. Attached is the daily chart first, then 4H, then 15M.

The GMT Daily candle just closed above the 50MA, and the final 4H candle of the day gave a DBLHC off a trendline. The 15M is showing a mini double bottom of about 38 pips between the low and high. If we break above that bolded red segment (which is right on the 50EMA/SMA as well) I'll buy on the retest and aim for 38 pips from the line (playing the second half...
Thank you for this explanation. I find it much more helpful to see someone's plans instead of looking at the results. What you have outlined here is very clear, and it's the sort of thing I can learn from. Hope the trade (whichever one happens) works well for you.
  • #2,974
  • Nov 23, 2010 9:36pm Nov 23, 2010 9:36pm
Greetings all.
Thanks to Ken Lee for excellent work on PDF that explains background to system and much work in helping folks out.
Printed out PDF and now on second read thru. I'm blessed to only be able to trade Asian market. I didn't see why the G/U and and E/J are only currencies traded. Could one include Aud/Usd as well, had a wonderful move in early Asian market today.
Keep up the good work.
Just trade the pullback you idiot!
  • #2,975
  • Nov 23, 2010 9:50pm Nov 23, 2010 9:50pm
Quoting Batavier
Could one include Aud/Usd as well, had a wonderful move in early Asian market today.
I trade A/U, G/U, and E/J. I used to also trade G/J, which is a very good pair, and I know a lot on here trade E/U. But yeah there's no need to keep it to just those pairs, you could trade whichever, just make sure to avoid pairs that are too correlated.
  • #2,976
  • Nov 23, 2010 10:50pm Nov 23, 2010 10:50pm
Quoting dr mongolia
I trade A/U, G/U, and E/J. I used to also trade G/J, which is a very good pair, and I know a lot on here trade E/U. But yeah there's no need to keep it to just those pairs, you could trade whichever, just make sure to avoid pairs that are too correlated.
Just a notes on GJ, its ok for brokers like Oanda which offers a low spreads on this pair (approx. 2+) but other than that seems the rest would only offer the lowest at 5+, quite hard for scalping.........
  • #2,977
  • Nov 23, 2010 10:54pm Nov 23, 2010 10:54pm
I'm gonna head off to bed in a few, I don't have any uncovered trades and this is a very boring Asian session so far. We've got a ton of news coming out tomorrow so the I guess the market is waiting. I'll check in for the London open.
  • #2,978
  • Nov 23, 2010 10:57pm Nov 23, 2010 10:57pm
Quoting dr mongolia
Since we've been talking about details and putting it all together, etc, here's my take on A/U going into the new Asian session.. Attached is the daily chart first, then 4H, then 15M.

The GMT Daily candle just closed above the 50MA, and the final 4H candle of the day gave a DBLHC off a trendline. The 15M is showing a mini double bottom of about 38 pips between the low and high. If we break above that bolded red segment (which is right on the 50EMA/SMA as well) I'll buy on the retest and aim for 38 pips from the line (playing the second half of...
Do you know what is call a DBHLC???????please do some homework.....
  • #2,979
  • Edited 11:15pm Nov 23, 2010 11:04pm | Edited 11:15pm
Quoting lucas101
Do you know what is call a DBHLC???????please do some homework.....
I'm not sure if you misunderstood my post or made a typo, but I said "DBLHC" not "DBHLC".. If it was a typo and you didn't recognize the formation then I'm guessing you've never read EO's thread to see what he considers a DBLHC. Good luck with your trading, my A/U position covered green

EDIT: If it helps, here's a chart attached with the formation circled in red. You can also find plenty of examples on EO's thread, and I believe one is in his PDF as well.
Attached Image (click to enlarge)
Click to Enlarge Name: AUD_USD Spot.png Size: 30 KB
  • #2,980
  • Nov 23, 2010 11:31pm Nov 23, 2010 11:31pm
This is my first post and i am still absolutely new to system.

Wasnt last D1 close in GU good cross and reverse buy? I hope i got it right.

Sorry i am unable to post charts but should be easy to check for all.
Making money is easy- Just dont take losing trades
3 traders viewing now