Ken's Continuing Successes with EO's system

Good trade mate.
I like such 35/50 trades the most because like Ken showed it's obvious that there were a lot more reasons to go long.

Gotcha.

never really traded these tests so I need to get more used to looking for them.

Would you take the touch trade if there was no additional confluence or are you always looking for the extra reason or two to enter?

More reason the better ( but 2 usually = trade ), this trade was after london open and I always try to pay more attention at looking for important areas in that time.

The first part of the equation is trusting your areas you have picked , daily highs and lows major support and trading zone levels.

then look for the change of direction . looking at any chart we should be able to have a good idea of the what the next entry could be .


When that entry area is near start looking for confluence as Kodzire says. the more the better.

The key is to know where those ares are and your stop position. Once you have taken a few of this trades real or in your mind and see that your choice was correct and that your stop was well within your risk tolerance.

It gets easier , when going with the trend even if price turns it normally does so in a controled fashion giving you time to verify your desicision with little stress.

But alwasy do what your comfortable doing . waiting for any signal is always a better entry as Price Action is then showing what we believe.

Trade well.

I will try and post some examples over the weekend of what I am talking about. How to plan for your next entry.

If anyone is still trading here's an E/J setup brewing.. first chart is 15M, second chart is 4H. On the 15M chart you can see the yellow PPA line that price has been playing off of. From the bottom of that trendline we were swinging up nicely, then after the 35/50 cross and reverse we got back above that yellow line at 111.25 but couldn't get above 111.5 (previous high). Price then closed below the PPA line, 50EMA, and TL. An easy short now is on the retest of that PPA line / TL / 50 EMA.

I put the 4H chart up to show the PPA area on the 4H that price is respecting -- 111.25, which is the yellow line from the 15M chart, is the close/open of that DBLHC (circled in yellow) that sent us up to 115. Also I've been watching 111.56 (you can't see the PPA here but if you zoom out on a 4H you can), the last two 4H candles have tested that level and closed below. Looks like we're headed downward.

Nope, looks like we're ranging around this area; I don't think there's enough traders left to see anything move big.. Another slow Friday afternoon.. Might be best to never trade after NY lunch on Fridays, I've lost trades like this before at this time -- price doesn't move much. I always get greedy and want to get in another trade or two, though

Hi

I found information in the manual and these threads quite vast for me. Therefore I have prepared a quick summary of basics of the manual. Any beginner getting confused with lots of information here may find it useful.

Of course, ken and other seniors are welcome to comment and suggest if i have missed anything critical for a "quick start guide"

Cheers

can we read the charts is there nothing to see. I disagree the charts hold all the answers we need.

more

So this is what you should be doing all the time your trading .Asking yourself those questions , Where is ti going now , if it goes up where will it interact wiht price levels if it goes down the same. Is a retracement if so it should fall within our trading zone and find some PPA to conincede with. If it breaks your previous swing look for a retracement in the direction it came from. It isn't rocket science.

BY the way that was Usd/Cad from two weeks ago, sunday open .

Do some of these on your own go back and start, don't look ahead just pull your chart as far back as you can then start trying to interput what is being shown . You wil learn a lot faster as you can go through them faster not 15 min per candle. But if your wrong findout why. just like when you take a bad trade there was a reason .

Have A great Weekend . Ken

then what ?

This is a good post, it's a good reference.

The full manual has a lot of information to digest and this is a great refresher.

One more, if you stay in sync with the charts . You will start to find this easy . maybe when you sit down scroll the chart back and go through this for a previous day it will give you insight to what will happen next.

I guess one of the most common troubles is people that have limited time to trade. Working full time job students and the such . I am in that category myself right now , yet I can almost always find a trade when I do have time to sit down for a bit . Some times it is straightaway other times maybe a 1 hr is required.

The key is just as I showed here you must know what is going on during the time your trying to trade. Do some back checking find out when you are most likely be able to trade then see what happens during that time .

You maybe surprised that you could get the best entry to big moves, sure you may get stopped once or twice . But the best traders I have seen CAN'T watch their charts nonstop. EO was running a fulltime bussiness with a staff to over see. So he made his choices and checked it when he could . The gains I posted last week , He has done this good because he is working, the same guy closes a lot sooner when he is in front of the screen.

I won't make choices for people if I ever start hitting one home run after another I might give areas But like most I tend to close to soon . My entries are the best available at the times I trade . But I am rarely here pre London or right after the open which is where the biggest moves start.

But you can get a continuation, a retrace entry, a 1 or 5 O'Clock entry they are many and available throughout the day.

Look for when price consolidates is it above the main MA's is it above or below a strong S/R - PPA area. It maybe be sitting right on a major trading zone line.

It hasn't moved because there isn't any volume. But that can be a plus That can give you time to think where as when price is jumping around you can get in one bad trade after another if you can't see what is trully happening.

I can not stress this enough the main areas to watch for Trading zone signals , s/r ppa levels. Are on the 4 hr daily and even weeklly charts. That is where big money trades. They may zoom down to a 1 hr some maybe 15 min. But they are finding their areas off the big charts . They aren't looking for a 20 or 30 pip trades, they are looking for what they feel is a good price for this currency dependent on current conditions.

We can mess around and make a living in the noise that accures while they fill their orders and chase our stops. But to really make serious money we have to learn that what we are doing is following thier lead,

If you can get in at the right point and see it, then hangon till it breaks that noise zone , Then learn to just take a bit to be Covered from losses. You can enter the realm of the great traders the 5% .

Another thing most here are learning and as such they mostlly are trading small accounts. The same principals I talk about above are what can accelrate your account growth. We talk of risk reward. and everyone wants to put a number on it. But what risk is involved by doubling or tripling your normall position size when your in profit? NONE,

Everyone likes to get the calculator out and do compounding . If I find a penny today and double the amount everyday I will be a millionaire in a month. You know a fearless trader could maybe do just that , if he learned to add to winning posiitons. The trade isn't over because it went into profit it is over when it turns around and then it is just another trade.

In the ranging markest we have had and all the contradicting news the oppurtunities to trade have been endless.

To learn to do that with less stress maybe lower your entry position so when you do add on you have just increased to your normal size , Until you understand the ideas behind it. it isn't hard . you are adding on where your next entry would be if you missed the first.

In reality a person could have a position that never closed adding and taking away with the swings of the price as long as you have more running in your favor you will win.

Just some things to think about at the start of another week.

Just don't forget , You CAN trade anytime. You also are the only person holding yourself back from those awesome gains. And above all have fun doing it.

Great Article Ken.......

One thing EO always stressed is the look to the left of your charts and watch your HTF. Clues are giving in term of the direction, start looking for as many reasons on your charts to get in at a certain entry point. Then drilled down to your LTF to look for that entry point based on PA.


Just my thoughts...


HOLLA

My ship came in , Shame I was at the airport.

Nice to see your still around,, Hope school is gioing ok, and everything you thought it would be . shame the job market is in the tpilet though. More reason to take what your learning and use it to further youir own endeavours.

Nice to see you stop by any time, and best wish , Ken

The next day ???

it isn't really hard it is believing, that is hard in everything we do..

Can we compound our trades to make awesome gains , Sure we can and should with no risk at all. even if you close 100% at every area just get back in at every entry. But to just take a bit off then add back 100% each time you could end up at the bottom with a 300% position size trade.

How many like that would it take to add 20% to your equity , I bet one would do it. Just remmebr the idea is risk free place your stops smartlly and never ever consider moving them . Because if you add on then let it go agaisnt you it will drain your account faster than you can blink your eyes.