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Ken's Continuing Successes with EO's system

  • #3,221
  • Dec 3, 2010 10:28am Dec 3, 2010 10:28am
Does pre fib work pre nfp ?? GBP
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Good Trading To All ; Ken Lee
  • #3,222
  • Dec 3, 2010 10:40am Dec 3, 2010 10:40am
Next Fib
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Good Trading To All ; Ken Lee
  • #3,223
  • Dec 3, 2010 10:47am Dec 3, 2010 10:47am
and the last swing


Should we rename the thread fib trading for dumbies ??
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Good Trading To All ; Ken Lee
  • #3,224
  • Dec 3, 2010 10:52am Dec 3, 2010 10:52am
I am just showing why I am always saying that the best entry is within the trading Zone. It is just another tool , But it was one of the most used in forex, Equity traders really like S/R so the combination is killer.

But seems like fibs are coming back into voque.

The levels , don't really require the use of the fib tool to find them when they are in a good place they are very apparent . even the extended TP's are very visiable. Just 1/2 or 100% of the previous swing .

Have a nice weekend guys . I guess no one is going to answer the questions regarding the GBP entry . But I will post the chart and answers tonight or tomorrow.

Cheers. Ken
Good Trading To All ; Ken Lee
  • #3,225
  • Dec 3, 2010 10:56am Dec 3, 2010 10:56am
Quoting Kenneth Lee
and the last swing


Should we rename the thread fib trading for dumbies ??
I got those last two; that very last one had some nice PPA as well if you zoom out a bit on the 15M

The only problem I have with fibs is trying to decide when to apply them and use them vs when not to. But of course it's all about the confluence.
  • #3,226
  • Edited Dec 4, 2010 4:47am Dec 3, 2010 12:19pm | Edited Dec 4, 2010 4:47am
Hello Kenneth Lee,

My first post, and may I say what a great thread you have here. On reading the PDF, I noticed this system uses quite a number of MA's on various timeframes. I was wondering if there was a rationale behind choosing them, or could they be replaced without affecting the core principals?

Thanks
  • #3,227
  • Dec 3, 2010 12:34pm Dec 3, 2010 12:34pm
Quoting Kenneth Lee
When we have a breakout what do we look for to enter as a continuation of that breakout ?

IF it doesn't do what it should what does that mean ?

So if it doesn't do what we know it should , what are we then thinking it will do ?

I know these are clear as a bell but are you always thinking this way?
Hey Ken,

I wondered what you meant by the GBP question. Was it this?

The answer for the questions for me, are as follows:

For continuation of the breakout, look for a retest of previous support now acting as resistance or visa-vera.

If it doesn't do it, it either means that it's gone deeper than the test area and therefore it's either a false breakout or might be a weak breakout or, if it doesn't get as far as a retest, it means that it looks like a strong move might be in the offing as the buyers/sellers are too strong for a retest to occur.

If it doesn't retest and gets pushed back down/up past the support, we would be looking for a reversal. If it doesn't get as far as the retest, we will be looking to hold for a strong move?

Dunno if i'm anywhere near to being on your wavelength mate but thought you should get an answer for your efforts!

Have a great weekend all!
  • #3,228
  • Dec 3, 2010 1:36pm Dec 3, 2010 1:36pm
Quoting Trotty
Hey Ken,...
Yeah I wasn't sure if this was the GBP question either but my answer would be the same yours -- after the breakout, check the HTFs to make sure you aren't about to hit a brick wall, then look for a retest at the breakout area, somewhere in between the S/R and the 5/10EMA (preferably right where S/R meets the 5 or the 10). If the breakout fails, check to see how far away you are from the 50/62 fib levels of the swing plus the 35/50MAs; if you've got enough space then reverse the position, if not wait until you get to that area to take a position.. if the 35/50 is within the trading zone and we get a reversal candle, take it; if not, wait for a close and retest on the other side.

I am interested to see if Ken has a different way of looking at this then we do.. I have never really thought through a "routine" for what to do when a breakout occurs, but now that I think about it, it would be really helpful to have a plan written out beforehand. After all it's a very common trade, and very profitable.
  • #3,229
  • Dec 4, 2010 11:24am Dec 4, 2010 11:24am
Quoting Kenneth Lee
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
Yeah, still around bro. Watching the markets as I study for finals. One more week and then a month break. Can't wait.

After those crappy numbers from the NFP Friday, just let's me know that I need to keep learning in college and Forex. Times have changed for sure, looks like everyone will have to create their own job, because America isn't hiring right now.

Don't know what kind of reaction the market will give next week, with Bernanke talking about not ruling out QE3 and Europe hoping those little countries will make rules harder so governments don't need a bailout.

One thing I do feel is that the taxpayers across the globe is getting tired of governments printing money but yet they don't see results.

Will be interesting to see the reaction from Congress after Bernanke's appearance Sunday on 60 minutes.

But no matter what, the technicals will sure tell me the story.

Just my weekend thoughts.

Hope all is well with you and everyone in the thread.

HOLLA
  • #3,230
  • Dec 5, 2010 7:57am Dec 5, 2010 7:57am
Quoting noncompute
Hello Kenneth Lee,

My first post, and may I say what a great thread you have here. On reading the PDF, I noticed this system uses quite a number of MA's on various timeframes. I was wondering if there was a rationale behind choosing them, or could they be replaced without affecting the core principals?

Thanks

Sure they would affect the core of this system. Can they be replaced sure they can . You may even find a magic number that works better for you , But to embrace a trading syle developed by people that make undeinable some of the highest gains seen on a retail trading thread and want to start changing it straight away is folly in my opinoin.

Hope you find your way mate, it is the best any of us can do. Ken
Good Trading To All ; Ken Lee
  • #3,231
  • Dec 5, 2010 8:33am Dec 5, 2010 8:33am
Here is the charts assoiciated with those questions .
Attached Image(s) (click to enlarge)
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Good Trading To All ; Ken Lee
  • #3,232
  • Dec 5, 2010 8:38am Dec 5, 2010 8:38am
These are the same details that as we get better at reading them will tell you when a trading zone will hold or not . If you should take profit or let it run. Those were the type ideas that Infinty was the best on the thread with, he could turn on a dime and add when needed .

I surelly miss his insights, the most of anyones. But we have all the information needed, now to turn it into knowledge is our jobs.

Hopw everyone is reasdy for a new week of currency trading.

Trade happy and Smart Ken
Good Trading To All ; Ken Lee
  • #3,233
  • Dec 5, 2010 9:02am Dec 5, 2010 9:02am
Quoting Kenneth Lee
These are the same details that as we get better at reading them will tell you when a trading zone will hold or not . If you should take profit or let it run. Those were the type ideas that Infinty was the best on the thread with, he could turn on a dime and add when needed .

I surelly miss his insights, the most of anyones. But we have all the information needed, now to turn it into knowledge is our jobs.

Hopw everyone is reasdy for a new week of currency trading.

Trade happy and Smart Ken
If I ever need a little metaphorical jolt up my rear to remind me how far I still have to go and how much there still is to learn, one of your posts usually crops up and does the trick!

I mean that in a very positive way, too.

I can't believe how bloody obvious that was and how entirely I missed it. The daft thing was, I was actually looking out for the retest trade to enter that move down but never made the connection when it failed that it was another signal to prepare for something different.

Can I just ask again about that spinning top on the 50% fib level? I appreciatre that in isolation, it isn't a signal candle but when we get one after a strong candle like the bearish one prior, if we hadn't taken the touch of the 50 fib level and ppa, could we have seen this as an added confirmation if we were not already convinced that the breakout had faioled and she was set to go long?
  • #3,234
  • Dec 5, 2010 10:47am Dec 5, 2010 10:47am
I have been digging through EOHAters thread as well as this one. I find the amount of information overwhelming though i have gained confidence in few trades.

Can someone suggest exactly where a newcomer can start reading. I mean can i skip EOHaters thread entrirely? what about initial posts on this thread? Of course, i intend to visit them all back but i am asking how much info is needed just for starting. Is the system pdf on first post sufficient?
Making money is easy- Just dont take losing trades
  • #3,235
  • Dec 5, 2010 11:20am Dec 5, 2010 11:20am
Quoting Survivor
I have been digging through EOHAters thread as well as this one. I find the amount of information overwhelming though i have gained confidence in few trades.

Can someone suggest exactly where a newcomer can start reading. I mean can i skip EOHaters thread entrirely? what about initial posts on this thread? Of course, i intend to visit them all back but i am asking how much info is needed just for starting. Is the system pdf on first post sufficient?
I made the mistake of thinking that I could read the PDFs and this would negate the need for me to trudge through the thread itself.

I wish I hadn't and I wish I had read the thread earlier. It's only then that you begin to realise that there is umpteen times more to this way of trading than is documented in the PDF. You will benefit hugely by investing the time in it but of course, it's up to you how much time and energy you want to dedicate to trading and to this method. Personally, this will become my life when I properly nail it, for you it may be a pastime and a way to earn a few extra pennies. Prioritisation is personal.

One of the reasons I think so few take this path is because the PDF will daunt them and they will realise, like me, that in order to really get to grips with it you need to see what was in the minds of the people who came up with it - this means reading a 2000+ page thread and that's a bridge too far for most.

It's probably this that will ensure that this wonderful voyage is one that will only end up being taken by a small, lucky few traders.
  • #3,236
  • Dec 5, 2010 11:22am Dec 5, 2010 11:22am
Quoting Trotty
If I ever need a little metaphorical jolt up my rear to remind me how far I still have to go and how much there still is to learn, one of your posts usually crops up and does the trick!

I mean that in a very positive way, too.

I can't believe how bloody obvious that was and how entirely I missed it. The daft thing was, I was actually looking out for the retest trade to enter that move down but never made the connection when it failed that it was another signal to prepare for something different.

Can I just ask again about that spinning top...

If a spinning top appears at a area of interest and I have confluence from other sources . I will use it for a entry . As a signal though it should be used with at least one more candle. As the one your talking about had a nice green candle next then the third candle pulled back into the upper wick of your spinning top then went north.

A spinning top is showing that price is at a area that the traders are not sure of yet , This is when the look up the charts really can pay off. The signals we get from the higher time frame charts always carry more importance and will play out the way we understand them to.

http://www.candlesticker.com/images/03FIG.gif



WHITE SPINNING TOP



Type:Reversal/ContinuationRelevance:IndecisionPrior Trend:N/AReliability:LowConfirmation:N/ANo. of Sticks:1
Definition:
The White Spinning Top is a single candlestick pattern. Its shape is a small white body with upper and lower shadows that have a greater length than the body's length.
Recognition Criteria:
1. The real body of the pattern is white and small.
2. The upper and lower shadows are longer than the real body's length.
Explanation: The market moves higher and then sharply lower, or vice versa. It then closes above the opening price creating a white body. This represents complete indecision between the bulls and the bears. The actual length of the shadows is not important. The small body relative to the shadows is what makes the spinning top.
Important Factors:
If a White Spinning Top is observed after a long rally or a long white candlestick, this implies weakness among the bulls and it is a warning about a potential change or interruption in trend.
If a White Spinning Top is observed after a long decline or a long black candlestick, this implies weakness among the bears and it is a warning about a potential change or interruption in trend.
Like most other single candlestick patterns, the White Spinning Top has low reliability. It reflects only one day's trading and can be interpreted both as a continuation and a reversal pattern. This candlestick needs to be used with other candlesticks for a healthier confirmation of a trend.
Attached Image (click to enlarge)
Click to Enlarge Name: Sunday 1b.JPG Size: 343 KB
Good Trading To All ; Ken Lee
  • #3,237
  • Dec 5, 2010 11:23am Dec 5, 2010 11:23am
The spinning top info is from

Candlesticker.com
Good Trading To All ; Ken Lee
  • #3,238
  • Dec 5, 2010 11:55am Dec 5, 2010 11:55am
Quoting Trotty
If I ever need a little metaphorical jolt up my rear to remind me how far I still have to go and how much there still is to learn, one of your posts usually crops up and does the trick!

I mean that in a very positive way, too.

I can't believe how bloody obvious that was and how entirely I missed it....
I've got a couple of questions about this. I'm about halfway through a first read of this thread. I started EOHaters thread, but found it very difficult to follow, mostly because it doesn't have as many pictures (charts). First question: Have you also gone back to the other sources before EOHaters thread? I think there's a bunch of his posts on the Cable thread. And also, I believe there might be threads on other forums (though I might be wrong on this).

Second question, when reading a thread like EOHaters, does anyone scroll back on their charts so they can get a picture about what's being discussed in real time?
  • #3,239
  • Dec 5, 2010 11:59am Dec 5, 2010 11:59am
Ken:

Just a little while ago, you noted that Fibs seem to be coming back in fashion. I wondered about this. Do you think it has anything to do with so many currencies being so close to all time highs and lows. When you are in well trod area, its easy to look around for support and resistance. But when price is at these extremes, you can look back and back on the charts and sometimes find nothing at all. In that case, what does an S/R trader do? Either pack up for a while, I guess, or turn to another tool that gives levels. And that means Fibs (and pivots, I suppose).

Just wondered if you had any thoughts on this.
  • #3,240
  • Dec 5, 2010 2:22pm Dec 5, 2010 2:22pm
Quoting Kenneth Lee
Sure they would affect the core of this system. Can they be replaced sure they can . You may even find a magic number that works better for you , But to embrace a trading syle developed by people that make undeinable some of the highest gains seen on a retail trading thread and want to start changing it straight away is folly in my opinoin.

Hope you find your way mate, it is the best any of us can do. Ken
Hi Ken. Nope, I'm not trying to change anything, and I don't believe in magic numbers for MA's...just making sure I understand everythng from the outset.

Thanks again for the PDF.
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