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Ken's Continuing Successes with EO's system

  • #3,441
  • Dec 19, 2010 5:31am Dec 19, 2010 5:31am
Does this look familiar ? ecept for the stop hunt which we have discussed a lot.

Here are some attachments about a PM I sent to a few people , Not that I don't want to share with everyone . But that I don't want to confuse to many and not have the ability to answer questions.

Once I quantify the idea I was presented with I will share it with everyone. Plus maybe I can get some feed back from some of those I gave it too.

I wouldn't clutter this forum with it but can't attach to PM's

Bare with us on this.

Sorry that is the gbp/usd thursday and friday
Attached Image(s) (click to enlarge)
Click to Enlarge Name: 26 trade reference sheet.jpg Size: 78 KB
Click to Enlarge Name: Sunday.jpg Size: 201 KB
Good Trading To All ; Ken Lee
  • #3,442
  • Dec 19, 2010 5:53am Dec 19, 2010 5:53am
Chart
Attached Image (click to enlarge)
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Good Trading To All ; Ken Lee
  • #3,443
  • Dec 19, 2010 6:06am Dec 19, 2010 6:06am
can you see how this trading Idea takes in the whole trade top to bottom. Might be a fluke . but the idea I recieved was months old and as you can see by thursday and fridays GBP/USD chart it is still a sound approach.

Also just loooking at my trade refrence pic from my pdf I made over 2 years ago it was the same then . just a view has changed . Plus that knowledge that the second peak entry is followed by a major move to positive.

The second peak would also be the right shoulder of a head and shoulder as the head would be higher disqualifing that peak as a entry .

Things that make you say hmmm.
Good Trading To All ; Ken Lee
  • #3,444
  • Dec 19, 2010 6:16am Dec 19, 2010 6:16am
I am always talking about lower highs for shorts and higher lows for lngs . But now to have a idea when they should REALLY be paid attention too ,

and the confirmation of why they maybe happening . Is another eyeopener. Plus the discussion of loading up on the trades rather than scaling out. Makes perfaect sense if your in right we should not be afraid to compound trades on a single entry . you can scale in with preset stops that will allow risk free trades.

The intial stop is above the first peak of course. But once the neck or valley is broken sclaing in should become the norm.
Good Trading To All ; Ken Lee
  • #3,445
  • Dec 19, 2010 6:20am Dec 19, 2010 6:20am
I have been following this thread for 2 weeks . It is very awesome method i have ever met. Thanks for your contribution the great one for newbie.
  • #3,446
  • Dec 19, 2010 6:28am Dec 19, 2010 6:28am
e/u chart
Attached Image (click to enlarge)
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Good Trading To All ; Ken Lee
  • #3,447
  • Dec 19, 2010 6:33am Dec 19, 2010 6:33am
once a entry always a entry ?
Attached Image (click to enlarge)
Click to Enlarge Name: Sunday 1b.JPG Size: 155 KB
Good Trading To All ; Ken Lee
  • #3,448
  • Dec 19, 2010 6:38am Dec 19, 2010 6:38am
If you have a 15 pip preset stop then evertime price moves 15 you could add on a new position. or you could add 10 positions if your account allowed. Just have the trade amount coverd by intial entry or entries.
Good Trading To All ; Ken Lee
  • #3,449
  • Dec 19, 2010 6:40am Dec 19, 2010 6:40am
scary thing is that is almost to simple. That will keep most folks from really using it to it's full potential

But really sucesfull traders always claim it is dead simple.
Good Trading To All ; Ken Lee
  • #3,450
  • Edited 7:07am Dec 19, 2010 6:55am | Edited 7:07am
Thanks Ken for sharing. Been look for this kind of setup quite a while, well , I used to check this pattern together with HH+HL (for bottom up), swing higher or DB or 123 formation etc. Sometime it works but sometime it doesnt.

So, I would suggest to play the WM pattern together with good PPA~S/R, see the following chart copy form last GU M15. Switch it to line chart we can really easy to spot this pattern all over the same day.

Add: as always, always entry based on immediate price action as we used to be, in this example, the 2 legs formed with 4 pins, good signal to trade long.

Just for share

Eric
Attached Image(s) (click to enlarge)
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  • #3,451
  • Edited 7:22am Dec 19, 2010 7:03am | Edited 7:22am
The pre-London/London open stop run is something i've been aware of since I started trading. I read about it on another forum, a post written by a man who seemed credible and well known to be a retired London bank trader.

But, like everything in trading, it seems to come and go in cycles. There are spates when it seems every day they move the market in this way and then it'll cease and it might be 4 or 5 days before they do it again. The thing to watch for is the swiftness of the move. If there is ever a really sharp 2-4 bar move of 50 pips plus between 7.00-9.00 UK time, i'll be very wary of it indeed. If i'm in a trade i'll think about getting out sharpish with my profit and if i'm not in a trade, I will usually pass on that sort of momentum as I simply don't trust it.

It isn't a sure thing though, just another "something" for us to keep in mind if trading around the London open.
  • #3,452
  • Dec 19, 2010 7:04am Dec 19, 2010 7:04am
Let us discuse scaling into a trade . i think after seeing this and the information presented . That to much talk about scaling out for risk free trading is a disservice.


Looking at these entries and the way price quicklly moves positive . Gives us the oppurtunity we have been looking for to massivelly grow a a count so how can we do that ,

say we enter 1 position it can be 1 micro , mini or lot . It has a preset 15 pip stop . so once it goes positive 15 pips we can add a additonal posiotn risk free as it will be stopped at our intila entry and then only our 1 posiotn is at risk or we moved our first stop to BE and lost nothing.

But say both posions move another 15 pips. we can now add 2 positions risk free. starting to see the massive shift here.

Price moves another 15 pips we add another 3 positons. So from a intilal risk of 1 micro.mini or lot we are now in a trade 6 positions without any additional risk. If it starts back we could close with some gains or let it BE .

we can move our stops as we see fit . or we wait for the bottom then close all for a masive precentage gain. This should be the way we alwasy think. might get some bE's but one runner will make your week or month or even year .

This is how those awesome gains are taking place . just be sure of your entries and your preset stops. A mistake could cost you dearly.
Good Trading To All ; Ken Lee
  • #3,453
  • Dec 19, 2010 7:10am Dec 19, 2010 7:10am
Thanks for the feed back . yes I do see what your saying . The e/j hadn't given that signal . but in the information I was given this gap of tradeablitity was mentioned yet not discused . have to pay to play I guess . but some hints were given that I will explorer to find that angle to maybe see the whens.

the key I think is in the pairs you see it in . then switching to other pairs in following days if it shows for a couple of days in majors then look for it in minors in between those good days. but will have to do a bit more studiyng .

Why I didn't post diredctlly on thread.
Good Trading To All ; Ken Lee
  • #3,454
  • Dec 19, 2010 8:03am Dec 19, 2010 8:03am
Quoting Kenneth Lee
I am always talking about lower highs for shorts and higher lows for lngs . But now to have a idea when they should REALLY be paid attention too ,

and the confirmation of why they maybe happening . Is another eyeopener. Plus the discussion of loading up on the trades rather than scaling out. Makes perfaect sense if your in right we should not be afraid to compound trades on a single entry . you can scale in with preset stops that will allow risk free trades.

The intial stop is above the first peak of course. But once the neck or valley is broken...
Kenneth,

In reviewing your description of the second peak entry scenario, I noticed there was a prior signal similar to another thread I have been following for a while now.

The entry signal described in this other thread uses a 5 & 10 EMA and a candle the is extended beyond touch both that portends that price is reaching an oversold and possible reversal stage. Using a price action signals such as wick trending, PBs and a lower right shoulder, this method "stacks" entries at the 50% retracement of each bar until there is a higher high in the case of a short trade thus signaling a decreased probability that the trend will continue.

Check out the these entries for a brief on the method as I think it might be an additional confirmation of both your right shoulder and scaling in thought process.

Flying Buddha entry signal
http://www.forexfactory.com/showpost...&postcount=179
http://www.forexfactory.com/showpost...&postcount=832
http://www.forexfactory.com/showpost...&postcount=833

Stacking (i.e. scaling in) using the Flying Buddha entry + 50% retrace of the previous candle.

http://img337.imageshack.us/img337/3140/aa1y.png


Long Term Results of Stacking and holding positions:

http://img188.imageshack.us/img188/8932/gbpjpy1.png

http://www.forexfactory.com/showpost...&postcount=179

All Credit goes to Graeme (aka pipEasy); a wonderful giving and successful trader from down under who started this other thread and has helped many gain a longer term view of trading/investing in Forex.
  • #3,455
  • Dec 19, 2010 8:52am Dec 19, 2010 8:52am
Below is a sample combo of your WM suggestion with the FlyingBuddha arrow signals on Friday's GU. The M at the top of the movement for the day is rather sloppy but, there was a second entry point in case your original stop was tighter than mine which was 10 pips from the original entry #1 at 1.5650 RoundNumber level.

In any case, there was opportunity to stack 5 positions in a day with having moved to BE after 10 pips in positive territory. so close would have conformed to your W exit rules resulting in a nice profit with only one position at risk at any time during the trade.

What do you think? Have I understood your intent correctly? If not, please share more and correct me where I diverge.

http://www.forexfactory.com/attachme...1&d=1292777295
Attached Image (click to enlarge)
Click to Enlarge Name: FlyingBuddha_WM_confirm.gif Size: 28 KB
  • #3,456
  • Dec 19, 2010 8:53am Dec 19, 2010 8:53am
Quoting rdwatkins
Kenneth,

In reviewing your description of the second peak entry scenario, I noticed there was a prior signal similar to another thread I have been following for a while now.

The entry signal described in this other thread uses a 5 & 10 EMA and a candle the is extended beyond touch both that portends that price is reaching an oversold and possible reversal stage. Using a price action signals such as wick trending, PBs and a lower right shoulder, this method "stacks" entries at the 50% retracement of each bar until there is a higher high in...
Thanks for the post. Yes those are the same as our 1 and 5 O'clock entries for a continuation..

The ones we are trying to spot are the turns at the top and bottom when those flip over.

Thanks for the info and I will take alook at that thread. Ken
Good Trading To All ; Ken Lee
  • #3,457
  • Dec 19, 2010 12:36pm Dec 19, 2010 12:36pm
I dont want to start throwing this stuff to much around this thread either as it might just become a little confusing to new people. But just wanted to add some new thoughts on the usd/chf trade i posted earlier and you seemingly cant send attachments through pms.
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  • #3,458
  • Dec 19, 2010 1:49pm Dec 19, 2010 1:49pm
Quoting Kenneth Lee
Let us discuse scaling into a trade . i think after seeing this and the information presented . That to much talk about scaling out for risk free trading is a disservice.


Looking at these entries and the way price quicklly moves positive . Gives us the oppurtunity we have been looking for to massivelly grow a a count so how can we do that ,

say we enter 1 position it can be 1 micro , mini or lot . It has a preset 15 pip stop . so once it goes positive 15 pips we can add a additonal posiotn risk free as it will be stopped at our intila entry...

Hi Ken


Great stuff here.

We can collect 5,10, or 15 pip things all over the chart and "mother" the positions forever.

OR...... by managing our risk and adding to positions properly, end up with 4-6 times our normal amount on the table with no added risk yet collect on a 200+ pip run. You are right this would make up for a lot of BE.

This is a great time to be going over all this. Most are not in the market right now, and some like me are updating our trading plans. I am going to think through situations for adding to positions.

Rufus
Illegitimi non carborundum - Noli pati a scelestis opprimi.
  • #3,459
  • Dec 19, 2010 7:18pm Dec 19, 2010 7:18pm
Speaking of W's.. here's a trade I took earlier on G/U. Price came back to retest a very strong resistance area that can be seen on the 4H, Daily, and Weekly after failing to close below it (on the daily and weekly) Friday. The 4H did close below it at one point but then formed a DBLHC. That gives us PPA to trade off of. The specific entry point was off the wick of the hammer to the left (the red one at 17:45 GMT).

I've still got it running, using the 5EMA on the 15M and 1H to manage it.. (attached below)

I also took a long at that first red hammer on Friday (17:45GMT), which could have also been called a W at the time. I took that one because price had closed back across the 5EMA, touched the 10EMA and gave the hammer. I have seen Infinity take this same trade many times on the other thread. He seemed to love it as a reversal trade, and any time you get a higher high (or higher low) followed by a touch of the 10EMA and a lower high (or higher low) then you get an M (or W).. it is always interesting to see setups connect to each other.
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Click to Enlarge Name: GBP_USD Spot.png Size: 30 KB
  • #3,460
  • Dec 19, 2010 7:26pm Dec 19, 2010 7:26pm
On the same topic, here's an inverted H&S setup I took on Friday afternoon on A/U.. I put a green arrow by the entry, but if you look at the yellow circle you'll see that it gave a W entry before taking off. I've seen H&S do this a lot, might be an even safer way to get in.
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