Ken's Continuing Successes with EO's system

One thing I noticed about this is the use of the 5EMA (yellow on that chart). Actually it might even be the 5SMA judging by the curves on it. But either way, same idea-- it seems like all the really big, quick moves do not close across the 5EMA for quite a while. No doubt EO/Infinity noticed this as well, hence the 1/5 o'clock trades

Hi all

It has been my experience that a lot of these "W's" ans "M's" fall on fib leves marking reversals. 78.6, 88.6, 127, 168, 113, 224, 261.8, 314..

As I see some I will post it..

The hard part for me in the past has been getting hyper focused on the lower time frames and forget to pull a fib on the next tf up. But often times the fib will give you a warning of a potential reversal.

Same pair

Ok one more and I will quit cluttering this place up and go split some fire wood.

Same pair

Rufus :nerd: I love fibs

I'm a nerd

Couldn't resist

I spent a lot of time with a trader whose modus operandi is fibs with one other confirmation. Needless to say I picked up a healthy respect for fibonacci. There are traders who think it is a lot of hokum. Not me. He went as far to tell me that he knew a number of bank traders who use them for entrance into the markets and targets..The targets are what gives us the reversals.

So any way this trader would use a combination of S/D and fibs to set his targets as well.

Anyway I guess I have stalled long enough on the firewood.

Rufus

5m chart price stoped at 224.

It is interesting all the different views and analysis I have recieved regarding this new idea . That is the main reasoning behind not posting in the open forum, As the folks I gave it too i.I considered some what in the groove in trading with a good understanding of the overall basics.

But very strange the input. Will keep looking and try and get a grip on it myself as some information is missing from the overall idea. Maybe enough to finalize but possiblly not.

Trade well Ken

Don't get me wrong I hope everyone continues to post about this new idea here . It is all the different views that may help to bring it all together or dispell it as hogwash.

Here some thoughts on it though.

Hey . nope . you can post on the thread , I was just making a comment , That as with anything , a group of people given the same information always sees things totally different ,

Which is why I did it that way. But was just funny the way it was imediatelly either totaly claimed as false. or worked into whatever way a person has been trading. Which all along I have said any good trading systems have some characterizastions that are the same, Just people see the important areas differentlly.

I just think a major point had kept being overlooked . the times that consolidation accured . then the length of time that the swings of the day happen . Also a comment that they may happen during any session . Plus to have in mind the hi and low of the trading day set by the market makers.

That I believe being the makers spread, So there is some defining of information to do as well as the statement . it maybe only work for a few days then we should look to the crosses for the trades.

then also . Not indicator driven , That use of fibs is a tool they exploit to make traders enter incorrectlly to collect their funds.

I have yet to really go through the video and connect every comment to each point of fact. Which may take me 3 or 4 times. Plus to fully digest all his charts . as some of his M's and W's had right leg equal or a bit longer than the left.

A lot depends on the location within price action and the time of day. These next few weeks may not be the best for analysiing a new system with the holiday this week may not be a NORMAL trading week.

I welcome all the different points of view. AS they help me to think of possiblities I may have missed. Or as I said in the beggining this could be nothing more than a person with a great sales pitch.

Keep going , Ken

ps. No matter what the outcome of the overall trading idea is the scaling in part as i see it has 100% merit and it alone is worth all this babbling

But cause it was 100& true that scling out a majority of our positions IS clearly based on the fear of losing and just to be able to get passed that area could be the turning point for a lot of traders.

So let use digest the issue point for point. Any type of system always has something we can take away and incorporate into our own believes.

Cheers Ken

Hi guys,

Here are several charts on EJ in last 2 ~ 3 hours, another topic may be worth to explore bit further (haha, may be simply a guess stuff)

Take EJ's 3 days data (the following H1 and m15) + M15 chart 2 hrs after.

PS - as Ken stated above, this week may not be a good example for analysis.

Happy trading all and merry X'mas / Happy New Year

Cheers
Eric

Just sharing what i see

will the target meet??...

This is 4H chart EURJPY. Entry at 1H 62EMA touch trade.

Ken,

I agree, there is always value in having others apply a new set of eyes to a method and voice their perspective. In that vein of thinking, here is my morning thoughts on the GBP pairs.

Also, I completely agree with BuildCity that this may not be the best week to be observing this method as it would seem to me that MMs are likely understaffed and less capable of working against market supply and demand; which is likely poor this week as well.

Although I did not get this trade and the accompanying GY parallel trade, it looks like the MMs have followed the protocol in this instance. Notice how zooming in on TF make the "M" a bit more clear. If not of the original entry then for the "stacking" / scaling in procedure it may be useful to ensure the trade is still in tact and progressing in your favor.

edit: Note that on the 5M there is an appearance of a second "M" formation in the entry 4,5,6 area that might allow for a late day trader to make entry despite not having been up for the original reversal.

Eureka , I found it, LOL

This some ramblings from another supposed commercial trader that says his soul trading idea is those stop runs aftr asian consolidation .

More fuel for the fire I guess.

not system because it relies on price action and not mathmatics found in electronic triggers or black box signal generators.Here is my basic method, I say method and

Every night at Midnight (New York) I calculate new day Pivot Points for the Cable (GBP/USD) and post them on my charts. I then note key support and resistance levels from Monthly charts down to five minute charts.

I determine my trade bias for the new session and while I do look for trades in this direction, I'm not married to the notion the market must bend to my expected direction... I am flexible. The market is always right and I can except being wrong every day as long as I can be willing to change my bias based on current price action.

If we are trading in the Pivot levels above the Central Pivot level... I demand a lot for buys. Ideally I focus on trades that show a short term overbought condition and price in the area at or above R1 or R2 for shorts. This is even more powerful if the previous days high is slightly below the R1 or R2 level.

In otherwords, I look for false breakouts above previous days highs at R1 and or R2 levels. I use stops and limits to get me in at the levels and use a 30 pip stop or less initially. As the trade makes the spread up and moves in my favor, I look to reduce the risk and tighten the stop. My exits are predetermined and can be at market if things get hairy.

The reverse can be said for buys. I like short term oversold conditions and price in the S1 and or S2 levels under the the Central Pivot. I like buying Previous days low or a false break under this level given the conditions warrant a bounce.

I like trading at the figure, the markets like round numbers and options get tripped at these points so they are a easy trade multiple times per month. You can trade for a living just doing that as a method new traders!

So here is what I will be doing this week:

I will short previous days highs and buy previous days lows. If I get stopped out and the market finds support above the previous days low, I will buy. If the market finds resistance at the previous days high after being penetrated I will short it.

I take two trades per day max, if I win on the first, I close shop and bank the wins. If I lose on the first I try to capture the trade as described above... if it loses too, I close shop. No emotions, no muss no fuss.

"The reverse can be said for buys. I like short term oversold conditions and price in the S1 and or S2 levels under the the Central Pivot. I like buying Previous days low or a false break under this level given the conditions warrant a bounce."

Thats a run down of what just happened on gu :nerd: Price broke through yestedays low, s1 just under toghether with pa support. It just bursted out of there, I caught slightly less then 50pipperonies on that one, but seems it has the potential to go higher. Nice stuff

Edit: here is a chart. Me and Trotty was discussing this level. Mostly because of that htf support level, what you refered to gives the whole situation a little more meat to the bone

Thanks ken. There is a great deal on the Chris Lori training course about this sort of trading. It's the sort of trading the seperates the men from boys, the pros from triers IMO. You need a chunky old set of stones to trade it because you are, once again, trading straight into big, scary, momentum filled bars that are against where you want price to go. Often the last candle push at a low is a pretty big one too and then you may have to sit through an hour or so of retests that really test the nerve.

The rewards can be great though.

One thing Chris talks about it to take note of the time of day and the size of the move prior to hitting these highs and lows. For example, if it's been a 100 pip strong move, it's unlikely to break on the first attempt. If it's a set of small, solid bars after a retracement, approach with caution. If it's the middle on London morning, it may well break. If it's late New York or Asia, there is often not enough desire to start pushing new highs and lows so the bounces are more reliable.

I've been thoroughly impressed with his course, even if his phone does keep going off all the time during the vids!

yes I think people are looking for turns to soon which are void at those times of day just stalling as orders are absorbed. It is still in it's infancy to me but just the idea that a M and W is at hand and seems to be rare enough at those levels and times . can make a big difference to a traders mind set especially for re-entries.

Then the small bit on scaling out being a scared traders mindset is 100% true if your safe behind a stop why not risk the whole damn house . The worse is you make just a few. But the one or two winners will make you gains that will allow many many chances . I can't even fathom how many tries a 600 pip gain would allow which is what can be possible .

it is still entering small, then when it PROVES to be the right move of the day . Load that trade up. all entries being protected.

Those two mind shifts alone can be awesome. But I am working on figuring out what i can from his video , there are hints and points that are there yet not connected .

If and when I get a SIMPLE workable model that is easy to trade I will let everyone know if not I will get back to crawling my way to my goals . LOL

Cheers Ken

Must be awful crawling along at 20% a week

chart sorry gbp/usd

e/j chart today

Ideally the M's and W's will span a greater time frame maybe take 1 to 2 hrs to form . but is the key that it be near the top or bottom not middle. Also the first peak should hold as the top in most cases . if not look for a different entry possiblly.

This in adddition to what you know not replace it.

E/J trade I just closed and why's