Ken's Continuing Successes with EO's system

Page from The ATT pdf ..

It’s what I refer to as if the intent is strong & genuine, then it will generally
test the resolve of those participants & shake out weak hands first.

This is normally (although not exclusively) witnessed by a re-visit to the b/o zone to
snatch close quarter stops & unseat nervous players before continuing in it’s intended
direction.

Most of the major/minor levels on the currency charts harbor stop activity.
Above & below the big swing levels, previous big weekly/monthly high-lows & key
Round Numbers, hide the majority of the larger players protective & compound entry
stops.
As intraday activity begins to threaten these major swing levels, price will become whippy
as the market starts to work through & absorb the two-way traffic which house the
various stops. It’s part of the reason why you witness sharp, erratic price moves as these
levels come into focus.
Not only is there protective stop-loss activity lurking in there, but also fresh (new) entry
orders residing from the differing timeframe trading community.
It’s all part of the bigger supply & demand battle. Whoever carries the biggest clout wins
the day!
Usually, as price breaks thru a key level it will butt up against counter stop activity lurking
beyond that level. This will cause turbulence until the bulls or the bears overcome the
obstacles & re-assert their dominance.
The fast money are only intent on capturing small profit targets, therefore their window of
opportunity is fleeting. But they’ll still be very aware of the price levels which harbor
strong stops.
It’s these levels where they make their money. Which is why the professionals know their
marketplace inside out. They understand the mechanics of a price level & the limitations
of their game. They also know where the likely mine fields lie & who is also likely to

Some of my focus this year is trying to understand more of what the bigger players are eyeing. To either help them enter or as a cash bonaza to pluck money from the uninformed.

Why and when will stop runs predefine a move is predictable? The other move is a move to let traders enter the market falslly first then move in the intended direction.

Can we see price action or certian levels that determine which if either move will take place.




The answer really is that the different timeframe players contribute to the price
moves which affect breakouts, retraces & rejections of key levels
.
Large & small players have very, very different aims & expectations up & down the price
chart. But they all work the same levels as they come into focus & play them for their
own aims.

Just sit back when one of these levels begins to hot up & try think about who wants what
from it & why?

If we’re in a strong downtrend, who might want to play at a new low & why? Where
would the shorts want to get onboard with their compound entries.

Where would the longs prefer to engage to test the resolve & stamina of the shorts?

What would need to occur in a strong trend for a counter move to assert itself?

And if such a move begins to materialize, where would the likely “stops” begin building
to take advantage of this activity?!

Clear opportunities to engage with minimal distractions (indicators). Price action rules

Also remember that the pro's aren't immune to slipping up themselves They leave plenty
of dollars on the table at times

As your market experience increases, so too does your intuition. It's amazing how the
brain picks up on subconscious signals & often takes the indecision away from you
Repetative behavior is (sometimes) a wonderful trait. Especially if that behavior is biased
to the positive side, as in a successful/positive return strategy. Takes time to nurture of
course, but it definitely exists!!

It was a good trade, well managed. If there are things to learn from it, then I'm sure you'll
uncover them & store them away for future reference. But it's as important to enjoy the
successful result as it is to analyze the post trade play

you got a handle on the obvious s&r zones, & take your time to really look at what the
charts are telling you, then you really don't require to load up your templates with
distracting paraphenalia.

We go thru the same preparation & analysis for compounding a position as we do for the
initial entry.

It has to stack up & stand on it’s own two feet, therefore the conditions are no different to
those in any other potential trade.

We have slightly different criteria for each pair according to the aims of the original trade
& the unique personality of the pair we’re engaged in, but the generics are very similar.

Tess & her little gang work primarily off the Daily & 240min timeframes. Those are their
template workstations, therefore the guts of the analysis & prep emanate from there.
Basically, we look to engage on & around area’s of supply & demand which are
highlighted on those references.

By that I mean we’re seeking a value entry on a test and/or failure of a previous level

The big advantage of researching & familiarizing yourself with a trusted set of rules is to offer you an edge.

As long as you're confident it offers you a better than average chance of staying alive out there, then you can observe whatever it is that attracts you to the chart.

Simple is often best. Less to complicate the chart & more importantly, your head.

Price action is the seed of everything. If your set-ups or strategies are wrapped tightly around the basics of price action, then I guess you're making life a whole lot easier foryourself.

If you can work a consistent game play around those trend lines & channels, & your risk model sits comfortably alongside it, then you're good to go.

A well versed set-up/strategy should afford you confidence that when it all lines up, you don't hesitate in pulling the trigger. You know where price is at now, & you got a marker for where you're going to make your next decision if price makes a run for it. Your back
up or insurance is obviously your stop-loss, but that's all part & parcel of the plan anyway.

As long as you can identify an area to get you out if things wash out, then you can look down from where price came & plan for a timely exit or partial pare-off.
Again, identifying your s&r levels..ranges...consolidation ledges - call them what you will, makes your job easier when looking to wrap your favored set-up triggers around the game play.

Whether you wish to play the naked break-out or wait for a pullback, the momentum is still in your favor, allowing not only a clear objective trade, but also a decent positional stance for an emergency stop-loss exit in case price fails to play ball.

A quick glance at maybe your 240min timeframe will offer some potential lower support gauges should price continue to drift.

We’re always aware of what’s printing & when. It might not have a direct bearing on our positions, especially if we’re already onboard & the trade is bedded in – but we certainly won’t look to execute any fresh positions in front of an important economic release

Be aware though, like any other form of analysis, support/resistance zones are merely guides.

They're not set in stone, automatic nailed on trigger mechanisms. They still require work, preparation & observation. Prices can just as easily plough straight thru them without a second glance.

Emotion moves markets, & if enough fear, greed or uncertainty exists then prices can & will shift thru the gears with gusto.

However, we've found them to be a loyal friend over the years & in my view this type of analysis is definitely one of the better price aids to hang your hat on

I use the 4 hour graph as my working tablet. It's where I plot my potential reaction levels (s&r zones...supply-demand area's etc). It's my primary reference as you say.

Given we like to action the majority of our positions on & around our plotted support & resistance zones, then sure I'll drill down to a 60min or a 15min to look for an appropriate entry level in which to trigger a move.

Once a level is plotted via the 4 hour, it's there for price to interact with. It's still going to butt up against the level on a 1min, 5min or 15min chart. It's not the timeframe which dictates whether or not a level is playable, but the price reaction as it approaches &
interacts with the level.

Two of my favorite triggers are 1-2-3's & breakout-pullback triggers. I'll play them via a 5 or 15min frame (plotted from the 4 hour levels) if price sets up accordingly. I'll also play a breakout of an inside/outside bar from a 60 or 240min frame if it's butting a key s&r zone.

Again, I'll drill down to take a look from a tighter timeframe chart to refine an entry if desired.

I particularly like to witness exhaustion/uncertainty playing out at a key s&r zone. You can identify that type of behavior by the way the candles/bars form on & around these levels.

Doji's, spinning tops, bearish & bullish engulfing bars send out very powerful signals that a market is undecided about direction. Especially if they print as double, triple & multitouch tops & bottoms.

There are any number of combination price aids you can utilize out there to gain a heads up, main thing is to step back & try get confirmation from a couple timeframes as to the current behavior of price before executing your deal.

There's nothing complicated about that specific aspect of the analysis.

Once you become used to looking at things in a certain way, it's simply a case of tuning into that particular
practice.

Don't forget, we've been looking at price via this (simple) angle for years. It eventually becomes second nature.

It obviously helps if you trust & put faith in your analysis, but then it's more than proved it's worth over the years, so there's no problem there

Nowadays, if I don't see a clear, obvious zone of potential s&r on a specific timeframe within a few seconds of hauling up the chart, then I move on to another pair.

Once I quickly identify a potential activity level or zone on say a 15m or 60m frame then I zoom in & take a good look at it from different angles. I'll scroll out to a 240 or daily to see if it marries up from previous dates, then I'll drill in a little closer to see if it's held up
over the past few days (if at all).

Once you got a point of reference you can then go about the rest of the analysis & backup to reinforce your plan & map out your decision process.

One of the reasons this type of information is often overlooked or avoided is the fact most folks don't want to (or cant) put the work in. It's initially mentally taxing & not easy to do the groundwork. Does that reflect why most folks go belly up in this game? who knows, but it maybe explains why so many folk are constantly in search of the "off the shelf" strategy.