Ken's Continuing Successes with EO's system

If you can easily identify a trend or at least a of some description on say a 4 hour or 1 hour timeframe, then the road of least resistance is to allow that bias to sweep you along via your smaller trigger (15min) timeframe....& that will come into play by focusing on the signals on that 15min frame.

My advice would be to immerse yourself into this set-up & learn it back to front, inside out & upside down before progressing onto anything else.

If it suits your style & psychological tolerances, then you’ll find it easier to accommodate into your arsenal.

Don’t overcomplicate the research. Keep your observations nice & simple & incorporate
your technical research & understanding slowly so as not to overload your brain & frustrate your progress.

The timeframe you use to actually trigger your trades will be the 15min if that’s going to be your primary template frame.

The higher (1 & 4 hour) timeframes are simply your research or observation references.

Think of it like a pair of binoculars. You’re surveying the landscape with your binoculars looking for a reason to get ready to implement your firing mechanism.

Once you spot a likely candidate, you switch across to your close focus sights (the 15min
timeframe) & watch out for a entry trigger setting up in line with the dominant price flows

If your template begins confirming the potential move & you can locate an appropriate level to hide your stop-loss, then you’re good to go.

You also need to aim for a level or zone which will offer you decent risk-reward potential. But you’ll be able to plotthat before the trigger fires off.

It’s all very well having your support & resistance levels plotted or your trendline, fibonacci or pivot levels annotated on your charts, but if you don’t allow price to actually prove it’s intent or test these price assistors before engaging, then you might as well not use them in the first place.

The central theme of their analysis & trade planning revolves around the process of intent & confirmation. In order for them to execute away from one of their support or resistance zones, they require price to test or confirm it’s intent. The reason they adopt that practice
is to help reduce the possible occurances of false breakouts, continuations & reversals.

It doesn’t mean they’ll be totally immune from those instances, but at least they won’t be trading blind.

You can use that principle across whatever technical tools you choose to utilize. (about price touching s/r) there's no real concrete rule. Once will do for me if I can load up at an appropriately safe level. I know the same goes for Tessa, especially on the smaller timeframes.

Your trading plan should include an ‘all options’ consideration.
1) What will I do if price continues in the dominant direction

2) What will I do if price fails to continue in the dominant direction

3) What will I do if price ranges or idles into a consolidation phase?

Around that core will be your decisions on the appropriate risk you’re willing to take, money management deployment (trade sizes etc) & the type of trade management structure you’re looking to adopt (do you subscribe to “an all in, all out” and/or trailing

If you know that under current trading conditions, Cable is registering an average daily range of 170 & price prints a low of 1.7780 (which represents an intra-day high to low extreme of 220pips or 130%) during the late London morning, then it maybe tells you that it’s becoming a little stretched?

Like a warning signal to be more aware of the price action around those types of numbers.

Same with Swissy. It’s current ADR is floating at c115. Today’s low to high print registers at 120, therefore it was in-line with it’s normal range parameters when it hit the days high earlier into the mornings London trade @ 10.30am.

Which is why Jimmy cautioned against maybe getting too excited with re-loading on longs.

Swiss usually adheres quite well to it’s intra-day & intra-week average readings. So too does Euro.

As with other technical price aid tools, it’s simply something to be aware of when considering the whole picture.

By no means is it a guaranteed no brainer,

Most professional players will feed or compound into a run. So, at the point of entry (particularly if it’s some kind of breakout play), they’ll sling out a feeder stake to test the waters. If the price action pulls back & then plays out ok, & the move attracts decent participation, they’ll compound into it as it opens out (via pullbacks) until they aggregate their full exposure or positional % for that trade. That’s commonly known as “adding to a
winner”

If the initial entry washes out or springs back inside the breakout trigger & fakes, then they haven’t lost anything apart from an opportunity.

Most amateurs adopt the opposite scenario. They either go all in from the outset & then panic as/if price begins pulling back, assuming they’ve been mugged…..or they sit there like rabbits in the headlights & compound into the move as it continually shifts against them. They get some strange notion into their head that they’re simply jostling for a better average position or “hedging” their exposure. Never mind the costs of excessive

If you aim to work towards that principle when you get your account up to speed it will
stand you in good stead across all trading conditions.

I’ve worked with a good number of professional traders & most pro’s that work their own
money & actually use technical charts as part of their work sheet, avoid the (micro)
gambling timeframes like the plague unless there’s a very good or clear reason to get dirty
down there.

Generally there’s little or no value for them that far down the quality scale.
What does that tell you?

Tessa & Jocelyn have given quite a few examples of marrying up gambling (micro)
triggers with higher, quality grade timeframe analysis. But don’t be fooled that they base
their management structures around them.

Those two, along with their other siblings, have been exposed to this industry since they
could first walk & talk. The firm we work for is run by their Parents & Uncles. Hauling
that kind of experience around from an early age affords you plenty of options where

Point I’m making?

It might just pay dividends to steer a slightly different course to the majority of those folks who endorse laying your money down on these ridiculous systems and/or punting via short timeframe technical charts.

The core price action behaviors contained within the thread work.

The primary reason they work is that they’re based around trader psychology.

Don’t lose sight of the key driver of price momentum – prices move up because demand overwhelms supply…….prices move down because supply overwhelms demand.

That driver might last a day, it might last a month, it might last 6 months (dependant on your view & timeframe of your chosen instrument etc) – point being, look for levels & zones that dictated the action & influenced the psychology on previous visits & see how
you can adopt that information to offer you an edge out there.

for instance, whether large spec models are on the sniff at certain zones or specialist desks (hedge fund/real money funds/sovereign accounts etc) are buying/selling tranches of a specific currency at tiered levels.
it doesn’t really give us (or anyone else who utilizes similar info) any major advantage over other market players, merely helps explain & confirm events which are maybe out of the ordinary or attracting a lot of heat at a level or zone.

average daily range activity won’t necessarily be unduly affected if volume traffic is either below or above average. in fact, lower than average volume can influence price action just as easily as average
volume, especially if it pushes price toward a level which harbors large bunches of stop activity such as limit orders, stop buy/sell orders etc.

you can usually tell the quality or clout of the participation in a pair by the way in which
price gets influenced.

Official money (Fed/Central Bank activity), real money funds & wholesale desk order flow feeding into a level will affect the strength & longevity of a move.

Although I agree that different folks use different strokes to get from A to B, the objective
is always the same - consistently achievable profits.