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Ken's Continuing Successes with EO's system

  • #3,621
  • Jan 6, 2011 7:33am Jan 6, 2011 7:33am
Quoting isharasjc
Hi Ken,

I'm demo trading more than 10 months now but still I'm not success. And also I tried your trading method more than 3 months, but still I can't catch the technique. I'm doing a job and trying to move to trading, but before that I need to be success in FX. I can spend only 1 hour in Asian session(start of the Asian session) and around 4 hours in US session(start of the US session), because of my work.

Pls advice me how can I do this to be success according to the time that I have and what kind of charts(coz if I look at 1H charts, I...

As far Asian open keep your eyes on this one . it has been happening a lot , I have been slow to show it as i just started looking for this possiblities recentlly. But it did show regularly during the holidays . now just watching to see if it accures as frequentlly , during regular trading.

If so the move was way above average . as In almost worth a tight stop to test the waters each night , if diviresified acrosss a couple of pairs. Might be a workable idea for fulltime workers to observe.

be carefull as with all your trading . Don't jump head first into a empty pool . There are entry signals at those levels.

Ken
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Good Trading To All ; Ken Lee
  • #3,622
  • Jan 6, 2011 7:51am Jan 6, 2011 7:51am
Quoting isharasjc
Hi Ken,...



How about utilizing alerts to a greater extent? If you just find your areas of confluence on htf then set up an alert to send you a text when price hits the area, you can then sneak away for a few minutes to locate an entry or something using your phone. Thats something I would try to implement if I was working at least. Or if you can manage to check every 1h close or every 4h close then you can check out some of the rejection pullback plays kodziro makes, as those setups don't require a bunch of babysitting infront of the screen as most of the time you can just put up a pending order.
  • #3,623
  • Jan 6, 2011 7:56am Jan 6, 2011 7:56am
Quoting Storeball
How about utilizing alerts to a greater extent? If you just find your areas of confluence on htf then set up an alert to send you a text when price hits the area, you can then sneak away for a few minutes to locate an entry or something using your phone. Thats something I would try to implement if I was working at least. Or if you can manage to check every 1h close or every 4h close then you can check out some of the rejection pullback plays kodziro makes, as those setups don't require a bunch of babysitting infront of the screen as most of the...
Plus if you read EO's thread you will see he used Pending Orders ( Limit orders) a good deal. they will at times get you a better entry than even sitting there. Just get good a picking your areas first.

If your platform doesn't have alerts , there is a website called Alertfx, which sends a trxt to your phone. Most platforms have some option for this.
Good Trading To All ; Ken Lee
  • #3,624
  • Jan 6, 2011 8:06am Jan 6, 2011 8:06am
Quoting Kenneth Lee
Plus if you read EO's thread you will see he used Pending Orders ( Limit orders) a good deal. they will at times get you a better entry than even sitting there. Just get good a picking your areas first.

If your platform doesn't have alerts , there is a website called Alertfx, which sends a trxt to your phone. Most platforms have some option for this.
Definitely. Following this one as a "cheat sheet" for finding possible areas to use a po is not such a bad idea as well. This post from pippinole is great. We dont have to reinvent the wheel fortunately

http://www.forexfactory.com/showpost...ostcount=25480
  • #3,625
  • Jan 6, 2011 8:20am Jan 6, 2011 8:20am
Quoting isharasjc
Hi Ken,...
If you have computer at your job then you can connect remotely to your home computer using this free service https://secure.logmein.com/
  • #3,626
  • Jan 7, 2011 5:35am Jan 7, 2011 5:35am
Today ranging market,may be wainting news triggering but 35/50 still works well.
  • #3,627
  • Edited 7:23am Jan 8, 2011 1:05am | Edited 7:23am
Hey again kodziro! Going through some more on those psych lines and a question or two popped up, would really appreciate it if you can shed some light on it

Quote
Def:
Psychological line (level) - level that was tested at least twice ( 4h candle has same low/high)- if one of them is daily l/h level is stronger. Of course more test more important levels.

First off, do you still consider it a psych line if a candle has crossed in between? I thought that invalidated it but then I saw this usd/chf chart. I might be misinterpreting what you mean though?
-And on slightly same tangent, do you also count two candles next to each other as in tweezer tops with equal wicks to be a psych line?

My thought was that a psych line is played when you have a minimum of two candles with equal highs or lows, when that psych line is breached we then trade the pullback/retest. So we would then have to have price breach and close through the level before it becomes a potential trade setup.

While most of the examples are played like that you have some charts where you trade the third touch as just a reversal trade and not waiting for the breakout pullback, also in the second chart here where you take two trades directly as a reversal. Just trying to figure out how your approaching it all and your thought process.

As you also say, that when a psych line coincides with a previous daily high/low then it becomes an even stronger level. Is that the main driving factor for anticipating a reversal bounce in these cases rather then a more normal breakout pullback psych line trade?

Hope I didnt throw to much on you at once here mate! I just thought id put them all together as its on the same topic


Sorry for using such old charts as you might've had different reasoning going on here as well which can be troublesome to recall id reckon.
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  • #3,628
  • Jan 8, 2011 6:46am Jan 8, 2011 6:46am
Quoting Storeball
Hey again kodziro! Going through some more on those psych lines and a question or two popped up, would really appreciate it if you can shed some light on it



First off, do you still consider it a psych line if a candle has crossed in between? I thought that invalidated it but then I saw this usd/chf chart. I might be misinterpreting what you mean though?

My thought was that a psych line is played when you have a minimum of two candles with equal highs or lows, when that psych line is breached we then trade the pullback/retest. So we...
lol I might've been a little when I put that first chart. That can't really be a psych line as its not equal highs, its an equal high and a low. Resistance turning support. Anyhow I see you've marked it as a psych line, but i think as I said that I might be misinterpreting what you mean.
  • #3,629
  • Jan 8, 2011 10:24am Jan 8, 2011 10:24am
Quoting Storeball
lol I might've been a little when I put that first chart. That can't really be a psych line as its not equal highs, its an equal high and a low. Resistance turning support. Anyhow I see you've marked it as a psych line, but i think as I said that I might be misinterpreting what you mean.
" Level that was tested twice " it`s doesnt matter how you match them if it was earliel regular ppa line and after breakout we got pullback at exacly that levels that is fine psych level it that tells us - this level is important -

Of course if price reject some ppa line, try to break and fail and h/l not matching eachother line also became important ( quasi psychol line ).
And also earlier ppa + ma or other confluence things make level more important.

4h tweezer top is psych line, becouse two 1h rejects same level.

You must remeber that time of the session is very important.

Later i put some chart and my "thinking proces" .
  • #3,630
  • Jan 9, 2011 8:08am Jan 9, 2011 8:08am
Quoting kodziro
" Level that was tested twice " it`s doesnt matter how you match them if it was earliel regular ppa line and after breakout we got pullback at exacly that levels that is fine psych level it that tells us - this level is important -

Of course if price reject some ppa line, try to break and fail and h/l not matching eachother line also became important ( quasi psychol line ).
And also earlier ppa + ma or other confluence things make level more important.

4h tweezer top is psych line, becouse two 1h rejects same level.

You must remeber that time...

sorry with delay

I`m trying to show the hole puzzle now, not just one pice ( imortant-psych. ppa line ) because they work together.

Most import. things :

supply/demand area of HT frames ( in trading zone )=>important ppa lines =>sessions character => confluence stuff such MA, pivots
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  • #3,631
  • Jan 9, 2011 11:58am Jan 9, 2011 11:58am
Great charts and explanations Kod
  • #3,632
  • Jan 9, 2011 5:58pm Jan 9, 2011 5:58pm
Thanks for the further explanation kodziro. I appreciate it alot

Here is something iv written down on the psych lines in an attempt to make things a little more specific for me.

Let me know if its in the right direction and if there is something else you or anyone feel i'v left out and should be added.

Thanks again!


Psychological line trades


Description: A psych line is two or more candles with equal highs or lows, it can also be with a candle high and a candle low touching each other at the same price. We have basically two ways to trade these lines.

1: when a candle closes through (most commonly used on 1h and 4h candles) the psych line we enter a trade when it pullsback to the line.

2: when the second candle has defined the line we then also have the possibility of trading it as a touch reversal when it comes back. We would be more prone to do this either if it lines up with some confluence, espesially weekly and daily highs/lows, or during asia session as price will fail to make a new high or low 70 to 80% of the times.

Entry: We will either set a po on the line to get us in on the pullback, enter manually when it comes back or wait for 15min price action to confirm.

Stop loss: 10-12

Things to note:

-look for confluence at the lines

-keep in mind the session you see it in, asia is more likely to respect highs and lows

-if you take a touch reversal, 2, and the candle closes through the line we have to be aware that entry 1 might come into play

-be aware of big support and resistance lines on the higher timeframe

-the bigger the swing, ie the more candles there are below/above on each side of the psych line candles the stronger we can expect the line to be

Examples:
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  • #3,633
  • Jan 10, 2011 12:25am Jan 10, 2011 12:25am

Psychological line trades


Description: A psych line is two or more candles with equal highs or lows, it can also be with a candle high and a candle low touching each other at the same price. We have basically two ways to trade these lines.

1: when a candle closes through (most commonly used on 1h and 4h candles) the psych line we enter a trade when it pullsback to the line.

2: when the second candle has defined the line we then also have the possibility of trading it as a touch reversal when it comes back. We would be more prone to do this either if it lines up with some confluence, espesially weekly and daily highs/lows, or during asia session as price will fail to make a new high or low 70 to 80% of the times.

Entry: We will either set a po on the line to get us in on the pullback, enter manually when it comes back or wait for 15min price action to confirm.

Stop loss: 10-12

Great clear.
  • #3,634
  • Edited 5:06am Jan 10, 2011 4:42am | Edited 5:06am
Quoting Storeball
Thanks for the further explanation kodziro. I appreciate it alot

Here is something iv written down on the psych lines in an attempt to make things a little more specific for me.

Let me know if its in the right direction and if there is something else you or anyone feel i'v left out and should be added.

Thanks again!


Psychological line trades


Description: A psych line is two or more candles with equal highs or lows, it can also be with a candle high and a candle low touching each other at the same price....
Hi.

It looks very nice. http://cdn.forexfactory.com/images/icons/icon14.gif


Couple things i want to mention.

As for pic 1 :
- this was last friday 1h candle so be carefull, don`t like leaving positions over the weekend



As for pic 2 :

Avoid trade near end od Asia, most players wait for Frankf/London. ( long at 109.03 line ) at least not against current asia move/turn

Remember to avoid trade touch trade at open Franfurt/London ( USA ) at swings lows/highs ( we want to se fail breakout or so and trade with pullback) , but if asia or frankfurt close under/beyond it ,touch trade during that time is recommended.( shorts at 109.03 and 108.44 lines)
  • #3,635
  • Jan 10, 2011 7:30am Jan 10, 2011 7:30am
Quoting kodziro
Hi.

It looks very nice. http://cdn.forexfactory.com/images/icons/icon14.gif


Couple things i want to mention.

As for pic 1 :
- this was last friday 1h candle so be carefull, don`t like leaving positions over the weekend



As for pic 2 :

Avoid trade near end od Asia, most players wait for Frankf/London. ( long at 109.03 line ) at least not against current asia move/turn

Remember to avoid trade touch trade at open Franfurt/London ( USA ) at swings lows/highs ( we want to se fail breakout or so and trade with pullback)...

So an addition to is then if i understand you correctly:

- try to refrain from taking trades at the very end of asian session as most tend to wait for european market opening at this time and can cause some erratic movement

- avoid taking touch trades at the beginning of a new session, especially frankfurt and london at swing highs/lows as they're vulnerable to being rushed through. Let our 1h and 4h candles be the guide, if we have a failed breakout of our level (a candle testing the level but not closing through) we will trade the pullback to the level. If there turns out to be a close through the line we will also have the option of taking a trade on the pullback. Basically trade 1 and 2 but being more observant of session characteristics.

I find it very beneficial to get down to the small details

Here is ej 4h from today.
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  • #3,636
  • Jan 10, 2011 7:42am Jan 10, 2011 7:42am
Quoting kodziro
Hi.


Remember to avoid trade touch trade at open Franfurt/London ( USA ) at swings lows/highs ( we want to se fail breakout or so and trade with pullback) , but if asia or frankfurt close under/beyond it ,touch trade during that time is recommended.( shorts at 109.03 and 108.44 lines)
Here is eu today.
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  • #3,637
  • Jan 10, 2011 8:06am Jan 10, 2011 8:06am
Quoting Storeball
So an addition to is then if i understand you correctly:

- try to refrain from taking trades at the very end of asian session as most tend to wait for european market opening at this time and can cause some erratic movement

- avoid taking touch trades at the beginning of a new session, especially frankfurt and london at swing highs/lows as they're vulnerable to being rushed through. Let our 1h and 4h candles be the guide, if we have a failed breakout of our level (a candle testing the level but not closing through) we will trade the pullback to...
Yes exactly, but sometimes our PO can be active on that time so remember to cover a trade before Frankfurt open.
As for E/J today yes expecting reaction at 107.61 was natural ( PO there was a good option ) , notice that Asia fail to make new low at Sunday night, zero area held the price before fridays low. I watch this area for long, with confirmation like you think and later ( before Asia time )without it.

Notice EG today, got test 0.8332 november low but it wasn`t that clear level like EJ ( and london open coming out so PO wasn`t in option)but after that got 1h rejection so short with pullbak was in play. Maybe it didn`t work out but it was safe entry.
  • #3,638
  • Jan 10, 2011 8:07am Jan 10, 2011 8:07am
Quoting Storeball
Here is eu today.
http://cdn.forexfactory.com/images/icons/icon14.gifhttp://cdn.forexfactory.com/images/icons/icon14.gifhttp://cdn.forexfactory.com/images/icons/icon14.gif
  • #3,639
  • Jan 10, 2011 8:32am Jan 10, 2011 8:32am
Here are some charts showing what my focus is right now. the idea is to get myself out of the way of making gains by taking overnight trades , that start eihter during Asia or early frankfurt /london,

The idea is to spread my account acros as many setups as I see . then hope the averages favor me.

When i have this more pinned down i will have follow up information.

Just thought some other east coaster might apreciate the charts

it can be a bear for us to get some decent trades. sleep and all.
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Good Trading To All ; Ken Lee
  • #3,640
  • Jan 10, 2011 8:53am Jan 10, 2011 8:53am
gbp trades that were available today.
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Good Trading To All ; Ken Lee
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