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Ken's Continuing Successes with EO's system

  • #3,981
  • Mar 28, 2011 11:44am Mar 28, 2011 11:44am
Quoting Trotty
Nice man, I know it wasn't just the 50 ma you were using though
Yeah wasn't at my screen for the typical entry that I would have taken on E/J . I find that when I miss an initial move or when I see 1H/4H PA and my stop would be too far, the 50 is a nice reentry point.
  • #3,982
  • Mar 28, 2011 12:02pm Mar 28, 2011 12:02pm
Hey nice trades guys.

Typical open session trades. ( Frankfurt/London- Storeball and Usa -dr. Mongolia ). No need to take profit ( or cover ) too early. Rising volume creates opportunity to trade with nice R:R ratio and got long term potential.

Cheers.
  • #3,983
  • Mar 28, 2011 12:20pm Mar 28, 2011 12:20pm
Quoting dr mongolia
Yeah wasn't at my screen for the typical entry that I would have taken on E/J . I find that when I miss an initial move or when I see 1H/4H PA and my stop would be too far, the 50 is a nice reentry point.
Absolutely, especially if you get the 50 fib or a nice price action line there.

Good trading sir.
  • #3,984
  • Mar 28, 2011 7:18pm Mar 28, 2011 7:18pm
good trades doc.

pull a fib on e/u top to bottom 1 hr chart , and you can clearly see the 50 fib , 200 sma and the line1.4120 daily line converge to show the turning point today, after it retested the bottom

also keep a eye on the GBP, that pin could provide a entry down the wick , A quick move open or pre-open which would look like a stop run on a 15 min chart may just be the best entry down the wick.

Cheers . Ken

I can produce a chart if wanted .
Good Trading To All ; Ken Lee
  • #3,985
  • Mar 28, 2011 8:48pm Mar 28, 2011 8:48pm
Just took some quick scalps on pairs off fib levels

Pull fibs bottom to top on the 15 min charts
GBP, E/U and E/J. Some decent scalps 50 fib on e/u, 61.8 on e/j and GBP
over the years I have noticed that Asia still respects fib levels more so than at other sessions.

When equity traders started trading more in forex, S/R levels became a bit more important. This is why if you spot a good fib level and S/R then both ideologies come into play and it is a stronger move same if you add a major MA or Pivot . The more and different ideas that come into view at your entries the safer they are, the same if you have confirming entries on different time frame charts. The more the merrier and the higher time charts rule.
Good Trading To All ; Ken Lee
  • #3,986
  • Mar 29, 2011 4:58am Mar 29, 2011 4:58am
hello...i am following this setup guys.....waiting for ur feedback....

the first one is EU 50 EMA n 50 fib trade....
and the second one is pin above lower TL...maybe start of the uptrend again...

is this the right way to trade based on EO style...??
Attached Images
  • #3,987
  • Mar 29, 2011 12:51pm Mar 29, 2011 12:51pm
Hey guys I know this is getting really redundant but just trying to show how simple the entries can be if you just pick an area or two on the charts and watch it carefully. Here's another 15m 50ema-based trade on A/U. In the past I've been very weak at entering towards the middle of the charts so I've been spending a lot of time on that.

The reason you know it's going to keep going instead of reverse at the 50 is the weak PA at the bottom after price had already come all the way back into the 21, and then we get a close right past that previous pullback. To reverse that momentum candle you would have wanted to see the chart line up much differently with the 50 a lot lower (deeper trend)
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  • #3,988
  • Mar 29, 2011 2:19pm Mar 29, 2011 2:19pm
Quoting dr mongolia
Hey guys I know this is getting really redundant but just trying to show how simple the entries can be if you just pick an area or two on the charts and watch it carefully. Here's another 15m 50ema-based trade on A/U. In the past I've been very weak at entering towards the middle of the charts so I've been spending a lot of time on that.

The reason you know it's going to keep going instead of reverse at the 50 is the weak PA at the bottom after price had already come all the way back into the 21, and then we get a close right past that previous...
That was a great place for a long. You had the daily chart retesting very nice support at .0200, which could be taken alone as a trade, then you had the double bottom you circled which started the push up which would be another nice entry if you wanted more confirmation that the level would hold. Price then have a good close above the line you outlined which was yesterdays low, and when yesterday low or high lines up with either the 50 or the 200 ema im almost always taking that trade, especially since you should be looking to get in long cause of the htf. Just a great place for getting in on the move up.
  • #3,989
  • Mar 29, 2011 5:09pm Mar 29, 2011 5:09pm
On my 4hr chart price is above the 10sma and also above the support area of 1.5980 we have been talking about but it looks to me that 1.5950 may be a better line in the sand for support but anyway...... because of this I would still have to be favoring longs at this point.
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Please ask questions and share your experiences with us all!
  • #3,990
  • Mar 29, 2011 9:05pm Mar 29, 2011 9:05pm
Quoting steven_leo
hello...i am following this setup guys.....waiting for ur feedback....
Hey, I'm not ignoring your question I just don't trade EU, so I don't have any HTF charts marked up nor do I have a good feel for its intraday movements. It had a hard fall from the top so my first step would be to see what caused it (check the 4H and see if you can spot anything really significant). You also want to take time of day into consideration. At the possible entry spot, without zooming out on a 15M chart or looking at a 1H I can't really tell if there's any PPA right there but you do have the 50ema and the 50% fib so if you found decent PPA you could take the trade. It would obviously be safer if you waited for PA to print off the 50ema and show you a rejection candle.

Maybe someone else that intraday trades EU and has EU charts can chime in.
  • #3,991
  • Mar 30, 2011 5:47am Mar 30, 2011 5:47am
Quoting steven_leo
hello...i am following this setup guys.....waiting for ur feedback....

the first one is EU 50 EMA n 50 fib trade....
and the second one is pin above lower TL...maybe start of the uptrend again...

is this the right way to trade based on EO style...??

nice chart ,,,
born to speculate
  • #3,992
  • Mar 30, 2011 6:05am Mar 30, 2011 6:05am
Quoting steven_leo
hello...i am following this setup guys.....waiting for ur feedback....

the first one is EU 50 EMA n 50 fib trade....
and the second one is pin above lower TL...maybe start of the uptrend again...

is this the right way to trade based on EO style...??
Hi mate. As Doc doesn't trade EU, I'll give it a go for you.

I've done you a chart to show you how the H1 TF looked when you took the trade. I actually happen to think your entry was pretty decent for a scalp. The 50/50 trade is a very reliable and solid setup (the 50 fib and 50 ema in tandem) and you also had the strong H1 moving averages in the same area. Additionally, it was a retest of the high that provided some resistance prior to breaking (green line on my H1 chart) so some good reasons to enter there. However, if you had flicked to H1 and saw how it looked on the chart I posted, would you really want to be holding an entry that looked like that? If you were sharp and eager, you'd have taken 16 pips from it, if you didn't, I would hope you had chance to put the trade to break even and saved a loss.

However, if you see the area on the H1 chart that I circled in black, you can see how the trendline that you had on your chart actually coincided with the 61.8 fib level from the major swing shown on H1. The institutional fib traders would be looking to enter short there as the market in is a bearish phase right now. Given that the last bullish candle on the up move on H1 was barely able to close above it's predecessor, that was a clear indication that price was likely to turn at the fib level.

So you were in a good spot for a scalp but trading against the momentum of the longer term traders. That's why it needed to be a scalp and not a holder and if you needed any further evidence of that, look at the size and boldness of those bearish M15 candles leading up to your entry, engulfing all those candles to the left of them. If you need to understand what cycle the market is in, the M15 candles can often give you a good early "heads up".

But, you are understanding the reasons to enter and the setup was all by the principles that EO taught us so all in all, a good entry. You should be encouraged that you have been able to identify an appropriate area. How you managed it determines whether or not it was a good trade

Regarding the EURAUS trade, I don’t trade that pair so a bit like doc, hard for me to fully comment. It looks to me though, as if you have drawn your trendline retrospectively. In other words, your trendline only appears as a trendline after you have joined your start point to your entry candle. If this is right then this is obviously an error and not really a setup at all unless you had another reason why you took it.

If any of this doesn't make sense, just let me know mate.
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  • #3,993
  • Mar 30, 2011 10:08am Mar 30, 2011 10:08am
Did anyone took the long at 61.8%? I DID.
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  • #3,994
  • Mar 30, 2011 11:09am Mar 30, 2011 11:09am
Quoting Ray_1
Did anyone took the long at 61.8%? I DID.
Nope, but I try to long at asia high 6024 with Usa open session, could have max +20 but ended with nothing.

Good job bro.http://www.forexfactory.com/images/icons/icon14.gif
  • #3,995
  • Mar 30, 2011 8:31pm Mar 30, 2011 8:31pm
Quoting Trotty
Hi mate....
very appreciate ur comment bro....
i didn't take any of that trade...only following and observation....
but i think that eu is good for scalp...a bullish candle after the touch of that 50/50....
what is the meaning about the bearish phase bro...??should it break that swing and then will it become a bullish phase...?so a long will be safer...?

@aligate...thank you....
  • #3,996
  • Mar 30, 2011 8:35pm Mar 30, 2011 8:35pm
Quoting dr mongolia
Hey, I'm not ignoring your question I just don't trade EU, so I don't have any HTF charts marked up nor do I have a good feel for its intraday movements. It had a hard fall from the top so my first step would be to see what caused it (check the 4H and see if you can spot anything really significant). You also want to take time of day into consideration. At the possible entry spot, without zooming out on a 15M chart or looking at a 1H I can't really tell if there's any PPA right there but you do have the 50ema and the 50% fib so if you found decent...
thank you for the advice Doc...
what is your favorite pair for the trade doc....?
  • #3,997
  • Edited 10:30pm Mar 30, 2011 9:08pm | Edited 10:30pm
i am looking at this one guys....looking left there is pinbar off PPA and 15 50EMA,H1 10EMA and H4 5SMA....maybe good for scalp...??this is a demo trade.....

edit: Hit SL...lol
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  • #3,998
  • Mar 30, 2011 11:53pm Mar 30, 2011 11:53pm
anybody mind to share indicator which draw the HI/LO of the session guys...??
  • #3,999
  • Mar 31, 2011 2:17am Mar 31, 2011 2:17am
Quoting steven_leo
what is the meaning about the bearish phase bro...??should it break that swing and then will it become a bullish phase...?so a long will be safer...?

Yep, that certainly is a big part of the equation.

It's always one of the big challenges that faces a trader, trying to gauge when the market has finally turned from bullish to bearish and visa-versa.

That market was starting to make small higher lows but they were all within larger lower highs still. Until that large lower high was broken, it's still considered a bear market to me.

If you were to take a peak at H4 or D1 for EU, you would say that we were very much in a bullish phase but as an intraday trader, we can't let that drive all our trading as a bearish retracement on the long term charts can last for days before it finally turns again.

Putting all the timeframes together is, in my opinion, one of the real keys to successful intraday trading.
  • #4,000
  • Mar 31, 2011 2:35am Mar 31, 2011 2:35am
Quoting Trotty
Yep, that certainly is a big part of the equation.

It's always one of the big challenges that faces a trader, trying to gauge when the market has finally turned from bullish to bearish and visa-versa.

That market was starting to make small higher lows but they were all within larger lower highs still....
awesome analysis as usual trotty!!
keep up the good work
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