Ken's Continuing Successes with EO's system | Page 206 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

The System Behind the System, by Merlin Jeffries 16 replies

FX Trading Journal & Continuing Education (warrensapp) 2 replies

Continuing Direction following new Daily Low or High at Close 5 replies

Just basic question on trading successes 10 replies

Would you trade this system? New system #2. 10 replies

Attachments: Ken's Continuing Successes with EO's system
Exit Attachments

Ken's Continuing Successes with EO's system

  • #4,101
  • Apr 20, 2011 8:17am Apr 20, 2011 8:17am
Quoting Kenneth Lee
There has always been my believe that trading is as simple as we make it. It is hard because we don't believe in simple, in anything in our lives especially involving enriching it in any way. But I have always known better than that down deep inside.

That is how I came to live on a boat in Key West. Which many would consider to be a dream answered as well. At one point in my life I had the desire to build a boat, So as a new years resolution I purchased the plans for a 27' ketch from a company called Glen-L.

It was a fiberglass over plywood...
Very nice post Ken! Thanks for sharing Now if you ever find yourself in need of an adventure then feel free to cross the atlantic, pick me up in norway and take me to the promised land with some sun

If your going to look some more into supply demand, then im sure im not the only one who will pay attention to charts posted.
  • #4,102
  • Apr 20, 2011 8:34am Apr 20, 2011 8:34am
Quoting Storeball
Very nice post Ken! Thanks for sharing Now if you ever find yourself in need of an adventure then feel free to cross the atlantic, pick me up in norway and take me to the promised land with some sun

If your going to look some more into supply demand, then im sure im not the only one who will pay attention to charts posted.
Absolutely not. Even though i've watched the webinars etc, i'd still be more than eager to see Ken's take on it and doubtless his own spin on how and when to use it.
  • #4,103
  • Apr 20, 2011 9:40am Apr 20, 2011 9:40am
One of the main ideas that really caught my eye and made sense with the idea I have had that a person could trade a naked chart easily was the main rule for looking for Supply Demand areas .

That being NEVER GO THROUGH A CANDLESTICK to find a level. And thinking about it in the perspective of product to buy and sell. It narrows our area of focus to just a very narrow range that can be handled quickly on many pairs or done ahead of time but they are fewer now. and very defined with a rating system like qualifying a customer for a sale if they even have chance to purchase the car.

In the videos he says he can find normally 10 areas but only 2 are worthy.

The nice thing with this idea is that a lot of things we have used and seen as subjective now have defined rules that we can apply , I have been qualifying those rules over the last few days, they seem to be true. I tend to believe something till it is proven wrong.
Attached Image (click to enlarge)
Click to Enlarge Name: find S D.jpg Size: 216 KB
Good Trading To All ; Ken Lee
  • #4,104
  • Apr 20, 2011 9:51am Apr 20, 2011 9:51am
so the easiest way to find the Supply (resistance) and Demand (support) areas is to look for big candles that are showing a good rejection from a area.
Attached Image (click to enlarge)
Click to Enlarge Name: find S D a.jpg Size: 210 KB
Good Trading To All ; Ken Lee
  • #4,105
  • Apr 20, 2011 10:01am Apr 20, 2011 10:01am
then we grade em
Attached Image (click to enlarge)
Click to Enlarge Name: find S D b.jpg Size: 213 KB
Good Trading To All ; Ken Lee
  • #4,106
  • Apr 20, 2011 10:23am Apr 20, 2011 10:23am
Hi Ken and all

I had a great post talking about sail boats and such, wife in Florida working on her dads boat, Me working on a boat, Wifes dad sailing from Alaska to Floriday numerous times.........I lost it ...

Oh well the condenced version.

You are an inspiration to all Ken...Thank you.

Charts S/D
Attached Image(s) (click to enlarge)
Click to Enlarge Name: 4.19eufri.jpg Size: 96 KB
Click to Enlarge Name: 4.19euzones1h.jpg Size: 88 KB
Click to Enlarge Name: 4.19euzonesweek.jpg Size: 78 KB
Illegitimi non carborundum - Noli pati a scelestis opprimi.
  • #4,107
  • Apr 20, 2011 10:24am Apr 20, 2011 10:24am
now how to place our lines
Attached Image (click to enlarge)
Click to Enlarge Name: find S D c.jpg Size: 212 KB
Good Trading To All ; Ken Lee
  • #4,108
  • Apr 20, 2011 10:27am Apr 20, 2011 10:27am
Quoting Rufus
Hi Ken and all

I had a great post talking about sail boats and such, wife in Florida working on her dads boat, Me working on a boat, Wifes dad sailing from Alaska to Floriday numerous times.........I lost it ...

Oh well the condenced version.

You are an inspiration to all Ken...Thank you.

Charts S/D

Thanks for stopping by and showing your levels . Hope all is well with you .
Good Trading To All ; Ken Lee
  • #4,109
  • Apr 20, 2011 12:29pm Apr 20, 2011 12:29pm
Quoting Kenneth Lee
There has always been my believe that trading is as simple as we make it. It is hard because we don't believe in simple, in anything in our lives especially involving enriching it in any way. But I have always known better than that down deep inside.

That is how I came to live on a boat in Key West. Which many would consider to be a dream answered as well. At one point in my life I had the desire to build a boat, So as a new years resolution I purchased the plans for a 27' ketch from a company called Glen-L.

It was a fiberglass over plywood...
I'm really interested in what you are looking at now with supply and demand areas. I also enjoyed your boat story, but for some reason it reminded me of this from Monty Python:

Listen, lad. I've built this kingdom up from nothing. When
I started here, all there was was swamp. All the kings said I was
daft to build a castle in a swamp, but I built it all the same,
just to show 'em. It sank into the swamp. So, I built a second one.
That sank into the swamp. So I built a third one. That burned down,
fell over, then sank into the swamp. But the fourth one stayed up.
An' that's what your gonna get, lad -- the strongest castle in these
islands.
  • #4,110
  • Apr 20, 2011 4:44pm Apr 20, 2011 4:44pm
few more details when choosing your s/d areas , and the risk of each area.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: find S D d.jpg Size: 230 KB
Click to Enlarge Name: find S D e.jpg Size: 224 KB
Good Trading To All ; Ken Lee
  • #4,111
  • Apr 20, 2011 5:14pm Apr 20, 2011 5:14pm
but what to do when price moves past the current swing ?
Attached Image(s) (click to enlarge)
Click to Enlarge Name: find S D f.jpg Size: 210 KB
Click to Enlarge Name: find S D g.jpg Size: 225 KB
Click to Enlarge Name: find S D h.jpg Size: 175 KB
Good Trading To All ; Ken Lee
  • #4,112
  • Apr 20, 2011 5:17pm Apr 20, 2011 5:17pm
any questions before we move along .
Good Trading To All ; Ken Lee
  • #4,113
  • Apr 20, 2011 5:21pm Apr 20, 2011 5:21pm
Quoting Kenneth Lee
few more details when choosing your s/d areas , and the risk of each area.
You seem to be drawing conclusions about the number of orders placed simply by looking at the candle formations. Of course there is no way to know the volume of orders placed at any given level. But have you considered trying to combine this approach with some volume indicator. They also are only guesses, based on the number of ticks within a certain time period (and not considering the depth of any particular tick). It does seem to me however, that the language you are using is one that invites the idea of other ways of looking at volume.

For example, the pin bar rejection on your chart might be evidence of lots of sell orders and a huge rejection. However, its also possible that it's simply a blip in a very low volume area. From the chart itself, there's not really anyway to know. If there were lots and lots of ticks making up that bar, I think it would give further support to the conclusion you are drawing.

(Of course, what I'm suggesting just further complicates things and may be either unnecessary or unproductive. Take it for what you will.)
  • #4,114
  • Apr 20, 2011 6:58pm Apr 20, 2011 6:58pm
Quoting duffypratt
You seem to be drawing conclusions about the number of orders placed simply by looking at the candle formations....
Yes , if that is something you want to use use it. But volume doesn't take into consideration the orders that are longs verses shorts. Just the amount of orders during a period. I personally have never used Volume.

I think and believe that all the information is in the charts with out any indicators. One thing that could be taken into consideration is the time of day , We all know that volume falls off as markets close and shift.

This is when you either take a break or switch to quick trades. But for normal times and the candles do hold all the information we need . I have always had spot on entries just using S/R drawn off 4 hr and daily time frames the switch to S/D using what is actually happening within the current swing should even fine tune those and make choosing and holding TP's better . TP choice is one of my own major focuses. I tend to scalp to much .

I am just providing the information I found relevant and that seems to be playing out on the charts in a very methodical way. Which is what we want .

Even just using S/R there is so much of a variance from trader to trader that trying to show someone how to trade still leaves to much to interpretation by each trader , This style seems to have a set formula for each piece of the puzzle. Picking ares , grading them for risk , entry stop and tp.

The problem some may find myself included it will leave very little room for blame other than yourself. Which is one reason I am delving into this method is I need a bit more structure and for it to be less subjective.

I have never been a fan of indicators the only one I ever spent anytime with was slow stochs , To show divergences which is pretty easy to see on a chart as well.

Anyway we have only started to exam all the bits and pieces and as we move forward over the next few days or so. and we can get some real in time examples it may become clearer either way.

I have never been a end all just a clearing house of information i personally find to be of sound value whether a person can use it stand alone or incorporate it in what they have found to be their core trading idea.

But thanks for the input education is nothing without the sharing of different thoughts . Maybe someone else has more experience and something to add to this idea.

Trade Well, Ken


PS. but my entire focus from day one has been the ability to trade with the least amount of outside information as possible , the addition of indicators and exotic algorithms can at most time add more doubt to a very clear picture.
Good Trading To All ; Ken Lee
  • #4,115
  • Apr 20, 2011 7:08pm Apr 20, 2011 7:08pm
Quoting duffypratt
You seem to be drawing conclusions about the number of orders placed simply by looking at the candle formations....
Sorry didn't answer the question,, I am making no assumptions I have absolutely no idea how many orders are at any given area . But this is a main focus of this ideology the defining of the best Supply and Demand levels based of Price Action .

Long wicks from the edge of a level will provide you with the information you need to realize that there is MORE THAN LIKELY more orders within that area on the next test.

Where as if the present test went further into the level it is ASSUMED
that since price pushed higher that less orders are available. Kinda of like watching your oil gauge on a old car you can start to see when you need to add oil . As the pressure drops during certain cycles of engine use.
Good Trading To All ; Ken Lee
  • #4,116
  • Apr 21, 2011 1:33am Apr 21, 2011 1:33am
Quoting duffypratt
You seem to be drawing conclusions about the number of orders placed simply by looking at the candle formations. Of course there is no way to know the volume of orders placed at any given level. But have you considered trying to combine this approach with some volume indicator. They also are only guesses, based on the number of ticks within a certain time period (and not considering the depth of any particular tick). It does seem to me however, that the language you are using is one that invites the idea of other ways of looking at volume.
Hi Duffy,

The approach that Sam Seiden has to this (and it does seem to be his unique approach from all I can tell) is that picking our zones is about finding areas where supply and demand became significantly out of kilter. This suggests that when price revisits this area again, there will still be more people willing to buy than sell or sell than buy. He compares it to buying things from a retail outlet and the effect of putting items on sale. If people see the price drop, they will consume readily. That's really the basic core principle here.

So it doesn't really matter whether there is heavy trading or light trading at the area, just an imbalance (and a notable one) between supply and demand.

The one thing he doesn't always talk about though is the approach. If there is real momentum in the market, especially if it's driven by a major economic release, then price will still burn past all the significant S&D zones on the chart to get to where it's being pushed along to. If i'm trading S&D I will be very cautious if price is trending sharply and only take the trade with good candle formations in the zones.

All this said, I just use this stuff as added confirmation, mainly in conjunction with what i've learnt from EO and Ken and wrapped together, you have every chance of making it as a trader.
  • #4,117
  • Apr 21, 2011 2:14am Apr 21, 2011 2:14am
Just wanna say thanks to ken for posting those pdfs. I've studied them today and applied it on my demo trading account. First trade I am up 50 pips so far. Had I not been in a long position still, I would have shorted EUR/USD as the candle closed with bearish sign and be in in the profit for another 12 pips so far. Thanks!
  • #4,118
  • Edited 10:13am Apr 23, 2011 10:02am | Edited 10:13am
Here are some more finer points to picking quality levels. As we progress you will see this as the ,Most important thing we can learn . No matter how your trading Having a better idea than most to where price is likely to reverse is a edge far and above most.
Attached Image(s) (click to enlarge)
Click to Enlarge Name: find S D i.jpg Size: 204 KB
Click to Enlarge Name: find S D j.jpg Size: 209 KB
Good Trading To All ; Ken Lee
  • #4,119
  • Apr 23, 2011 11:36am Apr 23, 2011 11:36am
I must admit that I was just pointed to your thread by another ff member, so I haven't even gotten as far as reading the pdf.

I am glad to see that you are providing some lessons on supply/demand. It's one of the best ways to find key support/resistance levels. Nonetheless, I am really intrigued to test this system's use of MAs as S/R, too.

I plan to start reading this week, and I hope it's ok if I post some questions along the way.
  • #4,120
  • Apr 23, 2011 12:45pm Apr 23, 2011 12:45pm
Quoting Location
I must admit that I was just pointed to your thread by another ff member, so I haven't even gotten as far as reading the pdf.

I am glad to see that you are providing some lessons on supply/demand. It's one of the best ways to find key support/resistance levels. Nonetheless, I am really intrigued to test this system's use of MAs as S/R, too.

I plan to start reading this week, and I hope it's ok if I post some questions along the way.
Welcome , please ask away, How we all learn,

Yes I am moving a little off onto a tangent here with Supply and Demand. But in the past putting Support and Resistance Lines on charts always seemed to be a bit to subjective. many will have a trade get missed others stopped out by just the way they average the areas they see.

I am hoping using the supply and demand it will help tighten up some of the mystic around Those areas.

I will be going through the whole idea of trading just the Supply Demand with how entries stops and tp's as recommended.

My entire focus to trading from day one has always been to find that idea that above all others is dead simple and at the core of what the charts are printing. I have always had a hard time holding trades, But along with seeing how the best areas to consider our lines to trade from also will give us the other side of where to trade too. TP's

Plus it could lead to develop a mechanical system of PO (pending orders) type trading that will free up time from going blind watching a computer screen.

Because a PO trade is nothing more than seeing a spot we would jump on if we were at the computer at the time price interacted with the level. So if we can learn to grade our levels with a decent accuracy should be a piece of cake.

Anyway that is the near future on this thread . Ken
Good Trading To All ; Ken Lee
9 traders viewing now