Menu
Sister Sites

Options

Bookmark Thread

First Page First Unread Last Page Last Post

Printable Version

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

Thanks again for sharing,

I'm trying to spot the line of S/D on various time frame,
what about this on the Daily?

Alessandro
Attached Image (click to enlarge)
Click to Enlarge Name: cable-daily-13-may-2011.png Size: 105 KB
The same about 4h....

the penetration in the demand area is not deeper and deeper, maybe the consolidation is going up....??? what do you think?

this way of spotting area of S/D is very good and precise, in my opinion, but it seems we have to judge with the same criteria as always...

1) have a clear picture of higher TF S/D
2) pick the trades on lower TF to reduce s/l
3) we have to look PA approaching this area (may be the reversal /bounce is little above Demand area or little inside that area, and viceversa) and try to discriminate little signal


Alessandro
Attached Image (click to enlarge)
Click to Enlarge Name: cable-4h-13-may-2011.png Size: 123 KB
Same as 4h

ken, what about the red line? is it true that (Like S/R), also the S/D areas are reversable, after the PA is pass trough? Is it a good example?
And if the S/D area was strong, is true also the reversal one?

in the case is seem that we have to strong demand area, the first one (red line) became a supply area, the price is capped between that S area (red line) and the lower D area that came from 18th april, what about this?

Alessandro
Attached Image (click to enlarge)
Click to Enlarge Name: cable-1h-13-may-2011.png Size: 113 KB
Quoting fxtrader-ale
Same as 4h

ken, what about the red line? is it true that (Like S/R), also the S/D areas are reversable, after the PA is pass trough? Is it a good example?
And if the S/D area was strong, is true also the reversal one?

in the case is seem that we have to strong demand area, the first one (red line) became a supply area, the price is capped between that S area (red line) and the lower D area that came from 18th april, what about this?

Alessandro
Yes the old areas SEEM to come into play again but I think it is more our eyes WANTING to see that than what is actually being printed.

That bottom is more clear on a 30 min. And yes all the old suspects patterns will form. Like w's and m's they are the first retests of new levels. But we aren't trading patterns we are trading better and best areas.
Attached Image (click to enlarge)
Click to Enlarge Name: querry.JPG Size: 315 KB
Good Trading To All ; Ken Lee
Quoting fxtrader-ale
Thanks again for sharing,

I'm trying to spot the line of S/D on various time frame,
what about this on the Daily?

Alessandro

yes daily levels are very important as they give us the overall view, and major levels of interest but if we trade off this time frame a MAJOR adjustment and our risk is required. So as I showed on that 4 hr chart i posted .After a level is hit we can then look for trades in the proper direction on smaller time frame charts. even trading back and forth until it finally makes a turn or continues.

Because with all entries some will fail, so if you don't have the conviction to hold big trades you can find yourself in peril trying to trade daily charts.
Because most of us can hold a loser better than we can a winner.

So locate the BEST levels on your daily and 4 hr. Then use that information for the best entries on a 1 hr, 30 min or even less time frame.

I have been gravitating towards a 30 min chart for my trading levels seems to filter out some less desirable yet gives tight enough areas for stops that aren't to huge.

But that being said I have gone down to 15 min when needed to see a area that looks like just a couple of wicks crossing . When volumes drop off the minor areas start to come into play.

Another way to trade the higher time frames is the confirmation trade , Placing a PO on the out side of the area waiting to be tripped once price finally turns back and exits the level.
Good Trading To All ; Ken Lee
Quoting fxtrader-ale
The same about 4h....

the penetration in the demand area is not deeper and deeper, maybe the consolidation is going up....??? what do you think?

this way of spotting area of S/D is very good and precise, in my opinion, but it seems we have to judge with the same criteria as always...

1) have a clear picture of higher TF S/D
2) pick the trades on lower TF to reduce s/l
3) we have to look PA approaching this area (may be the reversal /bounce is little above Demand area or little inside that area, and viceversa) and try to discriminate little signal




Alessandro...
I personally have yet decided how to handle areas like this demand area with a very long wick. I would have to zoom in tighter to choose a level that has better risk to it. As I have seen those wicks hold price all the way to the end.

Yes but it is really laying along the bottom . I think it is time to look to other pairs for a trade.

I took a short on USD/CHF off that supply level right before the news , But didn't have the guts to hold it very long . But we can see it did hold.

Me and news have issues
Good Trading To All ; Ken Lee
Learn to grade each supply or demand you see, it isn't enough to just have a bunch of meaningless lines on our charts. I posted those list of what makes the best areas, AS that information is Sams I will not repost it you will have to look back and find them , I always try and stay out of trouble.
Attached Image (click to enlarge)
Click to Enlarge Name: querry a.JPG Size: 251 KB
Good Trading To All ; Ken Lee
Try to learn to SEE what is happening. if you can't relate to buying and selling find something that does make sense to you .
Attached Image (click to enlarge)
Click to Enlarge Name: querry b.JPG Size: 263 KB
Good Trading To All ; Ken Lee
Quoting Kenneth Lee
yes daily levels are very important as they give us the overall view, and major levels of interest but if we trade off this time frame a MAJOR adjustment and our risk is required. So as I showed on that 4 hr chart i posted .After a level is hit we can then look for trades in the proper direction on smaller time frame charts. even trading back and forth until it finally makes a turn or continues.

Because with all entries some will fail, so if you don't have the conviction to hold big trades you can find yourself in peril trying to trade daily...
Ken, thanks a lot,
your words put a clear light in my mind where before there is a bit of darkness...

yesterday for the first time I trade a little live, with a break even day, today I tried with demo s/d level on GU on the 15 chart in a matter of minutes I scalped about 20 pips... for me is rocket science...

the feeling is too SEE more and more.... from your original PDF to this new stuff is a very good path for a beginner, really gold,


have a good time for week end,

Alessandro
Quoting Trotty
I tend to agree.

I'm happy using POs at areas where price has peaked at a high or low and very swiftly rejected off it. It's fairly easy to spot these, have a look left and see a high or a low that hasn't been visited for a fair while where price has made a sharp V shape on it's approach and rejection. Those levels, if the rejection was strong, are pretty much the holy grail (sorry!) of supply and demand setups.
Hey Trotty,

Do you prefer to trade these PO trades in trend direction? I haven't found V-tops/bottoms in general that reliable that I would trade each one blindly. It would be great if you could post a screenshot of an example.
How do you manage your trade?

Looking forward to your reply.

Regards
Janson
Quoting Kenneth Lee
So what am I showing with this chart ?
Demand areas work better in uptrends, and
Supply areas work better in downtrends:

Great point there, Ken.

In this context, re. your buy PO at 1.0638:

In the chart since the price is well above that area and market is in an up trend, the only chance of hitting that buy PO would have been if the trend reversed.

So, that PO would trigger against the trend, if at all, which seems to go against what you are advocating in the captioned post. would you not advise deleting PO's in such circumstances unless, I am missing something here...

Pl comment.

Thanks.
Cheers.
Quoting pgd
Demand areas work better in uptrends, and
Supply areas work better in downtrends:

Great point there, Ken.

In this context, re. your buy PO at 1.0638:

In the chart since the price is well above that area and market is in an up trend, the only chance of hitting that buy PO would have been if the trend reversed.

So, that PO would trigger against the trend, if at all, which seems to go against what you are advocating in the captioned post. would you not advise deleting PO's in such circumstances unless, I am missing something here...

Pl comment.

Thanks.
Cheers....
your forgetting the cardinal rule , use the higher time frames in conjunction with your lower times

The 4 hr is in a very strong up trend
I did cancel that PO but only because news was coming out.

it was at a make and break level within the trading zone(fibs) as well on a 1 hr chart .

Price is always in flux moving up and down. it is our job to read the charts to see the most likely areas for it to turn . We can't be right 100% of the time but we should develop a edge that is much better than 50 / 50 , Then if our money management and risk management is within acceptable tolerance we win.

Price could still come down a long way and still make a new high on the 4 hr. But we will let the price lead the way


Have a Great weekend Ken
Good Trading To All ; Ken Lee
You have to understand when you have a lone peak. high or low that is standing out from the rest. on any time frame but especially on the higher ones . That is the ones we are very interested in just because it hasn't been approached in a long time makes it more interesting as well.

I probaly won't be placing many PO's this Sunday as lots of the pairs are at a decisive level either needing to decide up or down or maybe side ways. but will give them a bit of time to show their colors.


I spend a lot of time just flipping through the charts looking at different pairs on different times , looking for the ones that jump off the screen . Then start looking at the surroundings of that area and first check the trend off current and all other time frames , then graded it using the best levels tools, how long it stayed at the level . how fast it moved away , did it move away jerky or clean , has it traveled a long distance or short distance from it , and has been away awhile,

The last two the distance from it and the time it has been approached are better the bigger they are. So a level in the opposite direction of where you THINK price is headed maybe the best level you have seen in a while.

look at the e/u and the e/j, on a 30 min chart. ( I am Liking that time frame )

E/U at 1.4320 didn't stay long moved away a slight retest couldn't even get close before it turned back down. I like that area.

E/J at 115.35 moved away quickly this last time but it has been hit many many times . so i am not so fund of that one. Doesn't mean it won't work yet again just wouldn't bet the farm on it.

116.20 is a bit better hasn't been there in a good long time . then of course 116.70 the top of my 30 min chart ,


I have to go to a daily to see anything to go long off but as I said we are sitting right where this up trend really took off in March so will see what happens for a bit I have time not loads of money.

Cheers.
Good Trading To All ; Ken Lee
Quoting Kenneth Lee
You have to understand when you...
ken, heres my take, looking at longs on e.u at 1.4 shorts at 1.42 or 1.4280.
Attached Image (click to enlarge)
Click to Enlarge Name: eulevels.jpg Size: 136 KB
Quoting lazyboy
ken, heres my take, looking at longs on e.u at 1.4 shorts at 1.42 or 1.4280.
Looks good to me , With Oanda I have issue with the lower time frame charts not providing enough old data ( won't scroll back very far ) so we might miss some areas that could be between levels marked on 4 hr or daily, They are hopefully just minor spots, But we could miss a move as newer S/D levels form .

But this just part of it . Nice Charts ,,
Good Trading To All ; Ken Lee
Quoting Kenneth Lee
Looks good to me , With Oanda I have issue with the lower time frame charts not providing enough old data ( won't scroll back very far ) so we might miss some areas that could be between levels marked on 4 hr or daily, They are hopefully just minor spots, But we could miss a move as newer S/D levels form .

But this just part of it . Nice Charts ,,
true! cheers ken,

btw will be looking for longs on cable circa 1.6100 shorts around 1.6370
http://www.fxstreet.com/webinars/ses...c-95a45134b6c7

The above is a very good recording of some details of S/D levels .
Good Trading To All ; Ken Lee
chart
Attached Image (click to enlarge)
Click to Enlarge Name: Sunday.JPG Size: 247 KB
Good Trading To All ; Ken Lee
Here is a list from one of Sam's webinars of odd enhancers to improve our odds when picking S/D levels for trades. Use the list when looking and after awhile it will become second nature.
Attached Image (click to enlarge)
Click to Enlarge Name: 19.JPG Size: 79 KB
Good Trading To All ; Ken Lee
Hi, Ken
I have not visited here for quite long time, I miss you guys. how are you doing?
Dancing with Candlesticks
0 traders viewing now