Ken's Continuing Successes with EO's system

very nice ken, will keep an eye on the 15min about that level for an entry, will you set a PO or watch a lower t/f?

just finished setting a PO so i don't miss it

Just like the drop from that level.

but another level around 1.6271 so take care

Hi Ken,

I am still not sure what levels have the highest probabilities. See the attached chart you posted some time ago. I added two zones (rede lines) which seem to me to be valid zones also.

That is a 1 hr chart , One of the main Odds enhancers is how long did price stay at a area before moving away? looking left on both those it hung out a very long time , which is just showing that the interest is pretty even at that level. On a 1 hr chart I would look for turns that take only one or two candles.

My PO on the gbp was missed by 3 pips. Placed one up at the next level 1.6271 , Just feel better leaving that one unattended.

Here is a chart of a e/u I took

This is a new to me pair I am now watching saw this earlier but didn't take it .

EUR/CAD 30 min

hi ken

audusd H1

My PO on the gbp would have tripped . The surprise is the eur/cad still going, off that entry . have to keep a eye on that pair.

for a exercise find on your chart why the eur/cab turned at the very top 1.3885

Hi Ken,
my lack of patience is a great matter for me.

By the way, my observation:
- the Supply and Demand Level are quite affordable, but...
- to grade them correctly is really critical!
- sometimes PO is missed for a few pips! and would be great trades
- sometimes PO is triggered for losing trade

Can we use some "tolerance" in order to put our PO, for example 5 pips above Demand for a buy limit?
Can we study in some way this tolerance?

Good week end, life and trading....

cheers alessandro

Hi all, not been around here much. Been heavily away with work and early summer holidays (vacation) so barely had the chance to trade, let alone post!

Just my 2p's worth here but I think you have to decide yourself whether you are more happy waving goodye to a few possible trades because it turned a little before where we would enter or whether you would rather all your entries have a 5 pip larger stop loss than you otherwise would have. that's a personal decision but remember, the larger the stop, the greater the chance of failure i.e not hitting your profit goal before heading back on you).

Keep in mind your other technical indicators too. I have tried to learn and understand as many of the basic trading tools as I can. I am always on the hunt for the best areas of confluence because my feeble mind is still not designed to lose readily. I like an 80% win ratio and I can only get that if I stack as many of the odds in my favour before I get in the market. If I have an area 5-10 pips before a supply or demand zone where there is great confluence (say a major fib level, a pivot and a session High/Low at roughly the same point), i'd look to enter a pip before that confluence area and use the S&D zone to determine my stop placement. I rarely struggle to make profit if i've found an entry of that nature and more often than not, price has turned at my entry and not at the usual S&D entry point. These trades, though, do not come around all too often.

Just some thoughts.

Trade well folks.

I think maybe you should stick to one time frame for your levels. if I was to use multiple time frames , I would gauge them independent of each other.

like i would watch the 30 min 1 hr and 4 hr , make my choices separate on each and find the one i am happy with the results on.

i have found i like the 30 Min . not much noise meaning clearer levels and enough levels to keep me interested .

I will drop down to 15 in late sessions when price starts to range as when volume drops off the levels close in.

patience is a a issue with me as well why I am Liking this S/D stuff as PO's are very readily a option for trades,

As far as missing by a few pips I know what you mean and it is the better trades this happens on. I have yet to find any information from Sam's stuff regarding entries or stops exactly.

But I have noticed that if the odds enhancers equal a PO trade they also suggest a bit wider trade. sooner entry.

If it is a second or third touch don't give it anything as those may go to your stop.

Not real clear on your s/d levels may just be the fact your placing multiple time frames on your charts.

But if you can see the areas that is the goal

Cheers mate and have a great weekend also. Ken

Just a quick example of what i'm blathering on about, from today. I would want to draw my supply area off the wick on this example due to the wick being fairly large. However, you have this very nice confluence point just 9 pips beforehand. If you were to place your stop behind the supply zone, it would be about 21 pips but with the weekly pivot there to give another significant reason for it to turn. If you'd put your PO at the supply zone, it would never have been triggered. If, though, you'd spotted this confluence setup, you would enter there and suck up the extra large stop if you still wanted it behind the supply zone. At least you get your entry, right?

You can't halt a flying train and if a fundi is driving price, the fundi will drive price past all the technical areas it wants to sometimes. More often than not though, you can build a case up like this where you can be really quite sure that it's unlikely to be a loss. Maybe a small win, maybe a break even but there is so much going on here that the loss is very unlikely to happen.

As it turns out, it was the daily turning point and you'd have a 100 pip trade if you'd stayed in. Nice. They won't all be so good

Thanks for the great Post Trotty , That price hit my supply level spot on . I even had a PO set , That I canceled right before I turned in for the night

But still just working our all the issues with this, Another point is others would call this a stop run and another recent information would be market makers move. So each onto their own .

yes if you can keep all the different players in mind and see when everything comes in alignment those should be awesome entries. of course it helps when we get bad euro zone news as well.

But you find that bad news and and technicals tend to agree most times.

Inside trading is alive and well. LOL

Hope your well and trading is progressing , Ken

gbp chart

Cheers Ken, not a great deal of progressing of late due to other things but such is the life of us that aren't doing this for a living....yet!

Shame about your order but i'm personally not so keen in leaving POs on either, if it's just a bog standard S&D entry. It's nice when you wake up to profit but a sickner when you see your account depleted through bleary eyes!

thanks as always,
very very informative and clear,

cheers!

Alessandro

Hey Ken.

Hope you don't mind me poking my ugly mug in here out of the blue.

Just thought I'd chip in regarding supply and demand levels following on from the great posts here recently.

Totally agree with you Trotty regarding confluence zones and you clearly have a better eye for them than I do (I'm a feeble 50% Fib user at best), but your post also touches on a couple of points Ken (and yourself) has made regarding what timeframes s&d levels are identified on, and a how each individual subjectively likes to mark out the levels.

In the 15m chart you attached I don't disagree at all with the supply zone you've identified it's just that in my subjective observations I've arrived at a slightly different method where I mark my zone based on wicks AND candle bodies (close or open), depending on whether the reversal pa in question is an inside bar, outside bar, or pin, with the preference being for outside/engulfing bars (body engulfing primarily).

On the 15m chart attached I have the original engulfing pa (by my definition) in the top left which was then revisited the following day where a second lot of engulfing pa was formed, becoming my new first point of reference for any subsequent revisits. That new point of pa reference generated the 16272 level which gave us a nice kick down today.

My second chart is the 1h which tells a similar story of "stacking" pa (which I think Ken has made reference to) with the last pa to the left again generating the 16272 level (by my method of marking the s&d zones).

I look for how the s&d zones sit within each other down from the weekly, daily, 4h, 1h, and 15m. As we know, a 1h turn starts with some 15m indication/pa, a 4h starts with some 1h etc, etc. Each subsequent timeframe allowing me to refine the zones and/or identify intermediate zones which sit between the big turns. I see Ken has settled on the 30m chart which works for him.

Anyway, never mind all that! There's me saying I don't do confluence when the main reason for posting on this particular example is because there's an oldie but goodie also indicated on the 15m chart.

EO's magical 35sma + 35 pip rule (black dotted line).

That's a part of EO's method that I've grown very fond of since I first started following his thread and it's amazing how many times it produces the goods. I wouldn't like to guess at how many hours it took EO staring at the charts to identify that but I've seen it play out countless times since I've been watching.

On the 15m chart attached +35 pips above the closed candle across the 35sma came in around 16267 and I remember EO was always happy with 5 pips wiggle room give or take so that's good enough for me.

I've mentioned to Ken that, rather than supersede EO's method of trading, the supply and demand element helped me enhance the higher time frame level identification (support/resistance) from which to implement the EO way of playing things.

And one final point Trotty, I regret to inform you that I'm a Derby lad born and bred so you can now immediately delete this post while subjecting your monitor to a volley of four letter abuse, before chastising Ken for allowing me anywhere near his thread in the first place (then again, you could always go easy on me because we've had a torrid season - again ).

Have a great weekend Ken (everyone)

Macc

A Good confluence trade example i took today.
Also at a supply area.. but didn't mark it on this chart, to keep things simple.

http://my.jetscreenshot.com/5685/20110520-yuzi-95kb.jpg