Ken's Continuing Successes with EO's system

hi trotty
I think if we are correct selecting the S/D we don't need anything else

Quick questions for you, Ken:

What if the sell off happened not due to Supply/Demand or TA, but because of fundamentals?

For example, the EUR/USD uptrend seemingly went out the window directly after Trichet's comments at the ECB meeting a couple weeks ago.

So now are we looking for a similar INSANE sell-off when the price comes back to that same level again?

I really think this S/D thing is cool, but I'm trying to wrap my head around it. Also, are you still running with your old MAs from the PDF on the H1, H4 and M15 charts?

Finally, why are you using the 30M charts in most of these examples? Have you had success in determining these levels on the 4 hour, daily or weekly charts?

What if the sell off happened not due to Supply/Demand or TA, but because of fundamentals?

For example, the EUR/USD uptrend seemingly went out the window directly after Trichet's comments at the ECB meeting a couple weeks ago.

I have found I am as guilty of this as anyone, forgetting that most things in our life's is manipulated in one fashion or the other.

What of Trichet was seeing the euro value as being to high costing the euro zone trade. Easiest way to correct it is to be a bit negative in your statement. Other countries even take a more direct approach coming right out and intervening in the currency.

What if your Goldman's Sacks and you have a large position on not performing well and all you have to do is issue a press statement suggesting a shift in a major commodity to fix that problem .

This in my opinion is why you see time after time that fundamentals do nothing more than move price into great technical areas.

So now are we looking for a similar INSANE sell-off when the price comes back to that same level again?

I would respect any major area until it is proven non valid . One thing I have seen regarding S/D is that there is always a bit of the supply or demand left to allow a exit without a loss or much of one.

In other words you can see price crossing these areas .

I really think this S/D thing is cool, but I'm trying to wrap my head around it. Also, are you still running with your old MAs from the PDF on the H1, H4 and M15 charts?

No I am not. I still have all the ma's on a 15 min I trade off. But all my charts I use to see levels are clean except a 50 ema. The EO Ma's system were used to help us see the trades. So when price approached a certain MA on different time frames a possible trade was at hand. The problem always came because there was always more to it than just that.

I think that system is awesome and I will gladly discuss any of it if anyone wants to, But in the last few months seems the interest has waned.

Personally I have always been on that quest to find the ONE thing that was the core of trading and after almost three years of studying nothing but price action. At this time Supply and Demand seems to fit the criteria.

After all this is all we are doing buying and selling. I am very surprised it took me this long to see this and I have the guys on this thread for pointing it out to me. THANKS

Because in the past all I ever did was buy and resell.

Finally, why are you using the 30M charts in most of these examples? Have you had success in determining these levels on the 4 hour, daily or weekly charts?

As I stated in a post or two back. I find the 30 min is clearer than anything faster and also gives me enough trades to stay interested. But yes the higher time frames as with any trading is very important without knowing major levels we are trading half blind.

I showed a level off a 4 hr chart last week that shorts could have been taken for a long time then showed those shorts on the 30 min chart. The persons I am studying this information from ( Old Webinars) shows daily levels which he may take trades over 3 to 5 days until it breaks. He also uses as fast as a 2 min chart. Not my style . Think 30 min is giving me a percentage of profitable trades I can live with

The trading of this is so simple is what makes it so attractive to me. When you sit down at your computer you search high and low for the S/D levels if your moving outside a swing above or below. You may have to switch time frames on your chart to find the next level. So if it is a 4 hr or daily level it is clear.

If it is fresh and has left quickly and didn't hang around much it is a A+ level. The further it went away and the length it has been away is also a factor. I posted those Odds enhancers but will not re post it as I am not sure of their origin.

Hope this helps if not feel free to expand on this . Ken

Plus remember if price has crossed in front of one of your levels it is voided, Doesn't mean it wouldn't become a level again it is just a case of the orders that made up that level had gotten filled.

Like anything we buy everything has a fair market value at the time until it has a reason to be less valued or more the same levels seem like magnets. But as I have showed over and over the levels shift just a bit so without drawing new levels you could be increasing your risk needlessly.

Plus getting into the habit of picking those two levels is easy. Plus with time drawing them like fibs will be not necessary. They are very clear.

Hi Ken, and the others here,
I try to figure the logical process to use S/D to find trade opportunities and I would like to share my thoughts here.
I chunked the process so:
first, find out the last levels (all not void)
second, grade them (see the 4h chart)
third, look at the big picture
- checking higher S/D area
- trend or ranging market (cycle of the market)
four, evaluate the trade opportunity, in a trend in the direction of the trend, in a ranging market fading every good level in both direction
the trading opportunity needs
- a good level where to enter with a PO (a good grade)
- a fresh touch (the first correction)
- a good ratio RR
- first hour of an opening session is better

at this point you can check how the price is approaching your trade and evaluate other confluences you feel good at (examples,pivot levels that are quite respected in my little experience)

So, find levels and grade them, check the big picture (S/D levels, trend or range), check for trading opportunities (with trend or fading the levels), grade the trade (fresh touch, RR, approaching, confluence). then put your order!

I'm going to do so with my live account: find from one to three PO opportunities, to put them and wait until the market shows me the fact.

Are there anything I didnt mention?


As alway for your inspiration, thank you

Cheers Alessandro

Thank you very much for your detailed reply. I am happy to hear that you've had success with the S/D levels over the past few months. I am going to watch some of those webinars and then reread the past few pages of your thread so I might understand this idea better. Do you expect to have another PDF release of this new strategy?

Thanks again!

A lot have been said about S/D. What people needs is to do exercise to be able to see what few people are doing that most people are not doing.

I have been looking for PA on 15m at S/D area if on system and the move usually start after the PA. But after 20 pips also the price we go back to entry and I will be taken out.

We also have to talk about when to move to BE. Most of the time I got those entry of S/D and price move like 15 to 20 pips in my direction and after move to BE it will come back and take me out and move to my intending profit. We started with never allow 10 - 20 pips profit go to -ve.

I also see that Ken is still having trouble holding trades. For instance, holding from Demand level to Supply level and verse versa when it clear enough. You are not alone. That is my major problem.

For instance I have PO on EU 1.4330 sl 1.4360 and TP 1.4230 but I closed 39 pips also thinking it might go back to entry and take me out. EMOTION!!!

Good stuff mate

I have never really used the 35/35 rule that EO came up with but i'll keep it in mind more if you've found it reliable. Over the year or so i've been following him and ken, i've gradually taken the bits that seemed to work best for me and discarded the bits that - for whatever reason - didn't. That shouldn't mean that I never revisit them, what didn't make sense a year ago may make much more sense now.

As I said back at the start of all this S&D chat, I see it as a perfectly complimentary approach to trading to how I already trade - i.e the EO/Ken way. I can entirely understand why some people would sooner keep it simple by just focussing on S&D and there are threads here at FF where dozens of traders are doing just that and looking like they're doing well with it. Like you, my mind just prefers to mount up the odds in my favour so a blended approach makes me more calm about getting in the trade and more sure that i'll exit with something to show for my efforts. My crutch!

The problem being a Leeds fan is that we're most teams first or second most hated! We simply don't have the bandwidth to return the favour to all you "haters" so we tend to focus all our ire on that red lot from Salford!! It can be hard sometimes to be so universally disliked but we take it as a compliment that we mean so much to so many

You had a dodgy season but still managed to take 6 points off us, that would have been enough to see us in the playoffs

Here is a nice example how EO's rules and the s&d methodology can work together.

35/50 cross and PA at a s&d level plus 61% fib. I went short after the doji.

The red box was my first tp.

Hope you dont mind that I post this chart here but good example of S/R supply demand area at the light shaded rectangle area. Price was clearly being rejected from this zone.

As you said Trotty, we should all try to gather and use what tools we can to aid us in our common goal to trade consistently and profitably.

The 35+35 is the one that resonated the most with me from EO's gems but I saw value in them all. After I had moved down the road a little in terms of trading experience I found that when I did go back over some of EO's comments they made more sense. As Ken has pointed out, EO, Infinity, Pippinole and some of the other seniors had that whole "third-eye" thing going on where they could see additional contributing factors for a trade entry/exit purely down to their hard earned experience. It wasn't JUST that it was at the 50/62/200ma. You probably noticed that EO used to say things like "buyers/sellers will be waiting at xxxxx price" which is of course what supply and demand tells us. Maybe EO didn't see it as S&D but he knew where they'd be and was more often than not correct.

For me, S&D enhanced my approach to identifying areas of interest and trading the turns when price got there, but it's still the stuff I learnt from EO that I use to trade to/from/between the areas. Plus it was EO's thread that introduced me to the whole concept of price action in the first place which was the main benefit I gained.

Macc

P.S sorry for cluttering the thread with football (soccer) talk Ken. I seem to remember Infinity was an Arsenal fan so we can treat it as a tribute to him. Trotty's team (Leeds) and my team (Derby) have a healthy rivalry so I couldn't let Trotty's avatar go without a mention. The feud runs deep in our current manger's family so it's every Derby fan's duty to take a swing whenever the opportunity arises . Not to disappoint though Trotty but we probably save most of our ire for our own Red neighbours up the A52 (we still save a little for you of course and doing the double this year helped ease the pain a little )

Go get 'em McFly

Hope trading and life in general is going well with you.

Macc

Hi macc,
how are you?

Like you said the whole S&D stuff helped me a lot too. Additionally I'm learning the VSA concept which is also a helpfull source of information. In the end everybody must find his best way and trading only EO's signals wasn't the best way for me.
It's funny because EO trades his clean method which is heavily based on S&R and candle signals and we (his followers) need to tweak the method with other tools. I bet EO and Infinity are earning more pips than everybody who uses S&D levels even more than Sam Seiden.

Back to the main topic - Football : I'm sorry that nether you nor trotty are supporters of a successfull football team.
Thank god that the german "bundesliga" has installed the 50+1 rule so that no Abramowitsch can buy a team in germany.

a/j chart

gbp/usd

gbp 2

gbp 4 hr

Looks like USD/JPY on the 30m is really obeying suppy/demand levels this morning!

gbpusd

eurjpy

eurusd