Ken's Continuing Successes with EO's system

I'm doing my second reread of the posts here using Seiden's levels idea. I have a question about levels on levels. I've gone through about half of Seiden's webinars. He usually emphasizes that a level on top of a level is a strong sign. But he seems to be less clear about where you put stops in this kind of situation.

Suppose you have a supply area that is 20 pips wide, and then just a couple of pips above that, there is another supply area that is also 20 pips wide. If you put a pending sell order at the bottom of the first supply area, you could logically put your stop at 20 plus a couple, or as large as 40+ to cover both supply areas. What are your thoughts on this?

First a PO on a demand area would be near or right above the top. Then stop below the wicks plus a few. If you put at the bottom of the first then I guess a 20+ stop would incorporate both levels.

I think the key thought about levels on levels would be as with any entry using the S/D material is if it is a fresh level or not. In the chart I posted above on this page . You can clearly see that the fresh touches turned right on the first level.

Sam makes no bones about PO's being set ONLY on fresh levels ( Never been hit before). This is the key thought.

So as shown on that chart we could have set a PO for the first upper level long. Then we could have set one for the second level, as it was still a untouched level.

Or you can us a confirming order waiting for a exit to the long side from the levels. I have and do combine level that are extremely close , But There has to be a decent base as well. If it is just price meandering then takes off it could be nothing but low volume between sessions then a market opens and it makes a move. Plus if I combine hte levels into one i usually move up a time frame on the chart and adjust risk accordingly.

I think as with all our trading the key is to look for the best forget the rest. Why I have been just looking for the best Supply or Demand levels with clear unadulterated level.

If It isn't clear to you skip it and search on or move up to the next one . Sure we will miss a few but everything requires practice to become proficient with it. Why we should all run a demo just to practice setting the PO's on our OWN levels.

I am not sure of the reason that Sam means about them being better , But in my mind I see it as other demand or supply coming in after a move and then orders placed at the higher or lower level by traders not wanting to miss the opportunity which forms the second level but leaves the original one in place. So if the first STACK of orders gets depleted the additional ones will hold the line and turn price once again. I have been really focusing on SEEING it as just that orders being sold or bought .

Sorry about the mixup on terms. I think you were probably composing your thoughtful reply while I was editing my post to the correct term. I tend to think of them as just being levels. I don't care if they are supply or demand. Similarly, I never cared for the terms support or resistance. In both cases, for me at least, its just an area above or below current price where price is more likely to turn.

I think this is especially true in Forex. When you are trading a pair, you can always look at it as either a buy or sell. If you flipped the pair orientation, say from EURUSD to USDEUR, the price action should simply flip. What was a buy would be a sell, and vice versa. With equities and commodities and futures, there may be a significant difference between a buyer's and a seller's mentality. In Forex, I think its pretty much the same thing. Anyway, all that is just an aside.

Thanks for the quick, and clear answer. As usual, you have been very helpful.

even if you don't trade the news look after the news for your levels to be hit. it requires something to move price .

Hi Ken,been reading your thread and I have to got to say the potential to make a few hundred pips a week would be an understatement.Just want to clarify some things.I have attached a GU 1 hr chart and you can see where it got rejected from the 4 hr trendline and starting to look like a bearish rejection bar.

Would it be to say I should enter on the retest of that area on the 15min? Currently on the 15min is showing a DBHLC.I am thinking its going to down to 1.60264 before retracing up to retest?

This is all assuming the candles are closed..Hope you could correct my analysis..

Kai

I am not the biggest fan of trend lines as they normally are just lying against some other price point. I did take a short up there a bit soon but had a supply level close enough to use. i closed to soon for 35 and it dropped another 20 straight away.


supply level was 1.6083 stop above 1.6094 entry was 1.6075 gbp 30 min

You see a lot of times price will turn just a bit before it hits the levels , I am still trying to sort out a exact idea for entries , But seems the most prevalent on fresh touches , Again may be due to orders being added a bit lower or higher from traders hoping not to miss the entry levels.

At this point if I am present I just try and watch how price is acting at those levels and take the trade if it has stalled and looks to be pulling back and if it is within risk tolerance based on the stops location .

If a PO is set again I will set a bit lower using my maximum risk as the deciding factor.

Thank You for the reply Ken..any other charts you looking at now? I would like to see if I could point out the trades you are going to take or going too..

Kai

Not looking at anything now . I have visitors in this week. So out for the week. Everyone have a great weekend.. Ken

oz

Does your swap area create an exception to Sam's rule that you never cross a candle when drawing a level. On your first chart, I would not have thought to draw a new level in that place, given the way price breaks through the old level. That means, as I understand it, that you are simply using the old level that you drew, and switching polarity. Am I understanding you correctly?

no the swap is part of the new swing . in this case a Rally-Base-Rally , with these areas the main issue is that they can be only one candle. as In this one hr chart. But as the 30 min chart shows there is detail at these levels.

Thanks, the new chart is very clear to me. I appreciate the help.

another swap area with very little to see it Gbp 30 min

different veiw

eur/usd

eur /usd revisited

chart 2

euro 3

Weldone Kenn