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B.S. Trading with Kenneth Lee

  • #401
  • Oct 12, 2011 10:05am Oct 12, 2011 10:05am
a look at a eur/usd failure and the lesson learned.
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Good Trading To All ; Ken Lee
  • #402
  • Edited 11:40am Oct 12, 2011 11:06am | Edited 11:40am
Quoting Kenneth Lee
a look at a eur/usd failure and the lesson learned.
so if there is level inside level example : demand inside demand, that's a storng area right? so we only need to place a Pending Order right?

one more question

http://i1117.photobucket.com/albums/...ING/EUpost.png

what make that happend?
any solution?
TRADING IS SIMPLE BUT NOT EAZY
  • #403
  • Edited 11:59am Oct 12, 2011 11:43am | Edited 11:59am
Quoting green_trader
so if there is level inside level example : demand inside demand, that's a storng area right? so we only need to place a Pending Order right?

Not sure what a level inside a level is ?

Sometimes we can look for levels off a faster chart that may fit inside a level of a slower chart to lower risk .

The chart on eur/usd is showing levels on levels One level above or below another. They are so close that the edges can touch or there is almost no separation .

The only one's Sam talks of for Po's is fresh Levels meaning they haven't been touched yet. But PO's can be used for other reasons as well,

But for a set forget make sure it is a fresh level with a good move away and price has been away a while.

But if you have trigger finger issues like you always tend to enter to soon because your afraid you might miss a trade or you enter to late then don't take it . I am using more Po's at spots That if I was sitting at my computer and waiting for price to reach a level . That way I can have my entry, my STOP and my Profit Target all planned out. So that means I planned the trade I am just then letting the computer trade that plan. A poor mans EA ,, LOL

I like the shallow pull backs after a strong move . and have no fear of taking them . if you read back a few pages you can see when I placed those OZ orders , A lot folks were only looking at level 4 as a place to set a Limit Order. I just have found that the majority of my 30 min levels are tradeable.

Plus some maybe only looking for 100+ trade where a solid 20 + can make me a happy guy and a 40+ is considered a homer . My weekly goal is only about 150 pips to be a easy 20% increase with a risk I am very happy with. So 30 a day average is great. My work for myself is to now make most of it when out playing , using PO's

In most cases the hardest part of trading is the guy sitting in front of your computer. So to eliminate as much of those guys mistakes and also prove to yourselves that your making the right choices . Setting up the trades and then letting them play out maybe the best thing you ever do.

But however each of us approach it , never change your plan after you have decided on it. if you enter manually or by PO. I would say let it run it's course the only variable to that would be to protect equity by moving a trade to Break Even if the price action starts to show a change.

Hope I am clear kinda turned into a rant sorry Ken
Good Trading To All ; Ken Lee
  • #404
  • Oct 12, 2011 11:55am Oct 12, 2011 11:55am
Quoting green_trader
so if there is level inside level example : demand inside demand, that's a storng area right? so we only need to place a Pending Order right?

one more question

http://i1117.photobucket.com/albums/...ING/EUpost.png

what make that happend?
any solution?
That wasn't not a level because there wasn't a base there. a base in comprised of 2 to 5 candles. I know on a 30 min or 15 it may look better I can't even see that area without using a 3 hr chat, But on your chart , you can see price moved up very quickly and just feel from that area no time for any orders to be traded, Looks like a news spike of some sort. On my 3 hr that area looks to have touched a previous level and dropped quickly from it. it could be the best level ever but they will all fail sometimes , especially in a strong trend.

Plus your fighting the trend. If you had looked at a faster chart to see some of the detail of the fast move up . you could find some areas on many pairs to join the trend and get your daily pips. but looking to turn price in a move like this is a losing move in most cases, But at some point if you keep trying it will turn right where you think it will and the your doomed to keep trying to turn trends losing much more than you will ever make.

To short after a strong move like this I will really need to see some lower highs form on a faster chart first. Inother words wait for a retrace take the long. When it fails to go higher , The after the next retrace which you can still take long . You could short at the last lower highs supply level.

If it doesn't make sense ask again or ask on any point Ken
Good Trading To All ; Ken Lee
  • #405
  • Oct 12, 2011 12:05pm Oct 12, 2011 12:05pm
Quoting Kenneth Lee
That wasn't not a level because there wasn't a base there. a base in comprised of 2 to 5 candles. I know on a 30 min or 15 it may look better I can't even see that area without using a 3 hr chat, But on your chart , you can see price moved up very quickly and just feel from that area no time for any orders to be traded, Looks like a news spike of some sort. On my 3 hr that area looks to have touched a previous level and dropped quickly from it. it could be the best level ever but they will all fail sometimes , especially in a strong trend.

Plus...
okey underestood now. thank;s for the replies Ken.
I'll try not to counter the major trend, see the zone clearly, and be patient for my next entries.

thank's bro.
TRADING IS SIMPLE BUT NOT EAZY
  • #406
  • Oct 12, 2011 12:17pm Oct 12, 2011 12:17pm
Quoting Kenneth Lee
Not sure what a level inside a level is ?

Sometimes we can look for levels off a faster chart that may fit inside a level of a slower chart to lower risk .

The chart on eur/usd is showing levels on levels One level above or below another. They are so close that the edges can touch or there is almost no separation .

The only one's Sam talks of for Po's is fresh Levels meaning they haven't been touched yet. But PO's can be used for other reasons as well,

But for a set forget make sure it is a fresh level with a good move away and price...
Great charts and I see now what happened and how I missed this trade. To anybody reading this thread I was one of the folks who passed on the level 3. I stated it in this thread. I personally felt it was the weakest level. Well that wasn't the case. One of the reasons I passed besides thinking it was weak was it wasn't a down candle. It was basically a doji I guess you can call it that but it closed slightly up. Meaning it didn't close to the down side where it opened. When I saw this I said no way this can be a level. Then it took off and boy was I the goat. Good thing about this lesson is I learned to spot a good level. Everyday I am learning more trading this style. So anyone who is struggling hang in there. I still am and starting to find the best way to learn this trading is mark your zones,watch price react to them and just log in the chart studying time.

To the guy who marked the zone at the top and got stopped out on the EU. I had it marked myself. I could have entered but the zone was so wide. I actually narrowed the zone down going to smaller timeframes and I was still looking at a huge zone. I was right below the 3800 level. But if I did take it I had a chance to get something out of it. Price did react to it for a while and could of got out with over 10 pips. Also price came back and hit the 3800 level. It reacted as we knew it would by dropping. Then it broke 3800 and dropped again. Well when this happened it broke the high of that zone. Once that happened I said game over for looking to go short. It was too risky at that point and I wanted a clearer indication. Well thats my 2 cents from a rookie's point of view. Keep trucking along and we will all get there together.
  • #407
  • Oct 12, 2011 12:23pm Oct 12, 2011 12:23pm
Join the trade, fighting a flood or the tide is a mistake in most cases.
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Good Trading To All ; Ken Lee
  • #408
  • Oct 12, 2011 12:33pm Oct 12, 2011 12:33pm
Quoting nawlins51
Great charts and I see now what happened and how I missed this trade. To anybody reading this thread I was one of the folks who passed on the level 3. I stated it in this thread. I personally felt it was the weakest level. Well that wasn't the case. One of the reasons I passed besides thinking it was weak was it wasn't a down candle. It was basically a doji I guess you can call it that but it closed slightly up. Meaning it didn't close to the down side where it opened. When I saw this I said no way this can be a level. Then it took off and boy was...
Not a issue , But in the pdf i mentioned that at swap levels a spinning top or doji type candle is very common , Because if we think about it what is happening at those levels ? Price has moved up into a supply level Then the orders start being filled price drops down but there isn't enough supply to make price drop very much . So then we start to see the demand overwhelm supply and price moves up . it may take as much as 2 candles but once enough demand arrives that is when we see the price move higher quickly and purposely.

When you see this levels take a look on a fast chart and you can almost see the money change hands as the level "SWAPS" from Supply Base to a Demand Base.

This brings up another point I wanted to add to the above chart. Everyone needs to get into the habit of running through time frames on their charts so they can see what is happening in both the big picture and the current price action . This will help you in so many ways to spot mistakes before they happen .. Plus Like I said on vry fast charts it is alomost like being on a trading floor wacthing the orders flow and when they pop the orders are all gone.


Cheers Ken
Good Trading To All ; Ken Lee
  • #409
  • Oct 12, 2011 12:41pm Oct 12, 2011 12:41pm
I know I say look at faster charts , But I use them mainly just to see what is happening right at this second , I still mainly hover around on my 30 minute chart most of the time and is what i base almost all my trades off of. But Sam and then there are a few threads on here deankenny21 being one that use the faster charts to gain entries.

Just making it clear , but with huge candles on say the 30 min there are times you can't see anything unless you zoom in . You can have a few levels that looks like a solid candle on 30 min but is broken in levels on 5, It is all in the eyes of the beholder.
Good Trading To All ; Ken Lee
  • #410
  • Oct 12, 2011 2:41pm Oct 12, 2011 2:41pm
Hi guys, excellent thread here. Very informative and the pdf was great. I'm slowly learning to pick up this SD trading mojo. I started off with watching all of Sam Seiden's webinars and reading his articles, then moved on to combing through forum threads like this one and deankenny's.

Now then, a chart based question:

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I'm asking this because I sometimes see levels being picked that come right after a touch of a level above it. If its unclear what I'm asking I'll see if I can find a better example to post, just let me know.
  • #411
  • Oct 12, 2011 3:04pm Oct 12, 2011 3:04pm
Quoting Kenneth Lee
Not a issue , But in the pdf i mentioned that at swap levels a spinning top or doji type candle is very common , Because if we think about it what is happening at those levels ? Price has moved up into a supply level Then the orders start being filled price drops down but there isn't enough supply to make price drop very much . So then we start to see the demand overwhelm supply and price moves up . it may take as much as 2 candles but once enough demand arrives that is when we see the price move higher quickly and purposely.

When you see this...
Yes you did mention it and I guess not seeing it in action made me question it. I guess in my mind I was looking for the perfect doji. When I saw a little green in the candle in an uptrend I immediatly passed on it. My eyes never caught it until you showed us your chart. And I still passed on it for the reasons I stated which was dumb on my part. Will not happen again.
  • #412
  • Oct 12, 2011 3:06pm Oct 12, 2011 3:06pm
Quoting Kenneth Lee
That wasn't not a level because there wasn't a base there. a base in comprised of 2 to 5 candles. I know on a 30 min or 15 it may look better I can't even see that area without using a 3 hr chat, But on your chart , you can see price moved up very quickly and just feel from that area no time for any orders to be traded, Looks like a news spike of some sort. On my 3 hr that area looks to have touched a previous level and dropped quickly from it. it could be the best level ever but they will all fail sometimes , especially in a strong trend.

Plus...

Hello Kenneth Lee,

Really great explaination clearing many doubts..

can u also tell me what timeframe is better to determine the trend direction for daytrading?

or shld we follow the H1 trend if taking trades with H1 SD zones?
  • #413
  • Oct 12, 2011 3:10pm Oct 12, 2011 3:10pm
Quoting Derugash
Hi guys, excellent thread here. Very informative and the pdf was great. I'm slowly learning to pick up this SD trading mojo. I started off with watching all of Sam Seiden's webinars and reading his articles, then moved on to combing through forum threads like this one and deankenny's.

Now then, a chart based question:

Attachment

I'm asking this because I sometimes see levels being picked that come right after a touch of a level above it. If its unclear what I'm asking I'll see if I can find a better example to post, just let...
Derugash I would say yes its valid but will let one of the more experienced guys comment. The last zone looks good with it making lower highs so its showing a downtrend and thats a supply zone to short. But the last swing low did not make a lower low. Also the zone is way bigger than the other 2. One more thing is it hung around up there for a while on your last zone before dropping compared to the previous 2 zones. So maybe narrow that candle down to a smaller timeframe and see if you can find a smaller zone limiting risk. This is a very good question and would love to hear the response myself. I am posting giving you my input to also see if I am wrong.
  • #414
  • Oct 12, 2011 3:35pm Oct 12, 2011 3:35pm
Hi Derugash,
I am not pro but I would like to answear your questions how I see it.
1.For me only first one green one is fresh level.
2.Yes I see these two levels like level on level.
This is Day TF so entering on this TF on these levels can be tricky I mean can be good fun apply good MM and TM.
Only my thoughts.
FX
Quoting Derugash
Hi guys, excellent thread here. Very informative and the pdf was great. I'm slowly learning to pick up this SD trading mojo. I started off with watching all of Sam Seiden's webinars and reading his articles, then moved on to combing through forum threads like this one and deankenny's.

Now then, a chart based question:

Attachment

I'm asking this because I sometimes see levels being picked that come right after a touch of a level above it. If its unclear what I'm asking I'll see if I can find a better example to post, just let me know....
  • #415
  • Oct 12, 2011 4:05pm Oct 12, 2011 4:05pm
Quoting Derugash
Hi guys, excellent thread here. Very informative and the pdf was great. I'm slowly learning to pick up this SD trading mojo. I started off with watching all of Sam Seiden's webinars and reading his articles, then moved on to combing through forum threads like this one and deankenny's.

Now then, a chart based question:

Attachment

I'm asking this because I sometimes see levels being picked that come right after a touch of a level above it. If its unclear what I'm asking I'll see if I can find a better example to post, just let me know....

here is my reply. I think any levels taken off the daily are better traded off a faster chart. This way the risk is lower and we can better see the current price action . Even if your a swing trader looking to hold for a long time a hrly chart will give you the chance to enter during the day. A hrly may show a very fresh level at that green level.

But the key is to know when you reach it your into supply looking for shorts , not fighting the trend.

Hope I make sense Ken
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Good Trading To All ; Ken Lee
  • #416
  • Oct 12, 2011 4:14pm Oct 12, 2011 4:14pm
Quoting Pip26
Hello Kenneth Lee,

Really great explaination clearing many doubts..

can u also tell me what timeframe is better to determine the trend direction for daytrading?

or shld we follow the H1 trend if taking trades with H1 SD zones?
Like the daily chart posted above . it looks rangy but the price action getting tighter and tighter, But we know when we are near the top we are looking for shorts , Near the bottom longs.

This is the reason that part of your plan should be to scroll through the time frames to see where we stand. WE trade between levels . So if price on a daily has left a supply and has good solid red candles in the previous swing down . Or goal is to watch faster charts for a short opportunity to ride that swing back down into a demand level.

It is getting good at that kind of chart reading that can allow you enter a trade safely at almost anytime of the day. All you need to see is where price is headed and is a entry have enough reward to offset any risk.

I like the 30 min chart I can day trade the info on it pretty safely as long as I look for the big levels first. if the MAJORITY of price action is in the bottom of my screen I look for shorts if there is more in the top Longs.

Don't over think it. Just know where your next Supply and Demand levels are on your big charts draw them across then change back to your preferred trading time. That way when you see that pale pink line you know you had better see what your next move will be.

If not clear ask again Ken
Good Trading To All ; Ken Lee
  • #417
  • Oct 12, 2011 4:24pm Oct 12, 2011 4:24pm
Ken,

Amazing work on the board! How are you doing on your stats with trading the 30 min charts? I was just looking over the past year and I have an approximate 67% success with an average of 1:1.75 reward per trade.




Quoting Kenneth Lee
Like the daily chart posted above . it looks rangy but the price action getting tighter and tighter, But we know when we are near the top we are looking for shorts , Near the bottom longs.

This is the reason that part of your plan should be to scroll through the time frames to see where we stand. WE trade between levels . So if price on a daily has left a supply and has good solid red candles in the previous swing down . Or goal is to watch faster charts for a short opportunity to ride that swing back down into a demand level.

It is getting good...
  • #418
  • Oct 12, 2011 4:34pm Oct 12, 2011 4:34pm
Quoting Kenneth Lee
Like the daily chart posted above . it looks rangy but the price action getting tighter and tighter, But we know when we are near the top we are looking for shorts , Near the bottom longs.

This is the reason that part of your plan should be to scroll through the time frames to see where we stand. WE trade between levels . So if price on a daily has left a supply and has good solid red candles in the previous swing down . Or goal is to watch faster charts for a short opportunity to ride that swing back down into a demand level.

It is getting good...
Thanx for all nice and simple explaination
  • #419
  • Oct 12, 2011 4:41pm Oct 12, 2011 4:41pm
Quoting arjuncora
Ken,

Amazing work on the board! How are you doing on your stats with trading the 30 min charts? I was just looking over the past year and I have an approximate 67% success with an average of 1:1.75 reward per trade.

Sorry I don't track much more than my weekly growth which hovers around 20% But I still have my personal issue to battle . Which have a bearing on the bottom line but not the success of any trading style I have used.

It is the reason I have gravitated to the style trading simple rules even a monkey can follow. Only one type of entry to look for and plan stop in no nuisance spot and clear targets. AS many trading ideas that are out there it is just amazing how many are over complicated doing basically the same thing.

One problem I fight a good deal is the fact that the win hit ratio is very high I can go for a week without a loss, So sometimes I find it hard to believe I am wrong arrogance is a fools companion.

But trading this way my personal issues are starting to fall away and the rules are taking hold. It has always disturbed me that if I was doing this as a job , I would have no trouble following the rules but for myself ,it seems sometimes just unnatural how painful it can be to watch yourself being self destructive. Stuff to drive a sane man crazy.

Anyway enough of that. WE will win and the goal line is in sight .
It will be very clear to anyone trading any style when they have crossed the line from beginner to expert. The doubt will fall away and the trades will be taken just as if you were putting on the flasher for a right turn in your auto.

Cheers Ken
Good Trading To All ; Ken Lee
  • #420
  • Oct 12, 2011 4:47pm Oct 12, 2011 4:47pm
Weak demand level on the aussie now----anybody thinking about a long?
We are all One. Be present. Be the Observer
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