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B.S. Trading with Kenneth Lee

  • #701
  • Oct 20, 2011 9:25am Oct 20, 2011 9:25am
sometimes a view off the faster charts can save you from a loss and help you get some small gains.
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Good Trading To All ; Ken Lee
  • #702
  • Oct 20, 2011 9:43am Oct 20, 2011 9:43am
Hi Ken - When you say that a S or D level is still valid until it's broken, is it invalidated as soon as a bar closes below it?

If that's the case, it then marks a swap zone and becomes a possible opposite trade area. Supply becomes demand and vice versa. So a trading scenario would be:

1. I'm trading a demand zone for a long trade
2. Zone doesn't hold, price closes below the zone and the stop loss is hit
3. Look for a re-tracement back to the zone for a short trade (assuming all other criteria are still valid, such as there being a clear zone to take profit etc.)

Is that about right?

PB


Quoting Kenneth Lee
Guess the thing I see the most is you just picking fresh levels , which is ok . But on larger time frames levels can touch many times. Just look at how price tested areas if they just missed the line or had a very small insertion into the level , it can still be a decent area to trade from . On the 4 hr or daily levels you can watch those level tests on faster charts to get a safer and less risky entries.
  • #703
  • Oct 20, 2011 10:03am Oct 20, 2011 10:03am
Quoting pixelboy
Hi Ken - When you say that a S or D level is still valid until it's broken, is it invalidated as soon as a bar closes below it?

If that's the case, it then marks a swap zone and becomes a possible opposite trade area. Supply becomes demand and vice versa. So a trading scenario would be:

1. I'm trading a demand zone for a long trade
2. Zone doesn't hold, price closes below the zone and the stop loss is hit
3. Look for a re-tracement back to the zone for a short trade (assuming all other criteria are still valid, such as there being a clear zone...
Yes that is correct , if you can stand the pressure the price most times will retest just as soon as it crosses then keep going. Some can't take those trades emotionally and wait for the first pullback after the initial swing away.

This is really the first or fresh touch off that new swap level..
Good Trading To All ; Ken Lee
  • #704
  • Oct 20, 2011 10:04am Oct 20, 2011 10:04am
Ken - Regarding zones being valid until they are broken. I think I was reading too much into looking for fresh zones. I assumed that if the price had come close to the zone and bounced, then it was of less value and shouldn't be traded. I rejected a lot of zones because I look back over a few day's of bars and see that the area that I originally selected has already had two or three bounces that are very close.

Am I interpreting the zones correctly in the attached chart?

Also, what times do you normally look to trade? Do you find trade right through and just take the trades off the zones whatever time they occur, or only work the highly active times?

PB
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  • #705
  • Oct 20, 2011 10:27am Oct 20, 2011 10:27am
Quoting pixelboy
Ken - Regarding zones being valid until they are broken. I think I was reading too much into looking for fresh zones. I assumed that if the price had come close to the zone and bounced, then it was of less value and shouldn't be traded. I rejected a lot of zones because I look back over a few day's of bars and see that the area that I originally selected has already had two or three bounces that are very close.

Am I interpreting the zones correctly in the attached chart?

Also, what times do you normally look to trade? Do you find trade right...
I saw this trade earlier and decided not to take it after evaluating it.

Reason(s) why i thought it was a good trade:
1.Very strong move up for the 30M TF meaning high imbalance on on the Demand side.

Reason(s) why i thought it was a bad trade:
1. That Demand zone is a bounce off of a previous demand zone at oct 18th 11am est.
2. A daily supply zone had recently pushed the price down and it seems this is a continuation of that move.

I wanted to set my Buy limit at the demand zone from the 18th but it wasn't fresh so i left it alone.

Also, after taking a look at the 10M tf it looks like that swap level you highlighted seems to be a valid place for shorts. I notice whenever candles have wics as long as those it's good to go down to a lower time frame to see how that unfolded.
  • #706
  • Oct 20, 2011 10:47am Oct 20, 2011 10:47am
GL - Thanks for your input. You seem to be picking the zones like I did, looking generally to trade only off fresh ones and bin the ones which have already had a bounce. I guess it's higher probability trading but with fewer chances to trade and therefore it comes down to personal risk and money management.

PB


Quoting Good Lookin
I saw this trade earlier and decided not to take it after evaluating it.

Reason(s) why i thought it was a good trade:
1.Very strong move up for the 30M TF meaning high imbalance on on the Demand side.

Reason(s) why i thought it was a bad trade:
1. That Demand zone is a bounce off of a previous demand zone at oct 18th 11am est.
2. A daily supply zone had recently pushed the price down and it seems this is a continuation of that move.

I wanted to set my Buy limit at the demand zone from the 18th but it wasn't fresh so i left it alone....
  • #707
  • Edited 11:34am Oct 20, 2011 11:19am | Edited 11:34am
Another trade for EURUSD off the demand zone created on Tuesday.

Looking to take profit below the swap zone created a couple of hours ago. Will see how it looks to reverse the trade in that area if this one works out.

PB

Edit: +20 pips, SL to break even +2

Edit: Closed out for +40 pips (2 x risk + 2 pips)
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  • #708
  • Oct 20, 2011 11:25am Oct 20, 2011 11:25am
Quoting pixelboy
Another trade for EURUSD off the demand zone created on Tuesday.

Looking to take profit below the swap zone created a couple of hours ago. Will see how it looks to reverse the trade in that area if this one works out.

PB
I am gonna look at 3623 area to go long. Look for the area you are at to become a swap level. Just what i think plays out. We still are playing off the demand level from the 12th between 3662 and 3642. Just my 2 cents.
  • #709
  • Oct 20, 2011 11:26am Oct 20, 2011 11:26am
Quoting pixelboy
Ken - Regarding zones being valid until they are broken. I think I was reading too much into looking for fresh zones. I assumed that if the price had come close to the zone and bounced, then it was of less value and shouldn't be traded. I rejected a lot of zones because I look back over a few day's of bars and see that the area that I originally selected has already had two or three bounces that are very close.

Am I interpreting the zones correctly in the attached chart?

Also, what times do you normally look to trade? Do you find trade right through...
I think because we have a lot o older traders with a bit of trading time , That a lot are not as keen sitting all day watching the charts. So th systems idea that fresh touches can be traded with Limit orders (PO's)
is a plus. But as I have shown many times the 1,2,3,swap charts. We can get many touches before a break plus sometimes the last one maybe the one that goes the furthest.

You just can't tell with the information we are using . But we have enough to let us know if it is a safe trade or not. Which is all we know if it is a homer that would be a plus. But that comes more from money management than anything else. Some will close at the first tp level where others may hold for a bigger trade the difference can come from maybe the guy that holds only takes the fresh trades where they guy who is a bit risky takes more trades and has bigger net gains.

This is a personal issue you each have to decide how to handle. Why some are more speculators trading higher risk for bigger gains and others are investors , Trading less amounts for smaller but more save gains.

The best of course is the combination of the two. Enter every trade and learn when it has given all it has to give. But always protect your equity with quick and sound trade management . It is rare to find those that do that really well. Some can pull it off from time to time but to do it trade after trade take a great mind set. Because they are to different type of trading . In my mind anyway. we will get into all this in better detail, Just picking levels and trading between them is enough to profit nicely in this.

I am not sure if I answered your question got off sideways a bit LOL Ken

Nice change in your plan.. beat me to my rsponse but will post chart anyway .
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Good Trading To All ; Ken Lee
  • #710
  • Oct 20, 2011 11:34am Oct 20, 2011 11:34am
One thing i have noticed enough to mention is the fact that a lot of guys are forsaking the last levels and are showing a uncertainty in trading them. But you have to understand those shallow pullbacks to the first supply or demand levels are some of the best when price really start a strong trend.

In almost all the systems I have looked at there was always some type of entry to get in with a moving trend they all used some type of fast MA or the such. This is the same . I have a great percentage taking those first small pullbacks for this reason . The risk is normally less because of the fact we are joining the trend not fighting it.

It can be daunting at times. Especially not sure of the overall trend when price is consolidating. But even if you just take the first tp level and bank it you will be ahead of the game.

The entries last night were a great example of this.

If your not confident enough to take them then just keep marking them and keep a count of wins verses failures and a pip count till you see the value.

Trade Happy Ken
Good Trading To All ; Ken Lee
  • #711
  • Oct 20, 2011 11:52am Oct 20, 2011 11:52am
Quoting pixelboy
Another trade for EURUSD off the demand zone created on Tuesday.

Looking to take profit below the swap zone created a couple of hours ago. Will see how it looks to reverse the trade in that area if this one works out.

PB

Edit: +20 pips, SL to break even +2

Edit: Closed out for +40 pips (2 x risk + 2 pips)
Sweet ,
Good Trading To All ; Ken Lee
  • #712
  • Oct 20, 2011 11:53am Oct 20, 2011 11:53am
Quoting Kenneth Lee
One thing i have noticed enough to mention is the fact that a lot of guys are forsaking the last levels and are showing a uncertainty in trading them. But you have to understand those shallow pullbacks to the first supply or demand levels are some of the best when price really start a strong trend.

In almost all the systems I have looked at there was always some type of entry to get in with a moving trend they all used some type of fast MA or the such. This is the same . I have a great percentage taking those first small pullbacks for this...
You can also attack this by using a faster chart to see a tighter level at times.
Good Trading To All ; Ken Lee
  • #713
  • Oct 20, 2011 12:16pm Oct 20, 2011 12:16pm
http://i1117.photobucket.com/albums/...EUupdate-2.png

i saw the zone at the far left at m30, visited but I think still a strong zone...
TRADING IS SIMPLE BUT NOT EAZY
  • #714
  • Oct 20, 2011 12:22pm Oct 20, 2011 12:22pm
Quoting green_trader
http://i1117.photobucket.com/albums/...EUupdate-2.png

i saw the zone at the far left at m30, visited but I think still a strong zone...
I am sitting around your first sell limit. 3750 area. Had to zoom into the M15 to spot a level. I also have your other supply level around the 3800 level. Have no PO yet right there. By the way nice trading bro. I was to chicken to go long again. But for those of you that have ...frickin sweet.
  • #715
  • Oct 20, 2011 1:04pm Oct 20, 2011 1:04pm
Quoting nawlins51
I am sitting around your first sell limit. 3750 area. Had to zoom into the M15 to spot a level. I also have your other supply level around the 3800 level. Have no PO yet right there. By the way nice trading bro. I was to chicken to go long again. But for those of you that have ...frickin sweet.
hmmm, lolz, I saw that EU should have a correction move up before going down further, and if you see at m30 that a nice profit margin for EU.
a series of down candles...
good luck.
owh ya, my EU trade going well, TG hit.
TRADING IS SIMPLE BUT NOT EAZY
  • #716
  • Oct 20, 2011 1:12pm Oct 20, 2011 1:12pm
I am siting aside for better Price Action , I can't see a level in that chart. doesn't mean a short from the 50 ema won't work just not the system.

Hope some got the OZ long over 50 pips. Though entry was hard to see,

Plus I took the tp to soon but that is just me.
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Good Trading To All ; Ken Lee
  • #717
  • Oct 20, 2011 1:13pm Oct 20, 2011 1:13pm
Shorted EURUSD off the earlier zone. Got stopped out with the spike first go, but entered again. Looking for around 1:2 risk:reward.

PB
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  • #718
  • Oct 20, 2011 1:18pm Oct 20, 2011 1:18pm
That wasn't s level
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Good Trading To All ; Ken Lee
  • #719
  • Oct 20, 2011 1:19pm Oct 20, 2011 1:19pm
why i am waiting, want some new levels to form . or price to get to some better ones. almost shorted oz , but late in the day.
Good Trading To All ; Ken Lee
  • #720
  • Oct 20, 2011 1:20pm Oct 20, 2011 1:20pm
I closed my EU short for 28 pips. Got to run some damn errands. Prolly should of moved it to breakeven and let it run. Oh well here is my trade. Happy to be making cash. Oh had to zoom into the M15 to find a supply zone incase anyone wants to know. This pic is me managing my trade on the M30.
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