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B.S. Trading with Kenneth Lee

  • #761
  • Oct 20, 2011 11:38pm Oct 20, 2011 11:38pm
http://i1184.photobucket.com/albums/...ybusaz/dax.jpg
Quoting Kenneth Lee
PDF added to first page
is this demand level too small kenneth?
  • #762
  • Oct 20, 2011 11:39pm Oct 20, 2011 11:39pm
Quoting Good Lookin
How many PO's do you guys find you have on at one time? I've been having around 8 on average. Currently i have 11 in wait. A couple on some daily levels, some on the 4hr and 2 on the 30m. Think this is excessive?

I have had this number plenty of times. Even had three on the same pair, buys and sells. As long as it is a good level and you understand and accept the risk, things are good.
Illegitimi non carborundum - Noli pati a scelestis opprimi.
  • #763
  • Oct 20, 2011 11:58pm Oct 20, 2011 11:58pm
Here is a chart with a question. pay no attention to my pending buy limit. I may cancel it. not sure yet. Anyway, in the circled area would you say a fresh supply zone or not? price stayed here for a long time which mean orders may have filled and none are left. If not where would supply be located. I cant find a good zone at all unless I go higher up. This is a dilemma I have ran into before.So what is everyones opinion on this. Also chart is EU M15 and dropped down to locate zones in this cluster you know what.
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  • #764
  • Oct 21, 2011 12:03am Oct 21, 2011 12:03am
Hi Ken - Could you please review the trade I entered as a PO last night. It seemed like a good quality first touch, but hit the stops almost immediately. I didn't see any big news releases scheduled.

Thanks

PB
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  • #765
  • Oct 21, 2011 12:59am Oct 21, 2011 12:59am
Quoting pixelboy
Hi Ken - Could you please review the trade I entered as a PO last night. It seemed like a good quality first touch, but hit the stops almost immediately. I didn't see any big news releases scheduled.

Thanks

PB
i cant answer for Kenneth but can answer based on my teachings of supply and demand.

We are looking for a base and rally for demand, not a pivot low.
Here you have marked a pivot low, which is usually a reaction to a already formed demand zone.
  • #766
  • Oct 21, 2011 1:40am Oct 21, 2011 1:40am
Thanks Dean - So you are looking for patterns more like the ledge and price drop that I've marked in yellow and the zone sitting at 0.9021 on my chart?

I know there is no absolute answer to this, but on a 30 minute chart, how many candles would you be looking to form a valid consolidation base?

Thanks

PB

Quoting deankenny21
i cant answer for Kenneth but can answer based on my teachings of supply and demand.

We are looking for a base and rally for demand, not a pivot low.
Here you have marked a pivot low, which is usually a reaction to a already formed demand zone.
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  • #767
  • Oct 21, 2011 1:50am Oct 21, 2011 1:50am
Quoting deankenny21
i cant answer for Kenneth but can answer based on my teachings of supply and demand.

We are looking for a base and rally for demand, not a pivot low.
Here you have marked a pivot low, which is usually a reaction to a already formed demand zone.
This is an important point. Many people will assume that all rapid moves away from a price denote s&d area. How do we tell pivot point from s&d? How long does price need to remain to form base? What is going on in the market to form these patterns? If we can nail some of these issues we are well on the way to developing that rigorous system of trading that we all want.

I'm learning lots from this thread & look forward to more.

Best wishes

zee
  • #768
  • Oct 21, 2011 1:52am Oct 21, 2011 1:52am
Dean - I've marked up three zones off the EURUSD M30 chart. Have I marked them in the same way you see them, i.e. the top and bottom ones are invalid because they are spiked moves, but the middle one is okay as it's a base followed by a move?

Thanks

PB
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  • #769
  • Oct 21, 2011 1:58am Oct 21, 2011 1:58am
Trying to answer my own question here...

Looking back over Ken's PDF, new S&D zones are marked with no less than three 30 minute candles in the consolidation area before the price moves off. So we are looking for around a two hour consolidation for it to be a valid new zone. Ken/Dean etc: does that fit with what you look for?

PB


Quoting pixelboy
Thanks Dean - So you are looking for patterns more like the ledge and price drop that I've marked in yellow and the zone sitting at 0.9021 on my chart?

I know there is no absolute answer to this, but on a 30 minute chart, how many candles would you be looking to form a valid consolidation base?

Thanks

PB
  • #770
  • Oct 21, 2011 3:04am Oct 21, 2011 3:04am
Hope these excepts from page 1 pdf file help us all with identifying supply and demand zones....Steve

PS: picture on page 17 of pdf says it all...demand/supply levels plus swap level.........

"We have only one thing to look for and
learn "

"So what we look for are the moves away from a consolidation or (base ). This is showing the imbalance between supply and demand."


"A meandering kind of lazy move away is showing less demand almost a equal force so care is taken at those levels."
from: Kenneth Lee BS TRADING
  • #771
  • Oct 21, 2011 3:38am Oct 21, 2011 3:38am
Quoting pixelboy
Thanks Dean - So you are looking for patterns more like the ledge and price drop that I've marked in yellow and the zone sitting at 0.9021 on my chart?

I know there is no absolute answer to this, but on a 30 minute chart, how many candles would you be looking to form a valid consolidation base?

Thanks

PB
learning from Seiden, he said 3 candles to make a base, but obviously this will be different each chart you look at, so we must only focus on one timeframe, in this case its the 30 min.
  • #772
  • Oct 21, 2011 4:06am Oct 21, 2011 4:06am
Thanks Dean - that seems to match up with what I see on Kens charts.

And Steve, I agree, the chart on page 17 of the PDF is an excellent example. Think I'll print that one out and stick it on the monitor!

PB


Quoting deankenny21
learning from Seiden, he said 3 candles to make a base, but obviously this will be different each chart you look at, so we must only focus on one timeframe, in this case its the 30 min.
  • #773
  • Oct 21, 2011 6:14am Oct 21, 2011 6:14am
Quoting deankenny21
i cant answer for Kenneth but can answer based on my teachings of supply and demand.

We are looking for a base and rally for demand, not a pivot low.
Here you have marked a pivot low, which is usually a reaction to a already formed demand zone.
Just learned something new.
  • #774
  • Oct 21, 2011 8:32am Oct 21, 2011 8:32am
My understanding so far is here are 3 demand levels where buy limit order entries could be placed according to the rules. Steve
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  • #775
  • Oct 21, 2011 9:24am Oct 21, 2011 9:24am
Stevewide,

That nails it. That is what I look for & it has been serving me well so far.
Enjoying you input & views keep them coming.

_________________________
  • #776
  • Oct 21, 2011 9:28am Oct 21, 2011 9:28am
Steve - I agree with the top two levels, but not sure about the bottom one at the pin bar. I'm sure Ken will confirm, but Dean on here discounts them because it doesn't show consolidation at the base.

PB



Quoting stevewide
My understanding so far is here are 3 demand levels where buy limit order entries could be placed according to the rules. Steve
  • #777
  • Oct 21, 2011 11:38am Oct 21, 2011 11:38am
Quoting pixelboy
Thanks Dean - So you are looking for patterns more like the ledge and price drop that I've marked in yellow and the zone sitting at 0.9021 on my chart?

I know there is no absolute answer to this, but on a 30 minute chart, how many candles would you be looking to form a valid consolidation base?

Thanks

PB
Corrections
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Good Trading To All ; Ken Lee
  • #778
  • Oct 21, 2011 11:51am Oct 21, 2011 11:51am
I notice almost everyone drawing very wide levels. almost every chart I draw has levels marked on them . These are drawn according to Sam teachings. What we are looking for coming out of a level is the last candle crossing by the body of the previous one.

We can see before that candle makes that move that price has bounced around as orders are processed. It may move up a bit then down then up. We can't tell how long this movement will take just the fact it is happening. it is visible by certain candles spinning tops and dojis. A pin shows a one sided move Price moved into this area and the orders were so great that there was no exchange just a massive push away from this level .

So as you can see where I marked that demand I we are pretty confident there is s till some demand down there because of that pin. Don't know of any system that doesn't like pins.

A fresh touch that is just short of a level and forms a pin lets us know that we can try a second entry from that level. I just don't feel like very many are really taking the time to look back and see this levels that have played out. It can show far better than I ever could. Plus placing the levels yourself you will trust that more.

I know Sam in the videos liked to say 2 to 5 candles , But I know there was at least one video he came of that a bit saying it is hard to place a exact number as each chart would have different candle amounts for the same level.

I personal look for a common sense area that can be sorta defined within a a box / rectangle , that is showing that price is of equilibrium. then a massive move out of the box is my signal to a level. It maybe only one candle but for those I normally have other information to go on . Like a swap level .

The swap levels have less candles because they have normally been hit many times so there are fewer orders to be absorbed before the level fails

Sorry all I have time for now .. Off to work Cheers and everyone have a great weekend Ken.

I will try and post some examples over the weekend. Plus this is a good time to ask questions , Cheers
Good Trading To All ; Ken Lee
  • #779
  • Oct 21, 2011 12:31pm Oct 21, 2011 12:31pm
thanks ken. see you next week
  • #780
  • Oct 21, 2011 4:23pm Oct 21, 2011 4:23pm
Looking at potential zones for next week. Please critique.
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