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B.S. Trading with Kenneth Lee

  • #1,261
  • Edited 5:54am Nov 22, 2011 5:27am | Edited 5:54am
Quoting Kenneth Lee
I agree parity is a strong spot ' that is why I put the stop above it , but not even one candle really on a 10 min chart , a base should be a small grouping of candles with a bit of equilibrium before price races away.
Hi Ken,

how would you define a base? How many candles form a base? Is it enough to have two candles to call it a base?

Thanks

Look for my chart, what would you say to this areas?

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  • #1,262
  • Nov 22, 2011 5:47am Nov 22, 2011 5:47am
Quoting bullzeye
Hi Ken,

how would you define a base? How many candles form a base? Is it enough to have two candles to call it a base?

Thanks
Good question. I usually look for atleast 3 candles to define it as a base.
  • #1,263
  • Nov 22, 2011 6:14am Nov 22, 2011 6:14am
Quoting bullzeye
Hi Ken,

how would you define a base? How many candles form a base?
In a couple of Sam Seiden's videos he takes trades off of a pivot high, 1 candle base. Most of his are 2-5 candles though. He stated several times that the less time spent there the better. From my understanding of his teaching the way that price left the level is a lot more important than the base itself.
  • #1,264
  • Nov 22, 2011 6:22am Nov 22, 2011 6:22am
ok. Thanks guys
  • #1,265
  • Nov 22, 2011 6:35am Nov 22, 2011 6:35am
Quoting rgrace
In a couple of Sam Seiden's videos he takes trades off of a pivot high, 1 candle base.
That could also be a bounce from a previous S/D level. Usually the base means price is consolidating(new balance level) and then moves away(imbalance).

This is the reason why the D-B-R or R-B-D work , because they form a fresh level . Correct me if i m wrong here. This is my understanding. So far from my experience , this has worked.
  • #1,266
  • Nov 22, 2011 7:22am Nov 22, 2011 7:22am
Quoting bullzeye
Hi Ken,

how would you define a base? How many candles form a base? Is it enough to have two candles to call it a base?

Thanks

Look for my chart, what would you say to this areas?

Attachment
This is where chart time will come into play. I can see a base in as little as One candle as long as it is a 30 min chart, or longer. To me it is more a function of price action and where that action is.

Like a spinning top or doji, at a swap level. That breaks a ols level that is a Rise-base-rise or drop-base-drop. level. I may then zoom into it on a faster chart to find the REAL exit point where price broke through.

I know in the first videos I watched Sam would say 2 to 5 candles. But he also used a 2 min chart for entries into levels he picked off longer charts, So 5 2 min candles would only be one 10 min candle. The same can be said of four 30 min is a 2hr candle.

You can apply that till you go nuts. I look for a exit point . it could be one candle , near a or that had turned form another level. then price lingered at it then the exit was clean when price FELL away. To me this is key. I don't like candles that are side by side for a long time as the point is not clear. and then I have trouble placing entry and stop lines.

need more explanation just ask or maybe pin point Ken
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Good Trading To All ; Ken Lee
  • #1,267
  • Nov 22, 2011 7:48am Nov 22, 2011 7:48am
Here is a a example of a spot where I would look for a single candle for a entry level. It is when you start to see price action within the big picture and know what is in the near future that you can see levels that are comprised of even just one candle.
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Good Trading To All ; Ken Lee
  • #1,268
  • Nov 22, 2011 7:59am Nov 22, 2011 7:59am
Quoting bullzeye
Hi Ken,

how would you define a base? How many candles form a base? Is it enough to have two candles to call it a base?

Thanks

Look for my chart, what would you say to this areas?

Attachment

They look good, the safest trade is always the top level ,that way you only have one level to break and take a loss on . Plus the idea on level behind levels, is by the time it reaches the higher level some of the demand has been used and the next supply will be able to turn it easier,
Good Trading To All ; Ken Lee
  • #1,269
  • Nov 22, 2011 8:21am Nov 22, 2011 8:21am
Hello Kenneth,

I'm a big fan of supply & demand trading. I've been researching this for awhile now and this kind of trading is simple and works.

Congratulation for your thread and thanks for sharing!
  • #1,270
  • Edited 10:18am Nov 22, 2011 9:38am | Edited 10:18am
Good evening all.

Been busy with work. Didn't get much time to trade.

Posting two trades. EU had a perfect entry. I just love these.

Edit : EU closed @ 70 pips and GC closed @ 40 pips.
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  • #1,271
  • Nov 22, 2011 10:40am Nov 22, 2011 10:40am
Very Nice..

I got another 35 off e/u short off swap level around 1.3525 ish
I had the long from 3490 but it was after the news and it nearly broke down . So I bailed with .8


but all good no loss no foul. Cheers Ken
Good Trading To All ; Ken Lee
  • #1,272
  • Edited 1:25pm Nov 22, 2011 10:58am | Edited 1:25pm
hi kenneth!!!
for some reason i cant load charts to ff.it happened to me before and unfortunately its happening again..
i would like to ask u a Q regarding aud 4hr chart.
it would of been much easier if i could post my chart but i will try asking anyhow maybe u will understand me .

im am referring to the demand zone that i believe u even posted yesterday.
so price has been sideways in this demand zone,so for me its not a good sign thats buyers are again in control since i would expect to see price rise higher instead of sideways.(and yesterday price broke wven lower that the low of the zone tho closed slightly inside the zone).
my q is regarding the last 6 bars(on the 4hr chart).u will notice they have wicks up and down.
-what does it tell us?what does wicks in any base tell us?
does it mean that there are balanced orders between sellers and buyers?
can i assume that this is gonna be a swap level?(i know i will only know that for sure IF price brks down ,but is there a way to know before?(maybe by switching to lower tf?)

thx for any input !!
and also thank you for ur prior post ,they are very helpful.

edit:i would like to correct something that i might described wrongly above.
every base represents a balance btw sellers and buyers,thats why its called a base.
but my confusion is about base with wicks.how do i know if they are rejection or maybe consumption?is there a way to tell without further pa?
  • #1,273
  • Nov 22, 2011 11:18am Nov 22, 2011 11:18am
Quoting Kenneth Lee
Very Nice..

I got another 35 off e/u short off swap level around 1.3525 ish
I had the long from 3490 but it was after the news and it nearly broke down . So I bailed with .8


but all good no loss no foul. Cheers Ken

Ken,

I did the exact same thing on that swap level. Didn't like price action so I moved S/L to BE +2 and it hit. Like you say, better than a loss I suppose.
  • #1,274
  • Nov 22, 2011 11:50am Nov 22, 2011 11:50am
ingonerd limit order...
disappointed so much
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TRADING IS SIMPLE BUT NOT EAZY
  • #1,275
  • Nov 22, 2011 5:24pm Nov 22, 2011 5:24pm
Quoting hcristea
Hello Kenneth,

I'm a big fan of supply & demand trading. I've been researching this for awhile now and this kind of trading is simple and works.

Congratulation for your thread and thanks for sharing!

Hey .... fancy seeing you here
  • #1,276
  • Nov 23, 2011 2:57am Nov 23, 2011 2:57am
Quoting Kenneth Lee
I am thinking to discuss Trade Management, It may also help with the ideas being shown above as our trend is very important in how we manage a trade for maximum growth.
Wouldn't your main criteria for a change in trend be the bounce off higher time frame demand, the daily in this example, and then the price reaction to lower time frame demand levels as a confirmation?
  • #1,277
  • Nov 23, 2011 3:01am Nov 23, 2011 3:01am
This is a GOLD demo trade.
Pending Order was placed yesterday and today I saw it activated.

I've identified the supply level from H4 & H1 and then droped down to M30 to fine tune it. That huge BEEB price action tells about the big supply there.

My final target is the demand zone from H4 (2nd chart) but lets see how price behaves at the intermediary demand levels. They are some and might reject price.

The level is the yellow zone. The PO was below it.
Now the SL is at BE and lets see how it goes.

P.S. @Lou thanks for the info
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  • #1,278
  • Nov 23, 2011 4:31am Nov 23, 2011 4:31am
tonight's trade was on E/j and took a long dang time. but was able to find a entry right after work so all good.
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Good Trading To All ; Ken Lee
  • #1,279
  • Nov 23, 2011 7:06am Nov 23, 2011 7:06am
Anyone taking this?

I can't since i m still in office..
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  • #1,280
  • Nov 23, 2011 7:43am Nov 23, 2011 7:43am
These are my supply zones on M30. M1 is too fast for me.
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