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B.S. Trading with Kenneth Lee

  • #2,361
  • Feb 2, 2012 12:02pm Feb 2, 2012 12:02pm
Quoting geduim
Great thread Kenneth, big thanks for it have you tried oanda desktop? no need for browsers

I had downloaded that years ago and forgot all about it. Had issues at some point. Just reinstalled it. Thanks for the reminder. Ken
Good Trading To All ; Ken Lee
  • #2,362
  • Feb 2, 2012 1:01pm Feb 2, 2012 1:01pm
I am studying the chart you posted. Thanks.

One question:

What do you mean with "(A) is close enough to incorporate?



Quoting Kenneth Lee
stuff
  • #2,363
  • Feb 2, 2012 1:33pm Feb 2, 2012 1:33pm
Quoting Kenneth Lee
It is when we see things like this that make all this S/D trading worth the effort to keep working on it . If you played all those levels as only fresh you would have a weeks worth of gains in one morning.

Hi Ken,

Great example of what a swap level can look like. I totally missed this swap level as I was not paying attention ( Ya think ! ).

Note to self.. Pay attention to the larger picture and potential swap levels

TSD
  • #2,364
  • Feb 2, 2012 1:38pm Feb 2, 2012 1:38pm
Quoting oblo
I am studying the chart you posted. Thanks.

One question:

What do you mean with "(A) is close enough to incorporate?

The supply level above level C , is close enough that I could put my stop above A supply level. I didn't label the supply level A but it is coming off that high where A is . levels on levels . The conservative approach would be to wait for the price to come all the way back to the highest level (A) but as I veiw this as a downtrend now i don't play them conservatively if I can afford the risk but incorporating the levels and this is barely over 20 pips pretty standard stop for my trades.
Good Trading To All ; Ken Lee
  • #2,365
  • Feb 2, 2012 1:40pm Feb 2, 2012 1:40pm
Quoting Kenneth Lee
stuff
Hi Ken

Would you have considered E to be a Supply for G and H ?

Thanks

TSD
  • #2,366
  • Feb 2, 2012 1:48pm Feb 2, 2012 1:48pm
Thanks, I can see what you mean now.

Quoting Kenneth Lee
The supply level above level C , is close enough that I could put my stop above A supply level. I didn't label the supply level A but it is coming off that high where A is . levels on levels . The conservative approach would be to wait for the price to come all the way back to the highest level (A) but as I veiw this as a downtrend now i don't play them conservatively if I can afford the risk but incorporating the levels and this is barely over 20 pips pretty standard stop for my trades.
  • #2,367
  • Feb 2, 2012 2:02pm Feb 2, 2012 2:02pm
Quoting TraderinSD
Hi Ken

Would you have considered E to be a Supply for G and H ?

Thanks

TSD
I don't like the base on (E) not tight and if you use those 4 candles there was hardly any rise to that level. So (C) would still be my choice for a supply level.

We also look at how a level is formed when choosing them, A decent run up and a nice tight base is what I look then of course the drop of at least 2:1
Good Trading To All ; Ken Lee
  • #2,368
  • Feb 2, 2012 2:38pm Feb 2, 2012 2:38pm
Quoting Kenneth Lee
I don't like the base on (E) not tight and if you use those 4 candles there was hardly any rise to that level. So (C) would still be my choice for a supply level.

We also look at how a level is formed when choosing them, A decent run up and a nice tight base is what I look then of course the drop of at least 2:1
So for clarifiaction we are looking for a Supply level to have:

1) A decent run up
2) A nice tight base
3) A drop to next level of at least 2:1

We would look to the opposite for a Demand level.

Thanks in advance Ken

TSD

This is a critcal piece of the puzzle for me.
  • #2,369
  • Feb 2, 2012 2:55pm Feb 2, 2012 2:55pm
Quoting TraderinSD
So for clarifiaction we are looking for a Supply level to have:

1) A decent run up
2) A nice tight base
3) A drop to next level of at least 2:1

We would look to the opposite for a Demand level.

Thanks in advance Ken

TSD

This is a critcal piece of the puzzle for me.
Yes ,

If price just meanders up to your level, Then how much of the opposing orders were used up to get there ? So a nice move to a possible level a nice tight base even one or two candles , Then a real rejection when the level becomes unbalanced so a decent move away from the level. Nice big candle or even a long wick shows the best levels.

Then we need to move at the very least 2:1 away from the level because when picking levels we also need to pick a target. So anything closer than 2:1 would be a risky trade.

Think about this . if price meanders away from the level as it can moving into a level it is been done by the buying and selling of the orders, It is possible that there could be a big stack of orders just above the meandering. But I like to think I am moving into a FRESH stack of orders we hit that stack and boom reversal.

WE can see that meandering during certain times of the day, it is called consolidation I feel what we see then is retail traders mainly just swapping money. So when the big money comes back into the market we can see either our trade reverse if we are hanging out near a supply or demand level or a move into a level we have been reaching for.

We need to keep in mind where we are on the playing field if we are going to try and trade during those off ours it is not hard to do, But just be aware of price action is it just ranging maybe getting a bit out of the level towards a stop then boom moves into the correct direction as soon as commercial traders enter.

Why wouldn't it they were going to sell the retail guys pushed it higher towards the outer limits of the level and they get a great price as a extra bonus.

This is one reason why must people can trade easier during the major sessions with a decent strategy as the major players will keep the price action in check. I personally have a decent record trading during low volume times as I see where price is headed or know it will start to go sideways and just scalp the small moves , But holding for bigger gains is also easier when you know the time of day and the money is entering the market.

Like many times you will enter a trade late afternoon new york session and it will just stop . But if you hold for Australia to open you can get paid for your patience.

Just some personal views. Ken
Good Trading To All ; Ken Lee
  • #2,370
  • Feb 2, 2012 4:21pm Feb 2, 2012 4:21pm
Quoting Kenneth Lee
Yes ,

If price just meanders up to your level, Then how much of the opposing orders were used up to get there ? So a nice move to a possible level a nice tight base even one or two candles , Then a real rejection when the level becomes unbalanced so a decent move away from the level. Nice big candle or even a long wick shows the best levels.

Then we need to move at the very least 2:1 away from the level because when picking levels we also need to pick a target. So anything closer than 2:1 would be a risky trade.

Think about this . if price...

Great stuff Ken..!!!

Thanks for the additional explanation. Really has helped open my eyes up to what I should be looking for. Definitely fitting the puzzle better now.

I like your comments regarding the Asian session...I tend trade the Asian session with the best action happening just before 9PM PST ( change of day for my broker ) and trading into 11PM PST.. Just before the London session. Basically a 2-3 hour window. All my previous chart post's are from the Asian session.

Again... Thanks much for the additional insights...Extremely valuable

I hope others will gain the same value as I have.

TSD
  • #2,371
  • Feb 2, 2012 6:00pm Feb 2, 2012 6:00pm
You are great mentor Ken. Can't thank you enough for your generosity.

One question, when the price hit fresh supply/demand instead of reverse and it just lingering around the area, how long will you wait?
In some instances price linger around for awhile then move up/down against me and hit my SL.
Is there any idea how to minimized that?
Thanks.



Quoting Kenneth Lee
Yes ,

If price just meanders up to your level, Then how much of the opposing orders were used up to get there ? So a nice move to a possible level a nice tight base even one or two candles , Then a real rejection when the level becomes unbalanced so a decent move away from the level. Nice big candle or even a long wick shows the best levels.

Then we need to move at the very least 2:1 away from the level because when picking levels we also need to pick a target. So anything closer than 2:1 would be a risky trade.

Think about this . if...
  • #2,372
  • Feb 2, 2012 6:04pm Feb 2, 2012 6:04pm
Quoting denoxster
You are great mentor Ken. Can't thank you enough for your generosity.

One question, when the price hit fresh supply/demand instead of reverse and it just lingering around the area, how long will you wait?
In some instances price linger around for awhile then move up/down against me and hit my SL.
Is there any idea how to minimized that?
Thanks.
Is it possible to get a chart with a example ? be better to see what your looking at , ken
Good Trading To All ; Ken Lee
  • #2,373
  • Feb 2, 2012 6:23pm Feb 2, 2012 6:23pm
Here is the example of the trade that I am still in right now.
Short PO filled on red arrow (1st candle), it went down to 40 pips then goes back up and its lingering around supply area ever since.
At what point you will say enough and I am bailing out





Quoting Kenneth Lee
Is it possible to get a chart with a example ? be better to see what your looking at , ken
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  • #2,374
  • Feb 2, 2012 6:46pm Feb 2, 2012 6:46pm
Quoting denoxster
Here is the example of the trade that I am still in right now.
Short PO filled on red arrow (1st candle), it went down to 40 pips then goes back up and its lingering around supply area ever since.
At what point you will say enough and I am bailing out
I actually took that short as well off the daily chart and I bailed as it didn't reject as I wanted it to drop so as it pulled back up i took 10 and got out.

This is why Sam talks about using a faster chart for entries . When price gets into a level you can see the turn on the fast chart first. This is not a fresh touch check out your daily chart.

It doesn't always work out I had some good advice that if price doesn't move your way in the next candle then the turn ma not happen and look for the most decent exit possible and then look for a better entry . That skill alone can make a big difference.

Not much help ,, BUt >... Ken
Good Trading To All ; Ken Lee
  • #2,375
  • Feb 2, 2012 7:05pm Feb 2, 2012 7:05pm
Thank you for your valuable advise.
Here is another trade that I still in.
PO filled and went up to +32 pips and now hover around +18 pips.

Update: AUDUSD is starting to move down while I am typing this reply.



Quoting Kenneth Lee
I actually took that short as well off the daily chart and I bailed as it didn't reject as I wanted it to drop so as it pulled back up i took 10 and got out.

This is why Sam talks about using a faster chart for entries . When price gets into a level you can see the turn on the fast chart first. This is not a fresh touch check out your daily chart.

It doesn't always work out I had some good advice that if price doesn't move your way in the next candle then the turn ma not happen and look for the most decent exit possible and then look for...
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  • #2,376
  • Feb 2, 2012 7:14pm Feb 2, 2012 7:14pm
Quoting denoxster
Thank you for your valuable advise.
Here is another trade that I still in.
PO filled and went up to +32 pips and now hover around +18 pips.

Update: AUDUSD is starting to move down while I am typing this reply.

If your trading 4 hr charts just as us that trade 30 min or other time frames. You have to accept the risk But your risking a lot more than we do. why i trade 30 min I can't get past the amount of risk required to trade the 4 hr. i do find levels off daily and 4hr but use the 30 min for entries . A entry off a 30 min chart using a 4 hr level is usually bullet proof . but I take profit on CT trades at the first counter level. If it should blow through the counter level then a move to BE and hold is the best bet. Just how I trade.

Ken
Good Trading To All ; Ken Lee
  • #2,377
  • Edited 7:50pm Feb 2, 2012 7:31pm | Edited 7:50pm
You are correct about risk on 4HR could get pretty big.
If risk is too big on particular trade, I will go down to 1HR to find good entry. Sometime SL is too tight, it makes me feel guilty
I have tried scalping before with no success, so for now I will stick with longer TF.


Quoting Kenneth Lee
If your trading 4 hr charts just as us that trade 30 min or other time frames. You have to accept the risk But your risking a lot more than we do. why i trade 30 min I can't get past the amount of risk required to trade the 4 hr. i do find levels off daily and 4hr but use the 30 min for entries . A entry off a 30 min chart using a 4 hr level is usually bullet proof . but I take profit on CT trades at the first counter level. If it should blow through the counter level then a move to BE and hold is the best bet. Just how I trade.

Ken
  • #2,378
  • Feb 2, 2012 7:35pm Feb 2, 2012 7:35pm
Quoting denoxster
You are correct about risk on 4HR could get pretty big.
If risk is too big on particular trade, I will go down to 1HR to find good entry. Sometime SL is to tight make me feel guilty
I have tried scalping before with no success, so for now I will stick with longer TF.

It is all in the view
to me scalping is more about a quick target. Not so much a time frame chart.
A 5 or 1 in chart I guess would be scalping , But even some great traders I know enter as scalpers for a low risk entry but can hold for a 4 hr target.

That is the ultimate in trading to me .. Ken
Good Trading To All ; Ken Lee
  • #2,379
  • Feb 3, 2012 3:51am Feb 3, 2012 3:51am
Kenneth,

I guess it is always good to know when you are going to robbed ahead of time. At least you are prepared. Only in forex.
  • #2,380
  • Feb 3, 2012 5:16am Feb 3, 2012 5:16am
I would also like to thank Ken for his great thread and being so generous with his knowledge, after trying support/resistance trading this makes more sense to me.
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