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B.S. Trading with Kenneth Lee

  • #2,541
  • Feb 13, 2012 10:43pm Feb 13, 2012 10:43pm
Quoting TraderinSD
Attachment


We have a potential short for the USDCAD. We had a previous touch of the upper level back on 10 Feb. A new level has formed just inside the previous level. So far we have good PA moving into this area.. will see?

TSD
PA on this set up not an agressive move into my PO..bounced of the botten of the lower area so I will pull the PO off

TSD
  • #2,542
  • Feb 13, 2012 11:07pm Feb 13, 2012 11:07pm
Quoting Shermenator
Hey bud if you dont mind me giving you my thought here.... Focus on keeping on pushing in the main direction not against it . You are attempting to counter the falls ....Selling is just higher probability(at least from this timeframe)

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Hey Shermenator,

Very good point.. I would agree on that particular time frame.

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Here's is what I was looking at on a larger daily TF. PA just meandered into this area..For me that means high potential PA will move through.. As it did.. Came back around to test..Over all trend to the long side.?? Although PA has peal off short at the top here..mmm?

But I like you thought for sure

thanks for the input

TSD
  • #2,543
  • Feb 13, 2012 11:45pm Feb 13, 2012 11:45pm
Quoting TraderinSD
Hey Shermenator,

Very good point.. I would agree on that particular time frame.

Attachment

Here's is what I was looking at on a larger daily TF. PA just meandered into this area..For me that means high potential PA will move through.. As it did.. Came back around to test..Over all trend to the long side.?? Although PA has peal off short at the top here..mmm?

But I like you thought for sure

thanks for the input

TSD
Audusd Check this out ....I see price entering larger timeframe supply

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I also understand that the daily chart is in an uptrend but you can also see how price is neglecting staying above previous highs in the past showing sellers coming in...you also have to notice that at some point those long traders have to take profits. So we either ran out of buyers for now or we meet more sellers then buyers above those previous highs making price falls this past couple of days. So for now yes I see uptrend but I also see bears are in control.

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  • #2,544
  • Feb 13, 2012 11:47pm Feb 13, 2012 11:47pm
Quoting Shermenator
Audusd Check this out ....I see price entering larger timeframe supply

Attachment

I also understand that the daily chart is in an uptrend but you can also see how price is neglecting staying above previous highs in the past showing sellers coming in...you also have to notice that at some point those long traders have to take profits. So we either ran out of buyers for now or we meet more sellers then buyers above those previous highs making price falls this past couple of days. So for now yes I see uptrend but I also see bears...
Also look at yesterdays daily candle see how price is leaving a long wick rejecting higher prices .....Showing us weakness to the upside.
  • #2,545
  • Feb 13, 2012 11:52pm Feb 13, 2012 11:52pm
This level looks sexy only problem I have is that the other majors pairs had a bigger drop yesterday, so I might be more inclined to seek a supply level in one of the other pairs. Since more buyers put up a fight here

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  • #2,546
  • Feb 14, 2012 12:10am Feb 14, 2012 12:10am
Quoting Shermenator
Audusd Check this out ....I see price entering larger timeframe supply

Attachment

I also understand that the daily chart is in an uptrend but you can also see how price is neglecting staying above previous highs in the past showing sellers coming in...you also have to notice that at some point those long traders have to take profits. So we either ran out of buyers for now or we meet more sellers then buyers above those previous highs making price falls this past couple of days. So for now yes I see uptrend but I also see bears are...
All excellent points...Have learned some additional pieces to the puzzle

Thanks Shermenator

TSD
  • #2,547
  • Feb 14, 2012 1:03am Feb 14, 2012 1:03am
Hi Ken and all,

I have a small concern about my account currency. Let's say my account currency is USD and I'm trading on pairs like EURJPY, so is this ok with my account currency or do I need to trade EURJPY with a account of account currency like EUR or JPY? How do you handle this? Pls explain to me.

And also pls reply to my questions in the post #2515.

Thanx a lot,
Ishara
  • #2,548
  • Feb 14, 2012 1:18am Feb 14, 2012 1:18am
Quoting isharasjc
Hi Ken and all,

I have a small concern about my account currency. Let's say my account currency is USD and I'm trading on pairs like EURJPY, so is this ok with my account currency or do I need to trade EURJPY with a account of account currency like EUR or JPY? How do you handle this? Pls explain to me.

And also pls reply to my questions in the post #2515.

Thanx a lot,
Ishara
Your P/L should normally be converted back to your based currency, in this case USD. Some brokers do not do it automatically, Interactive Broker in one of those. However, talk to your broker, they should be able to explain to you clearly.
  • #2,549
  • Feb 14, 2012 1:36am Feb 14, 2012 1:36am
I will be looking to sell the pullback to the breakout point (swap Level)



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  • #2,550
  • Feb 14, 2012 2:00am Feb 14, 2012 2:00am
My short position has been trigger I will now start watching price action to determine If I should take a trade against my trade...


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  • #2,551
  • Feb 14, 2012 8:46am Feb 14, 2012 8:46am
Quoting isharasjc
Hi Ken and all,

I have a small concern about my account currency. Let's say my account currency is USD and I'm trading on pairs like EURJPY, so is this ok with my account currency or do I need to trade EURJPY with a account of account currency like EUR or JPY? How do you handle this? Pls explain to me.

And also pls reply to my questions in the post #2515.

Thanx a lot,
Ishara
I have no clue what your concerns are about your funding currency. I trade in my home currency USD. Maybe you have some issue of exchange rate or something . Just not clear on the question I guess.

As far as the news . I try and avoid entering a trade right before a news release . But if it is a minor even I will sometimes use the pre news jitters to get in at a strong level especially if price has been moving in my direction pre news.

Big events such as CPI , Rate and statement and employment . I will stand aside and see if the initial move shows a entry off a strong level.

If I am in a good move and not close to my stop anymore i will usually not exit before the news. Over the years i have seen that most times the market will move before the news in the direction it will after, but the initial news movement can take you out if you crowd your stop.

News is what moves Forex a lot of times. Yes we have to be aware of it but not so much as to be paralyzed by it.

Just watch your price action unfold and you will start to see that the news is our friend and without it be tough to trade a straight line.
Good Trading To All ; Ken Lee
  • #2,552
  • Feb 14, 2012 10:06am Feb 14, 2012 10:06am
Quoting Kenneth Lee
I have no clue what your concerns are about your funding currency. I trade in my home currency USD. Maybe you have some issue of exchange rate or something . Just not clear on the question I guess.

As far as the news . I try and avoid entering a trade right before a news release . But if it is a minor even I will sometimes use the pre news jitters to get in at a strong level especially if price has been moving in my direction pre news.

Big events such as CPI , Rate and statement and employment . I will stand aside and see if the initial move...

Thanks KL for this explanation on the "News"...

In all my years at this crazy profession this is the first time I have heard someone have a positive take (one that makes sense anyway) on the news. Using some common sense around a news period, in relation to your trade, just seems to make sense.

This statement
“But if it is a minor even I will sometimes use the pre news jitters to get in at a strong level especially if price has been moving in my direction pre news.”

Using this method I can see where this might place us in an advantageous area to trade from.

TSD
  • #2,553
  • Feb 14, 2012 10:13am Feb 14, 2012 10:13am
These are 2 live trades I took: Sell GBPUSD & AUDUSD.

Big picture: Bearish trend (or a maybe a beginning of a bearish trend). Both pairs presented LL-HL-LL-HL sequences. For GBPUSD analysis see post #2503.

I've identified very neat bases on both pairs.
A+ Setups: The base was tight, price moved fast, made more than 2:1, price arrived fast in the supply zone, overall trend bearish;

Placed my PO. GBPUSD gave 4x and AUDUSD 3x.
Attached Image(s) (click to enlarge)
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  • #2,554
  • Feb 14, 2012 10:49am Feb 14, 2012 10:49am
Quoting hcristea
These are 2 live trades I took: Sell GBPUSD & AUDUSD.

Big picture: Bearish trend (or a maybe a beginning of a bearish trend). Both pairs presented LL-HL-LL-HL sequences. For GBPUSD analysis see post #2503.

I've identified very neat bases on both pairs.
A+ Setups: The base was tight, price moved fast, made more than 2:1, price arrived fast in the supply zone, overall trend bearish;

Placed my PO. GBPUSD gave 4x and AUDUSD 3x.
Hi Hcristea
Question if I may.

Looking at your AUDUSD trade. You took the trade level at 0730...What makes the difference between 0730 and 0720 levels... or even the 0750 level ?

This is something that I am still having issues with. Some I hit right on... Others I miss totally...Apparently I must be missing something in the initial set up of the level.

Thanks in advance

TSD
  • #2,555
  • Feb 14, 2012 10:54am Feb 14, 2012 10:54am
Quoting hcristea
These are 2 live trades I took: Sell GBPUSD & AUDUSD.

Big picture: Bearish trend (or a maybe a beginning of a bearish trend). Both pairs presented LL-HL-LL-HL sequences. For GBPUSD analysis see post #2503.

I've identified very neat bases on both pairs.
A+ Setups: The base was tight, price moved fast, made more than 2:1, price arrived fast in the supply zone, overall trend bearish;

Placed my PO. GBPUSD gave 4x and AUDUSD 3x.
Hey Hcristea,

Additionally what I do see are levels of traditional support at 0730 on the AUDUSD and 5760 on the GBPUSD..rolling back up to these levels based on this additional info makes sense.. Not sure if that would be the reason ??

TSD
  • #2,556
  • Feb 14, 2012 11:12am Feb 14, 2012 11:12am
Quoting hcristea
These are 2 live trades I took: Sell GBPUSD & AUDUSD.

Big picture: Bearish trend (or a maybe a beginning of a bearish trend). Both pairs presented LL-HL-LL-HL sequences. For GBPUSD analysis see post #2503.

I've identified very neat bases on both pairs.
A+ Setups: The base was tight, price moved fast, made more than 2:1, price arrived fast in the supply zone, overall trend bearish;

Placed my PO. GBPUSD gave 4x and AUDUSD 3x.
Nice, great eye

I like the OZ not so keen on the gbp.
Good Trading To All ; Ken Lee
  • #2,557
  • Feb 14, 2012 11:21am Feb 14, 2012 11:21am
TradingSD,

When I look for a base I look for a candle formation that looks like a BRICK or a group of candles that I could wrap in a horizontal rectangle. Small wicks and comparable bodies. Perfect "BRICKS" don't happen very often but I take also those that are similar. See chart attached.

around 1.0730 level I saw something that looked very close to shape that I like to see. There is also a swap line here at 1.0730 which makes this zone better than 1.0750.

1.0720 didn't presented anything similar to a proper base. Maybe you can mark a base at that price and post it here so I can have a look.

GBPUSD:

Here I saw 2 supply levels one on top of the other and I combined the zones. There is also the swap line and the very fast drop.

The swap line is like a pivot line or a support/resistance line. I think Kenneth explained this in one of his posts.

I hope this helps. I'm still learning this method too
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  • #2,558
  • Feb 15, 2012 12:33am Feb 15, 2012 12:33am
Hi guys!
Look at my chart, please!
I want to hear the criticism of my actions, if you not hard.
Thanks.
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  • #2,559
  • Feb 15, 2012 12:44am Feb 15, 2012 12:44am
Quoting ruten
Hi guys!
Look at my chart, please!
I want to hear the criticism of my actions, if you not hard.
Thanks.
I like it ...I prefer the same trade but on the gbpusd due to the fact the gbp has been selling off more lately (euro is a little stronger compared to the gbp)
  • #2,560
  • Edited 1:27am Feb 15, 2012 1:23am | Edited 1:27am
Hello Kenneth,
Arrived at this thread via EO's TWYS thread after reading your well written pdf there.
Trading real time is so different to the chart examples in system instructions.
Would really appreciate if someone could advise if the Consolidation Box on the current EU chart is correct.
(Extreme wick of grouping to close of bar crossed by large candle.)
Thanks,
EP
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