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Day Trading vs. Swing Trading vs. Position Trading 86 replies

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B.S. Trading with Kenneth Lee

  • #2,921
  • Mar 3, 2012 9:38am Mar 3, 2012 9:38am
Hi Ken

Sam in this article is explaining about an enhancer called 'Levels of Levels'. Can you please explain me what it is? & In total how many 'Odds Enhancers' are there?

Thanks!!
  • #2,922
  • Mar 3, 2012 2:51pm Mar 3, 2012 2:51pm
This is from Sam's teachings and Ken mentions about this also. Just a reminder because sometimes we have a lot going on examining a potential trade. I posted a recent example below with the EU M30 chart.

When you have two supply levels on top of each other. This is not always the case as much of the time, supply levels (and demand levels) are not right on top of each other. When you do have this scenario, a level on top of a level, the odds of the trade working out in your favor increase. Think of it this way... Would you rather have your money in a bank vault that had one steel door, or would you rather have your money in a vault with two steel doors? When price is reaching a supply level with another supply level just above, price is reaching a very "thick" area of supply.

The question is how to enter this trade? Do you sell short at the bottom supply level,the top supply level, or both? You can do one of two things. You either scale into the position by entering some of the position at the bottom supply level and the rest at the upper supply level with the stop above the upper level. Or, you enter the entire position at the upper supply level.
What you never do is enter the entire position at the bottom level with a buy stop above the bottom level. If you did that, you would be putting your stop right where you should be entering short, and we don't want to do that.
Attached Image (click to enlarge)
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  • #2,923
  • Mar 3, 2012 4:48pm Mar 3, 2012 4:48pm
Quoting Kenneth Lee

I thought sam had mentioned the 50 MA , but I looked at all my saved files and don't see it.
He did mention it in one of the webinars that you find on FXstreet. I don't remember which one other than it's one of the oldest.

Really enjoy the thread and all the work that you put into it.

Thanks.
  • #2,924
  • Mar 4, 2012 1:15am Mar 4, 2012 1:15am
Wow! Thanks for explaining with an example!

Have been new to Sam's teachings...just out of curiosity.... does it work in day trading? From what I have learnt from videos at FxStreet, it seems that such trades are more like a swing trade then a day trade. Any view?

[quote=nawlins51;5440285]This is from Sam's teachings and Ken mentions about this also. Just a reminder because sometimes we have a lot going on examining a potential trade. I posted a recent example below with the EU M30 chart.
  • #2,925
  • Mar 4, 2012 3:15am Mar 4, 2012 3:15am
Hi everyone!
I think that the next week the EUR/USD will start in the next scenario.
What do you think?
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  • #2,926
  • Mar 4, 2012 8:26am Mar 4, 2012 8:26am
Quoting ruten
Hi everyone!
I think that the next week the EUR/USD will start in the next scenario.
What do you think?
Hi Ruten,

Here is my view on the EUR/USD, hope it helps.


On the weekly we've just left a supply zone and we're entering a demand zone, have in mind we have been making lower highs on EUR/USD (blue lines)

On the daily we just came out a supply level forming a new supply level, we are inside a demand level but I think we might go a bit lower to close a gap we had a week ago. We might get a bounce of the gap, let see.

Os.
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Trade Smart
  • #2,927
  • Mar 4, 2012 9:56am Mar 4, 2012 9:56am
Quoting saumilm
Wow! Thanks for explaining with an example!

Have been new to Sam's teachings...just out of curiosity.... does it work in day trading? From what I have learnt from videos at FxStreet, it seems that such trades are more like a swing trade then a day trade. Any view?
It works on any time frame. If you are new to this as you state then you may want to stay on the H1 or higher to get a feel for it.
  • #2,928
  • Mar 4, 2012 10:01am Mar 4, 2012 10:01am
Quoting Osman
Hi Ruten,

Here is my view on the EUR/USD, hope it helps.


On the weekly we've just left a supply zone and we're entering a demand zone, have in mind we have been making lower highs on EUR/USD (blue lines)

On the daily we just came out a supply level forming a new supply level, we are inside a demand level but I think we might go a bit lower to close a gap we had a week ago. We might get a bounce of the gap, let see.

Os.
On the H4 I want to see us get through the 3160-3100 area to stay with the bears. Then we have 2 levels on top of each other starting at the 3000 level.
  • #2,929
  • Mar 5, 2012 12:51am Mar 5, 2012 12:51am
Attached Image (click to enlarge)
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AUDUSD PO @ 1.06778 long



Attached Image (click to enlarge)
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Daily trend up. Price appears to be getting ready to move long into a Daily supply Zone.


TSD
  • #2,930
  • Mar 5, 2012 1:24am Mar 5, 2012 1:24am
Hi!,

eurusd has been in a demand zone for long time, so it seems that the demand is exhausted and price will break down and continues the down trend.

But there is the posibility that the zone holds, and this is what I will be waiting in that case (a return to the 1.3300 zone):

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  • #2,931
  • Mar 5, 2012 2:54am Mar 5, 2012 2:54am
G/U second touch of the demand zone...seems to be hold, i am long


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  • #2,932
  • Mar 5, 2012 3:03am Mar 5, 2012 3:03am
USD/CHF ... break up

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  • #2,933
  • Mar 5, 2012 3:05am Mar 5, 2012 3:05am
Quoting okami
Hi!,

eurusd has been in a demand zone for long time, so it seems that the demand is exhausted and price will break down and continues the down trend.

But there is the posibility that the zone holds, and this is what I will be waiting in that case (a return to the 1.3300 zone):
Hi okami!
In your words there is logic. But i think what your opinion is very conservative. We will await the development of events.
Profits!
  • #2,934
  • Mar 5, 2012 3:06am Mar 5, 2012 3:06am
AUD/USD coming into demand zone...waiting for reaction

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  • #2,935
  • Mar 5, 2012 3:12am Mar 5, 2012 3:12am
Quoting bullzeye
G/U second touch of the demand zone...seems to be hold, i am long


Attachment
no, will not
  • #2,936
  • Mar 5, 2012 3:19am Mar 5, 2012 3:19am
Quoting bullzeye
no, will not
It seems that the price stopped. You can still win! May be, I hope
  • #2,937
  • Mar 5, 2012 3:32am Mar 5, 2012 3:32am
Quoting bullzeye
G/U second touch of the demand zone...seems to be hold, i am long


Attachment
To my eyes and my drawing, the second touch of this zone was too deep and even pierced through it. Besides, immediately the price rejected a small swap level. I opened Short here, from 1.5810 with SL above 1.5844 and aiming somewhere to 1.5745.
Attached Image
  • #2,938
  • Mar 5, 2012 4:38am Mar 5, 2012 4:38am
Quoting bullzeye
AUD/USD coming into demand zone...waiting for reaction

Attachment
I had the same zone marked, but PO missed it by 1 pip. I'm deleting the zone now, because on 1h we made LH and LL, and we have a stong downtrend-channel from friday until today.

But another very good zone is just below. 1.0625 should be strong.
  • #2,939
  • Mar 5, 2012 5:10am Mar 5, 2012 5:10am
Quoting ruten
Hi okami!
In your words there is logic. But i think what your opinion is very conservative. We will await the development of events.
Profits!
Hi Ruten!,

thanks for your input. Yes, it is conservative, but what other possibilities are there today?

In my analysis I think it's the best setup, if price reach that point. Probably an A+ setup.
One of the things in what I have to work hard is in the impatience and happy triggering (caused by the fear of losing the trade), and try to go only for the clear setups.

The reality is also that I'm not seeing more nice setups in a 30M TF, and I want to avoid, at least at the moment, the faster TF, that makes me go with that happy triggering that ruins my account.
Maybe later the price shows something to watch, but it seems today EURUSD is in a blurry range (waiting maybe the us PMI news in 4 hours?). Or are you seeing any other near high probability trade in the eurusd?

There is 1.3240 and 1.3267 in M30, both supply zones to reenter with the current down trend, but I don't know if worth the risk to enter in those zones, or is it better idea to wait for the price to reach the 1.3300. What would you do? Maybe would you watch the price action looking for a confirmation, and moving the SL fast to BE? Or just wait for the price to reach 1.3300 and pass those zones?

Attached Image (click to enlarge)
Click to Enlarge Name: 20120305_eurusd_30M_zones.jpg Size: 131 KB


Profits!
  • #2,940
  • Mar 5, 2012 6:07am Mar 5, 2012 6:07am
Quoting okami
Hi Ruten!,

thanks for your input. Yes, it is conservative, but what other possibilities are there today?

In my analysis I think it's the best setup, if price reach that point. Probably an A+ setup.
One of the things in what I have to work hard is in the impatience and happy triggering (caused by the fear of losing the trade), and try to go only for the clear setups.

The reality is also that I'm not seeing more nice setups in a 30M TF, and I want to avoid, at least at the moment, the faster TF, that makes me go with that happy triggering...
You're absolutely right!
But I think I have found another way. We have seen that the levels of demand and supply are working at 100%. Another thing is that some levels are more powerful than others.
The strongest levels are always against the trend! If you take on a weak levels on 1-2 pips it is good too. Although I don't like scalping.
You can see my trading explorer as evidence.
It is open to all here: http://www.forexfactory.com/ruten/21
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