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B.S. Trading with Kenneth Lee

  • #3,241
  • Mar 26, 2012 7:02am Mar 26, 2012 7:02am
I guess that's what Sam means in some video about "don't cut candles".

Yep. Exactly. re-posting chart for clarity this part is important to understand. .

It would be kind of like looking at old sales on old newspaper then going shopping you would not find the stuff listed anymore. Doesn't mean some of the stuff won't be the same prices just better to look at current sales papers.

Just like it is better to look at current supply and demand levels.
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Good Trading To All ; Ken Lee
  • #3,242
  • Mar 26, 2012 7:14am Mar 26, 2012 7:14am
That is important because once you understand that you have a lot less to consider when making choices for levels and trading plans.
Good Trading To All ; Ken Lee
  • #3,243
  • Mar 26, 2012 7:40am Mar 26, 2012 7:40am
GBP USD short @ 30 minute supply.

Price in daily supply (although a second entry into the zone after a fairly muted sell off when price entered previously)

Price high (ish) on the 4 hour S/D curve but still some way to go before 4 hour supply will be reached

Given the above and the bullish intraday bias, aggressive profit taking on first target
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  • #3,244
  • Mar 26, 2012 7:47am Mar 26, 2012 7:47am
Stopped out pretty quickly (-1%).

Will look for 5 minute swap level for a long around the 30 minute zone that was just breached
  • #3,245
  • Mar 26, 2012 8:08am Mar 26, 2012 8:08am
Wouldn't closer to 1.5950 have been a better supply level to use?

Thanks
  • #3,246
  • Mar 26, 2012 9:00am Mar 26, 2012 9:00am
ARW05, around 1.5950 would have been better but saw the 30 minute zone below and high enough on the curve for me so took the trade.
  • #3,247
  • Mar 26, 2012 9:45am Mar 26, 2012 9:45am
Quoting SnailRoll
Shame I missed it, but I had the level drawn so at least that means I was right lol
Maybe as far as trading you missed it, but you saw the zone and that is what counts, there will always be new trades
  • #3,248
  • Mar 26, 2012 10:16am Mar 26, 2012 10:16am
Quoting bullzeye
E/U beautiful reaction of the demand zone...

Attachment
I also took this one, on m30 risk/reward 1/5. Beautiful trade. It went around 1/12 but who cares. 1/5 is great too. Congrats.
Profit Margin is the King!
  • #3,249
  • Mar 26, 2012 11:06am Mar 26, 2012 11:06am
Quoting magelan
I also took this one, on m30 risk/reward 1/5. Beautiful trade. It went around 1/12 but who cares. 1/5 is great too. Congrats.
well done magelan

i think this was an excellent setup, i would say an A++ :

look on the chart: nice H4 demand level, bounce of the trend line, bounce of the 150 EMA (yeah, i know ema`s ) and round number 1.3200

i took only 40 Pips, but hey give me at least one of such setup in a month, oh boy don't need more
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  • #3,250
  • Mar 26, 2012 12:28pm Mar 26, 2012 12:28pm
  •  gil
  • | Joined Jan 2012 | Status: try to master himself first | 63 Posts
Hi,
Been using the supply/demand method for a while now and i discover or didn't wanted to admit that my weakness is "tempted to go against the tend".

On my backtest the more i tried to predict the supply zone in an uptrend and reverse, even if there is a fresh level, the more i am wrong on the market. I know we still tend to find the big area of rejection or order stack, but still it is hard for me to find them.

I did read the thread and find people more looking for answer in choosing the best Supply/Demand but most of the time wants to go against the trend.

Wanted to know if anyone had a similar "weakness"? Or i am completely mistaken on the concept, which can happen be.

Thanks
  • #3,251
  • Mar 26, 2012 12:43pm Mar 26, 2012 12:43pm
Quoting gil
Hi,
Been using the supply/demand method for a while now and i discover or didn't wanted to admit that my weakness is "tempted to go against the tend".

On my backtest the more i tried to predict the supply zone in an uptrend and reverse, even if there is a fresh level, the more i am wrong on the market. I know we still tend to find the big area of rejection or order stack, but still it is hard for me to find them.

I did read the thread and find people more looking for answer in choosing the best Supply/Demand but most of the time wants to go...
I think where a lot of confusion comes in, is that a person will post ONE chart and people will think they are fighting the trend. But in reality they are taking trades with the trend based of higher time frames.

I would normally look for the trend off a 4 hr chart then try and join in on a pullback. using those charts I think you can turn it all around.. Ken
Good Trading To All ; Ken Lee
  • #3,252
  • Mar 26, 2012 1:08pm Mar 26, 2012 1:08pm
Quoting thomaas
I'm a long time reader of this thread, and this week I'm going to try this method. Thanks for all the great information available here!

This is my buy limit order in EUR/USD, 30min TF. Any thought?

And a small question: do you use trailing stops when trading with supply/demand zones?
I took the exact same EUR/USD trade and my demand level looks like yours. I use 1H TF to draw S/D lines. I went long at 1.3213 and my TP was hit at 1.3260 with 45+ pips profit (after spread etc.). My SL was at 1.3188. I took my profit too early but I am working on that psychological pitfall of mine.

I know USD/CHF is correlated pair (in opposite drection) to EUR/USD. I went short at the same time with that. There is a supply level at 0.9140 (upper line) and 0.9124 (lower line). I know this means doubling the exposure so I divided my position size between the two pairs.

Kenneth and other helpful guys in thsi thread are not only brilliant but they have a great heart to share something that they bloody well know is for real. My win ratio has tremendously increased and my confidence level has never been higher.

Thanks KL -- you are earning some great Karma credits along the way. Thank you for what I clearly see a selfless service because it simply works.
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Not trend, but imbalance is my friend
  • #3,253
  • Mar 26, 2012 2:02pm Mar 26, 2012 2:02pm
Looking very tempting but I am passing the short trade up for two reasons :

a) Its against Daily and 4H trend
b) There is Demand level not too far away, the R/R is barely 1:2

Any comments?
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Not trend, but imbalance is my friend
  • #3,254
  • Mar 26, 2012 2:44pm Mar 26, 2012 2:44pm
Quoting bullzeye
E/U beautiful reaction of the demand zone...

Attachment
I like your strategy of waiting for confirmation before entering the trade which saved me quite a few potential losses today.
  • #3,255
  • Mar 26, 2012 9:50pm Mar 26, 2012 9:50pm
Quoting coxsox
I like your strategy of waiting for confirmation before entering the trade which saved me quite a few potential losses today.
I believe that's the way to go. I look for one of the two "confirmations" before I enter at market price:

a) A simple reversal bar like a pin bar (wick pointing to the S/D level) or engulfing bar (in faster TF)
OR
b) A divergence (A divergence is not a good trading system by itself but a great tool to tilt the weight of evidence)

However, it's all about drawing the S/D lines properly.
Not trend, but imbalance is my friend
  • #3,256
  • Edited 4:02am Mar 27, 2012 4:01am | Edited 4:02am
Currently short on CAD/JPY. Let's see.
Not trend, but imbalance is my friend
  • #3,257
  • Mar 27, 2012 4:53am Mar 27, 2012 4:53am
What do you think about those two levels in GBP/CHF 1h TF?
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  • #3,258
  • Mar 27, 2012 5:31am Mar 27, 2012 5:31am
Quoting thomaas
What do you think about those two levels in GBP/CHF 1h TF?
In my book, I will rate the demand level on your chart as top category because there is a fair amount of consolidation and it's pretty flat so "point of highest imbalance" is easy to spot.

Your supply level is also fine according to me. I also look at nearest round number to have a better picture. In your chart, 1.4550 seems to be the point of highest imbalance.

Would be interesting to see what more experienced minds would say.
Not trend, but imbalance is my friend
  • #3,259
  • Mar 27, 2012 5:36am Mar 27, 2012 5:36am
Here is how I would draw those lines.
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Not trend, but imbalance is my friend
  • #3,260
  • Mar 27, 2012 7:16am Mar 27, 2012 7:16am
I am having trouble finding any valid looking levels, is it just me or anyone else feeling the same way?
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