B.S. Trading with Kenneth Lee

Anyone saw the demand line hit on USD/CAD ?
I got in little late but still not too late.
Let's see how it goes...

Exciter,

"Arrival" means the return of price to the demand/support level (the front line of the 'base'). The point is that if price makes a sharp ascent (to supply level) or descent (to demand level), it would repel sharply too, towards our profit target.

Cheers

Hi pbanerjee, great thanks for your response. But I am sorry I couldn't still understand well yet. Let take an example. I am considering a demand level A which its target is to a B supply level. There are several points from the statement which I did not really understand:

1- "How did price arrive come back to the level". What is level in the "TO THE LEVEL"? This statement also made me confused between "ARRIVE COME BACK" and "RETRACEMENT/RETEST". Retracement/retest means price visit again the demand level A in my example. "Arrive come back" means price arrives in level B in my example?

2- "We want to be anywhere near other levels". What are "OTHER LEVELS" here? Are they different with A and B levels in my example?

3- "We don't want new resistance levels before we buy, or new support levels to form right before we sell". What levels are "NEW RESISTANCE"/"NEW SUPPORT" here? Are they ones which just newly form between A and B levels in my example before price reaches to B level?

Does entire the statement in the attached picure in the end mean "Strong Arrival" is price goes straight from A to B without any obstacle in the middle. If so, price would depart strongly out of B level which is the target level in my example.

I am really sorry to disturb you again. Thank you for your patience.

Regards,
Exciter135.

Replace the word "did" to "is". How is price returning to the level (i.e our level of entry, demand or supply). You have to differentiate between price travelling smoothly into your level trapping late traders into the market before reversing, from price slowly losing steam into the level. Slow momentum is a sign of market weakness which is also validates your entry at the level. A consolidation above your level then continuation however means supply/demand at that level.

So, think logically:

1. Price is approaching your level very smoothly -price is trapping late traders because of attractive one way price action- fade them by entry at demand/supply.

2. Price is approaching your level but it is slow and losing steam - momentum is drying up - fade this weakness by entering at your supply/demand level.

3. Price was approaching your level, it stopped creating some consolidation, possibly creating a swing level (rbd or dbr), before heading back down towards your level, This swing or consolidation is now your new first target level. Do you have enough RR to first target with your original entry level? If no, squeeze the level by looking for a lower entry within the level at a lower time frame or miss the entry area all together and look for a new level.

http://lessons.tradingacademy.com/ar...ng-a-flagpole/

Wow, it is very clear now. Thanks million to Porkpie and Keus. You brothers really help. Best wishes to you both.

Exciter135.

Great responses and the link is awesome.

This is one thing that makes it a bit hard to take the trades also. Because when price is moving with a definite force into a level it can produce big solid candles that many can see as a trend against their impending trade.

So they hesitate or decide not to enter when the strong move into a level is what we really like. If price is meandering into a level all the opposing orders can be adsorbed slowly. Not leaving enough to really push price back.

This is also why a base should be just a couple or few candles as price hanging around a level to Long also weakens the counter move.

Another analogy would be like swimmers a strong swimmer flying towards the wall, would make a clean turn and shot off the other direction. While a weak swimmer would struggle to arrive and then maybe cling to the wall for dear life.

But with a bit of scanning your charts you can see this in action. solid colored candles moving into levels turn the hardest. Candles changing color the momentum has failed and orders and price are finding equal ground.

So the main point is to not panic when price is really moving into your choices but to keep your eyes peeled for the first signs of the opposing orders halting that march and starting the rejection .

That is why if your picking levels of high time frame charts . Some will use faster charts to pick a entry. It will show the rejection on those fast charts first .

Plus remember . part of the plan is to pick a TP and the TP is the opposing level from your entry a strong move of solid colored candles gives you a perfect view for that target.

Cheers Ken

USD/CAD didnt work out. EUR/CAD is going good so locked in what I lost in loonie trade

Hey KL, I salute the new members want to ask:
1. whether it is true that I gave the sign and comment for SD zone
2. what about the zone that I mark with a white box
3. what can be labeled as the demand (blue box) when viewed on the daily chart seems nice but too long in the consolidation h4.
Please response from you, sorry with this stupid question

http://i2.lulzimg.com/e152f55099.gif

http://i2.lulzimg.com/339277f291.gif

My view ,

KL thanks for your response, once again I am still learning and practicing so your response will be very valuable to me.

Furthermore I hope the price will get to the nearest supply is under H4 (I'm not so sure if it's fresh zone or not) and then to minimize the risk I see in the lower time frame M30 (red line) and M15 (green line)

KL if I am doing is correct? sorry to disturb you trade, so it can be in charge when you are not busy

http://i2.lulzimg.com/22a5007fc3.gif

oz

little panic over some china news never hurt either

guess not but i haven't really ever paid any attention to it. doesn't even come up on my news list. I know it is getting more relevant. But ..

I also had held on from earlier today because e/u had pushed higher and oz had held pretty tight.

Plus trying to hold for the plan, so risk was planned as was the tp point so all good.

grabbed a 10 pip scalp off the 30 min demand

off to bed, trade safe

Very very plain Ken, your kick-in is awesome too. You are an excellent teacher.

Regards,
Exciter135.

I've seen a few questions in the thread about what to do when there are multiple levels you could choose in a trend and how to deal with that. I have a good example of that from the AUDUSD 30min chart this week so thought I would share it and I welcome any thoughts on this.

I placed all 3 levels personally and the 2nd and 3rd levels both worked out well, so even though the first one failed it resulted in a good profit overall. My current thinking is that if they're quite far apart then it's ok to take them all as individual trades because the market is extremely likely to turn on at least one of them so you shouldnt do too much damage to your account if you get a couple wrong, however if the levels were close and were "levels on top of levels" I think I would always take the furthest level, or I would scale into the trade on each level.

I was pretty happy with my level selections on this one, only negative I can see about the first level that was hit (the losing one) is that the pause was a bit drawn out if you include the price action for the previous 10-15 candles in the same area. What I liked was the huge drop out of that area so I think it's fine to be honest.

The size of the top level was a bit annoying because it ruined the risk reward and that was where we really got the proper turn.

One question to Kenneth (or anyone else really who has experience with this method) do you stick to the fresh levels rule rigidly? Not sure how strict to be with it. The way price has shot down off of this highest supply level suggests that there is still strong supply there, but obviously it's not a fresh level anymore. Would you consider leaving this supply level in, or is the fact it's not fresh anymore, mixed with the fact the pause at that high was a bit drawn out put you off?

First and foremost I would like to thank Mr. Lee for his insightful take on Sam Seidens work. You have produced many AH HA moments during the reading of your PDF.
I love the simplicity and the use of basically naked charts to trade. I will continue to read and subscribe to the forum and provide some examples of my trades for critiquing and maybe assist others.
I am currently trading a SIM Account I started with $2000.00 I have successfully traded it to 2600.00 In the last 2 weeks. I am doing this for our group meetings to show the new guys it is possible to grow this thing.
The hours I can watch the market with some intentness is 05:30 til 07:30 and from 18:00 til 23:00. I have taken some of the advice here in regards to what pairs to watch during those times.

So for last nights trade. I usually dont look at the EURUSD in the evening but was scannng the charts and seen this so hate to pass a good OP on such a sweet pair.

I moved to a 2 minute time frame to enter. Rule for entry is a 2 bar close below supply levels 2 bar close above demand levels

Thank you for sharing Woodhack67 experience, can you show a graph in a 2 minute entry along with your place in the bar close to 2 for the graph above

dijusi

My entry was a touch bit sloppy but still met my RR criteria.

My rule is as shown.

Anthony