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B.S. Trading with Kenneth Lee

  • #3,441
  • Apr 13, 2012 11:25am Apr 13, 2012 11:25am
Quoting Woodhack67
dijusi

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

My rule is as shown.

Anthony
Thank Woodhack67, I understand what you please tell me and it really helps. I am waiting for your next trade example.

Woodhack67 if you do not mind please comment on my post # 3431 in the zone and find a way to minimize the risk of entry, hopefully I get something new from your explanation.
  • #3,442
  • Apr 13, 2012 2:37pm Apr 13, 2012 2:37pm
Quoting dijusi
Thank Woodhack67, I understand what you please tell me and it really helps. I am waiting for your next trade example.

Woodhack67 if you do not mind please comment on my post # 3431 in the zone and find a way to minimize the risk of entry, hopefully I get something new from your explanation.

The 15 minute swap zone I have drawn would have been the smallest RR zone I would dial into. In Ken's PDF he speaks of Swap zones being areas of Breakouts or swapping(suppply becomes Demand or Vice Versa)

I prob would have passed on this trade TP1 Gives me a 2:1 ( I take 3:1) TP 2 would have been 5:1Faded this could have a been a good play


Not all trades are good trades IMHO
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  • #3,443
  • Apr 16, 2012 12:37am Apr 16, 2012 12:37am
Hey everyone, would like to ask a question about trade management.

What do you do with you don't get decent move after price hits the level? Maybe it would be going above and below your entry point for 10-20 bars without really going anywhere. Would you just close the trade with a small P/L or stick to your SL and TP and just wait and see what happens?

Because usually if a level is strong the intial reaction should be big according to my understanding, but I also think that sooner or later there will be a big move when we either run out of sellers or buyers.
  • #3,444
  • Edited 7:25am Apr 16, 2012 7:11am | Edited 7:25am
Quoting SnailRoll
Hey everyone, would like to ask a question about trade management.

What do you do with you don't get decent move after price hits the level? Maybe it would be going above and below your entry point for 10-20 bars without really going anywhere. Would you just close the trade with a small P/L or stick to your SL and TP and just wait and see what happens?

Because usually if a level is strong the intial reaction should be big according to my understanding, but I also think that sooner or later there will be a big move when we either run out of sellers...

This is one of those things that each person can view differently. I would look to see where your consolidation is happening within your level. if it is near the entry position you might hold on, but if it is closer to your stop location once that supply or demand is absorbed it can really pop against you .

I was told when I first started trading years ago. If a trade doesn't move in your intended direction within the next candle or so . You should consider getting out with a few or a small loss.

Because as you said it should POP or move aggressively away from our entry levels. But I do hold some trades because if I enter during low volume times of day I can't expect them to move to fast. But if you decide to hold trades keep your plan in place.

Cheers Ken
Good Trading To All ; Ken Lee
  • #3,445
  • Apr 17, 2012 5:18am Apr 17, 2012 5:18am
What do you think when you look at the EURUSD M30 chart?

1. After the good rejection at level A and the HH from that move, would you treat level B as valid and fresh?

2. Or would you merge A and B for a new level C, or would you even say Level A is still the level to look at?

3. Or would you skip A, B and C and rely on level D? It's fresh and it also seems to be a strong swap-level.

I'm a big fan of S&D and this thread. Much respect to Ken and all the other contributors.

Peter
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  • #3,446
  • Apr 17, 2012 5:48am Apr 17, 2012 5:48am
Quick question for anyone who has been using or testing this method on different types of markets than forex.

Looking through my results to date (not extensive by any means but enough to start forming a picture) the various other markets I've traded including indexes (DOW, S&P, DAX) and various commodities/energies (WTI, Brent, Gold, Silver) it certainly seems to be far more hit and miss.

My forex results have been very consistent and thats using purely spot forex. Just curious whether anyone else has found the same? The reason I wanted to include the other markets was to inrease my trading volume without markets being too correlated but I'm starting to think the way forward is to use forex only and just pick the best 1 or 2 setups each time if there is a multiply correlated signal across a few markets.
  • #3,447
  • Apr 17, 2012 7:15am Apr 17, 2012 7:15am
Quoting PeterXXIII
What do you think when you look at the EURUSD M30 chart?

1. After the good rejection at level A and the HH from that move, would you treat level B as valid and fresh?

2. Or would you merge A and B for a new level C, or would you even say Level A is still the level to look at?

3. Or would you skip A, B and C and rely on level D? It's fresh and it also seems to be a strong swap-level.

I'm a big fan of S&D and this thread. Much respect to Ken and all the other contributors.

Peter
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I would not wait for D , But would look for it later , That being said if price blows through A and B then look at D.
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Good Trading To All ; Ken Lee
  • #3,448
  • Apr 17, 2012 9:25am Apr 17, 2012 9:25am
Couldn't help posting this picture of our Lizard Ziggy. She is about 2.5 years old 4.5 ft long we got her as a baby about 4" long. This picture was taken as she was riding on My wife's bicycle by one of the local news papers Photographers.
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Good Trading To All ; Ken Lee
  • #3,449
  • Apr 17, 2012 10:04am Apr 17, 2012 10:04am
Following my post earlier about non-forex markets seeming to be hit and miss, got yet another example from today, in this case DOW/wall street.

Market just burst easily through 2 supply levels I had drawn in, and the lower of them was below what looked a strong support/resistance level or what I guess we would determine a swap level.

Both levels looked OK to me.
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  • #3,450
  • Apr 17, 2012 10:11am Apr 17, 2012 10:11am
chart
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Good Trading To All ; Ken Lee
  • #3,451
  • Apr 17, 2012 10:17am Apr 17, 2012 10:17am
chart
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Good Trading To All ; Ken Lee
  • #3,452
  • Apr 17, 2012 10:31am Apr 17, 2012 10:31am
as the above chart shows the first move towards that level produced the best short. It also was a higher high to the swing before it. the move down stopped at the first level and made a nigher low . Which would have been looking ofr after a higher high confirmation of the trending turning or a large consolidation period ( forming a flag or triangle).

The trouble comes with that we can't tell which move into our levels will produce the best trades, This one the move close to but a bit short of the level found some good supply and made a decent trade. the second move which hit the level did not. But the trend change gave us warning that the big players were changing their minds on this.

I cna only say i would have attempt it and maybe have scalped the short. But the signs were there to warn us of a failed trade.
Good Trading To All ; Ken Lee
  • #3,453
  • Apr 17, 2012 10:48am Apr 17, 2012 10:48am
chart
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Good Trading To All ; Ken Lee
  • #3,454
  • Apr 17, 2012 10:53am Apr 17, 2012 10:53am
chart
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Good Trading To All ; Ken Lee
  • #3,455
  • Apr 17, 2012 11:03am Apr 17, 2012 11:03am
I know all about close misses, had 2 just from today.

First is a 30min silver trade, 2nd is a 4h AUDJPY trade. In hindsight the AUDJPY trade was my mistake because I should have put the entry at the close of the previous red candle which would have resulted in a good winning trade.

Also thanks Ken for your posts above, really appreciate the analysis and definitely taken some notes from what you said. I think I need to reduce the amount of markets I trade slightly (and doing forex only is a good way to do that) and do some deeper analysis before I take trades (i.e highs and lows as you pointed out here), I've been trying to do it as simply as possible so far which has been profitable overall but perhaps leads to a lower strikerate than I should be getting.
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  • #3,456
  • Apr 17, 2012 11:19am Apr 17, 2012 11:19am
OZ . Levels
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Good Trading To All ; Ken Lee
  • #3,457
  • Apr 17, 2012 12:07pm Apr 17, 2012 12:07pm
Right now prices are at the level I (do not know will bounce or penetrate) I minimize the risk and go to a lower time frame to find a balance zone, and the first touch was a benefit of about 13 pips. How do you view KL

http://i2.lulzimg.com/7e470ade34.gif

http://i2.lulzimg.com/a92f9573f2.gif
  • #3,458
  • Apr 18, 2012 2:48am Apr 18, 2012 2:48am
Quoting Kenneth Lee
chart
Hello Ken. I was reading up some of darkstar's posts from the (now deleted) "ohh sweet liquidity" thread, its not about SD but stop hunting.
The part that i think is relative to us is the "test of the levels" what we see here as price almost touching a zone but missing it for a few pips.

He described it at "testing of the waters" to see if anything is seriously defending that area, and there were a few scenarios about what happens next.

Also again as for the price turning early, very rarely it will stop in the middle of nowhere. If you mark these early turns to the tip and go back to see where price really stopped i'm sure you will dig up a couple of very interesting things.

All the best, i'm reading and learning from your great thread.
A big thank you to everyone involved, keep it up
  • #3,459
  • Apr 18, 2012 2:54am Apr 18, 2012 2:54am
Hi, there, could you tell me at which point I could buying or selling foreign currency, if there is a trial, what could I do next? Many thanks.
  • #3,460
  • Apr 18, 2012 7:30am Apr 18, 2012 7:30am
Decent trade just picked up on EU, really tight stop of 9 pips so was able to hit +27 for a 3:1 reward.
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