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B.S. Trading with Kenneth Lee

  • #3,481
  • Apr 20, 2012 2:23pm Apr 20, 2012 2:23pm
Quoting Porkpie
From my own personal experience, be careful entering such levels after a rounded bottoming out process. The rounded bottoming out pattern forming the base of the U shows a long winded struggle between bulls and bears where bulls have been able to accumilate large positions in the process. The result is a reluctance for these bulls to let go of profits into supply so soon after building such positions, no matter how strong the supply level looks. Its all about the overall structure and context.
thanks. Can you please tell me where can we learn about the structure and market context? Is structure only limited to pattern or others too.
  • #3,482
  • Apr 20, 2012 3:53pm Apr 20, 2012 3:53pm
This is a light mockup of my end of the week reviews. Just lines and zones. I didn't include any notes in this.

I like to take the previous week and place zones on the chart to be aware of then scroll forward to this week and see how they played out. After doing this for a while you start to see some pretty obvious patterns.

Red and gree lines are regular zones. (for the purposes of my exercise in observation fresh or not doesn't matter)
Black lines are areas where price has noteable rejections.

week1
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week2
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Anyone else do something like this?
  • #3,483
  • Apr 23, 2012 2:48am Apr 23, 2012 2:48am
is it viable to take a long here?
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  • #3,484
  • Apr 23, 2012 9:15am Apr 23, 2012 9:15am
Quoting chiba_san
is it viable to take a long here?
I would not take a trade from the level you have drawn on EURUSD:

- Look to the left. There is no clearly defined base. It's very messy there, there was a lot of trading and price was in balance for a long time. So, no reason to believe that there is big imbalance.

- Price did not travel very far (not the best R:R) nor did it stay away for a long time.

- IMO the recent HH and a possible entry at a HL is not enough at the moment.

Peter
  • #3,485
  • Apr 23, 2012 9:38am Apr 23, 2012 9:38am
But there was a great and easy to take EURUSD short trade on friday. May also continue south for a while...

Peter

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  • #3,486
  • Apr 23, 2012 4:39pm Apr 23, 2012 4:39pm
Could anyone experienced explain to me what was wrong with these levels. If you take the top horizontal lines, a supply has formed (I dropped down tf to get a better zone). Price diddn't end up reaching this level, and the mistakes I always make are after drawing an initial zone out I'll see another supply form (bottom horizontal lines) and draw this in too.

I'll come to trade this second zone I've put in, and it fails quite alot. What is wrong with that second supply level?. You could also argue that a little under the lower supply zone a demand formed with the four green candles surging up. This trade would of also failed...where am I going wrong?

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  • #3,487
  • Apr 23, 2012 5:04pm Apr 23, 2012 5:04pm
Quoting PeterXXIII
But there was a great and easy to take EURUSD short trade on friday. May also continue south for a while...

Peter

Attachment
Nice trade.

Here;s what throws me sometimes.
We see the level arond 3230.
1) Price spent a little time there ( good )
2) Fresh level
3) Price has spent a good amount of time away from this level
4) Price made an agresive move toward this level

Now lets look @ the 3335 level just above where price really came off. This looks more like you classic DROP_BASE_RISE pattern. (if it completes )

I saw both levels but was not willing to take the lower trade due to the stronger ( IMHO ) level above.

Queston?? What am I not seeing that could have helped me take the trade at this lower level ?

Thanks
TSD
  • #3,488
  • Apr 23, 2012 11:03pm Apr 23, 2012 11:03pm
is this a good demand level for going long?
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  • #3,489
  • Apr 23, 2012 11:07pm Apr 23, 2012 11:07pm
Quoting PeterXXIII
But there was a great and easy to take EURUSD short trade on friday. May also continue south for a while...

Peter

Attachment

does spikes mean demand / supply comsumption? and also how did you categorize the dashed line and the solid line?

thanks.
  • #3,490
  • Apr 24, 2012 3:40am Apr 24, 2012 3:40am
Quoting TraderinSD
Nice trade.

Here;s what throws me sometimes.
We see the level arond 3230.
1) Price spent a little time there ( good )
2) Fresh level
3) Price has spent a good amount of time away from this level
4) Price made an agresive move toward this level

Now lets look @ the 3335 level just above where price really came off. This looks more like you classic DROP_BASE_RISE pattern. (if it completes )

I saw both levels but was not willing to take the lower trade due to the stronger ( IMHO ) level above.

Queston?? What am I not seeing...
I would absolutely agree when you say the higher supply level (which is also RBD and not DBD) is the safer entry. But that does not mean that price is less likely to retrace from good levels below.

Maybe if you would have looked at it like in the chart below...

Peter

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  • #3,491
  • Apr 24, 2012 4:10am Apr 24, 2012 4:10am
Quoting needtolearn
does spikes mean demand / supply comsumption? and also how did you categorize the dashed line and the solid line?

thanks.
I only dashed the lower level to make it look different from the other one, it has no additional meaning. I could have called them levels A and B as well.

Look at the chart for consumption explanation...

Peter

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  • #3,492
  • Apr 24, 2012 7:07am Apr 24, 2012 7:07am
Quoting PeterXXIII
I only dashed the lower level to make it look different from the other one, it has no additional meaning. I could have called them levels A and B as well.

Look at the chart for consumption explanation...

Peter

Attachment
thanks
@Kenneth and Peter do you use skype? I could use help from you all the time
  • #3,493
  • Apr 24, 2012 10:57am Apr 24, 2012 10:57am
Quoting PeterXXIII
I would absolutely agree when you say the higher supply level (which is also RBD and not DBD) is the safer entry. But that does not mean that price is less likely to retrace from good levels below.

Maybe if you would have looked at it like in the chart below...

Peter

Attachment
Hi Peter,

Thanks for the insite. So in review. Looking at how price has reacted previously would give us good inidcation that price should respond in the same manner.. ( which is the basis for this method )

Given the size of this price action from April 3 to present. Lots of opportunity to trade with the trend.

Thanks again

TSD
  • #3,494
  • Apr 25, 2012 11:19am Apr 25, 2012 11:19am
Quoting PeterXXIII
I only dashed the lower level to make it look different from the other one, it has no additional meaning. I could have called them levels A and B as well.

Look at the chart for consumption explanation...

Peter

Attachment
Am i correct in assuming you would probably only get one trade per instrument a day with this system?Thanks
  • #3,495
  • Apr 25, 2012 2:19pm Apr 25, 2012 2:19pm
Quoting bodine
Am i correct in assuming you would probably only get one trade per instrument a day with this system?Thanks

Depends on the time frame your watching ...
Good Trading To All ; Ken Lee
  • #3,496
  • Apr 26, 2012 12:44am Apr 26, 2012 12:44am
Quoting Kenneth Lee
Depends on the time frame your watching ...
which timeframe do you watch? I saw most of your screenshots were from m30 timeframe. Do you only watch m30 or watch lower timeframe too. And how do you analyze them to enter a trade?
ohh also how do you analyze current trend? do you determine it just by watching the recent trend or by looking at higher timeframe.
  • #3,497
  • Apr 26, 2012 1:05pm Apr 26, 2012 1:05pm
Lizard made the paper again ,, Going to her head...

http://pdf.keysnews.com/weeklys/paradise.pdf
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Good Trading To All ; Ken Lee
  • #3,498
  • Apr 26, 2012 1:19pm Apr 26, 2012 1:19pm
Quoting needtolearn
which timeframe do you watch? I saw most of your screenshots were from m30 timeframe. Do you only watch m30 or watch lower timeframe too. And how do you analyze them to enter a trade?
ohh also how do you analyze current trend? do you determine it just by watching the recent trend or by looking at higher timeframe.
This is all in the thread, if you take some time to read it......
  • #3,499
  • Apr 26, 2012 7:19pm Apr 26, 2012 7:19pm
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Nice little move long underway as we speak on the EU 5M .. About 25pip between the lines

I missed this move but thought I show it anyway. Just goes to show you this method can be good at any time and all time frames.
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Looking at the longer TF's all are pointing up which makes this very worthwhile.

TSD
  • #3,500
  • Apr 26, 2012 7:43pm Apr 26, 2012 7:43pm
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And we arrived at our appointed target.

TSD
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