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B.S. Trading with Kenneth Lee

  • #3,601
  • Edited May 14, 2012 2:32am May 13, 2012 11:55pm | Edited May 14, 2012 2:32am
Hi all,
Here is my outlook on the AUDUSD. Please feel free to make comments as I am open to any input. Hope this may help others.

Analysis/ Trade Plan for the AUDUSD

Daily Chart shows a down trend that broke a recent Demand Level (Gray Area) and Heading into another.

Attached Image (click to enlarge)
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4 Hour Chart is in a down trend hovering above the next Major Demand Level.

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30 Minute Chart
Keeping both of the larger time frames in mind I will be looking to take small Short trades on pullbacks into smaller Supply Levels on the 30, 15 and 5 minute charts until Demand is reached.

I will then look for a long entry.

Attached Image (click to enlarge)
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I say small in the sense of in and out at 1:1 or 2:1 because of the larger demand level just below.
(Still need to have the minimum 3:1 odds enhancer in place to take the trade.)
I usually enter with 4 units (micro, mini or standard lots)
In this scenario I will take 3 off first at 1:1 or 2:1 and move stop to Break Even.
Then manage the last unit.

P.S. Also be aware that we are at parity. This should bring some interesting trading this week???

P.S.S.
Dollar index is coming into Supply which reinforces the demand level on the AUDUSD
Attached Image (click to enlarge)
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Good pips to all!!!!
Attitude can reflect outcome in life and trading!
  • #3,602
  • May 15, 2012 9:55am May 15, 2012 9:55am
If a market was downtrending and you had a demand level base on a weekly chart, how would you know where to put your stop on a smaller time frame.I ask because you would be taking that first bounce at that level.
  • #3,603
  • May 15, 2012 11:06am May 15, 2012 11:06am
Quoting bodine
If a market was downtrending and you had a demand level base on a weekly chart, how would you know where to put your stop on a smaller time frame.I ask because you would be taking that first bounce at that level.
Depends on what your entry and target is.

A stop is placed where you believe price will most likely not reach while staying within your allotted riskable amount AND risking the smallest amount of capital possible (depending on your trading plan). This requires a concentration on better entries and NOT tighter stops.

If your looking at an hourly or 30m chart, in most cases a weekly zone won't send the price zooming away on first touch. There's usually a bit of channeling. In this case the best place to place a stop would be below/above the channel (depending on if it's a supply or demand.)

Sometimes smaller sup/dem levels form in the direction of the weekly and become great places to take trades from.
  • #3,604
  • May 15, 2012 12:04pm May 15, 2012 12:04pm
Now keep in mind, things don't usually go this smoothly but when they do i gotta talk about it . And since i didn't have the chance to sit infront of the screen for these trades i set regular tps.

Attached Image (click to enlarge)
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In an earlier post i made a mistake and said 200 pips is 10%. I typo'd, 10% is really 100 pips for me currently.
  • #3,605
  • May 15, 2012 2:47pm May 15, 2012 2:47pm
Quoting Good Lookin
Depends on what your entry and target is.

A stop is placed where you believe price will most likely not reach while staying within your allotted riskable amount AND risking the smallest amount of capital possible (depending on your trading plan). This requires a concentration on better entries and NOT tighter stops.

If your looking at an hourly or 30m chart, in most cases a weekly zone won't send the price zooming away on first touch. There's usually a bit of channeling. In this case the best place to place a stop would be below/above the channel...
I guess weekly levels arent as strong as i thought it just plowed through there won't use those again stick to small time frames
  • #3,606
  • May 15, 2012 3:34pm May 15, 2012 3:34pm
Quoting bodine
I guess weekly levels arent as strong as i thought it just plowed through there won't use those again stick to small time frames
On the contrary, weekly levels are pretty strong. They may not react right away but at some point in them there is a reaction. The point with them is to be patient. Post a chart of your level when you get a chance.
  • #3,607
  • May 16, 2012 9:43am May 16, 2012 9:43am
Attached Image (click to enlarge)
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  • #3,608
  • May 17, 2012 1:39am May 17, 2012 1:39am
Quoting bodine
I guess weekly levels arent as strong as i thought it just plowed through there won't use those again stick to small time frames
Use smaller time frame levels within the weekly such as Daily or H4. What was the RR of your weekly level that got broken? Did you use the odds enhancers?
  • #3,609
  • May 17, 2012 5:02am May 17, 2012 5:02am
Quoting Kenneth Lee
I have a 50 ema on my charts that people see it is there because it was mentioned in Sam's Videos and that is where most of this information came from. I personally never really look at it it is just there.

A trend is a funny thing as it will change at every adjustment of the time on your chart. I use swings to gauge trend. I have shown this many times.
. I don't want a additional indicator and really not to have to add a different MA for each time frame. It is just very simple for me to scroll through my charts and see the levels.

You...
Many thanks to Kenneth..I am on page 74..have learnt the main principles..still have some unclarified points...hope I will see the answers in coming pages...I whish you all the best...
  • #3,610
  • May 17, 2012 8:20am May 17, 2012 8:20am
Quoting Porkpie
Use smaller time frame levels within the weekly such as Daily or H4. What was the RR of your weekly level that got broken? Did you use the odds enhancers?
still ironing out the bugs.....odds enhancers?
  • #3,611
  • May 17, 2012 10:46am May 17, 2012 10:46am
Time to see my analyst,this stuff will drive you nuts!
  • #3,612
  • May 17, 2012 9:44pm May 17, 2012 9:44pm
Quoting bodine
still ironing out the bugs.....odds enhancers?
Ken has these listed out at the tail end of the pdf file located on the first post.
Illegitimi non carborundum - Noli pati a scelestis opprimi.
  • #3,613
  • May 17, 2012 9:46pm May 17, 2012 9:46pm
Quoting Rufus
Ken has these listed out at the tail end of the pdf file located on the first post.

I just noticed that it has 11,150 views. Congrats Ken, going into best seller status.
Illegitimi non carborundum - Noli pati a scelestis opprimi.
  • #3,614
  • May 18, 2012 3:40am May 18, 2012 3:40am
Quoting Kenneth Lee
hope some caught some of the oz action .. some info from another chat
Hi Kenneth,

I have something which is not clear in my mind..it is Swap levels..when we choose a level, we want to see that the price has traveled a reasonable distance so that we have enoug R/R...but concerning the swap level in the picture...Do you trigger a trade for the breakout entriy that is shown in yellow circle or you wait for the first touch to supply level 2 that I marked in red circle in the picture ? Thanks
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  • #3,615
  • May 18, 2012 8:19am May 18, 2012 8:19am
Quoting Rufus
Ken has these listed out at the tail end of the pdf file located on the first post.
yes i had read it,just got mixed up with the terminology for a second,Thanks
  • #3,616
  • May 18, 2012 8:25am May 18, 2012 8:25am
should i just wait for the NY open,and let the market show it's hand and then place a trade if there is one? Most of the time on my trading journey, i have placed trades before the open.
  • #3,617
  • May 19, 2012 9:40pm May 19, 2012 9:40pm
Quoting bodine
should i just wait for the NY open,and let the market show it's hand and then place a trade if there is one? Most of the time on my trading journey, i have placed trades before the open.

Letting the market "Show its hand" can be tricky. Sometimes with a market open price will just shoot to a nearby S/D level and reverse. So a bunch of traders are jumping on board with this initial move just to give me their money when it reverses. These are the moves I love to catch.

So rather then "Show its hand" You keep your Ace in the whole and wait for price to find S/D or you are more often then not giving your trading dollars to orders sitting there.

Just my opinion for what its worth
Attached Image (click to enlarge)
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Illegitimi non carborundum - Noli pati a scelestis opprimi.
  • #3,618
  • May 19, 2012 10:12pm May 19, 2012 10:12pm
Quoting Rufus
Letting the market "Show its hand" can be tricky. Sometimes with a market open price will just shoot to a nearby S/D level and reverse. So a bunch of traders are jumping on board with this initial move just to give me their money when it reverses. These are the moves I love to catch.

So rather then "Show its hand" You keep your Ace in the whole and wait for price to find S/D or you are more often then not giving your trading dollars to orders sitting there.

Just my opinion for what its worth
very very make sense.
great explaination rufus.
and that chart, the market open session is also great indicator for us. the logic is the stacking orders in the active markets are greather than others.
If i'm not mistaken.
Simplicity Is The Ultimate Sophistication ~LDV~
  • #3,619
  • May 20, 2012 8:31am May 20, 2012 8:31am
If you research Sam's video archives , the one listed the difference between futures and spot forex. he goes into this session opening a bit. he states that every morning U.S. time he can almost always find a entry like the one's Rufus posted above on those fast charts.
Good Trading To All ; Ken Lee
  • #3,620
  • May 20, 2012 8:44am May 20, 2012 8:44am
Sorry for the absence , I am focusing on my trading , as I am almost ready to start trading for my living again. I trade more full time than most , but also work a full time job. But had to stop trading for a living for a while. Now the equity is back up and I am about ready to take the plunge once again.

The hard part is the emotional challenge when you have to make the money verses I would like to make the money.

I can trade very well when I DON'T TRY. My best trading is when I just glance at the charts now and then and if it is near a level of interest take the trade and then do something else and let it work out.

But when I am sitting here wanting to trade and try to force a entry is the worse. It is either right or wrong . if you really want to trade a lot . Then analysis a lot of pairs , But then have a PLAN for each trade. It is this pre-planing which will make you a good trader. plus never forget to have more than one level chosen as the next one is always better than the first.

Because to get thru the first a lot of the counter side was used up. ( Think Levels on Levels)

Plus planing each trade and then adjusting targets and such due to the change in Price action will give you something to do sitting at your computer. Plus the trend can change before a entry is hit letting you have even more to do. Plus the faster the time frame charts you trade the more of this there is to do.

Cheers Ken
Good Trading To All ; Ken Lee
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