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B.S. Trading with Kenneth Lee

  • #4,621
  • Oct 16, 2012 5:37am Oct 16, 2012 5:37am
I will try and put a chart series together to show what i am saying . it can be hard tho as it is what you see in real time that matters and the only way to show it can be by posting fast charts, which for some can be hard to trade , to much information . or levels .
Good Trading To All ; Ken Lee
  • #4,622
  • Oct 16, 2012 6:33am Oct 16, 2012 6:33am
Quoting C-12
Maybe the Asian session isn't so bad after all

*EDIT* apparently there was some news about possible rate cuts? I have no idea about that.. Price just arrived beautifully into a demand level.

Nice trade C-12.
But if follow the rules, you should enter a little bit erlier - at 0246.
  • #4,623
  • Oct 16, 2012 6:45am Oct 16, 2012 6:45am
Quoting bisecom
Nice trade C-12.
But if follow the rules, you should enter a little bit erlier - at 0246.
That would be the tighter entry yes but I use market orders, never limit orders.

The reason for this is that I have no idea the level is valid until I can see a clear rejection.

Sometimes I press F9 and watch the tick chart to see the strength of the rejection.
  • #4,624
  • Oct 16, 2012 6:53am Oct 16, 2012 6:53am
Quoting C-12
That would be the tighter entry yes but I use market orders, never limit orders.

The reason for this is that I have no idea the level is valid until I can see a clear rejection.

Sometimes I press F9 and watch the tick chart to see the strength of the rejection.
Thanks for your comments. Ok, I see that was market order.

How do you measure the rejection strength and which is signs of it?
  • #4,625
  • Oct 16, 2012 7:05am Oct 16, 2012 7:05am
Quoting bisecom
Thanks for your comments. Ok, I see that was market order.

How do you measure the rejection strength and which is signs of it?
I just watch for it, no real hard rules on this. Once you've marked the level, watch how price responds.

You can almost see the institutional limit orders get hit and that's my signal to get in.

You could even wait for the close of the rejection bar (Pin, Outside bar, doji) but sometimes the really good levels just fly.
  • #4,626
  • Oct 16, 2012 7:09am Oct 16, 2012 7:09am
One thing I must warn people trading the M1.

I don't like trading a larger time frame level like this off the M1 since you will often get a few false signals before the real move happens. Play these larger levels for what they are with appropriate stop & position size.

M1 trades should be played off levels found on the M1 but using the bigger picture as a guide.
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  • #4,627
  • Oct 16, 2012 7:21am Oct 16, 2012 7:21am
Quoting C-12
I just watch for it, no real hard rules on this. Once you've marked the level, watch how price responds.

You can almost see the institutional limit orders get hit and that's my signal to get in.

You could even wait for the close of the rejection bar (Pin, Outside bar, doji) but sometimes the really good levels just fly.
Ok, thank you, will try.
But institutional limit orders it is also is not so easy beacause as usual they put and take off them very fast.
  • #4,628
  • Oct 16, 2012 7:22am Oct 16, 2012 7:22am
Quoting C-12
One thing I must warn people trading the M1.

I don't like trading a larger time frame level like this off the M1 since you will often get a few false signals before the real move happens. Play these larger levels for what they are with appropriate stop & position size.

M1 trades should be played off levels found on the M1 but using the bigger picture as a guide.

Absolutely agree with C-12 on both points:

- stops and targets must match the time frame you're trading.

- bigger picture is very important - start with a Daily/4-hour/-1-hour chart to take a look at what the market is doing overall, and if we're going to run into any larger time frame D/S levels. Once you know what to watch out for, then you can handle the 5-min/1-min charts with more confidence.

As we can see this morning with GBPUSD (chart attached):
Attached Image (click to enlarge)
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  • #4,629
  • Oct 16, 2012 7:25am Oct 16, 2012 7:25am
Quoting bisecom
Ok, thank you, will try.
But institutional limit orders it is also is not so easy beacause as usual they put and take off them very fast.
If you see a solid rejection then the orders are there. However, I always recommend taking profits early and a fast break even stop because there is no guarantee of any follow through.

Super strict money management and trade management is vital, even more important than just picking the levels imo.
  • #4,630
  • Oct 16, 2012 8:58am Oct 16, 2012 8:58am
Quoting EuroPipper
Absolutely agree with C-12 on both points:

- stops and targets must match the time frame you're trading.

- bigger picture is very important - start with a Daily/4-hour/-1-hour chart to take a look at what the market is doing overall, and if we're going to run into any larger time frame D/S levels. Once you know what to watch out for, then you can handle the 5-min/1-min charts with more confidence.

As we can see this morning with GBPUSD (chart attached):
Yes, you are right, that trader should start to check the market starting from higher time frame.
But in this case, your example is not correct because if we start to check at least 30M chart, we would have such picture:
Attached Image (click to enlarge)
Click to Enlarge Name: GBP.JPG Size: 54 KB


And the chart does not give us a signal to get into the market with 1 min chart at indicated by you place..
Correct me if I'm wrong.
  • #4,631
  • Oct 16, 2012 9:11am Oct 16, 2012 9:11am
Quoting bisecom
Yes, you are right, that trader should start to check the market starting from higher time frame.
But in this case, your example is not correct because if we start to check at least 30M chart, we would have such picture:
Attachment

And the chart does not give us a signal to get into the market with 1 min chart at indicated by you place..
Correct me if I'm wrong.

Hi bisecom,

I'm not looking at the larger time frame charts to find an entry point. I am simply looking for larger D/S zones that may come soon.

In my GBPUSD trade, I went long at 1.6077 (entry from the 1-min chart) and I know that I should close this trade before the larger time frame Supply zone in the 1.6130 area.
  • #4,632
  • Oct 16, 2012 9:20am Oct 16, 2012 9:20am
Quoting EuroPipper
Hi bisecom,

I'm not looking at the larger time frame charts to find an entry point. I am simply looking for larger D/S zones that may come soon.

In my GBPUSD trade, I went long at 1.6077 (entry from the 1-min chart) and I know that I should close this trade before the larger time frame Supply zone in the 1.6130 area.
Thank you EuroPipper for your answer.
But I did not uinderstand you exactly - what did you mean - "looking for larger D/S zones"?
As for the GBP, did you determined the entry point at 1 min chart?
  • #4,633
  • Oct 16, 2012 9:28am Oct 16, 2012 9:28am
Quoting Kenneth Lee
When trading Asia , it is important to trade follow thru/ looking for continuation of the directions started by London and then the U.S.
It is normally a matter of just trying to finish a leg or move started from a level moving towards the next , on longer time frames . During the overlap or quite periods price will consolidate forming classic patterns pendants, flags and triangles. This are pretty reliable during these times and if played to continue the moves are good entry levels.

It still comes down to trading the S/D levels but maybe you...
Thank you, very well stated

I try and trade with the major trend when trading the Asian session as the results are definitely more reliable. Yes, I will admit, I occasionally take a counter trend ...But again for those having difficulty stay with the major trend for now...You can trade the more exotic stuff down the road.

Good trading to all

TSD
  • #4,634
  • Oct 16, 2012 9:31am Oct 16, 2012 9:31am
Quoting bisecom
Thank you EuroPipper for your answer.
But I did not uinderstand you exactly - what did you mean - "looking for larger D/S zones"?
As for the GBP, did you determined the entry point at 1 min chart?
Hi bisecom,

Yes, I entered based on a setup on the 1-min chart.

By looking at the 1-hour and 4-hour charts, I saw there was Supply in the 1.6130 area. Therefore, I knew that by buying at 1.6077, I had at least 40 to 50 pips of space for GBPUSD to go up before hitting some obstacles (larger time-frame Supply).

And actually, a Short GBPUSD at 1.6030 would have worked out well, so far (for 20 pips as we speak) :-)
  • #4,635
  • Oct 16, 2012 9:32am Oct 16, 2012 9:32am
Quoting C-12
So I went to the bathroom and came back and I was stopped out for BE.

I immediately saw the obvious rejection off the higher M30 level and got straight back in. Took my 6 pips and now we have a runner.

Can you see the importance of getting safe early by taking some pips and getting to BE?

There is no need to lose money at this guys.

.

Sweet !!

Like the move back in for a second opportunity. Many are not willing to take this type of second move .evn though it presents itelf... Well done sir !!!

TSD
  • #4,636
  • Oct 16, 2012 9:33am Oct 16, 2012 9:33am
Hi everyone,

Is anyone looking to get in long kiwi at this 4-hour level ? (chart attached).

Long NZDUSD at 0.8090 with a stop at 0.8070.

Comments welcome!

Cheers.
Attached Image (click to enlarge)
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  • #4,637
  • Oct 16, 2012 9:50am Oct 16, 2012 9:50am
Quoting EuroPipper
Hi bisecom,

Yes, I entered based on a setup on the 1-min chart.

By looking at the 1-hour and 4-hour charts, I saw there was Supply in the 1.6130 area. Therefore, I knew that by buying at 1.6077, I had at least 40 to 50 pips of space for GBPUSD to go up before hitting some obstacles (larger time-frame Supply).

And actually, a Short GBPUSD at 1.6030 would have worked out well, so far (for 20 pips as we speak) :-)
Dear EuroPipper, thanks for your comments.
Good trading!
  • #4,638
  • Oct 16, 2012 10:46am Oct 16, 2012 10:46am
Quoting C-12
One thing I must warn people trading the M1.

I don't like trading a larger time frame level like this off the M1 since you will often get a few false signals before the real move happens. Play these larger levels for what they are with appropriate stop & position size.

M1 trades should be played off levels found on the M1 but using the bigger picture as a guide.
This is very important information here for those who are thinking they are ready to move in this direction. I have discovered this as well ( although I did take a previous trade on the 1M of a higher TF level ).

A lot of trial and error finding this out.. ouch !!

Great stuff as always C-12

Good trading to all

TSD
  • #4,639
  • Oct 16, 2012 12:50pm Oct 16, 2012 12:50pm
Quoting TraderinSD
This is very important information here for those who are thinking they are ready to move in this direction. I have discovered this as well ( although I did take a previous trade on the 1M of a higher TF level ).

A lot of trial and error finding this out.. ouch !!
It can be very rewarding catching the exact top of a H1/H4 level on the M1 chart but it's a very risky business.

I've done it myself and got away with it before but I've also been burned a few times.

Best to stick with the low risk entries. Anything else is gambling!
  • #4,640
  • Oct 16, 2012 1:27pm Oct 16, 2012 1:27pm
Quoting C-12
It can be very rewarding catching the exact top of a H1/H4 level on the M1 chart but it's a very risky business.

I've done it myself and got away with it before but I've also been burned a few times.

Best to stick with the low risk entries. Anything else is gambling!
What would you say, which time frame or which setup offers you the most confident entry?

Do you enter with pending orders if a setup is "perfect" in your eyes or if you dont have time?

Would be nice if some of you could post some of the really no brainer setups...

What Im still having problems with is the following: I find good supply and demand levels and almost everytime they work out at least 15 pips , sometimes when reaching the small range zone before breaking out, sometimes at the end (this is usually not so good since i enter before the range)

So now Im having a hard time deciding either to take the 15pips and get out, or setting a Break Even level.

Break even is all nice and cool but lets see NZDUSD i entered short at 8188 (4pm europe time) yesterday, went down 15 pips, then up again and i got stopped out, after that it made a lot of pips... thats when im really getting frustated not to sticking to the initial stop los.

Other times the currency pair is just reaching the level, bouncing off and then shooting through, that happens a lot also, such EURJPY, thats when im happy having a BE level getting me out with + and not with -20pips

So either way I find it hard to decide whats best for my trade, would be nice if anyone could explain when and how to set BE for what setups
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