B.S. Trading with Kenneth Lee

Yes, I do look at volume..But out respect for KL's thread, which does not have volume as a component, I choose not to discuss this aspect of how I trade. Second , there are those who agree and those who do not. Given the many negative attitudes that can arise on FF ( if you have spent anytime on FF, you know what I mean ).. I do not and will not disrupt KL's thread and what he is trying to teach..

Please excuse my directness..

My trading rules are pretty much the same as KL's... If you have read any of my previous posts, you will see I will refer to something KL has mentioned previously in the thread, as it pertains to that particular trade.

In the post up above KL make reference to how each of us trades, a bit differently, looking at the same thing. The rules and concepts he teaches are the foundation I use....If one will take the time to learn these, one will have a very solid foundation is which to expand you personal trading if you chose to do so.

Learn from KL... Get that solid foundation... Watch Sam's Videos. ( over and over ) I just looked at one of the newer ones the other day.. very good.. I will rewatch several more times as I tend to pick up additional "peaces to the puzzle" along the way.


Good trading to all

TSD

This particular trade has a very interesting event ( INHO ) that I think is worth pointing out...When I get back this eve I will post what i am refereing to.



TSD

Hi tsd, totally agre with your answer. Do you mind posting sams video link? Thanks

You can all discuss anything you wish, I use Volume as well just not in the sense of any type indicator , But we should all know when the highest amount of orders are in the market, session opens and around and after news . So I expect any of my entries at those times to move pretty quick if they don't I feel I have maybe made a bit of a error and look for the cleanest exit.

On the opposite side when I know the amount of traders or volume is light between sessions I expect my trades to take a awhile to develop and try and have a bit of patience. I am sure this is not the same as VSA But it is all in the eye of the beholder. I try and keep everything extremely simple which I know drives some bonkers. But for each added piece to a puzzle it becomes harder to complete.

Cheers Ken

Here is the macro view of the previous level and trade I took on the previous post. The second chart shows circle #1 and circle #2. The first thing that is very apparent is the #1's move is stronger than #2.. This tells me, when I have levels stacked on levels, which one may ?? be the stronger of the two.

See how price came into #2's demand level. On the first touch price really did not come into this level with the aggressive move we like to see. Or did it??





See the volume spike below that lines up with the candle coming into the level. Now look at the volume bars preceding that spike ( there are 8 significantly lower ) Now look at the PA the is associated with each of these volume bars.. Do not make the mistake of looking at each as a single event.. Look at it in the context of the entire move of all the bars together. You can clearly see the Larger Players got active by pushing PA into the level. We see a bounce from the level...Now look how volume died on this bounce. This tells me that the move is not sustainable. PA eventually turns back down for a second entry on good volume. It had no real strength the first time. We have levels on levels ( KL speaks to this about taking the farthest level ) The turn was to quick for the second move.. And... I do not see clear PA rejection.. I also have a level just below me. Will pass to see if we get a push through to the next level..



Now lets look at the 4 candles coming into the lower level..3 of the 4 candle have good volume.. Even at this time during the session. If you move to a 1HR chart you will the preceding candle has good volume and the candle that touches has less volume as it touches our level. This tells me that there may not be any more preasure to the down side.. If you look at the 1HR you will see the preceding volume bars all with higher volume than the candle that touches the level.. Again ...Look at this within the context and not as a single event... The spread of the candles, the volume associated with them and the context of the overall move. One of the things I do is look at the different TF's. What I am looking for is context.. Volume vs PA = Clues to what may happen ???

This style of trading is not for everyone.. As KL stated.. it can get a bit complicated but it works for me..

Now lets look at how price rolled right back over into our demand level.. Looks familiar right ??? We have good volume coming into this level again..Some sort of clear PA would indicate a potential long?? We clearly have volume building into this level. What is it that we see.. An unusual amount of pin bars...Things that make you go mmmm??. Price reaches our level.. A solid pin bar into level on good volume.. Remember CONTEXT.. Price is trying to go down but it wont, Pin Bar.. Price is trying to go down but it wont, Pin Bar.. Price is trying to go down but it wont.. then we have clear rejection..Pin Bar

I did not take this trade but I would have.. If the PA indicates I will take a trade outside the level...

Lets go back and look at how price entered this area the first time .. 2/08/2013.. See how volume really come on strong... Who generates this kind of Tick Volume..?? The large players.....It is definitely not the retail Forex Trader that creates this.

Definition: Tick volume is measured in number of tick changes. ( price changes ) The theory is that price movements occur in relation to trading activity and therefore Tick Volume can provide insight into the intensity of a given price movement.


Just my take

TSD

couple of small scalps I just closed . Not sure they won't turn so took the combined 40 ish and going to bed . 40 pips is a good start to the 100 pip week. not sure i would let the one stop out at about 40 or so . but didn't have to find out . so all good

I don't trade these pairs a whole lot but they were the clearest this evening . Always take the best looking entries it will pay off. Also one played out at almost 2 to1 to the other so spreading your trades around between multiple pairs can pay off as well.

Cheers Ken

Here's how my trade set up. This is the relationship I look at between PA and Volume as the entire pattern unfolds. We got short a 2 lot at the close of the Pin Bar



This is getting a bit more specific with the types of volume, the relationship between volume and PA, and what is happening as price moves into Supply Level



PA picking up nicely and moving in our direction



I removed all the lines and text to show the next item in this trade. That of the stall level. What I am looking for is for price to break this level and then stay below.



Price did break this level and we had a good push short. PA then started to roll back possibly forming a pin bar. My plan was if price closes above the stall line, forming a pin bar, I will exit the trade..Basically a have a pin bar at a resistance level. Well????? I actually exit about 2 min before the close of the period.... Anticipating a pin bar...Not !!! Price shot right back down and closed well below the stall line.. But I had already exited....Got a little too cute...Will probably cost me....

Total pipage 38

Good trading to all

TSD

KL and TSD,

Thanks for these continued great posts. They contain a wealth of information. Seeing it again and again really does make it all clearer.
Take care

my EURJPY and USDJPY chart. I am using indicator that marks supply demand labels.please anybody tell me this labels correct?

From your pictures it looks like the indicator simply highlights the last swing highs/lows - do you think that's correct supply?

Hmm. U are right I also think this. Some times it not matches with keneth lee labels and also mine. Someone create this indicator for his own need according to samseiden formula .So thanks, I will delete this indicator from my chart.

I think the indicator points to levels that could be supply or demand. Look at these levels and think further as to whether they are areas of supply and demand. Your brain is much smarter than any indicator you just need to train it properly.

You could use a tool as this . I see it does do a bit of filtering. The red are fresh the purplish red have been hit before. Then if you apply odds enhancers to them you can filter them more. But in reality your only looking for a level in one direction normally unless ranging . Then it should be the next one . Just don't get to focused on one direction because of the pretty colored lines. Plus if this highlights every level if they are bunched up which do you take ? Anyway you look at it you have to make your own choices .. But you could apply the tool and save the pic, then look back later and see which ones were the winners. May give you some insight.

Cheers Ken

chart

Screen shot#1

You have the general idea with your chosen Supply Zones. I would recomend you go back and read KL's PDF and earlier post's this will help you tighten up your Supply Levels.. From there you can determine if you would like to continue using the indi to find you Levels?

There are two things happening here.
1) We are in a up trend but ???
2)the 4HR has made a swing with lower highs, lower lows. So basically we have a retrace ( at this point ) in the uptrend. Taking shorts at this stage brings a higher probability but ???? do not be overly aggressive on you targets.. Its not like when your trading with the trend.

TSD

Thanks for your good advice.I already read k.lees pdf and his earliar post's (1-100) two times.And still learning..

Great,

It would appear that the Indi gets you close but you will need to make some fine tuning adjustments per the method.. Basically you are looking to have the bottom of you Supply Level somewhere inside the canlde were price has left the area very aggressively.

For example the Supply level 126.674.. The Bottom of the Supply Level..See the candle that just precedes the large move short. Move the lower line of your area down from the Open to the Close of the smaller candle. Do the same for 126.113 and 125.707...

See the larger candle move...I mean the ones that really stand out, real obvious !!! This is the SM move price.. They are the only ones that can do this.. this is the activity we look for when determining level to draw.

TSD

chart

Very nice

TSD