B.S. Trading with Kenneth Lee

Another retest .. Pin Candle.. Good.. but not great volume..But still higher than previous volume over last 10 or so bars..

Will see??

PA broke support on High Volume..

Exited both positions for a total of 11 pips..each trade was a 2 lot

Yes... PA may turn back up...But management of the trade indicated exit based on this PA back below our stall point/support line.

Yes there will always be a lot of could of , should of, etc, etc...


Next trade

Good trading to all

TSD

I thought this might be helpful to some when one takes too much of a macro view. This can cause you to lose focus and make mistakes as I clearly did. Let me explain.

We clearly had a Demand area develop after our original entry. As you can see HL #1 hit this small Demand area and began to climb out toward the S/R line shown.

As stated in the post we clear this line and it appeared that Resistance turned Support. At that point in time I was thinking that this line should hold to continue the move up. I put my “Line in the sand " and....If we get a significant break of this line I would exit the trade. I did just that... this was clearly a mistake.

I saw the price break aggressively short relative to the preceding PA. I even took notice of the volume being much higher than the preceding (CONTEXT)...What I failed to see and realize “was that we had another small Demand area just below... I make reference to this (seeing these S/D Area and using them as a trade management tool) on a previous short trade a few days back... When these S/D level start to show like this is can really help you stay in the trade...( That is if you are paying ATTENTION I was not !! )

You could clearly see when the move was happening. There was a Demand #2...and ... Volume to support SM Buying into Demand #2. It didn't even break the Demand level...Rather just barely kissing on level... a common event.

With a little bit of patience...Staying focused on the method... Maintaining a macro view of the entire trade and PA...I would have not gotten caught in this 'Shake out “move from the S/R line... You can clearly see how PA validated this line previously... The volume spike (look at the context as this spike relates to the preceding volume) and Demand area already formed, (see how price moved away from this area creating a level on level) together, this should had given me a high degree of confidence to stay in the trade.

I didn't even wait for the second "smaller candle to form...” Volume low, small spread, at a demand Level = no supply “... sees how price turn right back around and short back up to our S/R line...

A lack of patience grasshopper ..

Lets open this up a little bit more, the origins of this move??
Go to the 30M Chart...Price had begun to trade out of it base (Drop-Base-Rise???) Pattern breaking a resistance area around the 92.47... Preceding PA was a series of HLs within the base. Now look at the Daily... See the 90.93 on Jan 30 2013... See how PA came back down on Feb 25 2013 into a Demand Area...The volume in this move was HIGHER that the preceding 6 months... (Again CONTEXT)... For me the pressure / the TREND ala KL is up... So when trading very small TF’s... Like the 1M... I always try and look for Patterns within Patterns... Trade with the trend…

For lack of better words I call these Magnet Trades... S/D levels tend (not always) to act like a Price Magnet... I'm sure I'm not the only one who has seen this type of PA... I just gave it that name so I have a reference point on my trade log.

Just my 2 pips

Good trading to all

TSD

Overview of short counter trend trade. We are trying to take the trade short out of the Base into Demand below.



We got short on an Up Thrust Low Volume on the 1M TF.. We were watching the 50% level on the Pin Bar to see if this level would hold.. It did... Price then rolled down the a support level.. Bounced and came back up to our 1M Supply Level.. PA had a narrow spread on High Volume.. Weakness.. We took our second short



Enduring some pain



Had a third swing up to our Supply Level.. Again we see narrow spread of candle on high volume at our supply level...( the importance is that these reaction of PA and Volume are happening at a level ) We still stay short.. Finally put my SL's .. 6 pips each.

We are still short .. PA still kind of struck..

will see

Solid move into our Supply Level...Now comes the time for patience.. SL's are in place ..Risk is already been defined...

Will see

Solid move short out of our Supply Level...Getting past the 93.28 level will be a good sign for follow through on the trade.. The 93.31 Demand was hit hard .. will see

PA rolled back up to a small Supply level indicated at an entry price..Price is holding ..

Patience

Since you've been watching the Dollar/Yen I thought I'd ask what you think about that small supply zone marked in red just above current PA. Something doesn't feel right about that one to me but I can't put my finger on it. Maybe it's because it's such a small move but relative to the base it qualifies with minimum 2R.

Edit: Or anybody else want to take a crack at it.

PA basically stuck inside the level at this point..

A bit more pain that I would like..

Both positions stopped out..Both position were 2 lots...


Good trading to all

TSD

I hope no one minds an off-topic post, but I got a kick driving past "Kenneth Lee House" over the weekend. Here: http://goo.gl/maps/sD3ww

Dear ken & all,
I'm bit struggling to find true supply & demand level. I was stopped out today twice in aus/usd trades. I found the 4hr. chart in downtrend (lower low n lower high) and entered short using supply level of 30min. but stopped out . Please check it & let me know if I'm missing something to find levels.
Thank you

Dear ken & all,
I'm bit struggling to find true supply & demand level. I was stopped out today twice in aus/usd trades. I found the 4hr. chart in downtrend (lower low n lower high) and entered short using supply level of 30min. but stopped out . Please check it & let me know if I'm missing something to find levels.
Thank you

I took that one too. I don't think there's a problem with picking the level though. Price did get pushed back at first.

S&D does not guarantee success. Sometimes we will have consecutive losses. That's the nature of trading

Dear all
Thank you kanzler and antaly for reply. I'm newbie and trying to learn forex trading using supply and demand level. What you guys think to long in yellow label of aus/usd ? Is this good level to buy or already used that level demand by long green candle's wick? Aus/usd 4 hr. chart look like change direction and going to touch another level 1.0260 level soon.

This is what I look, I'm not going to take the level since it's being tested. But if you're OK with second retest (which I normally won't do) you may take it.

Nailed the AU long with the asian session, News spike was the profit