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B.S. Trading with Kenneth Lee

  • #5,301
  • Apr 10, 2013 3:44pm Apr 10, 2013 3:44pm
Quoting Borg
Hello TraderinSD: Thanks for the detailed reply with such excellent charts. You explain things very well. You must be a teacher in real life. I understand better the kind of set up you are suppose to look for. I was trying to do s/d inside of a base with no clear demand on too low a tf. I need to start at a higher tf like the 4 hour and work down just to the 30 min and 15 min. Is it possible to have large spread candles without high volume ? I thought that large spread candles were always were accompanied by high volume ? Also are there some pairs...
Hi Borg


Thanks for the detailed reply with such excellent charts. You explainthings very well. You must be a teacher in real life.

*** Nope…Just a guy who trades.

I understand better the kind of set up you are suppose to look for. I wastrying to do s/d inside of a base with no clear demand on too low a tf. I needto start at a higher tf like the 4 hour and work down just to the 30 min and 15min.

*** Yes.. This will be a much betterplace to start.

Is it possible to have large spread candles without high volume ? I thoughtthat large spread candles were always were accompanied by high volume ?

***No…You can have wide spread candles/bars( H-L ) on low volume. There is a lot more to the spread, the close, whetheryou are looking at Candles or Bars, volume bar "relative" to the preceding volume( it is the context that adds validity to tick volume IMHO ).


Also are there some pairs that this s/d pa method works better on than others?

***The EUR/USD and AUD/USD are the two Iwould stay with for starters.

I feel like going back in time and doing some serious studying of pricehistories with s/d. Any recommendations on a good pair or pairs to start with.

*** Again…The EUR/USD and AUD/USD are thetwo I would stay with for starters.


I would assume that the best time to trade is during the London, New Yorksessions. But what about the Asian session is it a no go for s/d?

***The trades I have posted on KL’sthread have all been from the Asian session. Yes the London and New York sessionhave the most volume and one could argue the majority of set ups.



KL’s has said in the past, he trades whenhe can, indicating there is opportunity at anytime. I trade the Asian session alot ( I like the Yen ) so there is opportunity there too.



Hope this helps

TSD








  • #5,302
  • Apr 10, 2013 3:54pm Apr 10, 2013 3:54pm
Quoting TraderinSD
....Also are there some pairs that this s/d pa method works better on than others? ***The EUR/USD and AUD/USD are the two Iwould stay with for starters. I feel like going back in time and doing some serious studying of pricehistories with s/d. Any recommendations on a good pair or pairs to start with. *** Again…The EUR/USD and AUD/USD are thetwo I would stay with for starters. ...
I have recently become a big fan of the USD/JPY.

Just don't start out looking at any of the crosses (a cross currency pair is one in which the USD is not included. i.e. EUR/JPY).
Without VSA, you're playing checkers while the Smart Money plays chess.
  • #5,303
  • Apr 10, 2013 11:29pm Apr 10, 2013 11:29pm
Quoting Borg
Hello TraderinSD: Thanks for the detailed reply with such excellent charts. You explain things very well. You must be a teacher in real life. I understand better the kind of set up you are suppose to look for. I was trying to do s/d inside of a base with no clear demand on too low a tf. I need to start at a higher tf like the 4 hour and work down just to the 30 min and 15 min. Is it possible to have large spread candles without high volume ? I thought that large spread candles were always were accompanied by high volume ? Also are there some pairs...
Hi Borg,

Here is an example to your question;

Is it possible to have large spread candles without high volume ? I thought that large spread candles were always were accompanied by high volume ?

Attached Image (click to enlarge)
Click to Enlarge Name: CHF #1.JPG Size: 107 KB


See the wide spread candle marked. Now look at the volume associated with it.. Lower volume.

Now look at the preceding wide spread down candle. Look at the corresponding volume bar. Ultra high volume...See the difference?

Now look at the following wide spread candle.. It has ultra high volume

TSD
  • #5,304
  • Apr 10, 2013 11:31pm Apr 10, 2013 11:31pm
Quoting HiddenGap
I have recently become a big fan of the USD/JPY. Just don't start out looking at any of the crosses (a cross currency pair is one in which the USD is not included. i.e. EUR/JPY).

I would agree HG


TSD
  • #5,305
  • Apr 11, 2013 12:01am Apr 11, 2013 12:01am
Quoting HiddenGap
I have recently become a big fan of the USD/JPY. Just don't start out looking at any of the crosses (a cross currency pair is one in which the USD is not included. i.e. EUR/JPY).
Hello HiddenGap:

I'll take a serious look at the EUR/JPY pair, thanks.

And is there a good description of how to use Volume Spread Analysis (VSA) to trade some where, or is TraderinSD's method of using wide spread candles and high volume the same thing ?

Borg
May the Forex be with you.
  • #5,306
  • Apr 11, 2013 12:05am Apr 11, 2013 12:05am
Quoting TraderinSD
Hi Borg, Here is an example to your question; Is it possible to have large spread candles without high volume ? I thought that large spread candles were always were accompanied by high volume ? {image} See the wide spread candle marked. Now look at the volume associated with it.. Lower volume. Now look at the preceding wide spread down candle. Look at the corresponding volume bar. Ultra high volume...See the difference? Now look at the following wide spread candle.. It has ultra high volume TSD
Hello TraderinSD

Wide spread candles on low volume is certainly counter intuitive to me, but I see what you mean. Just a hole in the s/d levels I guess. So they s/b ignored when analysing price action.

Thanks for the recommendation on the pairs EUR/USD and AUD/USD and the Asian session. The AUD/USD has had some great moves recently.

Borg
May the Forex be with you.
  • #5,307
  • Apr 11, 2013 12:32am Apr 11, 2013 12:32am
Quoting Borg
Hello TraderinSD Wide spread candles on low volume is certainly counter intuitive to me, but I see what you mean. Just a hole in the s/d levels I guess. So they s/b ignored when analysing price action. Thanks for the recommendation on the pairs EUR/USD and AUD/USD and the Asian session. The AUD/USD has had some great moves recently. Borg

If I may make a recommendation..

Keep it simple staring out..Follow KL's lead on the 30m and maybe the 15M.. Don't get too wrapped up with VSA or Volume at this stage.. Better that you learn a solid foundation of S/D trading before moving into other areas. This will serve you well in the long run.

Just a suggestion

TSD
  • #5,308
  • Apr 11, 2013 2:47am Apr 11, 2013 2:47am
Hi guys,

I posted for the firs time a few weeks ago but had some urgent personal matter I had to deal with, all good now, and back to my trading desk. I just want to share a trade I am in this morning in Europe on the DAX. Short from area of supply 7820/7845. The index has recently been rejected off weekly supply, and looks like it may potentially have further room to fall until 7740, where a demand produced yesterday will be faced. It makes for a potential 3:1 RR.

Thoughts?
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  • #5,309
  • Apr 11, 2013 2:58am Apr 11, 2013 2:58am
Here is another trade where I have set pending orders to go short or long on the EUR/USD, depending on how price evolves. If price resumes the upside towards 1.3140 I will be shorting as long as no more demands are produced above current price as I usually aim to get min 2:1 until moving to break even. The long trade idea is still floating around in the scenario that the Euro fall from current prices. Longs at 1.2932/15 demand would be interesting too.

I want to thank KL, TraderinSD and the rest for all the support you provide in this trading community!
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  • #5,310
  • Apr 11, 2013 3:58am Apr 11, 2013 3:58am
Quoting IvanFX
Hi guys, I posted for the firs time a few weeks ago but had some urgent personal matter I had to deal with, all good now, and back to my trading desk. I just want to share a trade I am in this morning in Europe on the DAX. Short from area of supply 7820/7845. The index has recently been rejected off weekly supply, and looks like it may potentially have further room to fall until 7740, where a demand produced yesterday will be faced. It makes for a potential 3:1 RR. Thoughts? {image}
It turned out not to work this time. Full loss.
  • #5,311
  • Apr 11, 2013 12:13pm Apr 11, 2013 12:13pm
Quoting TraderinSD
If I may make a recommendation.. Keep it simple staring out..Follow KL's lead on the 30m and maybe the 15M.. Don't get too wrapped up with VSA or Volume at this stage.. Better that you learn a solid foundation of S/D trading before moving into other areas. This will serve you well in the long run. Just a suggestion TSD
Good advice.

Thanks

Borg
May the Forex be with you.
  • #5,312
  • Apr 11, 2013 12:23pm Apr 11, 2013 12:23pm
Question to the pro.....

What do you guy's do when price is going sideway

Entry to go short done when price do reach a supply zone and had create a setup. Target is at a lower demand zone. At the moment, price is stalled with a small profit in my favor

How do you handle that situation. Since when price is in a thight range, it could bouce on either side

Any info, point of view or advise appreciate

Martin
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  • #5,313
  • Apr 11, 2013 10:41pm Apr 11, 2013 10:41pm
We are short 2 lots for CT scalp trade.

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  • #5,314
  • Apr 11, 2013 10:46pm Apr 11, 2013 10:46pm
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  • #5,315
  • Apr 11, 2013 10:52pm Apr 11, 2013 10:52pm
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  • #5,316
  • Apr 11, 2013 10:56pm Apr 11, 2013 10:56pm
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  • #5,317
  • Apr 11, 2013 11:01pm Apr 11, 2013 11:01pm
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  • #5,318
  • Apr 11, 2013 11:09pm Apr 11, 2013 11:09pm
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The white line is at a Drop-Base-Drop pattern. Basically a line in the sand for a retrace if price moves back up. we would like to see it hold. we are getting HL's at this point.. Will see?

TSD
  • #5,319
  • Apr 11, 2013 11:12pm Apr 11, 2013 11:12pm
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Price has tested our area.
  • #5,320
  • Apr 11, 2013 11:24pm Apr 11, 2013 11:24pm
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Our area has held.. Volume would indicate no desire to take price up. Look at the down move prior to the retrace..The relative volume is much higher.. The retrace back up has much weaker volume..Price should continue short...??
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