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B.S. Trading with Kenneth Lee

  • #5,361
  • Apr 14, 2013 9:50pm Apr 14, 2013 9:50pm
Quoting Borg
Hello TraderinSD: For this April 11, 2013 AUDUSD setup I drew the supply levels that would mark the area that I would expect price to turn around in as price made its high at 23:20. The bottom of the area would be the 13:15 Hi and the top of the area the 11:10 Hi. Both places where price dropped away from rapidly. Is this correct ? Would you draw the supply area smaller or larger ? Thanks Borg {image}
You might want to consider using the BOX drawing tool to better show your levels. I am a bit confused about your areas?

Follow KL's lead when drawing areas. That would help in trying to determine how you are drawing your levels. KL's has a specific way he draws his levels. I would begin there as this will create consistency regarding levels.

I will hopefully be able to give you a better answer afterwards?

TSD
  • #5,362
  • Apr 14, 2013 9:54pm Apr 14, 2013 9:54pm
Closed the PO, price bounced 2pips before the entry, bugger. I might start entering a little earlier like Ken suggests..
  • #5,363
  • Apr 14, 2013 9:59pm Apr 14, 2013 9:59pm
Quoting TraderinSD
Welcome !.. You have come to the right place. TSD
Thanks..
  • #5,364
  • Apr 14, 2013 9:59pm Apr 14, 2013 9:59pm
Quoting Aussie-FX
Here's what i was looking at on 30min. Thoughts? {image}
The 0420 level.

All right..

1) What tells you this may a good level?

2) Why would you take a trade here?


TSD
  • #5,365
  • Apr 14, 2013 10:13pm Apr 14, 2013 10:13pm
Quoting TraderinSD
The 0420 level. All right.. 1) What tells you this may a good level? 2) Why would you take a trade here? TSD
Firstly i know its a riskier trade going against the the shorter trend, but:

- looking on the 1hr TF Its coming into a fresh demand level (actually a large swap level i think)
- Its come into a nice demand level on the 30min(i entered on 5min which is shown in the pic)
- and round number as well.

I really liked the look of the 5min demand level. I just think my lines were too tight?

Aussie
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  • #5,366
  • Apr 14, 2013 10:33pm Apr 14, 2013 10:33pm
Attached Image (click to enlarge)
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Larger 30M view for this 2 lot short

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Close up view on the 30M.. Solid PIN at Supply. This was the basis for my trade short once the market opened.

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So I missed the original entry so I stepped down in TF to see if I could find a smaller Supply level to get short. I was able do so at the arrow. The spread was a little tough but my TP was far enough out and the my SL could still be held at 10 pips. Sometimes a new "smaller" level will set up that will allow get into a trade. You will notice this PA will happen quite often.

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Price making it way to our TP

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5M View ...Price finally hit our TP.. Patience was definitely the call here and it paid off.

Total pipage 20 for each lot

TSD
  • #5,367
  • Apr 14, 2013 10:40pm Apr 14, 2013 10:40pm
Nice job TraderinSD!
  • #5,368
  • Apr 14, 2013 10:56pm Apr 14, 2013 10:56pm
Quoting Aussie-FX
Nice job TraderinSD!

thank you. .. just hope my charts can help others still finding their way with the SD method.


TSD
  • #5,369
  • Apr 14, 2013 11:16pm Apr 14, 2013 11:16pm
Quoting Aussie-FX
Firstly i know its a riskier trade going against the the shorter trend, but: - looking on the 1hr TF Its coming into a fresh demand level (actually a large swap level i think) - Its come into a nice demand level on the 30min(i entered on 5min which is shown in the pic) - and round number as well. I really liked the look of the 5min demand level. I just think my lines were too tight? Aussie {image}

You are still in the trade, yes?

TSD
  • #5,370
  • Apr 14, 2013 11:29pm Apr 14, 2013 11:29pm
Quoting TraderinSD
You are still in the trade, yes? TSD
Nah, I closed the PO after it bounced just before my level, wasn't gonna give it another shot R:R not there anymore. I've set a PO just above the gap on AUDUSD if it makes it there today? Do trade most pairs or have a favourite?

Aussie
  • #5,371
  • Edited Apr 15, 2013 12:08am Apr 14, 2013 11:46pm | Edited Apr 15, 2013 12:08am
Quoting Aussie-FX
Nah, I closed the PO after it bounced just before my level, wasn't gonna give it another shot R:R not there anymore. I've set a PO just above the gap on AUDUSD if it makes it there today? Do trade most pairs or have a favourite? Aussie
What was your PO number @ the 5M Demand Level?

I have been trading the Yen of late...Mostly the major 6.

TSD
  • #5,372
  • Apr 15, 2013 12:08am Apr 15, 2013 12:08am
Yeh the Yen has been a beauty the last week! The PO for above the gap on AUDUSD is at 1.04840, but have set an alert about 15 pips before it just to make sure the entry to the level is good enough and no demand levels just below! That's where I beleive the origin of that gap started from. First chart is 5min second is the 1min, it doesnt really look like a normal supply level, so i dont mean to confuse anyone. But i figure that thats the origin of the drop and i would expect there to be more sell orders there. What do you rekon?

Aussie
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  • #5,373
  • Apr 15, 2013 12:36am Apr 15, 2013 12:36am
Quoting Aussie-FX
Yeh the Yen has been a beauty the last week! The PO for above the gap on AUDUSD is at 1.04840, but have set an alert about 15 pips before it just to make sure the entry to the level is good enough and no demand levels just below! That's where I beleive the origin of that gap started from. First chart is 5min second is the 1min, it doesnt really look like a normal supply level, so i dont mean to confuse anyone. But i figure that thats the origin of the drop and i would expect there to be more sell orders there. What do you rekon? Aussie {image} {image}...
Interesting, I do not have a gap on my charts.. But I would make the same play.. This is also a S/R level .04840... Looking left you will see where price has stalled around this number .. A lot of resistance at .04840

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  • #5,374
  • Apr 15, 2013 12:47am Apr 15, 2013 12:47am
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This pair also shows how we can trade range.. whether it is a daily range or something less.. The principal is the same on all TF. When price is trading in range I like looking for Levels at the extremes.. My own Odds Enhancer

TSD
  • #5,375
  • Apr 15, 2013 2:27am Apr 15, 2013 2:27am
Quoting TraderinSD
Interesting, I do not have a gap on my charts.. But I would make the same play.. This is also a S/R level .04840... Looking left you will see where price has stalled around this number .. A lot of resistance at .04840 {image}
Oh cool, well Im glad we are looking at the same place.. Yeh on the 30min it was a demand area that had been tested twice, and if you can see on my charts price gapped through the entire demand level.

Aussie
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  • #5,376
  • Apr 15, 2013 2:29am Apr 15, 2013 2:29am
Quoting TraderinSD
{image} This pair also shows how we can trade range.. whether it is a daily range or something less.. The principal is the same on all TF. When price is trading in range I like looking for Levels at the extremes.. My own Odds Enhancer TSD
Nice! I didn't really notice that...
  • #5,377
  • Apr 15, 2013 10:23am Apr 15, 2013 10:23am
Quoting Aussie-FX
Nice! I didn't really notice that...
Probably should add a disclaimer to this last as I will take trades from the middle of the range at times. I tend to aggressive at times.

The basis for that is the " Magnet " as higher TF S/D levels tend to act like price magnets .. Price is drawn to these levels especially when you begin to see HL's for longs and LH for shorts inside the base....

As with all trading ideas nothing is absolute ... only probabilities.

TSD
  • #5,378
  • Apr 15, 2013 10:50am Apr 15, 2013 10:50am
Quoting TraderinSD
Probably should add a disclaimer to this last as I will take trades from the middle of the range at times. I tend to aggressive at times. The basis for that is the " Magnet " as higher TF S/D levels tend to act like price magnets .. Price is drawn to these levels especially when you begin to see HL's for longs and LH for shorts inside the base.... As with all trading ideas nothing is absolute ... only probabilities. TSD
Ok cool, so your looking for good s/d levels within the range once you start to see the HL's and LH's? Sounds like you know what your doing! Hows this Gold capitulation, really dragging the Aussie down hey. I've got Gold just coming off a weekly demand level but i dunno if this will hold?

Aussie
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  • #5,379
  • Apr 15, 2013 11:18am Apr 15, 2013 11:18am
Quoting Aussie-FX
Ok cool, so your looking for good s/d levels within the range once you start to see the HL's and LH's? Sounds like you know what your doing! Hows this Gold capitulation, really dragging the Aussie down hey. I've got Gold just coming off a weekly demand level but i dunno if this will hold? Aussie {image}
"Ok cool, so your looking for good s/d levels within the range once you start to see the HL's and LH's?"

Yes.. but there is more to the picture than just that.. They also are much higher risk trades and not for everyone.

If I may suggest: At this point I would stay with KL 's concepts. If you master this you will move your trading forward a good distance. Once you get a solid foundation with KL's method you may ?? at some point, create some ideas of your own.

Although it is not required as his method is solid as a stand alone. Trying to build a house without a good foundation will only crumble and in this business, its sooner than later.

TSD
  • #5,380
  • Apr 15, 2013 11:28am Apr 15, 2013 11:28am
Quoting TraderinSD
"Ok cool, so your looking for good s/d levels within the range once you start to see the HL's and LH's?" Yes.. but there is more to the picture than just that.. They also are much higher risk trades and not for everyone. If I may suggest: At this point I would stay with KL 's concepts. If you master this you will move your trading forward a good distance. Once you get a solid foundation with KL's method you may ?? at some point, create some ideas of your own. Although it is not required as his method is solid as a stand alone. Trying...
Cheers for the advice , yeh I realise the higher risks involved the closer you trade to equilibrium, there are certainly many opportunities you have just got to be very selective from my experience. Im planning on just stickin with S/D for a while, like you said get a good solid foundation then start looking to other areas If need be.

Aussie
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