B.S. Trading with Kenneth Lee
- #5,582
- May 1, 2013 2:09am May 1, 2013 2:09am
with this Daily U/J chart i should be looking for a buy signal on the lower time frame right( is it a good zone) i did buy on the lower time frame based on this some day ago my stop got hit with a very massive selling candle that latter closed with a long sell wick 
want to know if i did the right thing, how i could have done it better and also if it was a good zone to trade of as i am looknig for long trade base on the daily chart
All market movement are as a result of supply and demand
- #5,583
- May 1, 2013 2:25am May 1, 2013 2:25am
- Joined Oct 2008 | Status: Just be the witness. | 1,089 Posts
I love TraderinSD`s charts - and his succession of charts on multiple time frames has the highest educational value.
I would even read them on an Ipad, sitting in the back of a Riksha in the middle of a rush hour in Mumbai....
Please leave him alone, this thread is wonderful.
Greetings to Ken.
Mike
I would even read them on an Ipad, sitting in the back of a Riksha in the middle of a rush hour in Mumbai....
Please leave him alone, this thread is wonderful.
Greetings to Ken.
Mike
Be like water.
- #5,585
- May 1, 2013 7:48am May 1, 2013 7:48am
- Joined Dec 2012 | Status: On Life's Path | 2,076 Posts
I love TraderinSD`s charts - and his succession of charts on multiple time frames has the highest educational value. I would even read them on an Ipad, sitting in the back of a Riksha in the middle of a rush hour in Mumbai....
Love the detailed explanation & charts.
Thanks TSD, Ken & traders for the lessons!
- #5,586
- May 1, 2013 9:43am May 1, 2013 9:43am
- Joined Feb 2011 | Status: Probabilities, Not Absolutes | 1,246 Posts
Jesus christ. I think one chart will suffice.
.... You can always turn the channel.
TSD
- #5,588
- May 1, 2013 8:21pm May 1, 2013 8:21pm
- Joined Aug 2009 | Status: Reading the TAPE | 2,389 Posts
Without VSA, you're playing checkers while the Smart Money plays chess.
- #5,589
- May 2, 2013 12:29am May 2, 2013 12:29am
- Joined Feb 2011 | Status: Probabilities, Not Absolutes | 1,246 Posts
Went long a 2 lot
Step down to the 5M to see what was happening as we lost momentum
Exited the long and went short on the Swap of the 5M
This is a very aggressive trade. We are trading inside a 60M Demand level. As you can see my TP is just below the 60M Demand. So why take this type of trade. see how price entered the level .. not the best.. Actually rather crummy so a reverse on the Swap appears to be the trade??
TSD
- #5,590
- May 2, 2013 12:30am May 2, 2013 12:30am
- Joined Feb 2011 | Status: Probabilities, Not Absolutes | 1,246 Posts
Price moving in our direction
- #5,591
- Edited 9:13am May 2, 2013 1:01am | Edited 9:13am
- Joined Feb 2011 | Status: Probabilities, Not Absolutes | 1,246 Posts
Price came back up and closed above my line in the sand..Nice while it lasted.. So we scratched the trade for a 8 pip profit..
The point in all this: You can get in anywhere.. You can get out anywhere... It's how you manage your trades IN BETWEEN that will make a big difference in your bottom line..
As you can see I tend to be aggressive. But in doing so one must manage your trades appropriately..Not every trade is a winner. Not every trade will hit the desired TP...It's what you do in the middle that can make the difference for you. IMHO
This is one of the reason i tend to look at multiple TF's .. both higher and lower ( mostly lower ).. It what I call a look inside my trade. As you can see the same patterns happen it all TF. When trading smaller TF you have to adjust to TP's .. This is scalping.. Do not get greedy...Patience is always required but understanding how price is moving, various levels that our out in front of you...
Sometimes I will catch a strong move. Other times I have to scratch for a small gain, or take my lumps on a loss.
Probabilities not absolutes
Your best place to start:
Please read the KL's PDF's.. When you are done.. Please read it again.. When you are done, watch Sam's videos..All of them
When you are done re watch them again.. Here is the link : http://www.fxstreet.com/search/contr...1-e9bf77216d2fThere are video's going back to 2007
This will give you a very solid foundation to learn from. IT WILL MAKE LEARNING THIS STYLE OF TRADING MUCH EASIER. You simply have to do your homework.
This journey they call trading requires patience and persistence.
TSD
- #5,592
- May 2, 2013 9:24pm May 2, 2013 9:24pm
- Joined Feb 2011 | Status: Probabilities, Not Absolutes | 1,246 Posts
He is a potion of an article that Sam Seiden had written back in Feb 2012.. Here is the link to the entire article:
http://www.moneyshow.com/trading/art...s-on-a-Chart/#
Shortly after that breakout and failure of supply level 2, price reaches supply level 1. Most people would ignore this level because it only has a few candles in it; it’s hardly even noticeable. They would also ignore it because conventional technical analysis conditions people to ignore these levels (which is good for us).
Ask yourself why price could only spend such a short amount of time at that level. The answer is because supply and demand were out-of-balance in a very big way. If supply and demand were not so out-of-balance at that level 1, price would have spent more time at level 1.
Given that price spent so little time at that level, we conclude that there is a big imbalance and sell short when price retraces back up to that supply level (circled area on chart).
When you do sell short at supply level 1, like I promote so often in the articles, you’re selling to a buyer who thinks this market is worth buying at that price level. Maybe that buyer read the trading books and ignored that supply level because the books say it’s not a key level due to such little activity.
Hope this helps
TSD
http://www.moneyshow.com/trading/art...s-on-a-Chart/#
Shortly after that breakout and failure of supply level 2, price reaches supply level 1. Most people would ignore this level because it only has a few candles in it; it’s hardly even noticeable. They would also ignore it because conventional technical analysis conditions people to ignore these levels (which is good for us).
Ask yourself why price could only spend such a short amount of time at that level. The answer is because supply and demand were out-of-balance in a very big way. If supply and demand were not so out-of-balance at that level 1, price would have spent more time at level 1.
Given that price spent so little time at that level, we conclude that there is a big imbalance and sell short when price retraces back up to that supply level (circled area on chart).
When you do sell short at supply level 1, like I promote so often in the articles, you’re selling to a buyer who thinks this market is worth buying at that price level. Maybe that buyer read the trading books and ignored that supply level because the books say it’s not a key level due to such little activity.
Hope this helps
TSD
- #5,593
- May 3, 2013 1:22pm May 3, 2013 1:22pm
- Joined Nov 2008 | Status: Trade Inspiration Not Despiration . | 4,827 Posts
Good Trading To All ; Ken Lee
- #5,594
- May 3, 2013 3:29pm May 3, 2013 3:29pm
- Joined Feb 2011 | Status: Probabilities, Not Absolutes | 1,246 Posts
Thank you Ken for your insight on this chart. I thought this might be a good example to why ( not an absolute ) a level will fail and why another will hold. Looking at what both Ken and Sam have written about the above chart, should give many who are having difficulty, a better understanding of what to look for.
Here is another observation regarding what KL had stated sometime back. See how price entered Level 2..KL stated in this recent post about " using up Demand ".. This is the visual representation of that.
KL had talked about how price should come into a level .. then move back way ( in this case short ) from Level 1. Price did not do this in this chart.. It hung around, meandering side ways " using up demand ".. Then went long again.
So let's say you had a Pending Order at level 2 to go short.. ( there are other reasons not to per Sam ).But for this exercise will say you did .. Price enters the level...price stalls out. does not go anywhere..meanders..Maybe, juuuuust MAYBE
it's time to exit the trade.. WHY? Price did not move back out of the level aggressively. But you're ok with that because you have sound money management in place..You know what to expect from price at the level...You also notice another level ( level 1 ) above you..You cut you loss QUICKLY.. knowing that PA is now "using up Demand".. ala KL
You have Preserved Your Capital and now have another opportunity ( above ) to go short.
Additionally : Notice how PA creates the Rise-Base-Rise as it moves from below level 2 into level 1. On a larger TF that would appear to be a move aggressive move into Level 1 ( Odds enhancer ).. Hence the reason why I tend to look at different TF so I might ?? be able to see a better picture of what is happening.
Hope this helps
TSD
Here is another observation regarding what KL had stated sometime back. See how price entered Level 2..KL stated in this recent post about " using up Demand ".. This is the visual representation of that.
KL had talked about how price should come into a level .. then move back way ( in this case short ) from Level 1. Price did not do this in this chart.. It hung around, meandering side ways " using up demand ".. Then went long again.
So let's say you had a Pending Order at level 2 to go short.. ( there are other reasons not to per Sam ).But for this exercise will say you did .. Price enters the level...price stalls out. does not go anywhere..meanders..Maybe, juuuuust MAYBE
it's time to exit the trade.. WHY? Price did not move back out of the level aggressively. But you're ok with that because you have sound money management in place..You know what to expect from price at the level...You also notice another level ( level 1 ) above you..You cut you loss QUICKLY.. knowing that PA is now "using up Demand".. ala KL You have Preserved Your Capital and now have another opportunity ( above ) to go short.
Additionally : Notice how PA creates the Rise-Base-Rise as it moves from below level 2 into level 1. On a larger TF that would appear to be a move aggressive move into Level 1 ( Odds enhancer ).. Hence the reason why I tend to look at different TF so I might ?? be able to see a better picture of what is happening.
Hope this helps
TSD
- #5,595
- May 3, 2013 4:57pm May 3, 2013 4:57pm
- Joined Aug 2009 | Status: Reading the TAPE | 2,389 Posts
..... So let's say you had a Pending Order at level 2 to go short.. ( there are other reasons not to per Sam ).But for this exercise will say you did .. Price enters the level...price stalls out. does not go anywhere..meanders..Maybe, juuuuust MAYBE
Without VSA, you're playing checkers while the Smart Money plays chess.
- #5,596
- May 3, 2013 5:37pm May 3, 2013 5:37pm
- Joined Feb 2011 | Status: Probabilities, Not Absolutes | 1,246 Posts
{quote} Whilst there are reasons not to place an order at level 2, Sam also talks about the idea of a levels on top of levels. Here only a partial position would be taken at level 2. If price continued higher to level 1, the rest of the postion would be entered at that time. Personally, I don't like the idea of ever adding to a losing positon, but there are some who are comfortable doing it. Understaning money managment, risk/reward and position sizing while not sexy does matter.
As with all trading .. " Understaning money managment, risk/reward and position sizing while not sexy does matter." Well stated Hidden Gap. Sadly, so many seem to lose this idea somewhere along the way.
Your input is always appreciated!
TSD
- #5,597
- May 3, 2013 6:37pm May 3, 2013 6:37pm
- Joined Mar 2009 | Status: Trader | 1,310 Posts
The purpose of knowledge is action, not knowledge
