B.S. Trading with Kenneth Lee | Page 297 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

Day Trading vs. Swing Trading vs. Position Trading 86 replies

Attachments: B.S. Trading with Kenneth Lee
Exit Attachments

B.S. Trading with Kenneth Lee

  • #5,921
  • Jul 24, 2013 8:22am Jul 24, 2013 8:22am
Quoting IFxRobot
{quote} Hi all, First thanks for sharing that. I am a newbie and i was looking for a more realistic professionnal view of what the forex is. You opened my eyes : this is supply / demand ! I must learn all that ideas. I feel the supply/demand zones can be described with some graph tree (nodes, arcs, forest), with probably connected forests between currency pairs. Most common example : The price is falling, making a bounce at support one, the second "wave" is falling again (with lower high than previous one) at the support zone then the support...

Hi IFxRobot..

With all due respect you are making this way to complicated.Yes there are those who will create algo's for purposes of trading.. and that's fine. They have chosen to walk a different path. SD, on the other hand, is a visual representation of what the Smart Money is doing, not a mathematical structure in its cleanest form. The math comes in play when determining position size, stops, profit target...otherwise it remains a pattern observation. As mentioned previously, seeing the pattern, how and why it develops is the foundation for trading SD. I think?? what you mean by " the equilibrium point " is a Supply/Demand Level...you are essentially correct. It either makes the bounce or it does not. There are ways of determining higher probabilities ( confluence ) but in the end, no absolutes. In the end it is a pattern that consistently repeats itself. Our job is to recognize and capitalize upon this repeating pattern. As long as you are able to see this pattern you will be able to take advantage of it. Why??? because you know what is behind the move. What has created this pattern. You will also discover that when price returns to these levels ( use the odds enhancers - this will help you greatly ) you have opportunity. Managing the trade is the most difficult. Why?? We can get in anywhere, we can get out anywhere. It is what we do in the middle that defines whether we are profitable or not. No so much science as it is an art form. Seeing the players/traders visually represented on a chart. How price is moving between Supply and Demand. Spend enough time with SD and you will see how price moves in all time frames that same way. You will also discover that you are able to trade effectively in both trending ad ranging markets. Very few methods allow you to do this.


TSD
  • #5,922
  • Jul 24, 2013 10:30am Jul 24, 2013 10:30am
Quoting TraderinSD
{quote} Hi IFxRobot.. With all due respect you are making this way to complicated.Yes there are those who will create algo's for purposes of trading.. and that's fine. They have chosen to walk a different path. SD, on the other hand, is a visual representation of what the Smart Money is doing, not a mathematical structure in its cleanest form. The math comes in play when determining position size, stops, profit target...otherwise it remains a pattern observation. As mentioned previously, seeing the pattern, how and why it develops is the foundation...
Thanks for your advises !
  • #5,923
  • Jul 26, 2013 1:37pm Jul 26, 2013 1:37pm
Hello fellow supply and demand traders!

I've created a 30 minutes video that explains in a very clear and straight forward manner how to combine the use of the automatic supply and demand indicator by Insanities Industries, and the rectangle extender indicator I've created.

Both indicators are available to download from the first post of my thread.

I will show you how the rectangle extender indicator will help you on your topdown analysis, you will no longer see the trees but the forest when you are in lower timeframes. At any moment in time you will know how close or far you are from Daily and Weekly supply and demand areas.

Why do we need to know that?
Because if we're too close to higher timeframe's supply in control, we don't want to buy on demand levels. If we are too close to D1 or Weekely demand, we don't want to buy. We can only know that if we know where we are at any moment, the rectangle extender indicator will help you.

It's a great tool that combined with the automatic supply and demand indicator, will help you become a better trader and be aware of where the institution's smart money is lurking to trade the markets.

Enjoy the video! I hope that you like the way this combination can do to improve your trading.

Inserted Video
Set and Forget supply and demand trading community
  • #5,924
  • Jul 29, 2013 7:37am Jul 29, 2013 7:37am
oz trade
Attached Image (click to enlarge)
Click to Enlarge Name: 14 AUDUSD.png Size: 33 KB
  • #5,925
  • Jul 29, 2013 9:51pm Jul 29, 2013 9:51pm
Attached Image (click to enlarge)
Click to Enlarge Name: JPY Short Set Up 7.29 #3.JPG Size: 85 KB


Scalp...Larger TF of the pattern. For me this is what I call a SD Magnet Trade. Simply price in the pattern of Drop-Base-Rise acts like a Magnet drawing price back to the major / higher TF.

Attached Image (click to enlarge)
Click to Enlarge Name: JPY Long Scalp 7.29.JPG Size: 100 KB


We got long with 2 positions. As this is a scalp trade we get in where there is opportunity. As long as the position size is correct to my equity being exact in not that important. Don't get me wrong it is always nice to get the entry inside the Level but the more important is the risk as it relates to entry and level.

Attached Image (click to enlarge)
Click to Enlarge Name: JPY Long Scalp 7.29 #2.JPG Size: 95 KB


Approaching our first TP.. R/R 3:1

Attached Image (click to enlarge)
Click to Enlarge Name: JPY Long Scalp 7.29 #3.JPG Size: 88 KB


First TP hit for 15 pips.

More to follow

TSD
  • #5,926
  • Jul 29, 2013 9:55pm Jul 29, 2013 9:55pm
Attached Image (click to enlarge)
Click to Enlarge Name: JPY Long Scalp 7.29 #4.JPG Size: 91 KB


Price has returned to the intermediate level several times... We are looking for a push into the higher TF Supply to take our profit on the second leg.

SL on the second leg is 5 pips. Will see?

TSD
  • #5,927
  • Jul 29, 2013 10:01pm Jul 29, 2013 10:01pm
Attached Image (click to enlarge)
Click to Enlarge Name: JPY Long Scalp 7.29 #5.JPG Size: 93 KB


Taking a little pain but will see ?.. Patience


TSD
  • #5,928
  • Jul 29, 2013 10:13pm Jul 29, 2013 10:13pm
Attached Image (click to enlarge)
Click to Enlarge Name: JPY Long Scalp 7.29 #6.JPG Size: 83 KB


Stopped out for 5 pips

Total pipage for both positions 10 pips..

This is scalping so will take what we can get.

TSD
  • #5,929
  • Jul 30, 2013 4:00pm Jul 30, 2013 4:00pm
Hi. TraderinSD please can u post more chart on higher time frame like 4hrs and daily. I'm impressed by ur analysis. I'm new to SD. It actually suits my style of trading. Please post more when u find any.
  • #5,930
  • Jul 30, 2013 8:30pm Jul 30, 2013 8:30pm
Quoting Freshchange
Hi. TraderinSD please can u post more chart on higher time frame like 4hrs and daily. I'm impressed by ur analysis. I'm new to SD. It actually suits my style of trading. Please post more when u find any.

Hello Freshchange

I would but I really do not trade the higher TF on a regular basis.. 30M is about as high a TF as I get.. 90% are 15M or less.

TSD
  • #5,931
  • Jul 31, 2013 4:22am Jul 31, 2013 4:22am
But I quess u look at higher time frame to knw the general direction before drilling down to lower frames to make your entry?
  • #5,932
  • Jul 31, 2013 11:08pm Jul 31, 2013 11:08pm
Yes, always use multiple timeframe analysis in order to know where you are in the big picture.
You need not only see the trees but the forest, that is, look at the higher timeframes as well as the lower timeframes.

Make always a topdown analysis from the Monthly to the Daily to see what your bigger picture is and make your decisions on the lower timeframes.
The lower the timeframe you decide upon, the more difficult trading becomes (number of levels and indecisions).

You decide which type of trader you want to be and take action.
Hope that helps.
Alfonso

Quoting Freshchange
But I quess u look at higher time frame to knw the general direction before drilling down to lower frames to make your entry?
Set and Forget supply and demand trading community
  • #5,933
  • Aug 1, 2013 12:39pm Aug 1, 2013 12:39pm
Thanks panoramia! I do appreciate your comment. I just discovered that 30mins and 1hr are always good to make an entry Whn trading the SD. 4hrs gives candle formation confirmation. Please comment on this.
  • #5,934
  • Aug 2, 2013 6:26am Aug 2, 2013 6:26am
Panoramia if I may ask what amount of pips do you average and how long do your trades last an hour or two or are we talking days?
  • #5,935
  • Aug 10, 2013 6:41pm Aug 10, 2013 6:41pm
EuroUSD midterm outlook

We have hit an significant supply level on the 1.34 level this Friday. I do not see any relatively strong fresh demand levels until all the way down to 1.283. Potential reversal of 525 pips in this pair if my analysis stand correct. Cheers.
Attached Image (click to enlarge)
Click to Enlarge Name: Euro.jpg Size: 154 KB
Trade what you see, not what you think!
  • #5,936
  • Aug 11, 2013 4:25am Aug 11, 2013 4:25am
I had located that D1 supply area and I am already short on EURUSD, on the first brand new H1 supply area within the D1 non-fresh supply.
Alfonso

Quoting OMGtrader
EuroUSD midterm outlook We have hit an significant supply level on the 1.34 level this Friday. I do not see any relatively strong fresh demand levels until all the way down to 1.283. Potential reversal of 525 pips in this pair if my analysis stand correct. Cheers. {image}
Attached Image(s) (click to enlarge)
Click to Enlarge Name: Screenshot1.png Size: 254 KB
Click to Enlarge Name: Screenshot2.png Size: 43 KB
Set and Forget supply and demand trading community
  • #5,937
  • Aug 11, 2013 9:52am Aug 11, 2013 9:52am
Quoting OMGtrader
EuroUSD midterm outlook We have hit an significant supply level on the 1.34 level this Friday. I do not see any relatively strong fresh demand levels until all the way down to 1.283. Potential reversal of 525 pips in this pair if my analysis stand correct. Cheers. {image}
Take a look at the one hour chart where price is currently struggling against well defined demand as well as the four hour again - there's a demand level that is still fresh starting at 1.3226. Price got close but didn't penetrate the area. I actually had a pretty long discussion with some other traders about the scenario right now on EU and we came to the consensus that the EU is probably going to push higher than this cap before it reverses, based on some daily chart evidence. I won't spill all the beans here but you should take a look at some of the moves there as to why this probably won't go too far.
  • #5,938
  • Aug 13, 2013 7:30am Aug 13, 2013 7:30am
EURUSD short hit my target. Entry was on confirmation (see the original post below): brand new H1 supply area (now green because it's non-fresh after my entry). Area was like 17 pips risk, almost 8% benefit. Trade has more potential to keep on dropping but I didn't want to be greedy.

I could have moved SL above the previous supply area, but I'm happy with it.
Alfonso

Attached Image (click to enlarge)
Click to Enlarge Name: Screenshot1.png Size: 61 KB


Quoting panoramia
I had located that D1 supply area and I am already short on EURUSD, on the first brand new H1 supply area within the D1 non-fresh supply. Alfonso {quote} {image} {image}
Set and Forget supply and demand trading community
  • #5,939
  • Aug 14, 2013 8:43pm Aug 14, 2013 8:43pm
Attached Image (click to enlarge)
Click to Enlarge Name: EUR 8.13 #1.JPG Size: 91 KB

1HR view for this trade SD Range Trade set up. Price has move into a small range.

Attached Image (click to enlarge)
Click to Enlarge Name: EUR 8.13 #2.JPG Size: 78 KB

30M view. Price is drawn to overhead supply.

Attached Image (click to enlarge)
Click to Enlarge Name: EUR 8.13 #3.JPG Size: 88 KB

15M view of Demand and Supply. See how price has touch this Demand Level which also happens to be the lower end of the Range. It is also the only clear Demand Level visible with in the Pattern.

Attached Image (click to enlarge)
Click to Enlarge Name: EUR 8.13 #4.JPG Size: 97 KB

Stepping down into the 1M TF. This is why I call this a SD Range Trade as I am trading the Demand Level very near the lower side of the range. We also see 2 high volume candle that have touched our Demand Level. Smart Money trading aggressively into this level. Look at the context of the volume on these 2 candles to the preceding DOWN candles prior to this level. Significantly higher...I look at volume in 2 ways..1) What happens at the level. 2) The preceding Volume within the context of the overall previous price movement. Slippage was a bit of an issue but, R/R was still right for this set up, so we are a go to take.

Attached Image (click to enlarge)
Click to Enlarge Name: EUR 8.13 #5.JPG Size: 94 KB

Price took off long and we hit our first TP. 1st position had a 4 pips Sl with a 8 pip TP .. 2:1 R/R

Attached Image (click to enlarge)
Click to Enlarge Name: EUR 8.13 #6.JPG Size: 78 KB

Price continued move aggressively to our 2nd TP. 2nd posistion had a 4 pip SL with a16 pips TP .. 4:1 R/R

Even though these are scalp trades, we are managing our positions the same as you would manage a trade in the higher TF.. Proper R/R is still the rule. Your trade equity will determine proper position size.

Total pipage 24 pips with total SL of 8 pips..A 3:1 R/R was the average for the 2 positions.


TSD
  • #5,940
  • Aug 14, 2013 11:14pm Aug 14, 2013 11:14pm
Quoting panoramia
EURUSD short hit my target. Entry was on confirmation (see the original post below): brand new H1 supply area (now green because it's non-fresh after my entry). Area was like 17 pips risk, almost 8% benefit. Trade has more potential to keep on dropping but I didn't want to be greedy. I could have moved SL above the previous supply area, but I'm happy with it. Alfonso {image} {quote}
Nicely executed. That hourly level is very weak though. I'd be interested in your definition of a supply zone given its weakness. Perhaps more legitimate on a lower time frame such as the M15. Thanks
0 traders viewing now