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B.S. Trading with Kenneth Lee

  • #6,021
  • Jan 22, 2014 1:21pm Jan 22, 2014 1:21pm
Quoting TraderinSD
They tend to fool ya when they can. TSD
Maybe try fooling em' back using a 10 % cushion ??
  • #6,022
  • Jan 22, 2014 1:27pm Jan 22, 2014 1:27pm
Quoting Lou
{quote} Maybe try fooling em' back using a 10 % cushion ??

Always difficult not to chase those trades as you know what they did. Then sometimes the'll fool ya again .. turn it back up, take price deeper inot the level .. ala KL..then take it back down.. Gotta move the inventory.
  • #6,023
  • Jan 22, 2014 11:19pm Jan 22, 2014 11:19pm
Here's a 15 minute supply level coming up on the Dow futures.

Dow Futures (YM) Futures 15 Minute Chart
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  • #6,024
  • Jan 23, 2014 5:56am Jan 23, 2014 5:56am
This one worked out well. My target was hit for 2 to 1. Nice clean entry.
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  • #6,025
  • Jan 23, 2014 10:11pm Jan 23, 2014 10:11pm
There is a nice 1 hour EUR/USD demand zone on the 1 hour chart that I have my eye on at the 1.3645 area. I don't know if price is going to retrace down there, but if it does, I'm interested in buying.

EUR/USD 1 HOUR CHART
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  • #6,026
  • Jan 25, 2014 4:25pm Jan 25, 2014 4:25pm
Here's something I'm watching on the EUR/AUD - a potential counter-trend setup.

A look at the Daily chart shows price is in an extended uptrend.

EUR/AUD DAILY CHART (current)
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However, price has actually hit a key daily supply level. To see this you'll need to scroll back in time to 2/4/10. See chart below.

EUR/AUD DAILY CHART (scrolled back)
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Also notice how the top of the supply zone was a perfect flip of previous support becoming resistance.

Going down to the 1 hour chart a potential setup is materializing.

EUR/AUD 1 HOUR CHART
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Depending on how the markets open tomorrow, I may take a stab at selling into this 1 hour supply zone.
  • #6,027
  • Jan 26, 2014 6:51pm Jan 26, 2014 6:51pm
There was a great trade on the GBP/JPY today. Unfortunately I missed it.

Sometimes its the less obvious hidden levels that pay the most.

See the 1 hour demand level that formed on 12/18/13?

GBP/JPY 1 Hour Chart (scrolled back)
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Price came back to the level today and look what happened.

GBP/JPY 1 Hour Chart
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  • #6,028
  • Jan 27, 2014 4:01am Jan 27, 2014 4:01am
Quoting Jeff A.
There was a great trade on the GBP/JPY today. Unfortunately I missed it. Sometimes its the less obvious hidden levels that pay the most. See the 1 hour demand level that formed on 12/18/13? GBP/JPY 1 Hour Chart (scrolled back) {image} Price came back to the level today and look what happened. GBP/JPY 1 Hour Chart {image}
excellent analysis. Do you also look where the s/d zones are on higher time frames?
  • #6,029
  • Jan 27, 2014 8:21pm Jan 27, 2014 8:21pm
Quoting Gxp1
{quote} excellent analysis. Do you also look where the s/d zones are on higher time frames?
Yes, the higher timeframes are important to me. I try to stay in alignment with the higher timeframe. An example would be the EUR/AUD example that I posted the other day. Unfortunately my limit order was missed by just a handful of pips and price ultimately took off without me in the trade.
  • #6,030
  • Jan 29, 2014 3:26am Jan 29, 2014 3:26am
couple of trades from yesterday and this am . I tend to get in a bit early sometimes which can give a bit of stress as the stop still has to be beyond the level. In both trades a bit better entry could have been had , But the first 39 pip trade (green ) would have missed by a couple of pips. These are the decisions we all must make for ourselves wait for the perfect ones are take a bit of a risk. But by adjusting your trade size the risk also can be equal.
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Good Trading To All ; Ken Lee
  • #6,031
  • Jan 29, 2014 3:48am Jan 29, 2014 3:48am
Here are the actual levels drawn on the chart. I tend to enter to soon most times. So my risk to reward is skewed and my trading style won't fit some that are very technical and disciplined. I tend to trade a bit wild, But the levels are always there and that is the line draw in the sand at all times . I may enter at a swap line and at times that does get me into a trade that would be missed . Some times price turns very soon before a major level. I tend to believe this is due a lot to retail traders not wanting to miss the chance as myself. But in many of those cases patience will get you a better entry as the big boys will wait for the TRUE level and come in with force.

This is how we gauge what type of trade we are in a shorter take the money and run trade , Or a massive spike or wick away from the edge of a level that changes direction in one candle . That we may want to hold a while. The combination of classic ideologies, Like the swap line , a supply level, and the 61.8 fib lead me to hold for the 80 pips over night.
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Good Trading To All ; Ken Lee
  • #6,032
  • Jan 29, 2014 10:01am Jan 29, 2014 10:01am
Ken,

Great to see you posting again.
  • #6,033
  • Jan 29, 2014 4:27pm Jan 29, 2014 4:27pm
Quoting Lou
Ken, Great to see you posting again.

I second.... GREAT stuff.............................
  • #6,034
  • Jan 29, 2014 8:53pm Jan 29, 2014 8:53pm
Here's a 15 minute level on the USD/JPY that I'm watching.

USD/JPY 15 MINUTE CHART
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Click to Enlarge Name: $USDJPY (15 Min) 1_29_2014.jpg Size: 98 KB
  • #6,035
  • Jan 29, 2014 9:27pm Jan 29, 2014 9:27pm
Here's another one I'm currently watching.

The CAD/JPY broke what I consider to be a significant support level today on the Daily chart.

CAD/JPY DAILY CHART
Attached Image (click to enlarge)
Click to Enlarge Name: $CADJPY (Daily) 2_18_2013 - 1_30_2014.jpg Size: 100 KB


Going down to the 1 hour chart we can see the supply level that formed when price broke support. I'm looking to sell on a retracement into this supply level. You may notice that I drew my level just around the upper wick of the candle (not the body). Sometimes I just try to use my own intuition and common sense when drawing the zones.

The bottom of the zone also happens to line up perfectly with the 50% Fib.

CAD/JPY 1 HOUR CHART
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  • #6,036
  • Jan 30, 2014 9:24am Jan 30, 2014 9:24am
Hi Jeff

Time to sell

i already sold Cad/Yen at 92.02 and i have another pending order just below 92.50 let see, later also some JPY news.
Trade with the momentum
  • #6,037
  • Jan 31, 2014 1:59am Jan 31, 2014 1:59am
Quoting Kenneth Lee
Here are the actual levels drawn on the chart. I tend to enter to soon most times. So my risk to reward is skewed and my trading style won't fit some that are very technical and disciplined. I tend to trade a bit wild, But the levels are always there and that is the line draw in the sand at all times . I may enter at a swap line and at times that does get me into a trade that would be missed . Some times price turns very soon before a major level. I tend to believe this is due a lot to retail traders not wanting to miss the chance as myself. But...
Hello Ken:

Thanks for the great AUD/JPY trade explanations in posts 6,030 and 6031. It looks like you went long on 1-28-2014 9:00. Exited that trade 1-28-2014 17:00 and then immediately went short on that same bar and then exited that short 1-29-2014 6:00. This was over a span of about 21 hours.

My question is how do you keep track of your positions through out the day and still get some sleep ?

Thank You

Borg
May the Forex be with you.
  • #6,038
  • Feb 1, 2014 3:18pm Feb 1, 2014 3:18pm
The CAD/CHF is clearly in a downtrend. However, a look at the daily chart shows that a retracement may be underway.

CAD/CHF DAILY CHART
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You can't tell from looking at the current view of the daily chart, but the potential retracement is coming at an area of Daily demand that formed in September 2011.

CAD/CHF DAILY CHART (scrolled back to September 2011)
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Now down to the 1 hour chart we see a H1 demand level form. I'm looking to buy at the level. It's counter-trend so I'll take profits before the next supply level. However, it may be worth holding a little of the position in case we do see an actual reversal.

CAD/CHF 1 HOUR CHART
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  • #6,039
  • Edited 1:51pm Feb 3, 2014 1:29pm | Edited 1:51pm
Hi Ken.
I just started to read this journal from page 1. Very good explanations and nice charts. I started trading sd levels a few months ago, seems to go better but have to improve to become consistent. Need to find a simple way of trading without overthinking and get paranoid every time.
  • #6,040
  • Feb 4, 2014 5:20am Feb 4, 2014 5:20am
I have a question, maybe somewhere here there is already the answer, so forgive me i'm reading this thread from start:

If a level forms when reacting to another level and makes a good move with strong momentum from it, should we consider it as a new fresh level or a non-fresh level because it reacted to another?

Look at this chart below: there were a few reaction to a supply on the left, then price dropped from a rally-base-drop formed in the level with good momentum and breaking support levels. Is it a new fresh level or only a reaction? I know this isn't the best example, but just for ask the concept.

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