B.S. Trading with Kenneth Lee

Hi!

Hi everyone, I hope to contribute soon with my graphics, thank you for all that has been done and said and all those who carry out this fundamental trading system simply, see you soon

nice thread

Hi Kenneth,

Great books by the way

You mention in your book one of the odds enhancers is that once price moves away we want to see price move away for a long time. How is this measured for example if you are on a 5 min or 15 min chart what is consider a long time away. Number of candles?

Bump.

After watching countless hours of supply demand videos and reading countless forums.. I have come to realize Its basicly support and resistance.. And if your area's match up with historical area's of support and resistance your odds increase. Also How many times have you taken a drop base rally just to have price overshoot and stop you by 5 pips... then reverse? Its because its support and resistance NOT supply and demand. Sometimes supply and demand will work, other times Not so much...
I define support and resistance as any level that had Held price below or above in the past. Tons of good youtube on support/resistance.

The two are very close.. But I kinda think the supply /demand theory by sam seiden is a little bit flawed.. But it does have some really good clues in it.. such as odds enhancers.
If your struggling with sup/dem try support/resistance instead. Might make a world of difference..

if sup/dem is working for you.. Great! No need to change something that works.. We all connect with price action differently as independent thinkers and there Is no right or wrong.

PS. Kenmeth Lee is a good guy.. learn from him.. I been following him since EO's thread, before he started this one.

Hey BP

I would define the difference as Supply Demand - is the "Why"... Let me explain.. As price returns to an area of Support / Resistance and then reacts... lets use Support for this example.. Price then bounces off Support and begins to Move long.. the question is "Why".. The standard answer was because of Support.. But not all Support is create equal // so to speak. Price, in this area of Support, move away very significantly. In order to move a market significantly ( FOREX ) you need the SM to be involved. There are many areas of Support / Resistance but only certain ones present higher grade opportunities to trade and be profitable. Just trading Support / Resistance by itself does not put present to opportunities that Supply/ Demand present. Again its the "Why" .. Why did price react ??

Yes, sometimes price will move farther into a level.. SM's looking for more inventory .. Especially if it a obvious Support / Resistance level.. All those orders waiting for go short just under traditional Support.. Only to see the SM'd take price long...They just snatched all those shorts.. Do they do this .. Of course.. They know there are orders to go short under obvious Support.. You would do the exact same thing if you were the Smart Money.

The is a reason for first touch, second touch, so on... At some point the order for longs against support run out.. Or Demand dries up using S/D terminology. Price moves through and many time come right back to the Support turned Resistance which creates a Shorting opportunity or this may be a swap are in a smaller TF that os part of the price travel moving short to the next Supply level in a higher TF ( most often the case )

If you look at this from a Accumulation / Distribution knowing the Makers are to taking the other side of the market..it is a very effective way to to make profit. Add to that they have DEEP POCKET and can effectively move price... "Why" would you not be selling everyone is buying of buying when everyone is selling.. It like real estate...You should be buying at levels when everyone is selling.. And if you know the market will turn.. You can sell on the way up as all these buyer start coming in needing to catch this move.

It happens over and over and over...every day !!

Support and Resistance is the " Where" for me.. These areas create place to watch, stall points when price is approaching .. Places to take profit .. But I am always looking at the next Supply/Demand Area... Whether it be in the same TF I am trading or a different TF...

I do not discount Support and Resistance.. but I do look at S/D vs S/R in different aspects.

Always and interesting discussion.

Good trading

TSD

Hi Bp.
when price took off from support,it took off becouse ....? becouse of the line you've drawn on your chart or becouse for a lot of people it make sense buy at that level (that probably has an historical relevance), so becouse there is an imbalance between supply and demand ?
A lot of people think supply/demand trading is a sort of "system" that could be traded in a sort of mechanical way, like you spot a demand area, you mark it in your chart with your rectangle instrument and you buy when price revisit that area, and viceversa with the supply area, same with s/R, As you said this could work sometimes, most of the time it will not.
What you should actually do, instead, is use S/D as a filter to understand what's going on on a chart. Price don't fall from a supply area becouse of the rectangle you have drawed on your chart, and don't fall from a resistence becouse of the line that you use to mark a resistance. It falls becouse in that area there is an imbalance between S/D, imbalace created by how a level is perceived by investors.
Just my humble opinion

Loving it KL. Only 20 pages in but I'm already experimenting with positive results.

Thanks friend Ken. GB.

EUR/NZD 30M.

Look at the way this just drops. A clear run down. Beautiful. 3rd touch so not an ideal supply level, but it obviously still has a lot of sell orders there. P.S. My entry is poor and could've got a better RR but 2.5:1 ain't bad and new to the method.

Indeed friend Ken. The way is clear.

Trading the Asian session LIVE

Trading the Asian session LIVE - Cont>

Trading the Asian session LIVE - Cont>



We have consistent Higher Lows. Old Supply has been hit twice so we should see a break to the up side. New Supply holding a present..

Will see??

Trading the Asian session LIVE - Cont>



Price attempting to break Supply

Trading the Asian session LIVE - Cont>




Price at a Resistance Level.. 124.026.. Price should fade into Supply creating a Flip Area

Trading the Asian session LIVE - Cont>



High relative volume at Resistance. It will take some patience getting through this area

Trading the Asian session LIVE - Cont>




Appears our Flip Area at Supply with break and Close above Resistance, on very good volume, is holding. We should continuation at what is now Support.

Trading the Asian session LIVE - Cont>




Some would call this area coming up as Supply.. Does not really look like Supply but does look like anther Resistance Level.. for me there is a difference. we are still seeing Higher Lows with shallow Retracements.

Patience

Trading the Asian session LIVE - Cont>



Removed a lot of the clutter.. at this stage it makes it easier to manage.. A bit simpler. Price retraced back down to a new Supply Level and we had a nice bounce so far. It will most likely take a little time for price to trade through these levels in orange. Still achieving higher lows with good volume to the upside.