iForex
Member
Member Since Jul 2009
60 Posts
Hi, Ken
Thanks for your helpful training and explaination. I learn a lot from you!
I feel 1/5 O’clock is the most difficult setup in EO’s fantastic setups. I have read some of your posts regarding 1/5 o’clock entry point with PA/ppA confirmation, that was excellent posts. And I also understand that 1/5 o’clock is not 100% working. But in the following picture, I have some questions.
1, Is the entry point when price is touching 5ema or 10 ema, or wait till that candle is closed?
The 1 and 5 O’oclock traded refer to the direction the MA’s are pointing in a uptrend towards the 1:00 on a clock face and in a downtrend 5:00 on a clock face. The trade can be taken off any of the MA’s but normally the faster ones. The 5 ,10,or 21 ema as these are the fastest to react to price movement. Remeber the M in MA standing for Moving So price and your Moving Averages are always struggling to come together.
When price breaks form consolidation the 5 ema starts after price the fisrt and the fastest as it has to wait the least because it’s price is from only the last 5 candle closes. And in a strong trend the closes are all near the ends of the candle.
So think of the small ema’s as the bigger the number the longer they have to wait at the starting line. Like in a rally race the 5 ema waits 5 seconds the 10 ema 10 seconds… Then the strength of the trend by how long the candles are and how far down the candle price closes no wicks as the accelerator how fast the MA’s will move.
So in real time you see in a fast break the MA’s turn and head in the direction of the price movement. If the price continues to move fast and the others follow as it conitnues the MA’s start to spread apart because the lower one’s got a head start and are moving fast.
This gives us our trading field. It is also why during a pullback why price will hit a 5 ema on one price movement and the 21 ema on another. I personally like the EMA’s to be pointing and seperated to take the trades. That gives me a better place to be able to place my stop behind the next MA.
2, why left side entry point is touching 10ema but right side 5ema? I mean when will we enter from touching 5ema and when 10ema.
The reason for taking the trade is as with all our trades a combination of factors. The trade itself is designed to let us get into a trend and not be left behind. Think a minute about what is happening in the beggining of a move price is moving from a consolidation area.
Within that area we could have traders thinking it would go short and others think it would go long. Once the price start moving one group will have to decide they were wrong. One by their stops being hit which effedts price and Two by reversing ordeers and changing direction. There maybe even another less exprienced group that are happy for the small gains and take profit.
All these factors effect the Price Action and they normally happen at areas you can see with Previous Price Action. They will be where price was held back during the consolidation period the grouping of candles we just moved from, it can be the last sessions high or low point. It could also be the high or low of the previous day and of course our main Support and Resistance areas.
So our job is first to see that it is retracing pulling back. Then while you price is moving back watch your price line to the left. When you see it starting to hit the tops or bottoms of the wicks of one of any of those areas get ready. That can be at any of the MA’s 5,10 or 21 even the 35 rarelly. When you see price start to turn and pullback in the direction of the trend this is your sign to enter.
But one thing to watch for if in it’s retrce a candle has CLOSED below one of the MA’s this could be a sign that we are starting to get a reversal in our trend. That is also why when trading towards the MA’s we take profit at the MA levels.
Your stop on a 1 and 5 O’oclok trade is the otherside of the next MA if they have a decent spread between them. If they are very tight I will use the Main MA’s the 35 or 50. But normally less than 15.
That is why this is a good trade the risk to reward can be very high if you get it right. Look at that post of Fridays trade 1:00 O’clock Entry. 15 pip risk for a 70 pip gain.
Your Profit Target is the same as if you entered the trade right of the bottom, Which is always a S/R area off ahigher time frame chart. And as seen by Fridays landed right on that Daily resistance area. Then PA started and we got a retracement. You could have taken partial profits then added back at the 35/50and 62 and 200 sma area. See with the bigger values and the longer delay they hadn’t had time to move very far and are all still bunched together. So that was vry strong area and if you had nice profits locked in and a stop placed even with the Noise (News) coming out may have been safe.
- in your mind, how much is 1/5 o’clock sucess percentage according to your experience? I ask this is because I have never got a sucessful 1/5 o’clock trading, although I can see a lot of chance when I review history.
I see a lot of comments and entries of 1 and 5 O’clock trades right at the curve of the extremes of price with no PPA confirmation. It is more just a entry because they feel they got left behind and are jumping on.
Most people see price move 30 ,40 or even 50 pips and they get anxious. The retracemnet or pullback that gives the 1 and 5 O’clock entry can also be 20,30,or 40 pips. So you can gain most of those back. But at anytime trying to force a trade is pointless and will cost you money in the long run, Better to wait for the price to turn back and get a little to late a entry on the 1 and 5 O’clock trades than to jump early and find yourself in a reversal trade the wrong way.
In my exprience if you follow the above criteria they are at least 90% the key is to see the PPA of a area if you can’t see a point where price has pushed through and is now on the otherside. I would be very carefull. Take the time everyday to go back on all the entries we have and look for what the others are seeing to enter trades safelly. Run your cross hairs across your chart and see the PPA in action this is the only way you will start to see it in real time. Then when you first start taking these trades go in with a minor $$ amount until your confident your picking them right. Then scale up your risk.
Good Luck Ken
Thanks
Good Trading To All ; Ken Lee
