Apparentlly the PDF is going to take some time … The text is a issue . I may have it downloaded to a website you can pull it off. We will see.
Until then here is a little more information on some different entries
EO; On the 35/50 reverse trade.
Volume in the market bro! Like the one that happend today during the US lunch time. The trend had been established to be a downward trend, she hit a nice low, 200sma on the h1 CIRCLE B and the 50sma on the h4 CIRCLE C. That sent her north to the 15m 35/50. Sellers started at the 21, 35/50, then bang she closed over the 35/50 and the 50sma was ontop,CIRCLE A sellers jumped on with drool and drove her back down. Those are your trend traders that jumped on her, their not the traders like Infinity, myself and others who went long from the bottom, they waited for the price, then pounced. The 35/50sma cross and reverse is excellent once the trend for the day has been defined like it had been for us from London. Will the cross and reverse work everytime, no, hell no, but it will once we come off a new high or new low.
Some of the trades most available during almost anytime of the day are the trades off the MA'S . Which we call the 1:00 and 5:00 oclock trades because the 5,10,or 21 ma point in the direction of that number on the clock face depending on the trend (up = 1:00 and down = 5:00 ). The problem I am having is entering straight awayagainst the current price action, So I have been looking for some type of confirmation to get in at the right place. I have been entering after it starts to move and can lose the majority of the pips available. This is the E/J because the cable is going sideways right now..
I will confirm the same is happening with it and post it later…
Here are the items I noticed to help us jump on the bus at the right time allowing us to take all the pips available… Plus using these your stops can be tight as your entering closer to the top.
Line A This is probablly the Best and should have been the easyest to enter…As we can see in the circled area. This area was major support and now is resistance. Entry is at the red arrow. I would enter once the price starts back down.
Lines B,C,D and F are pretty much the same. Almost all had a Green bullish candle prior to entry candle . This is what makes the entries so hard to take.
But they all stopped at a previous area that was minor support before. The price doesn’t break above and we have our MA’s as a signal . So once the next candle opens retest that support (now resistance ) and starts down is our entry signal. ( red arrows)
Depending on our risk our stops could be very tight 10 or less above the S/R area.
All the 5 trade were worth over 40 pips each. Some a lot more.
Now the rules…
Price aproaches the MA areas.
look left for previous S/R area minor 15 min, or major 1hr ,
Look for the canlde to stall at that area.
Enter on next candle when it turns back or if it heads in the right direction
straight off.
I hope this helps some… Now if I can only DO IT !!!
KENNETH lEE
Trade Inspiration Not Despiration . Member Since Nov 2008
1,718 Posts
Quote:
Originally Posted by jaddy
Hi, for the first support(Line A), what makes you so certain that the candle will break that support? Wouldn’t there be a higher chance that price will bounce from that support, instead of breaking it? =)
the idea was to show a retest of a break of that line. It wasn’t the best example… The main focus of that chart was showing how we have some Price Action confirmation for the rrest of the trades shown… I personally though start looking for a break of a line when it gets hit three or more times. It has been my exprience that the more they get bounced off the weaker they are…
Because there maybe orders stacked up there stopping the move but evertime the line is tested more of those orders are filled. Untill they are completed and then price can move past that area. For that reason personnelly I normally won’t take the third bounce off a line I will wait for the break of it… But remember this is a 15 min chart … So those test are close together.
Hope this helps… Ken
Another point, In consolidation like that. It is high probablitity that the price is going to continue down when it breaks like any pattern. such as a flag or pendant.
I have a question regarding the blind entry or PA entry on ema bounce.
When I saw some potential 5, 10, 21 ema entry, I am hesitate to entry the blind trade and suspect the trend might reverse . I only take the entry if the 15m bar testing the EMAs closed like a pinbar or doji, BEOB, BUOB(price action) then I have the confidence to go for it.
I miss a lot of good ema bounce entry because the testing 15min bar does not give me any price action.
How can you be sure some blind entry is going to work? Do you enter those ema bounce blind entry if there is some confluenced at that area?
I would love if you can show me some examples with reasoning.
Thanks!
PippingM
Another good question from the other thread…
At times when a big move has happened there will be what I call step trades. Price will start bouncing off the ma’s starting with the lower ones and then bounce off almost all of them in order in each following swing … This actually makes sense if you think about it the price is starting to slow then when it starts to turn it has to cross each ma first… I will try and post a example of this…
Yes it takes time to start seeing the entries, But with time it comes easier.
The most entries are probabbly the 1 and 5 oclock trades . Just like the last charts I posted. Also safer as with the trend the only easier trades to see are the 62 ema 1 Hr. touch trade. As you move along as I stated in the system all these entries actually flow from one into the next and you will start to see this…
Good luck and make sure you review the charts at the end of the day and week to see what you missed it is key to learning… it is hard to believe you aren’t seeing any of these entires back testing . They are everywhere. Like ants on sugar …LOL
Sorry I don’t have the time to explain what is full described in the thread, No wonder you can’t find any entries back testing you have no clue what to look for… You have to do your part …
I don’t know if any of you read the post I made this weekend but we had the perfect setup for the step trades on the gbp retracement this morning. Taking the three shorts was a possible 100 pips vereses 80 on the long from the bottom with no signal . Each ma 10 ,21 amd 35/50 were fib levels. Then your in the right way for the short . You take all the shorts because it can reverse at any level. Just something I saw.
Ken
PS the reason I am calling them step trades is because they are like 1 and 5 oclock trades but the ma’s are flat not pointing to the 1 or 5 . That happens in a strong trend like below the step trades off the 10 ema
This post is to say a big thank you to Ken, EO and all the others on this thread. I have had the best morning ever and its thanks to them, and also to show what can be achieved if you just keep on trying I have always been a scalper and today I was determined to stay in until I saw something on the 1 or 4hr charts to tell me otherwise (after covering of course).
GU chart, went in on the 6:45 am GMT bar, when the price bounced off the 35 and couldn’t close below the previous candle, came out when the 1hr candle couldn’t close above the previous and looked bearish. Exactly 100 pips.
EJ chart, went in on the 5:15am GMT bar when it bounced off the MA’s, I did cover myself pretty quickly because I was wary of it being underneath the 1hr 62 if it had bounced back hard I would have taken the profit, but it didn’t so I let it go. Took it out at the open of the 12 GMT bar, PA was starting to look bearish and hanging around a while. 117 pips.
GJ chart, went in at exactly the same time as the GU trade bounce off the 10MA. Came out for the same reasons and at the same time as the GU. 181 pips.
Then various bounces from the MA’s taking around 10 pips at a time, not sure of the PA, news etc, for a total of a further 56 pips. Grand total 454 pips!!
Considering this is the first time I have traded GBP/JPY live, I’d say it was a pretty good morning
So there you go Ken, your pupil is learning to hold onto trades
Only just now getting into this thread after seeing Kenneth refer to it in another thread. I am most definitely eager to read your finished PDF and learn this new strategy.
I previously helped Tymen complete his candlestick trading strategy into a PDF document; let me know if there’s anything I can do to help here.
Hey Ken great work bro. I can tell you really care, thats so rare these days.
As for your charts it is my favorite setup and also the safest. I always buy dips and sell rallies. Of course this can be dangerous without a plan and that is what the ma’s do they give you a plan by being floating s/r.
Its like James16 says if you learn price action reading charts becomes like reading a book. add the ma’s to the mix and you are unstoppable!!! I read luckylady’s post she has come along way huh?
I myself like so many others have an easier time closing a winner than a loser. Its exactly oposite of what we are supposed to do. The axiom being let your winners run and cut your losers short. I find myself giving losers room to “turn around” and locking in profits way to fast on my winners. ow well we all have room to grow especialy me
Ken really nice pdf so far!!! I just finished it. This material is so much better than any system you could buy. So anybody reading this who gets spammed constantly by affiliates shoveling crap down there inbox. just delete that and learn this method Im telling you it will make you a success!!! You will never need another system again.
