The Captains Chest - Naked Trading & Other Stuff

[TraderJoeForex]

This chart always frustrated me. It is one peace of the puzzle that I can't find its place.

TraderJoe now that you showed it reversed I saw two W's quite clear where I never properly saw M's in the original image.

What else should I look for? levels at lower timeframes from point A to B, B to C etc..

Should I look for levels and M's and W's in these areas but on lower timeframes?

I'm sorry if this is a silly question.

I always have the feeling that I'm really close but far at the same time.. if that makes sense.

Cheers.

To be honest all you need is this image and an understanding of areas of interest around previous peak highs and lows.

This image or it's reverse is a level formation from which price will breakout one way or the other depending on where in the overall market cycle it is and you will see this formation on every timeframe.

Often it is quite hard to differentiate between the original and it's reverse because the fox does it's best to disguise and mislead.

Price can also approach the formation (original or reverse) from either direction so really there are four possible formations not just these two.

It is important to look at all the details carefully as the formation plays out to see all the clues. Combine this information with where price is relative to it's most recent peak high or low and what happened around this area previously.

You can trade within this formation once you know where you are and you can trade the breakouts from it.

Here is another example using EURGBP today. Can you identify which formation we are in and at what point and why I have gone long?

[Shoddy]

Ok, it looks like you are trading long because you are at point E in the charts you posted earlier, we just saw a lot of folks getting their shorts triggered or long SL's triggered, now we want to get all the new longs or short SL.

/R

This chart always frustrated me. It is one peace of the puzzle that I can't find its place.

TraderJoe now that you showed it reversed I saw two W's quite clear where I never properly saw M's in the original image.

What else should I look for? levels at lower timeframes from point A to B, B to C etc..

Should I look for levels and M's and W's in these areas but on lower timeframes?

I'm sorry if this is a silly question.

I always have the feeling that I'm really close but far at the same time.. if that makes sense.

Cheers.

To be honest all you need is this image and an understanding of areas of interest around previous peak highs and lows.

This image or it's reverse is a level formation from which price will breakout one way or the other depending on where in the overall market cycle it is and you will see this formation on every timeframe.

Often it is quite hard to differentiate between the original and it's reverse because the fox does it's best to disguise and mislead.

Price can also approach the formation (original or reverse) from either direction so really there are four possible formations not just these two.

It is important to look at all the details carefully as the formation plays out to see all the clues. Combine this information with where price is relative to it's most recent peak high or low and what happened around this area previously.

You can trade within this formation once you know where you are and you can trade the breakouts from it.

Here is another example using EURGBP today. Can you identify which formation we are in and at what point and why I have gone long?

[TraderJoeForex]

Ok, it looks like you are trading long because you are at point E in the charts you posted earlier, we just saw a lot of folks getting their shorts triggered or long SL's triggered, now we want to get all the new longs or short SL.

/R

[TraderJoeForex]

Now here is another one approaching the same point E going the other way. This chart alone can pay for everyone's Christmas

[Shoddy]

You lost me this time, I don't have a terminal handy so can't look up the full chart, will do that later, but could you please please mark up this chart how you see it, just this example, seems a little upside down for me.
But do you mean that the last 2 peaks were something like B and D and the small consolidation we're at now is E and we're looking for price to drop to entice shorts to jump aboard? We also sell here as price will drop a bit down to F. I don't know the overall direction though. Totally wrong?

Now here is another one approaching the same point E going the other way. This chart alone can pay for everyone's Christmas

[TraderJoeForex]

You lost me this time, I don't have a terminal handy so can't look up the full chart, will do that later, but could you please please mark up this chart how you see it, just this example, seems a little upside down for me.
But do you mean that the last 2 peaks were something like B and D and the small consolidation we're at now is E and we're looking for price to drop to entice shorts to jump aboard? We also sell here as price will drop a bit down to F. I don't know the overall direction though. Totally wrong?

OK here goes.. what's confusing is the amount of price action between D and E but filter out the noise and the formation is quite clear. What's important is the relationship between B and E also A and F.

F and H may well test lower than A going as far as the next level down but the blue line is the area where I would be looking to TP for those legs as this is support line from A.

Remember the formation in the image is only one example and no two formations are exactly the same. There will always be noise somewhere and the whole formation can be at an upward or downward angle etc.

[TraderJoeForex]

Here is XAUUSD following on from Monday's trade which reached TP around position F today. I am waiting for a drop back to G around the blue line area and then get back in long for G-H

[monty]

OK here goes.. what's confusing is the amount of price action between D and E but filter out the noise and the formation is quite clear. What's important is the relationship between B and E also A and F.

F and H may well test lower than A going as far as the next level down but the blue line is the area where I would be looking to TP for those legs as this is support line from A.

Remember the formation in the image is only one example and no two formations are exactly the same. There will always be noise somewhere and the whole formation can be at an upward or downward angle etc.

TJF.
Thank you for your comprehensive Analysis of this USD/CAD chart.
I'll be fowling it with eager interest. AS I for one is in the group of those whom finds it a bit difficult and titleist to fully understand this pattern . :hi: :hi:

[TraderJoeForex]

TJF.
Thank you for your comprehensive Analysis of this USD/CAD chart.
I'll be fowling it with eager interest. AS I for one is in the group of those whom finds it a bit difficult and titleist to fully understand this pattern . :hi: :hi:

Cheers. I'm no expert, just applying what I have learnt in this thread and it takes time.

Another thing that has definately helped is zooming out on monthly chart for every pair and then saving the screenshot of each chart or better still print out every single one and put them above your trading desk. No matter which pair and which timeframe you are looking at the price action will also be found somewhere on one of those monthly charts and then you have a good idea what may happen next.

[MikeB]

Thanks TraderJoe! You've renewed my interest in this pattern. I traded this pretty heavy a few months ago with some success but got burned when the breakout of K went the opposite direction of the lead in to point A vs. a continuation. Have you experienced that? or maybe I was seeing an A-K that wasn't there.
Edit: Maybe I should just stick to trading between the points.