The Captains Chest - Naked Trading & Other Stuff

[rewand]

hI Rewand
This is what i see
The red line were level2 was build ,was invalidated by the push up past the redline to 2a.
Therefore we start again with the second push downwards.
Hope this helps?
Rozmer

Thanks, but I did expect price to push through, to build level 2 on H4 on the way up. So invalidation comes from the pushthrough or it comes from the fact that we got into a short cycle now on the second day (let see how it ends)?

[MikeB]

Guys, I do not usually, but I did screw up things on the GU pair.
Anyone has an idea what is going on with that pair? Can the first dip on 12th october considered a SH? This is the idea I am struggling with. If yes, then we are 2nd day down. But I am not sure how to interpret that one.

Just an observation. If it goes back down to the trend line I'd take a long off of 15M pa with a tight sl.

[rewand]

Are they so much different?

[MikeB]

Are they so much different?

Not at all. I think the top of the wedge will be the 4hr PH, then back down to the trend line. I'm not a barf expert but it sure looks like the lead-in to a breakout coming.

[tradeitforex]

2017-10-19_11-48-30.png

its not about the lenght of the push but rather the push itself + liquidity areas where trapping patterns emerges.

[TraderJoeForex]

I have redrawn EG again!

Not sure if there will be a sudden move up to finish today or whether a weekend gap or early next week. I have my TP where I think price will pause before push to H and then next week will drop back down to I.

It took a while this week but got there in the end. Even though my A-K was not very accurate this time last week the direction was still right and banked some nice profit from this.

The pattern looks clearer now (ignoring the SH past C) and waiting for next move now down from F to G to get long again.

[TraderJoeForex]

...waiting for next move now down from F to G to get long again.

F-G played out quickly. Ready to buy again early next week G to H...

[TraderJoeForex]

What I am thinking is it would be helpful to have a set a "rules" to go alongside this A-K pattern because although the information is already provided it is not all in one place. And drawing this pattern at first appears to be somewhat subjective but I think if we are clear on the rules that should not be the case.

What I am going to attempt once I have this nailed down is to clarify what these rules might be and post them so that those smarter than me can check and/or try and disprove and if this can result in a set of instructions that can be applied to each drawing that cannot be disproven then I think that may be helpful?

RULE 1?

Chart should be fully zoomed out on the timeframe you are looking at and price will either be somewhere on the A-K pattern or have broken out from it.

I have started using HA candles as the pattern appears clearer to me zoomed out this way but this is just a preference. Perhaps line chart would be a good option too?

[TraderJoeForex]

Just to clarify I am not suggesting that my interpretation is the only way to approach this.. far from it but I am looking to pin down one method of being able to accurately identify this pattern on any chart that anyone can see and agree with given the same set of rules.

[TraderJoeForex]

RULE 2?

There must be 3 pushes prior to the first m or w that leads into A

in this example note the earlier w after the second push between levels 1 and 2 that could be misleading at that point.