The Captains Chest - Naked Trading & Other Stuff

[pips400]

Okay, the answer to this question may help me process what's being taught here.

Part of my confusion is how bulls and bears and pulled into the abattoir for the kill. I am probably totally wrong here, but I'm reading here that bulls are captured when prices reaches a certain high, and bears caught when price drops to a certain level. In my limited understanding, doesn't it depend upon whether the trader is aggressive or conservative? For instance, I personally wouldn't trade long when price reaches a certain high, rather I'd wait for the breakout, price to test the new support level before moving higher still. On confirmation price bouncing from the new support (previous resistance) would be the ideal entry, and in this case wouldn't get caught by the fox - or is that what I'm supposed to think? without the breakout, aren't we range trading waiting for the reversal RRT or other candle formation (doji's, pinbar, evening star etc)?

So if the fox is enticing buyers to trade by manipulating price to reach a certain level, then IMHO I would expect both buyers and sellers to enter at the same point, so in the case the conservative trader (i.e. the one who waits for confirmation) would win or at least not enter into the trade, the aggressive trader would get caught and then stopped out, and the range trader would benefit because they were operating within the band and not outside.

Help anyone? I'm still confused

Pips400

[Captain Jack]

could this be a potential setup forming ?? long shorts trapped in the formation ?

Yes, both are trapped in the wedge. If more longs are trapped, price will drop, if more shorts are trapped, price will rise. Games will be played before it's resolved to try and get as many traders out of their positions, on the side that price favors.

CJ

[BritShrtHair]

think we just saw the pin on EURJPY ?

[Geges]

think we just saw the pin on EURJPY ?

I'm loving this

[mjws00]

EURJPY has played out a little more. Here is a pretty picture.

[mjws00]

Remember the swiss whom I love? Here is how their stress free trade worked out based on my rookie fox analysis. 9 pips drawdown (late NY isn't a great time to place trades.) We printed a perfect M up top to get out. A Pro like CJ could sell the top of that second pin in his sleep I bet. One day perhaps.

Now for the ironic twist Only demo trade I took all week. LOL didn't trust rookie foxy glasses.

Who cares. I still love these swiss folks. They do fine fine work.

Mike

[pips400]

I post again in danger of being a nuisance, but please be patient with me, the questions I'm raising aren't because I want to be difficult but 1) because others may be thinking the same as I am and 2) I really do want to learn what's being taught here. So on that disclaimer my next question is about Railroad Tracks. I know what they are in the normal meaning of the word, basically an opposite and roughly similar pair of candles next to each other. But what I find difficult is for a RRT to be identified as the second candle is forming. Surely it can't be a RRT until after the candle close? What would be really helpful is a bit more of a breakdown on this aspect as it seems central to the whole strategy. Thanks to CJ and Mike for your efforts on this.

[Captain Jack]

Sorry for the lack of posts today...I'm working at skinning a few pelts!

CJ

[mjws00]

Finally in profit and freefall on my EURJPY screw up. What other pair can you blow an entry by 170 pips and still make a killing. Now CJ has to show us the magic add ons He has to be in around 125.90 with an add on or 2 by now. That one could have bit me, cause I got stubborn with it. I actually wasn't uncomfortable as I could see the fox at work up top.

It lines up nicely with higher timeframe potential. So I might hold. I'm sure foxy will test me soon.

Pips400 I got no easy answer, my solution is a million bars in the sim, looking at how and where the pattern is best formed. I am a few hundred thousand bars short of this wisdom, but it is coming quickly.

CJ has some tricks I'm sure, but don't know how much is feel and experience.

Mike

[Captain Jack]

I post again in danger of being a nuisance, but please be patient with me, the questions I'm raising aren't because I want to be difficult but 1) because others may be thinking the same as I am and 2) I really do want to learn what's being taught here. So on that disclaimer my next question is about Railroad Tracks. I know what they are in the normal meaning of the word, basically an opposite and roughly similar pair of candles next to each other. But what I find difficult is for a RRT to be identified as the second candle is forming. Surely it can't be a RRT until after the candle close? What would be really helpful is a bit more of a breakdown on this aspect as it seems central to the whole strategy. Thanks to CJ and Mike for your efforts on this.

There's no problem with 1 or a hundred questions...they are never a nuisance.

RRT's and delayed RRT's are nothing more than an "M" or "W" formation on a lower time frame. If you trade the 4H time frame, look at past RRT formations on the 4H chart, then drop down a level or 2 in time frames and look at what the RRT candle pattern contains. The pin area will always form first because this is where the fox wants to stick the order holders. In the pin, going the wrong way.

The 2nd candle forms when the 2nd leg of the "M" or "W" pattern forms on the lower time frame. This is where you get the clue to enter. At the extreme of the 2nd leg.

More later....

CJ