The Captains Chest - Naked Trading & Other Stuff

[Captain Jack]

I managed to get a break even day. Not sure where my head is at. Most of the yen pairs gave some setups, they might not have been perfect Ms and Ws but they were there. Could have made 70 pips shorting and another 30 pips long in the end of day reversal, per pair! Perhaps 500 pips just on the yen pairs. Even if you took 50 pips total on 4 pairs thats 200 pips which is not bad at all.

I need to focus more and not get in early. I need to wait for the second leg ideally to start moving in the direction i want it to go before jumping on board.

It all comes down to money management and keep risk to a minimum. Nothing beats experience to fall back on when everything is going tits up. I hope tomorrow's a good day, I need one of those to get my confidence back.

You need to develop patience and wait for good set-ups. You won't always get "M" and "W"'s on all stages on a move...The best place for them are at the 3rd level....

You will get RRT and "pns" which you can use as clues to possible price reversals....

You need to watch for stop hunts.....don't trade the Asian range....wait for price to move 25-50 pips above or below Asian for a set-up....

A 3 push, 50 pip move out of Asian isn't something you want to trade....it's a set-up that draws in breakout traders.... you want to watch for price reversals after these "false moves" happen.

Look for quality and not quantity....28 pair or more out there...pick the best ones...

CJ

[Captain Jack]

You need to develop patience and wait for good set-ups. You won't always get "M" and "W"'s on all stages on a move...The best place for them are at the 3rd level....

You will get RRT and "pns" which you can use as clues to possible price reversals....

You need to watch for stop hunts.....don't trade the Asian range....wait for price to move 25-50 pips above or below Asian for a set-up....

A 3 push, 50 pip move out of Asian isn't something you want to trade....it's a set-up that draws in breakout traders.... you want to watch for price reversals after these "false moves" happen.

Look for quality and not quantity....28 pair or more out there...pick the best ones...

CJ

Cheers. I know patience is an issue with me. I need to sort that somehow. I always want everything now now now lol

Move to a higher time frame....easier to see the "major" turns....also helps to determine the level of the current cycle.

CJ

[Reaper]

Move to a higher time frame....easier to see the "major" turns....also helps to determine the level of the current cycle.

CJ

Okay going to drop the 15 min TF altogether now. Going to focus only on 1H, 4H, and daily. Will search for RRTs with some pins action at the peak of a move.

[Mescalitofx]

I got stopped out at BE + 2 for the small up move on GBPJPY.

the juice was out, end of day, ... up to the next.

Good evening.
Gerry

CJ:
Question1
The 3 rises , does mean we see 3 push levels from the bottom. i was confused with the GAP on monday so maybe that was a special case. just wanted to be sure.

Question2
what pair(s) do u refer to that 30-90 min after asian session after jumping 25-50 up or down reverse. I mostly see it continue straight away. going the same direction.

I personally prefer to trade GBPJPY due votality.

Question3
I tend to jump in to early for the way down. i keep adding small lots to average a better position.
Is that what you mean by pyramiding. i think i expose myself to much this way. but i think it is almost the same what u do with pyramiding up. except i think u only add when u are in profit already. maybe I need to work on that. let me explain by showing my entries on the GBPJPY(see pic)

Question4
Any way to stay longer in the trade. i want to increase my R:R ratio.(counting 3 drops when u know the 3rises?) i chicken out too soon.

[Captain Jack]

I got stopped out at BE + 2 for the small up move on GBPJPY.

the juice was out, end of day, ... up to the next.

Good evening.
Gerry

CJ:
Question1
The 3 rises , does mean we see 3 push levels from the bottom. i was confused with the GAP on monday so maybe that was a special case. just wanted to be sure.

Question2
what pair(s) do u refer to that 30-90 min after asian session after jumping 25-50 up or down reverse. I mostly see it continue straight away. going the same direction.

I personally prefer to trade GBPJPY due votality.

Question3
I tend to jump in to early for the way down. i keep adding small lots to average a better position.
Is that what you mean by pyramiding. i think i expose myself to much this way. but i think it is almost the same what u do with pyramiding up. except i think u only add when u are in profit already. maybe I need to work on that. let me explain by showing my entries on the GBPJPY(see pic)

Question4
Any way to stay longer in the trade. i want to increase my R:R ratio.(counting 3 drops when u know the 3rises?) i chicken out too soon.

#1. There are multiple 3 level rise or drops....On the weekly cycle, there is a 3 day cycle that corresponds to 3 days of rise or fall... reversal may come after the 3rd level....when it does, the 3rd level becomes the 1st level in the new 3 day cycle... You will find more quality "M" and "W" pattersn on this 3rd level if it is the reversal level...straight away trades tends to occur from this level as well if they already have adequate volume trapped there already.

You can also have levels of rise on one or more of the daily cycles....this may come at the 3rd level or after the 3rd level....

When price leaves the Asian session, many times it will rise or fall for 3 candles or steps on the 15M time frame....to give the 25-50 pips of separation from the range...

#2. You will see it on all pairs....the more volatile the pair, the bigger the range and moves tend to be. You do not see this on all levels of rise as the fox is most active on the 1st and 3rd levels....ths is where he trades the edges...level 2 is usually the retail traders reaction to the fox at level 1 and 3.

#3. Pretty much the same thing...see the AUDUSD trade I posted a few pages back...

#4. Refer to the higher time frame charts....you can also use these to determine current level and direction. Enter on the 15M and follow the higher time frame to the next reversal....you can also take profits or establish new positions along the way.

You can get some nice daily moves, that have 3 pushes up or down, when price is leaving level 3 or level 1, which it becomes....these are the peak highs and peak lows...on the 3 day cycle.

CJ

[Reaper]

So you dont believe in 2 wave corrective moves after a 3 level cycle? It thought the 2 wave corrective move actually creates the M and W pattern. Or is this what you're talking about and the terminology is different.

Actually I think I might know what your saying, I know you told me previously to forget elliot wave theory, but at peaks in elliott theory you get 3 levels up followed by 3 levels down. only on certain TFs you see the corrective moves.

Similar to the peak on the middle graph:

http://en.wikipedia.org/wiki/File:Elliott_wave.svg

3 levels up and 3 levels down.

[Captain Jack]

So you dont believe in 2 wave corrective moves after a 3 level cycle? It thought the 2 wave corrective move actually creates the M and W pattern. Or is this what you're talking about and the terminology is different.

What?

CJ

[johnsund]

One thing that has helped me is to be able to see more than one timeframe at once. I have 4 monitors, and on each I have the same pair but with M15, H1, H4 and daily charts. I have saved a profile for each pair and first thing when I get up for London is scan each pair to determine where it is on levels for the week and for the day, and M or W formations, pins, etc.. Also look where price is relative to Tokyo channel. This takes about 20 minutes for all pairs that I watch. For pairs that may have interesting setups coming I write those down and then go to a profile that has multiple M15 charts on it. From the list I just developed I either have the pair already in the profile or simply drag the pair over from market watch. I then have in one spot all of the pairs that I identified as prospective setups in one place so I can watch them closely.

One other thing I found is that you can mark up each chart with the drawing tools, showing levels, M or W, pins, etc., and as long as you resave that profile the markups will stay on the chart. Great for reviewing later.

[Captain Jack]

So you dont believe in 2 wave corrective moves after a 3 level cycle? It thought the 2 wave corrective move actually creates the M and W pattern. Or is this what you're talking about and the terminology is different.

What?

CJ

You are welcome to relate it to EW if it helps you understand, but I don't use EW so I don't have any basis on it from which to respond.

CJ

[Captain Jack]

One thing that has helped me is to be able to see more than one timeframe at once. I have 4 monitors, and on each I have the same pair but with M15, H1, H4 and daily charts. I have saved a profile for each pair and first thing when I get up for London is scan each pair to determine where it is on levels for the week and for the day, and M or W formations, pins, etc.. Also look where price is relative to Tokyo channel. This takes about 20 minutes for all pairs that I watch. For pairs that may have interesting setups coming I write those down and then go to a profile that has multiple M15 charts on it. From the list I just developed I either have the pair already in the profile or simply drag the pair over from market watch. I then have in one spot all of the pairs that I identified as prospective setups in one place so I can watch them closely.

One other thing I found is that you can mark up each chart with the drawing tools, showing levels, M or W, pins, etc., and as long as you resave that profile the markups will stay on the chart. Great for reviewing later.

I've used the text tool to place labels on the charts to indicate peak levels... it gives me a quick reminder as I flip through the charts...

CJ