The Captains Chest - Naked Trading & Other Stuff

[Captain Jack]

I find it interesting that silver is being "held" while gold has risen lately....not sure what to make of it but I'm going to take a "speculative" position in silver here....

CJ

[Aus67]

AUDCAD on the Level 3 watch list...looking for a new peak high....

CJ

Dumbe question on the way!!

What time frame are you referring to? Daily??...I left my glasses home and I cant put my fingers on the 3 pushes!!

[Captain Jack]

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


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.

This goes a little deeper on holding positions Gerry....Using GBPJPY as an example, it has an ADR of 176.5. Lets say you determine that GBPJPY has formed a peak high and is beginning a new 3 day cycle, so you take a short position and set your stop loss....

Using ADR of 176.5 x 3, for the 3 day cycle, you have the possibility of this pair moving 529.5 pips on a 3 day drop....There are many options on how to do it, but lets say you have added orders and price is dropping. At the 1st retrace level, you can close your positions and take new ones at the end of the retrace or you can wait for the retrace to end and add orders higher, after the retrace. Bring your SL down to the peak of the retrace. If price drops, you can add orders to the next retrace, close or hold. Move stops down again and begin adding more orders....at some point , you will get a nice reversal signal where you close them all out.

I tend to close my orders at the retrace point, book the profit and add new orders when the retrace is over. Helps to keep my equity rising and margin levels a bit safer.

This is one way of building those positions into a big payday.

Each pair will have it's own ADR to use in computations. Some small, other larger...

This is an example over several days on the higher time frame, but you can use it on the 15M time frame using daily ADR on the same manner. This is based on entry at the LOD or HOD, where you have the full ADR to work with.

CJ

[Captain Jack]

AUDCAD on the Level 3 watch list...looking for a new peak high....

CJ

Dumbe question on the way!!

What time frame are you referring to? Daily??...I left my glasses home and I cant put my fingers on the 3 pushes!!

Levels refer to the weekly cycle and the 3 day cycle. Level 3 is where new peak highs or peak lows form and reversals occur. You can view them on whichever time frame you can see them best. The count starts from the last peak high or peak low....

CJ

[Lara]

Hi CJ,

I'm REALLY enjoying trading this way!

Apologies if you have already answered this question but how do you handle the crosses? For example lets say GBP is strengthening and you have identified a strong long move on the 15m. Do you then take long positions on the GBP crosses or wait awhile for the crosses to show the same long bias? If the latter, how long typically do the crosses take to react?

Thanks,

Lara

[Reaper]

Similar question to Lara, you going to short all the JPY pairs as they are providing similar setups or will you take just the best quality ones which have a clear M pattern and milk those?

[Captain Jack]

Hi CJ,

I'm REALLY enjoying trading this way!

Apologies if you have already answered this question but how do you handle the crosses? For example lets say GBP is strengthening and you have identified a strong long move on the 15m. Do you then take long positions on the GBP crosses or wait awhile for the crosses to show the same long bias? If the latter, how long typically do the crosses take to react?

Thanks,

Lara

You need to watch for the signals and patterns on each pair...they can hold currency in a major or a cross....look across the GBP pairs now...you trade the patterns when they appear.

I haven't really paid any attention to how long they will hold a currency as I'm looking for other patterns when they do...

CJ

[Captain Jack]

Similar question to Lara, you going to short all the JPY pairs as they are providing similar setups or will you take just the best quality ones which have a clear M pattern and milk those?

I take a lot of trades. Sometimes one pair will be ahead or behind another. You may get better entry this way. For MOST people, you would want to take the quality setups...

These are at the LOH/HOD, level 3's, with "M" and "W"'s....

If you are trading the 15M time frame, 50 pips is a good target. If you get the LOD/HOD, level 3 trade, expect 3 rises or falls in that daily cycle...hold longer for more pips....

That's 3 days of rise or fall, from a peak high or low, with 3 pushes in price, up or down on the 3rd day or level 3. That's why you need to find the weekly cycle.

CJ

[mjws00]

This is one way of building those positions into a big payday.

Each pair will have it's own ADR to use in computations. Some small, other larger...

This is an example over several days on the higher time frame, but you can use it on the 15M time frame using daily ADR on the same manner. This is based on entry at the LOD or HOD, where you have the full ADR to work with.

CJ

Thanks for this. I can't believe I didn't think to apply this to other 3 wave cycles. On whatever timeframe. Getting out at/near ADR is like breathing to me... this little gem is an FU moment. Doh.

Sometimes the simplest things smack you right upside the head. Or maybe I just woke up and my sense of humor is especially twisted. Whatever the case, more free beer on me.

So what is the deal on EUR pairs EJ EG, both either have perfect straightaways goin or they reverse pretty soon. Foxy got it goin on tonight.

[Lara]

You need to watch for the signals and patterns on each pair...they can hold currency in a major or a cross....look across the GBP pairs now...you trade the patterns when they appear.

I haven't really paid any attention to how long they will hold a currency as I'm looking for other patterns when they do...

CJ

Thanks CJ - makes perfect sense.

Speaking of GBP/USD I see there are some high-impact news items coming up for GBP. I was expecting Foxy to keep an extended consolidation until he can use the "news" to validate his move. In the last couple of minutes, however, there has been a 75 pip drop. Likely Foxy will be buying at news time?

Lara