The Captains Chest - Naked Trading & Other Stuff

[Amit]

HI Captain. Thanks for the thread . Read thru all of it today. Could you clarify GCAD on which level it is cos it has such wide variations that I cant figure it out. My chart posted.

[Amit]

AU chart Captain. Please clarify the doubts. Sorry if they are repetitive.

thanks

[Amit]

Might not get the full 50 on these sets'....will be watching for the bottom turn....

CJ

CJ please refer to your GCAD sell trade on 20 March.

What made you so sure that price would tank here?. was it the rapid rise? We did have 3 levels of rise the previous day. And the sudden fall was followed by an equally sudden rise.

So trying to see the logic here.

thanks

[pips400]

Something to watch out for guys, is after the third push (generalisation, no fixed rules remember) fox is going to need to offload his position so you could easily see a "fake" push. For example if fox is long and wants to exit he need to sell. So if he's selling he needs buyers, so to get the buyers, he'll do another stop hunt long which may look like another push but it's fox offloading.

[lvdfx888]

Hi CJ,

Sorry to bother you again. I would like to draw some lessons on my GJ trade on Friday, please kindly give me some guidance:

GJ chart below shows 2 long wicks (red) which looked like a good setup for level 3 push, then a pull back in NY session. But after trade was entered but price went south. Luckily the trade was recovered after the long RRT was formed later and price come back.

1. Did I read the chart correctly ?
2. Price went below L2 low, would the 3 level push is still valid as price seems heading to L3 ?
3. Is there situations where 3 level push cannot complete and reset ?

Thank you for your patient.
Ron

[Reaper]

Hi CJ,

Sorry to bother you again. I would like to draw some lessons on my GJ trade on Friday, please kindly give me some guidance:

GJ chart below shows 2 long wicks (red) which looked like a good setup for level 3 push, then a pull back in NY session. But after trade was entered but price went south. Luckily the trade was recovered after the long RRT was formed later and price come back.

1. Did I read the chart correctly ?
2. Price went below L2 low, would the 3 level push is still valid as price seems heading to L3 ?
3. Is there situations where 3 level push cannot complete and reset ?

Thank you for your patient.
Ron

The fox tricked alot of people on this day with the jpy pairs. I personally find the jpy pairs slightly more riskier at times. Its harder to use pins to identify the stop hunts. Just look at the H1 chart every candle has pins on pretty much both sides. If you were to go to the h4 chart you could see that from the 14th to now there is a giant wedge forming. Okay now it becomes slightly clearer, there was a W within a giant M. Now the bottom part of M seems like it needed to touch the bottom part of the wedge.

That being said I dont trade these M and W patterns off the H4, I only find the quality setups off the H1 using the H4 and Daily to see the bigger picture and look for RTTs.

CJ will probably advise you better.

[trader99]

Great..will try this out on Mon. 2 quick questions: for 5 digit brokers does the "scale by pips" have to read 50? Also, does the "closeall script" only apply to the trades on that chart and if not, can you please make this option available? Many thanks in advance Lifesys..great tool!

re ScaledInPendingTrades with risk based volume.
CJ
You have inspired me, as a mathematician & grateful learning trader, I jigged a Scaling trade Script (from tigpips FF) to suit the style we are honing. At a price on a chart, drop a series of scaled-in Pending Orders at preset intervals with SL & TP. Added features incl fixed(yellow), logarithmic(blue) or linearly(magenta) reducing Vol. for any number of child pending trades. SL & TP can be same price or relative to each trade start.

ScaleVolume.gif

Best feature for learners (like me) is option that Total Volume of series be %Account Risk based, so each trade is auto calculated relative to total RiskPercent, enabling safer scaling of pending orders whilst we build.
I find this increases confidence to drop a series on the chart. If pending trades do not fire (some missed last night) invoking ScalingScriptCloseALL can close All(Yes) or delete PendingOnly(No) trades with corresponding MagicNumber on that sheet.
Strongly advise 'ReadMe' first, if new to scaling. Guide notes attached.
May be useful to others & a way of saying thanks as we work toward our 'green' chart history

[Captain Jack]

CJ,


Interesting, but little confusing.

Brokers with gmt+2/3 have no daily Sunday candles, most of us recommended this because the daily charts will have 5 candles a week. For example Cowboy Go Markets AU does do so, BUT then the daily candle 20.03.2013 is a bear candle (marked with a white arrow). (GlobalPrime will be in the future a gmt +2/3 broker, Jem please correct me if I am wrong).

Brokers with gmt+0 have! Sunday candles (I don’t like these Sunday candles), and the daily candle 20.03.2013 is a bull candle.

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I prefer a gmt+2/3 broker with correct 5 daily candles a week.

fok

Let me make one thing perfectly clear. When looking for levels or counting levels, I am not talking about the color of a candle. I have stated that the 3 day cycle is 3 days of rising or falling price, that begins from a peak LOW or a peak HIGH. Nowhere do I say to check the color of a daily candle or any other candles to determine the levels or counts.

What can be more simple than drawing a line from the low to the close of the day to see if price rose that day?

What can be more simple than drawing a line from the peak high to the close of the day to see if price fell?

In the NZDUSD example, did price rise from the PEAK low on the 20th? YES! It is the PEAK low and that is level 1. Don't try to add a bunch of stuff like GMT and candle color to something as simple as 3 days of rising or falling price, from the peak high or peak low.

When it comes down to it, as stated, I prefer a broker whose D1 candle closes at 5PM est to coincide with NY close and who doesn't use a Sunday candle. BUT, it doesn't matter in the counts because you begin from the peak low or peak high. Does it rise from the LOW, or does it fall from the HIGH.

Nowhere in this thread is broker time mentioned. Asian, London and NY all operate the same, every day. Nowhere in this thread is candle color mentioned.

How do you determine peak low or peak high? Seems pretty simple...if price goes lower, then it's not the peak low now is it? If price goes higher, then it's not the peak high is it?

The candles can all be peppermint sticks and you can still determine if price rose or fell from it's PEAK LOW or PEAK HIGH.

If somebody does not understand this, I'm sorry, I can't "make" you see this. Open your minds up and forget all the BS that you've been told about this market.

CJ

[Captain Jack]

Is there a way to make the direction clearer when looking at the early London session? It seems easier to trade the NY session because you can see the path that led to the current price, and if there are obvious pins or Ms/Ws you just leap in. But with the early London session, it's like you're trying to walk a path that no one has made yet. Or maybe my understanding is very poor, which is quite possible.

An ideal Asian range is 40-50 pips. You look for price to widen outside this range as London approaches, then you look for price to rise or fall, 25-50 pips outside the Asian range. This move may happen over 3 candle or 3 pushes. You look for stop hunts, where they are triggering the sell or buy orders to trap traders. That's what you look for going into London.

NY tends to be the reversal session...

You can trade "M", "W", RRT's or pins at any time.

CJ

[Captain Jack]

HI Captain. Thanks for the thread . Read thru all of it today. Could you clarify GCAD on which level it is cos it has such wide variations that I cant figure it out. My chart posted.

GBPCAD is full of stop hunts....they can't be counted as levels....they use them to keep traders from riding the trend higher...shaking them out along the way....

CJ