The Captains Chest - Naked Trading & Other Stuff

[odellcash]

The second leg of an M or W doesn't have to be the same level, higher or lower for it to be valid.

A better thing to watch on the second leg is the close, and how the spread behaves around the price level of the first leg hi/low. However if is higher or lower it will tell you something. For an M a higher second leg shows Foxy still need to trap more traders into the wrong side of his trades - he is still building the position, or needs more liquidity to start the move. With a lower second leg on an M, the reference point is probably NOT the first leg of the M, but rather the asian range (a consolidation range prior to the 2nd leg) - Foxy got what he needed by inducing the breakout traders to go the wrong way.

If in doubt, check the length of the pins, the size of the second bar in the RRT on the first leg, and the spread as price approaches the price level of the 1st leg. If the spread isn't being messed with, be more wary - foxy may be going lower or higher before reversing.

Very interesting points. Foxy needing to trap more people on extended 2nd legs make sense. Also, I'm definitely behind on using the spread. I really haven't looked at this much. Is there a way to quickly determine this? I mean I know I can look at the current spread, but it seems like I need something to show it over time in order to compare. Or will it be really obvious, like 20-30 pips?

[odellcash]

Take a 4HR or 1HR chart and find the most recent higher high (if the chart is in a down trend), or most recent lower low (if the chart is in an uptrend). From that point the trend reversed. That swing point is the peak high or low. CJ calls this level 3, because this is where the level count resets (back to 1) as the trend changes.

Once you've spotted this peak level, you can look for three pushes (over three days), with each major push being a level.

When you're first learning to trade this way, it's safest to take M patterns short from a peak high, and W patterns long from peak low.

I'll post a marked up chart later on.

Firstly, thanks to everyone for taking the time here. My eyes have been opened and I'm really excited to learn more...

You mention "three pushes over three days". This is where I keep having problems when identifying pushes. See the chart below. Its a copy of a chart the captain posted On this page. On this 4H chart He shows pushes and stop hunts that last for days. The stop hunt itself lasted for 3 days. Why isn't this a level? It has a higher high and a higher low and it doesn't take out a previous high or low.

Again looking at the chart the price hits level 3. Time to reverse, right? It goes down as planned but then comes back up to the same level 3 price 8 days later. Granted the level 3 price held, but this really feels like a 95 pip consolidation. Is there any planning for this? Are the RRTs after the drop and immediately before the rise back up a warning?

more_level_questions.png

I look for levels on 4H chart and I swear I see pairs with 5,6 and 7 continuous levels in one direction, look at EURGBP. Each of those marks are a day or more apart. When I see this I question my ability to count levels and make good entries.

eg.png

[f451]

Here's Krupse's GBPCHF chart again with some simple price action/swing points marked (in yellow) to show how the trend changes - the entry points are basically early entries after the price action signals a potential trend change - it just that we use the foxes tracks (Ws, Ms, widening spread and range) to confirm that our early entry on a potential trend change is going to work out...

Chart_GBP_CHF_15 Mins_F451.png

[f451]

Take a 4HR or 1HR chart and find the most recent higher high (if the chart is in a down trend), or most recent lower low (if the chart is in an uptrend). From that point the trend reversed. That swing point is the peak high or low. CJ calls this level 3, because this is where the level count resets (back to 1) as the trend changes.

Once you've spotted this peak level, you can look for three pushes (over three days), with each major push being a level.

When you're first learning to trade this way, it's safest to take M patterns short from a peak high, and W patterns long from peak low.

I'll post a marked up chart later on.

Firstly, thanks to everyone for taking the time here. My eyes have been opened and I'm really excited to learn more...

You mention "three pushes over three days". This is where I keep having problems when identifying pushes. See the chart below. Its a copy of a chart the captain posted On this page. On this 4H chart He shows pushes and stop hunts that last for days. The stop hunt itself lasted for 3 days. Why isn't this a level? It has a higher high and a higher low and it doesn't take out a previous high or low.

Again looking at the chart the price hits level 3. Time to reverse, right? It goes down as planned but then comes back up to the same level 3 price 8 days later. Granted the level 3 price held, but this really feels like a 95 pip consolidation. Is there any planning for this? Are the RRTs after the drop and immediately before the rise back up a warning?

more_level_questions.png

I look for levels on 4H chart and I swear I see pairs with 5,6 and 7 continuous levels in one direction, look at EURGBP. Each of those marks are a day or more apart. When I see this I question my ability to count levels and make good entries.

eg.png

A few points here

first off - the level counting is guide -sometimes the trend is too strong for a reversal, so there might be 4 or 5 or move days of push. Typically there are three pushes, but that's only typically. if you can't see the levels, move on to another chart where you can.

on higher timeframe charts stop hunts can and do last for days - on a 15M chart the stop hunt is probably around 4 to 8 bars. it depends on how big a position fox needs to accumulate or offload.

I've marked up your chart with my understanding of the level count - I think the three push idea actually hold here - at least that's my interpretation

with regards to returning to previous price levels - that will happen, and I don't think you can plan for it - I would just move on to another pair and trade something more obvious

eg-f451.png

[rwb181]

First, CJ; Thank you (and all others here who follow or precede his deeds) for your interest in helping others. You are a true mentor(s) and friend(s) to all traders.

Second, my question;
I have seen much talk about watching the spread to gauge the intentions of the fox but, what do you do or how do you deal with it if your account has a fixed spread? There is no widening (or lack thereof) to indicate his intentions (or disinterest).

Again, thank you (and others here) for your enlightenment and your interests in helping traders become more successful.

Ron

[Durante]

I look at today´s chart. There was a nice pattern at GBPCHF... I attach a chart with some description

Good work Kruspe. I'd argue though that the stop hunt you have marked there is actually just volatility to create confusion. I could be wrong or we could both be right but using the definitions I've learnt, that doesn't quite fit as a stop hunt.

[Durante]

A few points here

first off - the level counting is guide -sometimes the trend is too strong for a reversal, so there might be 4 or 5 or move days of push. Typically there are three pushes, but that's only typically. if you can't see the levels, move on to another chart where you can.

on higher timeframe charts stop hunts can and do last for days - on a 15M chart the stop hunt is probably around 4 to 8 bars. it depends on how big a position fox needs to accumulate or offload.

I've marked up your chart with my understanding of the level count - I think the three push idea actually hold here - at least that's my interpretation

with regards to returning to previous price levels - that will happen, and I don't think you can plan for it - I would just move on to another pair and trade something more obvious

Hi f451. I've always been under the impression that it's the players (aka foxes) who create gaps. At least gaps of that size and on week ends. Again I'm probably wrong but I'd be really interested to know what the captain thinks about that.

[babalu4u]

It's like the matrix.....and now I see the matrix....thank you Captain Jack...

[xrismak]

Xrismak, are you kidding me - over 1000 pips in a two days ?.. what a great job mate ... I´m quite busy this week...but I´m glad you harvest the market so intensively

I´m gonna check what trades I missed today

Kruspe,
I haven't added what I made the Day before or trades from Sunday, if I did you'd be shocked :!: at how much I added to my Live Account just this week alone, must have bagged over 2700 pips in the last 5 five Days and I am not Kidding you, CJ's Naked Trading Stuff works like Clock work for me.
I have Never made Money so easily in so short time Trading.

CJ is a GIGANTILUS. for sharing this Knowledge . I owe him 3 much Thanks.

May the Pips be with Y'all

xrismak.

[kwanann]

Second, my question;
I have seen much talk about watching the spread to gauge the intentions of the fox but, what do you do or how do you deal with it if your account has a fixed spread? There is no widening (or lack thereof) to indicate his intentions (or disinterest).

Ron: Spread widening is just one of the ways of doing stop hunts, even with fixed spread you can rely on the other indicators to find your way thru.