The Captains Chest - Naked Trading & Other Stuff

[Reaper]

Looks like a nice barf on the gbp/usd

Not a BARF on this time frame....

Nice channel trade setup on the H4 though...

CJ

Oh dear I swore that was a barf pattern the second trendline I drew nailed the highest pin, it was at DR2 as well , then it formed a head and shoulder , then they spiked it up to suck all the buyers in at trendline support levels, never seen the channel tho
worked out well for me anyway

Looked like a nice short but it wasn't a BARF. EURUSD and GBPUSD are 2 pair you see a lot of "distortion" within the patterns. Being 2 of the more popular pairs to trade, they create a lot of S/R levels which lead to what I consider abnormal candle patterns.

When you see something that looks like a possible trade setup on one time frame, always check the others, it may look better or give more info on a different TF.

CJ

This is an example of a recent BARF on AUDCHF H4. You would close your trade at the lead-in line irrespective of what level you're on or you could implement some sort of trailing stop to see if it could go higher. However exiting at the lead-in line is the best plan as you're basically taking a gamble on whether lead- in line breaks or holds.

[seanyd]

Looks like a nice barf on the gbp/usd

Not a BARF on this time frame....

Nice channel trade setup on the H4 though...

CJ

Oh dear I swore that was a barf pattern the second trendline I drew nailed the highest pin, it was at DR2 as well , then it formed a head and shoulder , then they spiked it up to suck all the buyers in at trendline support levels, never seen the channel tho
worked out well for me anyway

Looked like a nice short but it wasn't a BARF. EURUSD and GBPUSD are 2 pair you see a lot of "distortion" within the patterns. Being 2 of the more popular pairs to trade, they create a lot of S/R levels which lead to what I consider abnormal candle patterns.

When you see something that looks like a possible trade setup on one time frame, always check the others, it may look better or give more info on a different TF.

CJ

This is an example of a recent BARF on AUDCHF H4. You would close your trade at the lead-in line irrespective of what level you're on or you could implement some sort of trailing stop to see if it could go higher. However exiting at the lead-in line is the best plan as you're basically taking a gamble on whether lead- in line breaks or holds.

Nice one, does this happen all the time on the lead up to a W or M :

I have just read that the lead in line usually has be around 30-45 degrees not over 60 and then the second line usually around 45-60 maybe more.

I have also noticed that nobody seems to trade the major pairs here , is that because of the distortion of the patterns.

[Captain Jack]

Looks like a nice barf on the gbp/usd

Not a BARF on this time frame....

Nice channel trade setup on the H4 though...

CJ

Oh dear I swore that was a barf pattern the second trendline I drew nailed the highest pin, it was at DR2 as well , then it formed a head and shoulder , then they spiked it up to suck all the buyers in at trendline support levels, never seen the channel tho
worked out well for me anyway

Looked like a nice short but it wasn't a BARF. EURUSD and GBPUSD are 2 pair you see a lot of "distortion" within the patterns. Being 2 of the more popular pairs to trade, they create a lot of S/R levels which lead to what I consider abnormal candle patterns.

When you see something that looks like a possible trade setup on one time frame, always check the others, it may look better or give more info on a different TF.

CJ

This is an example of a recent BARF on AUDCHF H4. You would close your trade at the lead-in line irrespective of what level you're on or you could implement some sort of trailing stop to see if it could go higher. However exiting at the lead-in line is the best plan as you're basically taking a gamble on whether lead- in line breaks or holds.

Sorry, not a "technically" a BARF formation.....better read some more.... it is a "dragon" tho....

http://stockcharts.com/school/doku.php? ... n_reversal

Bump Validity: It is important that the bump represent a speculative advance that cannot be sustained for a long time. Bulkowski developed what he calls an "arbitrary" measuring technique to validate the level of speculation in the bump. The distance from the highest high of the bump to the lead-in trend line should be at least twice the distance from the highest high in the lead-in phase to the lead-in trend line. These distances can be measured by drawing a vertical line from the highest highs to the lead-in trend line

CJ

[Captain Jack]

I just want to remind everybody that Steve has created another forum here for anybody that wants to trade these methods using all the indicators they wish. Some people have asked for this but nobody is using it so far. It's located here -

http://www.stevehopwoodforex.com/phpBB3 ... m.php?f=60

CJ

[Captain Jack]

Those who have requested a "Dummies" thread, it's located here:

http://www.stevehopwoodforex.com/phpBB3 ... =59&t=2064

CJ

[Captain Jack]

Consider the following....

CJ

[kwanann]

cool!

CJ, not sure if i missed out, where can i find out more about the dragon pattern?

Interesting analysis, using historical data to forecast what might happen with AUD

[daje]

Thanks CJ. Now the above charts deserve a whole new thread imo !

Question: what leads the AUDJPY? I follow the AUDJPY. Due to Asia holidays this week its behaving unusually, where would you look for its leader? Thanks!

[Captain Jack]

For further consideration -

CJ

[Captain Jack]

cool!

CJ, not sure if i missed out, where can i find out more about the dragon pattern?

Interesting analysis, using historical data to forecast what might happen with AUD

Google is a good start but it's nothing more than the level drops or rises followed by the "M" at the top or the "W" at the bottom....

What might or what "will" happen?

CJ