The Captains Chest - Naked Trading & Other Stuff

[seanyd]

Can you help me out with levels here , having trouble
I see an M and a W

eurusd_ukh1.png

Probably trapping longs and shorts until news time

[Aus67]

Any comments regarding my interpretation of the pushes and killing zones...all seem to be at round numbers with nice W's before the next push...I am assuming that a continued retrace is in order!...or have I missed something, or still not got it.!

Daryl

CableH4.JPG

[pips400]

Can you help me out with levels here , having trouble
I see an M and a W

eurusd_ukh1.png

Probably trapping longs and shorts until news time

IMHO M and W patterns only really matter within the wider context, just like candlestick patterns we need to know the where we are in the overall market cycle. In the EURUSD we've had a fall of around 240 pips (ADR is 90 pips) so I'd be around this time price exhaustion, accummulation, and possibly even a reversal, but my guess is price is going to hover around this level to accummulate. M and W's are topping or bottoming formations, same as double top/double bottom, so after the recent drop we're looking for a W to indicate possible reversal. For me 2xADR is significant and can be observed repeatedly as a "stalling" point. Remember that 2 ADR from top to bottom can include three levels of ADR because it will also include retrace/rallies.

Just my two cents.

[pips400]

Any comments regarding my interpretation of the pushes and killing zones...all seem to be at round numbers with nice W's before the next push...I am assuming that a continued retrace is in order!...or have I missed something, or still not got it.!

Daryl

CableH4.JPG

Hi Daryl

I've got a long on this the GBPUSD. There's a lot of confluence at this level, including the EMA200, trendline, a recent 3ADR drop, a W formation, and looking to the left previous support/resistance. So with a SL to recent low, and TP at previous resistance that's about a 3:1 r:r

Just my humble opinion, I'm not in the same league as others here.

[kwanann]

I am actually short bias for this pair. Yet to see any strong indication of reversal yet

[Captain Jack]

Hi Capt,

Here's a quick question please. The 3-day cycles on H1/M15 all too often do not synchronize with the H4 levels. Is it correct to say that when this occurs, the H4 levels should take priority if they are clear?

Let's see an example...

CJ

[Reaper]

The whole 3 levels concept is the most powerful "tool" ever. Even if you dont get the perfect 3 levels in 3 days, you can still make very good pips in the "range/retrace" days that sometimes happen inbetween levels. Just watch price and focus on a few pairs not all of them and "scalp" the baby patterns in the direction of the main 3 level trend.

Thank you Jack!

[Pedigree]

The whole 3 levels concept is the most powerful "tool" ever....
Thank you Jack!

I could not agree with you more. The issue though is the subjectivity that could arise in the way the levels are made out, especially in the H1 and M15 charts which until now had been my main focus with regards to these levels.

It wasn't until the last set of charts posted by CJ that I realized how the H4 chart levels can give so much more meaning and direction to the H1/M15 "noise". He had earlier in the thread mentioned this, but you know how it is that often you hear something and it just somehow fails to really register!!!

And so, it bears repeating: Thank you Jack! Very very much!!!

[Pedigree]

Hi Capt,

Here's a quick question please. The 3-day cycles on H1/M15 all too often do not synchronize with the H4 levels. Is it correct to say that when this occurs, the H4 levels should take priority if they are clear?

Let's see an example...

CJ

Thanks again CJ for all you've so selflessly offered in this thread. It's been nothing short of breath-taking in its benefiting effect.

I attach herewith an example of the discrepancies that could arise between levels in H1 and M15 as opposed to those in H4. I don't know if you will agree entirely with the levels I have depicted but I hope it at least highlights to some extent what I mean.

[Captain Jack]

Hi Capt,

Here's a quick question please. The 3-day cycles on H1/M15 all too often do not synchronize with the H4 levels. Is it correct to say that when this occurs, the H4 levels should take priority if they are clear?

Let's see an example...

CJ

Thanks again CJ for all you've so selflessly offered in this thread. It's been nothing short of breath-taking in its benefiting effect.

I attach herewith an example of the discrepancies that could arise between levels in H1 and M15 as opposed to those in H4. I don't know if you will agree entirely with the levels I have depicted but I hope it at least highlights to some extent what I mean.

Thanks for the kind words and as stated often in the thread, take what they give you. Look at all the time frames and take what is given. I see trade ops on every chart your posted, so do you bypass one time frame if it doesn't agree with another? Maybe, but I take what is given.

CJ