The Captains Chest - Naked Trading & Other Stuff

[kwanann]

woah, CJ don;t you ever sleep?

[Captain Jack]

GBPUSD

Another look at "levels"

CJ

[Captain Jack]

GBPUSD

Levels and "pushes"

CJ

[Captain Jack]

GBPUSD

No matter how hard the Fox tries, the tracks are the same and they are still there....

CJ

[piet.forex]

When I have difficulty to see the levels I do the following:

In an up trend I remove the bull candles. I then connect the blank spaces with lines and replace the candles.

In a down trend I remove the bear candles.

Works for me to identify the levels and pushes.

Piet

[Reaper]

Some people think levels are a guide and you can have more than 3 levels. I believe that's incorrect. I believe you can only have 3 levels. There's not 4 or 5. If you think there is 4 or 5 you're probably reading and drawing it wrong.

I don't believe the fox is as rigid as you think. He is there to make MONEY. If he is LONG for three levels, and there is more money to the upside... he will take it.

Show me three levels on this run. You might count, 4... or 2 sets of 2 ... but tough to find a 3 count. Easy to find recent extended runs in the JPY pairs as well.

This was just the first one I saw that I had already marked up. EU GU counts and patterns often get heavily messed with, imho. When I get stuck in a count I look for them to start the aggressive shakeouts. When they are pinning it high and low... I am looking for them to put in a peak formation high or low.... doesn't matter if it took 2 impulse moves or 4 to get there.

Something to think about. If the fox could ONLY count to three... would that make the game easier for the masses? Think he would do that?

Mike

I see 3 levels according to my rules. Just cause price moves upwards doesnt mean its created a new level. You need to see what price is doing and where its doing it.

Your level 1 and 2 are correct, however your level 3 and 4, dont create new levels. Your final level 5 is the level 3.

[GT3RS]

Captain! Many thanks for the thread. I am studying quietly and having several lightbulb moments.

Unfortunately, it seems my lightbulbs are controlled by a dimmer switch - they are coming on as a dim glimmer and slowly getting brighter!!

The charts you posted yesterday and particularly today have MASSIVELY helped in my understanding of all this, so thank you!!

[oconnor365]

Great thread...like a few others I'm finding it a little difficult at times identifying the levels for the stop hunts. However , it seems to me that if we are are fairly sure that its a third level set up , rather than trying to identify the top , one could set a pending order below the 'action' areas in the hope of a major drop or rise...opinions welcomed..

T

[FlyHighDrifter]

Great thread...like a few others I'm finding it a little difficult at times identifying the levels for the stop hunts. However , it seems to me that if we are are fairly sure that its a third level set up , rather than trying to identify the top , one could set a pending order below the 'action' areas in the hope of a major drop or rise...opinions welcomed..

T

I see what your saying, but with all due respect there should be plenty of lessons in this thread as to why you should perhaps think twice about any kind of breakout strategy.... Exploiting breakout traders is part of the foxes bread and butter - he's very good at it so personally I think you're fighting an uphill battle trying to beat him in this way,

All the best,

Fly

[FlyHighDrifter]

To all newcomers to this thread and those that are perhaps frustrated with trying to find the levels, this may be of some comfort/use to you so take it or leave it:

It's worth remembering that this thread is little over two months old and so to most of us CJ's methods and teachings are new and refreshing, do not forget that CJ is like Yoda, a well practiced grandmaster. I think it would be unrealistic to expect to be able to spot every setup and catch every 3 level 200 pip move right from its roots. People learn differently and people see things differently, try not to get too focussed in on one element (M's W's, Barf, is this 3 levels or 4?) and try to avoid the temptation to try and trade these elements mechanically. Maybe i'm wrong but I get the impression sometimes that people are focussing too much on the intricacies of patterns instead of trying to see what's actually happening and why. You will end up seeing level 3 rises that look familiar but on the whole they are hard to spot because they are all different - it is the story that is the same time and time again. Why can't there sometimes be 4 or 5 levels...at this point it's all part of the same chapter in that same story; profit taking. Try to read the story that's being told: Someone is after our cash, accumulating from us, trying to trick us, then moving quickly to book profits and cash in on what they have taken from us, above all they are trying to make traders think they can predict their next move (through indicators, S&R, systems etc). Personally, if I am unsure about whether a currency is at the end of level 3, I admit defeat and move on to another pair and continue looking for the basics that leap out. Manage your own expectations by considering how well practiced you are, and how much chart time you have spent trying to learn these methods.

I'm fortunate enough (unfortunate?!.... Broken leg) to have had masses of spare time recently (8+hrs a day) to go back through charts and practice tracking the fox one candle at a time and I still cannot get everyone right. Two months isnt that long, its still new to me. What is happening though is that every now and then (perhaps 3 in 10 setups) I will start to see a fox track develop that really jumps out, it is these that I commit to. I commit when the story jumps out at me, rather than when i'm trying to fit the story to the candles (eg trying to fit 3 levels to a squiggly line on my screen). Its like the chart is just shouting "I'm accumulating from you guys here, now I'm deceiving you and trying to throw you off the scent and I'm about to make my real move".

How many times has CJ said in this thread "take what is given to you". You don't have to be able to spot every single fox run, you dont have to catch the whole move. Keep spending time watching and learning, wait for the trades that are completely obvious to you and take a piece of the action. Don't worry that folk are posting setups you've missed, don't feel like your missing out because some are making a killing - be encouraged by it and keep learning from them. I have missed half the opportunities that people post on here, but then I don't try to catch them all. Does it really matter if you can only identify one opportunity a week at this stage?? I would say not, as long as you are confident in that one trade. Work on your accuracy and confidence to be able to read the story and take what is given to you, and the money will follow.

All the best,
Fly