The Captains Chest - Naked Trading & Other Stuff

[pips400]

Getting to work on this today, here's a demo example trade I took on the EURCAD 15 min. I've shown two images, the before showing reasons for entry, and the after showing what happened. I thought I'd try the 15min charts first, because I get more opportunity to practice than the longer time frame, and action is pretty quick.

In this example, price fell around 30 pips below the asian low, and started to throw some pins, the volume bars beneath were high, and the price was also playing with the previous 2 day low, so I placed a buy limit order near the bottom and waiting for entry. The entry was at the bottom of the green bar on the right. The second chart shows how the trade played out, and even though it lost, I wonder
1. Whether the setup and reasons for entry were good
2. Whether the trade should have been closed manually whilst in profit, which of course when you're trading the hard right edge you have no idea that price is about to fall.

Any thoughts guys. I'm guessing the next pin highs were the signal to close the trade, but I'm the student not the teacher

Thanks

Pips 400

EURCAD-15-min-18-July-2013.jpg

EURCAD2-15-min-18-July-2013.jpg

[Captain Jack]

I don't think I would have taken a position on anything there. You might be better served by widening your view a bit. Take a look at the other time frames when you are considering a trade as the candles of the lower time frames combine to form the higher time frames and they may give you a better indication of where price is going. There are mixed signals here. The better trade in your pictures is the 2 long wicks up towards your TP indicating lower prices. Take a look at these charts. As for the volume, that is nothing more than tick volume and will vary from broker to broker.

Don't try to create a trade. Patience is the key here. There have been no real clear levels established in the charts.

You probably should have grabbed a few green pips when the 2 long wicks appeared. That was enough to get you out right there.

CJ

[Captain Jack]

Note the pins....

CJ

[pips400]

Note the pins....

CJ

thanks CJ, If you're were going long here, would you have taken the trade already, or what confirmation would you look for - possibly a retest of the low?

[seanyd]

Any thoughts guys. I'm guessing the next pin highs were the signal to close the trade, but I'm the student not the teacher

I`ll have a go

Edit sorry CJ I was writing this while you were posting yours

eurcad_ukm15trade.png

[Captain Jack]

Note the pins....

CJ

thanks CJ, If you're were going long here, would you have taken the trade already, or what confirmation would you look for - possibly a retest of the low?

Had I been looking for a trade, I would try to enter in the pin area. A Sell when the pins are high or a buy when the pins are low. Key point is to watch for the pins to change from top to bottom or bottom to top. Otherwise there is no trade entry either way in between.

Like I said, this one has mixed signals. It would be a guess either way at this point.

CJ

[Captain Jack]

Any thoughts guys. I'm guessing the next pin highs were the signal to close the trade, but I'm the student not the teacher

I`ll have a go

Edit sorry CJ I was writing this while you were posting yours

eurcad_ukm15trade.png

The chart you posted is a good one for pips400 to review. The exact point of his trade entry is the break and retest of the days low, which failed. The patterns at the top form a shallow "M" so it could be the 1st level drop on the 15m time frame.

CJ

[seanyd]

Any thoughts guys. I'm guessing the next pin highs were the signal to close the trade, but I'm the student not the teacher

I`ll have a go

Edit sorry CJ I was writing this while you were posting yours

eurcad_ukm15trade.png

The chart you posted is a good one for pips400 to review. The exact point of his trade entry is the break and test of the days low, which failed. The patterns at the top form a shallow "M" so it could be the 1st level drop on the 15m time frame.

CJ

Thank you
Also if you zoom out it looks like a big H&S pattern

[Captain Jack]

Any thoughts guys. I'm guessing the next pin highs were the signal to close the trade, but I'm the student not the teacher

I`ll have a go

Edit sorry CJ I was writing this while you were posting yours

eurcad_ukm15trade.png

The chart you posted is a good one for pips400 to review. The exact point of his trade entry is the break and test of the days low, which failed. The patterns at the top form a shallow "M" so it could be the 1st level drop on the 15m time frame.

CJ

Thank you
Also if you zoom out it looks like a big H&S pattern

It should range through the Asian session then show it's direction during London...my guess would be a continuation down since there were 3 solid pins to the high side on the D1 chart.

CJ

[pips400]

Any thoughts guys. I'm guessing the next pin highs were the signal to close the trade, but I'm the student not the teacher

I`ll have a go

Edit sorry CJ I was writing this while you were posting yours

eurcad_ukm15trade.png

The chart you posted is a good one for pips400 to review. The exact point of his trade entry is the break and test of the days low, which failed. The patterns at the top form a shallow "M" so it could be the 1st level drop on the 15m time frame.

CJ

Thanks seanyd and CJ, that is really helpful, key lesson here is understand where you are in the wider context as CJ you suggest checking the longer time frames, and seanyd for a timely reminder of pushes and levels, looking with hindsight, CJ was right, the two high pins would have been a re-entry into the third phase/push down for the day. This is great and really useful.