The Captains Chest - Naked Trading & Other Stuff

[joswald]

I'm just paraphrasing Steve here but I think he refers to it as Fractional Disparity,

"Looking at a collection of one hour charts allows you to examine what level each of the pairs is in and to understand interactions between the pairs.

For example:

1. Consider the commodities pairs (AUD, CAD), and as they get to level 3 they will be choppy.
2. At the same time EUR, GBP, CHF will be at level 2
3. So while they are rising toward Level 3 and the commodity pairs are holding their crosses will be handled.
4. So if AUD goes to level 3 and is in a choppy period, it means that AUDEUR, GBPAUD, AUDCHF are being worked. These could be better options to look for a clean setup.

This can explain why you might sometimes take a trade with reasonable criteria and it doesn't seem to move. At these times, you will often be able to observe the movement in the cross pairs."

Hope this helps. I believe EURUSD is in level 3, so we could look to other EUR crosses that are in level 2 for better moves.

[Geges]

Here's my setup on the GU H4 chart
High impact US news in about 30 minutes
If it bad for US I'll close my shorts at the recent range high area
If it good I''ll add some market orders and close some at TP1
and ride it down for awhile

[Pedigree]

I.m current long bias eu, gu.

Why are you long GU (and EU) Kwan? GU has been on L3 for 3 to 4 days now. It's currently commencing the 3rd leg of a tidy W on H4. I would expect a continuous drop in the next 2 to 3 days at least.

[nakedtrader]

I.m current long bias eu, gu.

Why are you long GU (and EU) Kwan? GU has been on L3 for 3 to 4 days now. It's currently commencing the 3rd leg of a tidy W on H4. I would expect a continuous drop in the next 2 to 3 days at least.

maybe hes looking for a bigger timeframe.. coz as far as i know.. the fox needs to put price on a level that theres alot of buyer and seller..

[kwanann]

Pedigree

Look at the map I drawn, the price where I think price will drop to, where it will consolidate etc.. Ny session coming soon, a stop hunt and reversal will form the next leg of the w on m15

Anyway on h4, I.m at l2. Price went up formed kind of a peak high and came down back to l2. This almost always happens on l2 nd that's one of the reason why l2 is so confusing and irritating.

Don't mind me, on the m15 trade the m and 3 pushes, I.m prepared for the dd on the h4 that's all. Probably just my style which I know works for me, excep for the ridiculous dd that comes about based on how I trade

[McNish]

Hmm Max, any particular reason why you use 97.65? I would use that as a profit target for short, but not a SL for long. If u zoomed out to H4, that price range was an accumulation area and price tends to gravitate towards such regions

Reason enough, had a skin on, MPvt @ 97.88, less 20 and round 97.65.
Have two longs now, one in he current H1 leg of W. Early days for this trade.

Seems EU and GU got the volume they want, breakout imminent?

Thus break out imminent, either way, long or short? So can read daily volumes like that also?

You long EU on D1 tf? me short.
This is what i see (pic below). Still building intuition so don't ask me to explain the pic, embarrassing

Entered SHORT in GOLD (XAU/USD). Pinbar at the top. Just for scalping.

Just couldn't keep your hands off, could you ?

Cheers,

[banteka]

I'm just paraphrasing Steve here but I think he refers to it as Fractional Disparity,

"Looking at a collection of one hour charts allows you to examine what level each of the pairs is in and to understand interactions between the pairs.

For example:

1. Consider the commodities pairs (AUD, CAD), and as they get to level 3 they will be choppy.
2. At the same time EUR, GBP, CHF will be at level 2
3. So while they are rising toward Level 3 and the commodity pairs are holding their crosses will be handled.
4. So if AUD goes to level 3 and is in a choppy period, it means that AUDEUR, GBPAUD, AUDCHF are being worked. These could be better options to look for a clean setup.

This can explain why you might sometimes take a trade with reasonable criteria and it doesn't seem to move. At these times, you will often be able to observe the movement in the cross pairs."

Hope this helps. I believe EURUSD is in level 3, so we could look to other EUR crosses that are in level 2 for better moves.

Thank you joswald. Very clear. Could I ask where did you find that information?. I have watched some videos in youtube with Steve talking about this subject but your example is better. Maybe some kind of pdf document?

Regards

[Ingot54]

Zoom out on your USDCHF 4H or 1H chart, and this channel will quickly become obvious.

The chart is self-explaining.

USDCHF 4H.JPG

Look for clues on the 15M chart, because if you look more closely,
price has dropped very much faster than it has risen in this downtrend.

Already I can see pinning on the 4H chart, so be prepared for a possible
rapid fall away at this level. If price does make it through to the top of
the channel, the trade to the short side becomes a higher probability.

USDCHF 4H closeup.JPG

This chart of 1H USDCHF leaves even stronger clues.

USDCHF 1H.JPG

I won't post the 15M chart, because the "M" is just as visible on there.

It's a good setup, I think, and will be following it as a great learning/trading
opportunity. Keep SL tight, and be prepared to re-enter if the setup remains strong.

EDIT: btw ... the channel is quite strongly defined (another fox trick?) and price has
not gone outside of it by more than 14 pips to the upside. I have taken the
short trade now (yes, demo still) because I am prepared to risk the 25 pips
to the top of the channel, plus a possible further 15 pips breakout.

I chose to do this because I am taking only a small position initially as a teaser,
and if I am correct, then I can come in with bigger positions to follow the drop
to ?the bottom of the channel as one target.

As usual this is not a recommendation to trade - just one possibility to consider.

[kwanann]

Ivan

H1 is not pinning. Look out for trapping volume.

Look carefully. Do you see a w and Trapping shorts

[kwanann]

There is higher highs and higher lows.