The Captains Chest - Naked Trading & Other Stuff

[ciliano]

It is actually not a good idea to try to get in at the pins until you are very good at this. While you (and I) are learning, wait for a solid confirmation of your bias before you trade. If this means losing out on the first 20 pips of a 45 pip move, take your 25 pips. It is better than looking for pins that turn out to be continuation into your SL instead. Do this a while then take 30 pips, then 35 until you become confident enough to identify pins correctly.

I know this is pretty basic but it is the type of thing you have to do. Naked Trading isn't magic. It is something you start shitty at and probably continue to be shitty at for a while then slowly become better.

Also, I recommend reading some of the articles on this Niall Fuller's website about mindset (not as much actual price action). He has some good advice about slowing down, money management, mood, etc...

[intcust]

I was reading support and resistance trading in this forum. I know I have not been looking at volume and this has really help me with entries. https://www.youtube.com/user/petefaders is worth the watch of the 4 video's. It basically to me in short is large volume small candle body is a good indication of a direction change or end of a level or push. Sort of a tip of the hat as when to enter and which way to go. I have been trying it on 1 min chart and works well. Put on a couple of trades last night and my entries were really good. On the longer term stuff this has been a problem. So you might want to check it out. I know CJ talked about volume early on but it seems to have gotten lost. I know I did not understand the concept until these video's. I know for the purest out there I am oversimplifying the whole thing but I like to keep it simple for me. But what do I know I am always wrong.

[kwanann]

One of my favourite type of trades, confluence across all timeframes.

TP along the way for some of them, left one final one to run all the way thru

[Jacque]

Hi All,

I have been reading this thread for the past few weeks and my faulty light bulb was hit left, right and center into a state when there is finally faint light emitting now. First of all, a big thank you to CJ for graciously sharing your knowledge & teachings. Secondly, a big thank you to all other members who have actively contributed to this thread to spread & reinforce CJ's teaching.

Now.. let's start off with a chart...

[intcust]

jacque,

I don't have a nzd usd chart in my set so I don't know what has happened in this pair. What I see is a W formed and should go up. But you must verify with vol. Look at liar's dragon tread pdf. It explains what to look for to verify the W.

[Jacque]

Hi intcust,

Good to see you here. I recalled your sharing of your NT success through a trading statement via one of your earlier post. Congratulations!

With regards to the kiwi chart, you mentioned to use volume to verify the W. I have looked through pips400's thread and understood he was using some sort of volume spread analysis. That was a good read, however, without going into that and purely using NT method, I think its still a valid W.

Conventionally, there has to be a range extension from Asian and then SH which in total will be about 20pips below Asian's range before taking a W or straight away trade. In this chart, the range extension from Asian is not directly clear. What is visible to me directly was the 3 levels drop and a SH near the end of Asian and thus it seems that the W was a pretty high probability setup.

Please feel free to comment and I would greatly appreciate a good discussion!

[intcust]

Jacque,

At first I thought the same as you about VSA not being part of CJ's naked trading but if you review his post he even post a better vol. indicator to help clear up vol. I have think vsa is part of naked trading and enhance the trades entries. I like to trade the consolidation small moves on the 15 min chart as scalps taking them from top to bottom then back up. Only danger there is if you don't go back up and break down you get burnt on that trade. But four to seven winners wipes out that loss. Also if you use vsa along with the rest of pips400 and CJ's stuff you can about half the time know it is going to happen and not take the wrong direction trade. So you might want to revisit the vol. stuff CJ posted early on and definitely read pips400 pdf a few times. He goes into everything but money management. He posted he uses about 20 pip stop loss on most pairs. That is better than mine and his hit rate is better than mine. Although my equity growth tends to be more but I take way more risk. I am trying to time the entries better to use the 20 pips. I think VSA is the way to get me there. I trade the 1 min and 5 min to force myself to learn the material and make the decisions in real time. So were we right about the W like I said I do not have that chart so I could only read what you posted. Remember as pips400 stated it is all perfect world three pushes three levels so with VSA it helps. I have a web site I copied a lot of good set ups and definitions for VSA if you want I could post the pdf I made from there information. It starts on the first page showing were I got the information from. It is all free on there web site as well.

intcust

[kwanann]

Pips400 does have a more structured way to look at the market, the trading ranges and the whole gamut of abbreviations

i do recommend taking a look at it for more info and to add on to your bag of tricks.

How you use it, that's entirely your choice

that said, a M is a M, a W is a W. its all a matter of where it is with respect to the timeframes, levels and more specifically for me, TIME

I've taken volume out of the equation, esp with the account that i'm using for the red pill(live), primarily because it shows only the crap traders taking positions and is as good as non existant sometimes

Like incust, my takeaway is the 20pip (or even in my case 7pip) stoploss after accounting for spread. Kind of like, if i'm right, i'm right, if not, well just a tiny disturbance. With at least a 1:2 to 3 ratio, i need to lose 3 times and win once to breakeven

An additional thing of mention is the trading range, aka the highs and low of the ranging after a 3 push (which i think is called psy). The fact that you should take the M or W at the edges of the range, or when you see trapping volume, helps you to focus on where your entries should be. Nothing has changed here really still the same buy low sell high

Interestingly, if you think about it, what essentially is being traded is a BARF setup on a lower timeframe


Just for thoughts

[intcust]

here is a word file for vsa and ties into naked trading. A lot of this is in pips400's pdf's as well. The web site it came from is on the first page. It shows how fox plays with vol. to drive price were he wants and what to look for. Allows for early entry on W's and M's and early exit sometimes too if a stop hunt or something like that is going one you can see it and just hold tight or get a better buy in. With that said what do I know I am always wrong.

[ciliano]

"Hoping" that Gold is barfing. Regardless of barf or not it hit a pretty solid bottom so I think I am in a good spot anyway.

GoldBarfUp.PNG