The Captains Chest - Naked Trading & Other Stuff

[f451]

Steve, Namming Bob and Bunker's systems is: Trading with the trend.
Cj's system is completely different. Here you look for reversals and go against the trend of the TF that you are on. Mixing the two systems together and trading them on the same account would be a mistake (IMHO).
CJ has honestly said that nobody can trade like him and he is right.
He says his charts talk with him. My charts are dumb as a donkey and do not tell me a word
How can I possibly trade like him? But.... I am trying and I see light at the end of the tunnel.... hopefully it is not a train coming
Bernard

At risk of speaking for CJ, I don't think his methodology is counter-trend trading. CJ trades swings. Sometimes those swings are with the larger trend, sometimes against. The aim is to find stop hunts, pins and RRTs, and trade the resulting reversal. You can do that as an entry to the current trend, or as a counter-trend trade, or at the start of major trend reversal.

The insights offered here can be combined with many other trading methodologies - in essence CJ is showing us how to trade with the big boys and time our entries well.

[nanningbob]

Steve, Namming Bob and Bunker's systems is: Trading with the trend.
Cj's system is completely different. Here you look for reversals and go against the trend of the TF that you are on. Mixing the two systems together and trading them on the same account would be a mistake (IMHO).
CJ has honestly said that nobody can trade like him and he is right.
He says his charts talk with him. My charts are dumb as a donkey and do not tell me a word
How can I possibly trade like him? But.... I am trying and I see light at the end of the tunnel.... hopefully it is not a train coming
Bernard

At risk of speaking for CJ, I don't think his methodology is counter-trend trading. CJ trades swings. Sometimes those swings are with the larger trend, sometimes against. The aim is to find stop hunts, pins and RRTs, and trade the resulting reversal. You can do that as an entry to the current trend, or as a counter-trend trade, or at the start of major trend reversal.

The insights offered here can be combined with many other trading methodologies - in essence CJ is showing us how to trade with the big boys and time our entries well.

You can mix systems if you understand how they compliment each other. You can put the 240MA on the 4H chart with volume bars and trade CJ trades that go back into the trend and not try to CT against the 240 line. In that way they can compliment each other. CT trading is a much more advanced form of trading and you need the skills to do it. For CJ he can do it in his sleep. For the new trader it is going to take some time to learn such a thing.

I am learning to read pin bars from CJ as a place to take my profits for each dip in the DT. I wait for the retrace and then take my next trade. This helps maximize the profits of my trades.

[odellcash]

W's completing or near completing on most Yen Pairs. These seem to coincide with longer trend railroad trax and are coming after 3 pushes down. Going to be very very interesting to see how this plays out. Couple examples below.

[bluedog23]

eur aud h4.gif

Here's one to look at if you're tired of looking at the JPY pairs although most of them do look good for some pips.

[odellcash]

I was looking at EURAUD the other day but I cant figure out the levels on this one. I swear it looks like its had 10 level drops in a row, certainly more than 3. So now I'm not sure what to expect.

However the 1.2210 level seems to be holding which I think is the first time a retest of previous low has held since Feb 8th

[bluedog23]

I was looking at EURAUD the other day but I cant figure out the levels on this one. I swear it looks like its had 10 level drops in a row, certainly more than 3. So now I'm not sure what to expect.

However the 1.2210 level seems to be holding which I think is the first time a retest of previous low has held since Feb 8th

eur aud h4.gif

Here's my best shot.

[odellcash]

I agree with those levels, but what about the 4 before those without an opposite uptrend somewhere in there?

[bluedog23]

I agree with those levels, but what about the 4 before those without an opposite uptrend somewhere in there?

eur aud d1.gif

Picking the levels is still a challenge for me which is why I like to try my hand at it. Sometime if you go to a higher time frame there is more definition. I see this patter all over the EUR pairs.

[Durante]

Fellow Naked Traders

Lots of focus on the M and Ws at the moment - remember this is only part of the pattern. Tis important to look for a few other things as well

1/ where are we in the level count? This gives us a bias long or short. This is generally easiest to see on the 1hr chart.

2/ consolidation / accumulation. Where has foxy been building a position? Don't forget to look at the asian session range which sets the initial high of the day and low of the day. These are reference points for breakout traders.

3/ stop hunt. This is the most critical part of the setup. Once foxy has enough traders trapped in weak positions, he will hit the stops to shake them out of their trade, and take their opposite position to them, ready for the real move. Foxy needs those trapped traders exiting in order to get liquidity to buy or sell before the push up or push down. Stop hunts are often M or W patterns - but they don't have to be. They must however have railroad tracks or pins, and those pins should move a bit beyond an obvious level - for example beyond the asian session high or low, peaking beyond a previous swing high or low, breaking an obvious trendline etc etc - this is to sucker traders into initiating positions on the wrong side of the move to come. Foxy often hits the stops high, and then hits the stops low, or the reverse, before starting the real move.

4/ the direction of the real move will be in the direction of the level count - if you've just seen a major peak low - the move is up, if you just seen a major peak high the move is down. don't trade M or W patterns against the move from the peak.

Excellent post & reminder f541. repetition is the key to remembering this stuff and staying mindful of all the things we've been taught so far.

Some of you guys seem to be concentrating on the yen and talking about a BOJ meeting today. Is that the press conference you're referring to? I'll be waiting for BOE and ECB for some volatility but for those watching the jpy, I see they've been doing some either way stop hunts on chfjpy, might be something worth keeping an eye on

[kwanann]

Fellow Naked Traders

Lots of focus on the M and Ws at the moment - remember this is only part of the pattern. Tis important to look for a few other things as well

1/ where are we in the level count? This gives us a bias long or short. This is generally easiest to see on the 1hr chart.

2/ consolidation / accumulation. Where has foxy been building a position? Don't forget to look at the asian session range which sets the initial high of the day and low of the day. These are reference points for breakout traders.

3/ stop hunt. This is the most critical part of the setup. Once foxy has enough traders trapped in weak positions, he will hit the stops to shake them out of their trade, and take their opposite position to them, ready for the real move. Foxy needs those trapped traders exiting in order to get liquidity to buy or sell before the push up or push down. Stop hunts are often M or W patterns - but they don't have to be. They must however have railroad tracks or pins, and those pins should move a bit beyond an obvious level - for example beyond the asian session high or low, peaking beyond a previous swing high or low, breaking an obvious trendline etc etc - this is to sucker traders into initiating positions on the wrong side of the move to come. Foxy often hits the stops high, and then hits the stops low, or the reverse, before starting the real move.

4/ the direction of the real move will be in the direction of the level count - if you've just seen a major peak low - the move is up, if you just seen a major peak high the move is down. don't trade M or W patterns against the move from the peak.

Excellent post & reminder f541. repetition is the key to remembering this stuff and staying mindful of all the things we've been taught so far.

Some of you guys seem to be concentrating on the yen and talking about a BOJ meeting today. Is that the press conference you're referring to? I'll be waiting for BOE and ECB for some volatility but for those watching the jpy, I see they've been doing some either way stop hunts on chfjpy, might be something worth keeping an eye on

Stop Hunts have been taking place since its highest high, and for those that are long Yen, you should be laughing your way to the bank now