stevehopwoodforex.com • The Captains Chest - Naked Trading & Other Stuff

Author:

Captain Jack [ Thu Apr 25, 2013 6:34 pm ]

Post subject:

Re: The Captains Chest - Naked Trading & Other Stuff

mrelectron wrote:Hi CJ.

Nice to see you back, the thread was getting like a deserted western town circa 1850 - saloon doors banging in the wind, tumbleweeds rolling down the dusty main street.

My question is about pivots (daily, weekly, monthly etc) ? What are your beliefs about pivots ?

For example,
* Do you believe they are widely used by market makers?
* Do you pay attention to them yourself ?
* Anything else you can add would be good.

Thanks
Mark

Hi Mark,

I take notice of the levels of the pivots. The pivots are areas of interest for both buyers and sellers. Only the market maker knows which way price will leave a pivot area and it will always leave in the direction of the most money for the market makers.

Pivots are like MA's, Fib lines and support/demand areas....they are used by the market maker to create areas of false support or demand. In order to make money, the marker maker needs transactions to take place in order to move price. I've never checked it but I could make a guess that more transactions take place near these areas of interest as more traders are involved.

Price will rise until there are no more buyers....price will fall until there are no more sellers...and the market maker, taking the opposite side, needs price to fall back or rise to a certain level to unload his contracts and book his profits. Once this is done, the cycle repeats....

This is where the 3 day and weekly cycles come from. The chop takes place when the direction is being reset, and new orders are being stacked....you will see a lot of chop around pivots for this reason.

The Asian session has a lot to do with "levels", pivots, MA's and S/D areas....this is how they are created. Price tends to move up or down during the US and London sessions, while it ranges during Asian session. This is also how levels or pivots are validated. Price will surpass these levels, create the pins and then validate the level by closing lower or higher...leaving the pin as evidence of what has occurred.

Take a look at a pivot system such as 10.4 Note how the price reacts to the perceived levels. Notice also the formation of the pins, "W" or "M"'s that we look for. Understanding what is taking place can get you into a trade a level or 2 earlier than just the pivot system alone. Check how often levels are penetrated with a quick thrust above or below them, giving false indication of a break out.

When you start putting it all together, it starts to make sense

CJ

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Author:	lhDT [ Thu Apr 25, 2013 1:12 pm ]
Post subject:	Re: The Captains Chest - Naked Trading & Other Stuff
Eur/Cad long on H1 Mauro style. W at the bottom, we're at the 3rd level of rise & mid week reversal. Target weekly adr (3xdaily adr) Wish me luck, I'm bored Comment welcome !

Author:	gms [ Thu Apr 25, 2013 1:31 pm ]
Post subject:	Re: The Captains Chest - Naked Trading & Other Stuff
lhDT wrote:Eur/Cad long on H1 Mauro style. I just scored with EURCAD short (M15 chart enclosed). Gary

Author:	gms [ Thu Apr 25, 2013 1:34 pm ]
Post subject:	Re: The Captains Chest - Naked Trading & Other Stuff
Anyone seen something like that before? (Broker LiquidMarkets. I don't see that on the other brokers I use.) Gary

Author:	lhDT [ Thu Apr 25, 2013 1:57 pm ]
Post subject:	Re: The Captains Chest - Naked Trading & Other Stuff
gms wrote: lhDT wrote:Eur/Cad long on H1 Mauro style. I just scored with EURCAD short (M15 chart enclosed). Gary I was sure somebody will say that ... What is the logic behind your trade ?

Author:	Reaper [ Thu Apr 25, 2013 2:08 pm ]
Post subject:	Re: The Captains Chest - Naked Trading & Other Stuff
Captain Jack wrote: Angat wrote: Captain Jack wrote: As I said earlier, I don't trade like a madman everyday and some days I don't trade at all. I trade to make money. Sometimes I do it with a lot of orders, other times I do it with a few. I said before nobody needed to trade like I was trading earlier in the thread, to make money. It's not about the pips you make, it about making money. CJ I guess you're waiting patiently for some 3 level moves (and the crap accumulation/manipulation that comes after) to finish before getting your trading finger clicking again. I guess this is the best way to trade, with the lowest risk and highest probability. Congratulations on your trades, looks like you got some nice pocket money there. Waiting for "only" the trades after a level 3 reset has taken place is the way to put all of this together. The best "M" and "W"'s usually occur there and the moves are the longest in length. If you trade on the 15M and are looking to "day-trade", 50pips is the target. If you are looking for the next move out of a level 3 reset, then the targets are 3xADR, with stops being moved up when a new level is reached and price moves away from that level, or a 20-30pip trailing stop. CJ Thanks CJ, I'm going to focus solely on these longer moves now. I need to proved to myself I can do it. I should be able to reduce my screen time and increase my patience. Question - If there were 3 days worth of "chop" inbetween levels 1 and 2 or 2 and 3, would you just normally hold through it?

Author:	Reaper [ Thu Apr 25, 2013 2:31 pm ]
Post subject:	Re: The Captains Chest - Naked Trading & Other Stuff
Captain Jack wrote: BTW, I added a few last night on GBPNZD....all trades now have a 20-30pip trailing stop set.... profits locked in and running! AUDCHF and CADCHF were/are close to closing..... CJ I can see the 3 levels on CADCHF. But only see 1 confirmed level on AUDCHF. Due to the size of the W shouldn't this go up another 200 pips? Or do you mean they were close to closing as your trialing stop was going to get hit?

Author:	gms [ Thu Apr 25, 2013 2:44 pm ]
Post subject:	Re: The Captains Chest - Naked Trading & Other Stuff
lhDT wrote: gms wrote: lhDT wrote:Eur/Cad long on H1 Mauro style. I just scored with EURCAD short (M15 chart enclosed). Gary I was sure somebody will say that ... What is the logic behind your trade ? 1. EURCAD needed to go down one more level to make 3 levels 2. Today's range widened to the long side during NY open (fake) and suddenly broke short ... 3. ... with a nice pin at the high of the day Unfortunately I got out early with 50 pips. Could have made 100 ... Gary

Author:	mrelectron [ Thu Apr 25, 2013 5:43 pm ]
Post subject:	Re: The Captains Chest - Naked Trading & Other Stuff
Hi CJ. Nice to see you back, the thread was getting like a deserted western town circa 1850 - saloon doors banging in the wind, tumbleweeds rolling down the dusty main street. My question is about pivots (daily, weekly, monthly etc) ? What are your beliefs about pivots ? For example, * Do you believe they are widely used by market makers? * Do you pay attention to them yourself ? * Anything else you can add would be good. Thanks Mark

Author:	Captain Jack [ Thu Apr 25, 2013 6:36 pm ]
Post subject:	Re: The Captains Chest - Naked Trading & Other Stuff
Angat wrote: Captain Jack wrote: Angat wrote: Captain Jack wrote: As I said earlier, I don't trade like a madman everyday and some days I don't trade at all. I trade to make money. Sometimes I do it with a lot of orders, other times I do it with a few. I said before nobody needed to trade like I was trading earlier in the thread, to make money. It's not about the pips you make, it about making money. CJ I guess you're waiting patiently for some 3 level moves (and the crap accumulation/manipulation that comes after) to finish before getting your trading finger clicking again. I guess this is the best way to trade, with the lowest risk and highest probability. Congratulations on your trades, looks like you got some nice pocket money there. Waiting for "only" the trades after a level 3 reset has taken place is the way to put all of this together. The best "M" and "W"'s usually occur there and the moves are the longest in length. If you trade on the 15M and are looking to "day-trade", 50pips is the target. If you are looking for the next move out of a level 3 reset, then the targets are 3xADR, with stops being moved up when a new level is reached and price moves away from that level, or a 20-30pip trailing stop. CJ Thanks CJ, I'm going to focus solely on these longer moves now. I need to proved to myself I can do it. I should be able to reduce my screen time and increase my patience. Question - If there were 3 days worth of "chop" inbetween levels 1 and 2 or 2 and 3, would you just normally hold through it? If price is chopping that much, you are probably at a level 3 high or low and the reset is taking place.... CJ

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