The Captains Chest - Naked Trading & Other Stuff

[Aus67]

CJ
When looking for trade setups, do you usually start in the bigger time frames? ie Weekly, Daily?
and then move down to smaller to look for entry into those larger patterns?

I can see the stop hunts, M's W's, traps, etc...but am still thinking 'where do I get in on this??'

I am guessing it is fine to stick with a 15m chart and trade that, but keep an eye on the bigger for any traps that you may be walking into?

I feel this is an ambiguous question and a little imbisilic as well...but just want to get my methodology sorted.

I guess being in Australia doesn't help as i would have be nocturnal to be able to trade NewYork...
like most trading, it takes place in the wee hours.

cheers
Daryl

[Captain Jack]

Spread widening at close today. This is how they hit stops in those pins and why some of your orders never close or seem to close before you intend them to. Tricks, tricks and more tricks....

CJ

[Captain Jack]

CJ
When looking for trade setups, do you usually start in the bigger time frames? ie Weekly, Daily?
and then move down to smaller to look for entry into those larger patterns?

I can see the stop hunts, M's W's, traps, etc...but am still thinking 'where do I get in on this??'

I am guessing it is fine to stick with a 15m chart and trade that, but keep an eye on the bigger for any traps that you may be walking into?

I feel this is an ambiguous question and a little imbisilic as well...but just want to get my methodology sorted.

I guess being in Australia doesn't help as i would have be nocturnal to be able to trade NewYork...
like most trading, it takes place in the wee hours.

cheers
Daryl

I look across all time frames. In the past, I stayed mostly with H4 and D1 trades, of long duration. Lately, I've find I take trades of much shorter duration, with larger lot sizes. My market exposure time is reduced and I take profits off the table sooner.

It all depends on what and how you want to trade. Long term trades like D1 and above, medium term trades, day trades, swing trades, or scalps. You take the trades where they give them to you. The smaller time frame trades end sooner. When you see an "M" or "W" on the 15M, it's probably a RRT pattern on the 1H or 4H. Same on the higher. When you see RRT of D1, it's an "M" or "W" on the 1H or 4H. They are the same and thy all present reversal trades, each way.

If you have little time to manage trades, take them on the D1. Trade them to the next RRT and swing it back the other way. This type trade is usually smaller lot size to deal with retrace draw down issues. When I traded D1, I would ride the trend to a reversal on the H1 or H4 then swing it that way, back and forth. You don't need to trade 28 pair to get 28 trades.

Things happen faster on the lower time frame. Things happen the same way on the higher time frames, only slower.

It all depends on you.

London hits us at 3am so you will find me up at night as well and if the hunting is good, sometimes for days!

CJ

[f451]

Saw this comment over on the NB 10.4 thread and a lightbulb went phzzzing! in head.

"Those are "buyers" but not the type you think. They bought the story that price was going to drop further and entered SHORT orders. Those SHORTS were stuck there or closed out by now. If there is a change in trend direction planed, you will see wicks like these on the next few daily candles, each presenting a higher low than the last. They will almost be following the yellow line you drew on the chart. This is called "trapping volume" and it sticks a bunch of SHORT orders at the bottom before a rise in price. You can watch to see if this develops and it offers numerous trades on the D1.

CJ"

Never really knew what to make of those grindy up or down trends with long wicks. Now i do. "Trapping volume" and forcing the weak holders out at their stops to fuel the move in the direction the foxes want to go! The HH LH or LL, HL are still the key to the direction, but the wicks show you lots of aborted attempts to go the other way... and just who is benefiting...

[Captain Jack]

Saw this comment over on the NB 10.4 thread and a lightbulb went phzzzing! in head.

"Those are "buyers" but not the type you think. They bought the story that price was going to drop further and entered SHORT orders. Those SHORTS were stuck there or closed out by now. If there is a change in trend direction planed, you will see wicks like these on the next few daily candles, each presenting a higher low than the last. They will almost be following the yellow line you drew on the chart. This is called "trapping volume" and it sticks a bunch of SHORT orders at the bottom before a rise in price. You can watch to see if this develops and it offers numerous trades on the D1.

CJ"

Never really knew what to make of those grindy up or down trends with long wicks. Now i do. "Trapping volume" and forcing the weak holders out at their stops to fuel the move in the direction the foxes want to go! The HH LH or LL, HL are still the key to the direction, but the wicks show you lots of aborted attempts to go the other way... and just who is benefiting...

Another way to look at is that those "SHORTS" reached the end of their rope!

They also do it to validate the S/R and fibo levels, pivots and mid points. It gives the illusion of support there at that level, when actually there is no support. It wasn't buyers who brought price up, it was the fox and he validated the level and left "false support" in his wake.

CJ

[f451]

Saw this comment over on the NB 10.4 thread and a lightbulb went phzzzing! in head.

"Those are "buyers" but not the type you think. They bought the story that price was going to drop further and entered SHORT orders. Those SHORTS were stuck there or closed out by now. If there is a change in trend direction planed, you will see wicks like these on the next few daily candles, each presenting a higher low than the last. They will almost be following the yellow line you drew on the chart. This is called "trapping volume" and it sticks a bunch of SHORT orders at the bottom before a rise in price. You can watch to see if this develops and it offers numerous trades on the D1.

CJ"

Never really knew what to make of those grindy up or down trends with long wicks. Now i do. "Trapping volume" and forcing the weak holders out at their stops to fuel the move in the direction the foxes want to go! The HH LH or LL, HL are still the key to the direction, but the wicks show you lots of aborted attempts to go the other way... and just who is benefiting...

Another way to look at is that those "SHORTS" reached the end of their rope!

They also do it to validate the S/R and fibo levels, pivots and mid points. It gives the illusion of support there at that level, when actually there is no support. It wasn't buyers who brought price up, it was the fox and he validated the level and left "false support" in his wake.

CJ

heheh, "support" or "resistance" until such time as it suits the fox to go the other way...

[Reaper]

Hi CJ, thanks for all your trading tips so far, they have really opened my eyes. If you could post a couple of trades setups as and when they happen, I'm sure that will assist me and others in what to look for. (I don't care about the quick buck, I just want to be consistently profitable).

Cheers

[rosst]

Spread widening at close today. This is how they hit stops in those pins and why some of your orders never close or seem to close before you intend them to. Tricks, tricks and more tricks....

CJ

Is there an indicator that will mark the candles when this spread widening happens? If it happens and a pin bar forms it should indicate a reversal - might be a heads up for a trade...

[Captain Jack]

Spread widening at close today. This is how they hit stops in those pins and why some of your orders never close or seem to close before you intend them to. Tricks, tricks and more tricks....

CJ

Unbelievable!

What's really unbelievable is what happens during the news spikes and stop hunts. Your platform usually freezes when they do it, but 50-60 pip spread during "news" in common. It isn't news that spikes price, it's the market maker who only uses news to cover his tracks.

CJ

[Captain Jack]

Hi CJ, thanks for all your trading tips so far, they have really opened my eyes. If you could post a couple of trades setups as and when they happen, I'm sure that will assist me and others in what to look for. (I don't care about the quick buck, I just want to be consistently profitable).

Cheers

I just threw this one on here, it's just a tad late but what do you see? After reading the thread...tell me what you see. Why did I take the order?

CJ