The Captains Chest - Naked Trading & Other Stuff

[xrismak]

[attachment=1]
It's the first Day of the Summer Wind Down Trading Month and I like to Start the Day with a Little Profit, it kind of let's me Know how the coming days in the Month will Pan out as I have already taken a little Bit off the Fox Today, no matter how Small a Profitable win is a win and it adds up to the Little bit that I have Accumulated so far Naked Trading.

Happy Trading Y'all

xrismak

Xris - this is an interesting one. I am taking my holiday in August (Cornwall,UK and Spain) so I'm not in a position to comment, but I see some traders on FF mention there are lots of opportunities during the summer months, despite the general opinion being it's very slow.

Does the fox take a holiday?! Any takers on that question?

Rich,

Everybody has their own Style of Trading, In the Summer Months most Traders who have made a Bit of Coins will take a bit of a Holiday and Try Spending some of that Money, The FOX thrives on Volume to either Jerk Prices Up or Down. The Folks who have not made that much and want that little extra will take the Plunge.
It's your Choice if you want to Trade VERY ACTIVELY during that Period, so live with the Consequences.

Cheers,

xrismak

[kwanann]

Hey guys,

Just want to throw this question across to everyone.

Let's take gbpjpy as marked by mike. Assume price is at the first leg of the w. in order to print the second leg, fox needs to buy first(or is he selling) and then push prices down by selling (or is he buying) until peak low where people start selling and they are taking the counter position(buy).

Once they get the required volume, they will then push price up by selling their positions or buying their positions?

I mean we have always been trading the m and w, I.m just wondering the actual trades that happen for this to happnen

[banteka]

Hey guys,

Just want to throw this question across to everyone.

Let's take gbpjpy as marked by mike. Assume price is at the first leg of the w. in order to print the second leg, fox needs to buy first(or is he selling) and then push prices down by selling (or is he buying) until peak low where people start selling and they are taking the counter position(buy).

Once they get the required volume, they will then push price up by selling their positions or buying their positions?

I mean we have always been trading the m and w, I.m just wondering the actual trades that happen for this to happnen

Selling is required in order to push the price down. Hence, MMs SELL and retailers BUY.
Buying is required in order to push the price up. Hence, MMs BUY and retailers SELL.
If you were a MM and you wanted the retailers to BUY, first you have to incite them to BUY by offering them a good product. Hence, you first have to RISE the price by yourself, demonstrating that it is well worth and they (retailers) will sell it hoping to get a higher price.
Inversely if you want the retailers SELL.
But remember: firstly, YOU, as a MM, have to push the price by yourself. So one MM is selling to another MM for the price to rise. Then YOU, as a retailer, watch the price RISING and you BUY too. It is an inertial game. Once the movement is on, it is easier for the MMs to change their roll and become the opposite of what they began to be: if they started SELLING, they finished BUYING. If MMs do not find enough inertia, because retailers have not been attracted, they can do two things: either they push the price more (AND VOLUME INCREASES) or they try again later. The more volume, the more effort. This is the reason why they are called BULLS when price is FALLING AND VOLUME appears. And it is the reason why they are called BEARS when price is RISING AND VOLUME appears.
Why BEARS if price is RISING?: because their intentions are the opposite what they started to be.
Why BULLS if price is FALLING?: because their intentions are the opposite what they started to be.
Why is it so important the volume?. Because where volume is, MMs are. It is the moment when you can see the FOX face to face.
VOLUME = MMs. (MM = Market Makers). Rule number ONE.
So your charts will ALWAYS need a volume indicator in order to figure out what it is really happening.

Watch this:

A and B are MMs
C are retailers

FIRSTLY A BUY to B: PRICE IS RISING and MMS pretend to be BULLS. A is BUYING and B is SELLING
C wants to BUY too: then A sells to C too: now A and B are both SELLING, becoming BEARS, while retailers are BUYING.
But here there is an important key: Why price rises if A is buying to B? A and B are the same thing, the same entity. Here is the nature of manipulation: one of them, probably A, is hiding the currencies or making them dissapear from the market in order to cause the imbalance that moves the price. Do you understand?. You can not sell to yourself and expect the price to rise unless the goods you are selling dissapear by a moment. MANIPULATION. It is very hard to explain but very easy to understand.

[Pedigree]

Hey guys,

Just want to throw this question across to everyone.

Let's take gbpjpy as marked by mike. Assume price is at the first leg of the w. in order to print the second leg, fox needs to buy first(or is he selling) and then push prices down by selling (or is he buying) until peak low where people start selling and they are taking the counter position(buy).

Once they get the required volume, they will then push price up by selling their positions or buying their positions?

I mean we have always been trading the m and w, I.m just wondering the actual trades that happen for this to happnen

Selling is required in order to push the price down. Hence, MMs SELL and retailers BUY.
Buying is required in order to push the price up. Hence, MMs BUY and retailers SELL.
If you were a MM and you wanted the retailers to BUY, first you have to incite them to BUY by offering them a good product. Hence, you first have to RISE the price by yourself, demonstrating that it is well worth and they (retailers) will sell it hoping to get a higher price.
Inversely if you want the retailers SELL.
But remember: firstly, YOU, as a MM, have to push the price by yourself. So one MM is selling to another MM for the price to rise. Then YOU, as a retailer, watch the price RISING and you BUY too. It is an inertial game. Once the movement is on, it is easier for the MMs to change their roll and become the opposite of what they began to be: if they started SELLING, they finished BUYING. If MMs do not find enough inertia, because retailers have not been attracted, they can do two things: either they push the price more (AND VOLUME INCREASES) or they try again later. The more volume, the more effort. This is the reason why they are called BULLS when price is FALLING AND VOLUME appears. And it is the reason why they are called BEARS when price is RISING AND VOLUME appears.
Why BEARS if price is RISING?: because their intentions are the opposite what they started to be.
Why BULLS if price is FALLING?: because their intentions are the opposite what they started to be.
Why is it so important the volume?. Because where volume is, MMs are. It is the moment when you can see the FOX face to face.
VOLUME = MMs. (MM = Market Makers). Rule number ONE.
So your charts will ALWAYS need a volume indicator in order to figure out what it is really happening.

Watch this:

A and B are MMs
C are retailers

FIRSTLY A BUY to B: PRICE IS RISING and MMS pretend to be BULLS. A is BUYING and B is SELLING
C wants to BUY too: then A sells to C too: now A and B are both SELLING, becoming BEARS, while retailers are BUYING.
But here there is an important key: Why price rises if A is buying to B? A and B are the same thing, the same entity. Here is the nature of manipulation: one of them, probably A, is hiding the currencies or making them dissapear from the market in order to cause the imbalance that moves the price. Do you understand?. You can not sell to yourself and expect the price to rise unless the goods you are selling dissapear by a moment. MANIPULATION. It is very hard to explain but very easy to understand.

Banteka, thanks a million for a wonderful and absolutely invaluable post. This is a concept I have never really been able to understand fully because no one has ever explained it this clearly. I think the bit about "the goods" needing to "disappear" in order to make all of it work is just the Artificial Scarcity the MMs create in order to hatch their plot.

I hope you will not mind taking a few further questions regarding this because I'm sure they are going to come. Thanks again.

[Jemook]

Are we using the normal volume setting in Empty4 or the Better Volume indicator?

volume.png

Thanks Banteka, that was a great post.

[banteka]

Good question. The first thing I always do is evaluate the MMs intentions. I need to know whether MMs are BEARS or BULLS, I mean, I try to figure out whether MMs are loaded of LONGS and they need to SELL or they are loaded of SHORTS and they need to BUY.
This is done in H1. H1 shows us all over the time how MMs have been building their positions. The more pinbars you see WITH VOLUME in one direction, the more accurate signals you have about their intentions.
Now, having figured out if MMs are BULLS or BEARS, I change to M15 and look for the signals that Naked Trading has teached us (thanks CJ): the intraday cycle, candle patterns, price patterns, etc.
And the last step is done in M1, where I decide WHEN enter in the market.
Knowing how bullish or bearish are the MMs, makes easier then to take an action.
When scalping, I take in account the volume in M15. This has given me very good results. If I see a candle with volume, I can expect a movement in the opposite way.
Remember the intraday cycle: the first movement is the Asian Session expansion: this is done ALWAYS by a longer candle WITH VOLUME.

[mjws00]

This one is nice too. Sonic VSA. The volume candlesticks are also nice. Actually the whole template works great for "naked" trading. It is very price focused and does a decent job of showing where the fox might choose to hunt. I still like a few extra tools, but consider them from the perspective of the MM.

I switch it up between pure Captain (like to post that here.) Sonic with a couple twists added CSS and RSI(2). Not too mention the odd look at 10.5.

When I can see as well as CJ, I'll dump em. But sometimes a few extra landmarks are useful when learning. We're not looking for lagging or manipulated signals. Just good hunting grounds.

We have a thread for tools and what not, so no troubleshooting from me here.

Mike

[banteka]

Good question. The first thing I always do is evaluate the MMs intentions. I need to know whether MMs are BEARS or BULLS, I mean, I try to figure out whether MMs are loaded of LONGS and they need to SELL or they are loaded of SHORTS and they need to BUY.
This is done in H1. H1 shows us all over the time how MMs have been building their positions. The more pinbars you see WITH VOLUME in one direction, the more accurate signals you have about their intentions.
Now, having figured out if MMs are BULLS or BEARS, I change to M15 and look for the signals that Naked Trading has teached us (thanks CJ): the intraday cycle, candle patterns, price patterns, etc.
And the last step is done in M1, where I decide WHEN enter in the market.
Knowing how bullish or bearish are the MMs, makes easier then to take an action.
When scalping, I take in account the volume in M15. This has given me very good results. If I see a candle with volume, I can expect a movement in the opposite way.

do you have pictures so that we can absorb it easily..?

but i think im getting it.. soon or later i will get this.. THANKS BANKETA UR a GIGANTUS !!!!!


-futureNT

nakedtrader, you don't need pictures. If you see a BEARISH CANDLE with VOLUME increasing, MMs are BULLS. They are pushing the price down in order to BUY at lower prices.
If you see a BULLISH CANDLE with VOLUME increasing, MMs are BEARS. They are pushing the price up in order to SELL at higher prices.

Rule number two: BUY low, SELL high

[nakedtrader]

is AUDUSD building position for LONGSIDE??

on h1 i see on the charts

on m15 i see a 3 level of drop...

so if they give me a signal to go long i will take it

im i right?

[Pedigree]

When scalping, I take in account the volume in M15. This has given me very good results. If I see a candle with volume, I can expect a movement in the opposite way.
Remember the intraday cycle: the first movement is the Asian Session expansion: this is done ALWAYS by a longer candle WITH VOLUME.

True. I suppose this is also why Steve Mauro says to trade from stophunt to stophunt; the stophunt of pre-London to the stophunt of NY. So which volume indicator do you use and why?