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| The Captains Chest - Naked Trading & Other Stuff https://www.stevehopwoodforex.com/phpBB3/viewtopic.php?t=1572 |
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| Author: | Pedigree [ Fri Aug 02, 2013 6:37 am ] |
| Post subject: | Re: The Captains Chest - Naked Trading & Other Stuff |
I hope you will bear with me here please. MMs are buying and selling all the time. At what point exactly do they BOOK A PROFIT. Is it possible to define this point? What on the chart helps you to define this point? |
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| Author: | Pedigree [ Fri Aug 02, 2013 6:45 am ] |
| Post subject: | Re: The Captains Chest - Naked Trading & Other Stuff |
On weighing things further, I think they book their profit when they switch the direction of price around - right or wrong? When you buy, you don't book a profit until you close; this closure is actually a sell to take your profit. |
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| Author: | banteka [ Fri Aug 02, 2013 6:49 am ] |
| Post subject: | Re: The Captains Chest - Naked Trading & Other Stuff |
In a VERY FAST MOVEMENT, a very long candle, MARUBOZU kind, They are very easy to identify in M15. |
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| Author: | banteka [ Fri Aug 02, 2013 6:52 am ] |
| Post subject: | Re: The Captains Chest - Naked Trading & Other Stuff |
If that switch has volume and in M15 appears a very long candle, then YES. Speed, Height and VOLUME are the keys. However, sometimes they use several candles. Remember the Stop Hunt? |
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| Author: | Pedigree [ Fri Aug 02, 2013 6:57 am ] |
| Post subject: | Re: The Captains Chest - Naked Trading & Other Stuff |
I don't really understand that - what they do to cause the long candle and how exactly that puts money in their pockets. I will go weigh it up and maybe come back with a better question - if you haven't run out of patience with me by then! You've been soooo good. Thank you. |
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| Author: | banteka [ Fri Aug 02, 2013 7:01 am ] |
| Post subject: | Re: The Captains Chest - Naked Trading & Other Stuff |
I don't agree. You are in profits WHILE YOU HAVE YOUR ORDER OPENED, that's is how MMs consider it. They do not mind whether you are wining or loosing. Their mission is to force you to close your position by triggering your Stop Loss or simply by psychology. And thats the way you have to look at MMs. Yesterday I opened a LONG position in EUR/USD just BEFORE an important release. The movement started violently against my direction and in a moment I was at -350 euros. But I knew that it was only a deception of the FOX. Signals were clearly that MMs were BULLS. A quarter of hour later, price rose beyond my entry point, giving me a wining trade. Those signals were previously provided by PRICE + VOLUME analysis. |
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| Author: | Pedigree [ Fri Aug 02, 2013 7:08 am ] |
| Post subject: | Re: The Captains Chest - Naked Trading & Other Stuff |
Thank you for so indulging me here Banteka, but is it not true that the only reason they could not take your money is that you did NOT close in loss? They could not book you as profit because you did NOT close. I am surely missing a point here. |
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| Author: | banteka [ Fri Aug 02, 2013 7:14 am ] |
| Post subject: | Re: The Captains Chest - Naked Trading & Other Stuff |
Well. First of all you have to think that there are always retailer's pending orders up and down of the price. Second you have to believe that MMs KNOW EXACTLY where those pending orders are and how much of them in each direction. This is a fact. You are being spied by the MMs. ALWAYS. Third: the MMs, at a given moment, have more LONGS than SHORTS in their portfolio. So they have to SELL because the imbalance is to the LONGS side. Understand?. Now, in order for them to SELL, someone has to BUY. Ok? So the perfect movement is PUSHING UP THE PRICE giving the fake sensation that price is going to rise. Hence, you, as a retailer, BUY. From WHO? From the MMs. So they rise the price making two very important things: 1.- Hit the LONG PENDING ORDERS. Those orders are BUY ORDERS in fact. 2.- Induce other traders to BUY in that moment. More SELLING for the MMs. Well. Then, when you as BUYER and PENDING ORDERS ARE TRAPPED, they switch the directiion till two things occur: 1.- STOP LOSES are triggered, making the previous LONGS orders become SELLING ones. 2.- Using psycology to force other traders to exit with loses, more SELLING ORDERS to the process. And the price violently DROPS...like a nuclear chain reaction. MMs only need to find the critical mass. The money is obtained because THEY SELL. And then, the imbalance is in their SELL side. And so on. Please, give me a rest... |
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| Author: | Pedigree [ Fri Aug 02, 2013 7:34 am ] |
| Post subject: | Re: The Captains Chest - Naked Trading & Other Stuff |
Your rest is very well deserved Banteka! You have given so much here, and I have certainly not fully taken it all in. I will go back and dwell further on the last couple pages. Thank you very much for your time and I wish you a lot of fox meat to roast by the end of the day. |
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| Author: | pips400 [ Fri Aug 02, 2013 7:58 am ] |
| Post subject: | Re: The Captains Chest - Naked Trading & Other Stuff |
This isn't for Banteka as he's entitled to his well earned rest, but I do have some concerns about the difficulty of reading volume, and like all other aspects of naked trading it's about context and how all the bits fit together as a whole, and not just taking one element and trading off of it, but you have to put all the pieces together otherwise you're gonna get slaughtered IMHO I could have taken any price chart but the AUDUSD is a good example. I've marked the bearish candles with high volume on the H1 chart for the past week, and there was no reversal but only a continued down trend. If the volume is high and the candle is bearish then it means bears have won (albeit those bears may be made from both retailers and MM's), and if the volume is high and the candle bullish then the bulls have won etc. Once there is momentum signifying the MM have got price moving in their direction, they want increase volume in their direction because that means more profit, it's just at some point if the MM have a lot of positions open they need to close them, and that's going to create volume also. So for me personally, I'm still learning all this along with everyone else, volume analysis takes on a particular significance when combined with timing. When I say timing I mean help to identify the stop hunt, and also after the 3 or so levels when fox is looking for exit and reverse. If you take volume on its own, and I could be wrong so forgive me, I think it's a recipe for disaster, because you have to understand the overall context and where you are in the market cycle. It's NFP today, so I'm not sure whether to stay out or have some fun Happy trading Pips400 |
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