The Captains Chest - Naked Trading & Other Stuff

[Captain Jack]

It's generally 3 to 5 days of price movement in one direction, higher or lower..... and these patterns are based on the 15M or 1H time frame....

These patterns will repeat across all the time frames.... if you can't determine the PEAK LOW and PEAK HIGH...give up FOREX...

The whole premiss here is to ONLY TRADE FROM THE PEAK HIGH OR THE PEAK LOW!

Your BUY or SELL should only be placed at the PEAK HIGH OR PEAK LOW when it coincides with the HOD or LOD....

PEAK HIGH? Yes.....HOD? Yes......SELL
PEAL LOW? Yes.....LOD? Yes.......BUY

PEAK HIGH? Yes...HOD? Yes.... ADR HIGH? Yes.....SELL THE SHIT OUT OF IT!!!
PEAL LOW? Yes.....LOD? Yes.....ADR LOW? Yes.....BUY THE SHIT OUT OF IT!!!!

These are the trades that run on for days.....these are the trades that will give you R:R of 10-20 or higher and cover all your small losses, where you set that tight stop ABOVE OR BELOW THE PEAK HIGH OR THE PEAK LOW....these are the trades on which to stack additional orders, when it is moving in the intended direction....YOU GOT IT RIGHT SO LAY IT TO THEM!

There are no other trades....do not take them at any other level than PEAK HIGH or PEAK LOW....

Rise or fall is determined from the PEAK HIGH or PEAK LOW, not candle open and candle close.....

CJ

[Captain Jack]

Hi djhenry1981,

here are my two cents worth from what I have internalized from CJ's teachings:

1. An up or down day can be directly seen on a daily candle - check if the candle close up or down. Although CJ mentioned to reference it to peak low, I feel thatthere is no necessary need to reference it to the peak low.
2. The 3 day cycle which is referring to 3 days of rising/falling price should be taken as a guide not an absolute.
3. What I saw on level 2 was an extended accumulation zone, also note that level 2 is the retail trader's level, fox level is on 1 and 3
4. IMO, when the price went to range at level 2, we can say that the 3 day cycle has been violated and this is all right because it is not absolute. note that daily candle close up on 25 oct and close flat on 28 oct and I would not count 25 oct as rising price, I would take it as price is undergoing extended accumulation.

Btw, I am pretty new here too and I hope other forum members can feel free to add on to the discussion.

1. The 3 day cycle begins from the PEAK LOW OR THE PEAK HIGH, not candle open or close
2. It's 3-5 days for the cycle
3. Correct
4. The cycle is intact as it is 3-5days

CJ

[Captain Jack]

Unless the close is the high or the low, it does both, so therefore am I correct to assume that the what determines an UP day or a DOWN day is the which part of the daily high or low to the close it moved the most? EG If it moves up more from the low than it does the high, then it's a UP day. If it moves a further distance from the peak high to the close than it did the peak low to the close, then its a down day? In the attached file the M which forms on the larger time frame is evident. However, it retraces down a little from the peak high, but it doesn't seem logical to count them as a down day, given the push up then slight retrace. There's more movement from the low to the close than the high to the close.

I could be completely wrong, but I think the point CJ was trying to make that price on the daily candle may not change much from open to the close, but throughout the day it can move in a direction, eg down then back up again, creating a pin bar, which could be counted as an UP day albeit the open and close were fairly similar.

I apologise for the wordiness of this post. It's hard to explain what I mean, sorry

Your chart is very good for a newcomer here.

You are looking for the PEAK HIGHS AND PEAK LOWS....the cycle runs from 3-5 days, and it has completed in 5 days on your chart. Price rose 5 days from the PEAK LOW TO THE PEAK HIGH, and the "M" pattern formed, across 2 days, and price is falling. This is the 3 day cycle within the weekly pattern. The weekly pattern took 7 days here and the cycle took 5. Sometimes the weekly is 5 days and the cycle is 3.

Don't try to micro analyze this. Just trade the pattern/cycle WHEN it appears.

CJ

[intcust]

cj good to see your post. been a while. Sell (buy) the shit out of it is what it is all about. I am going to cut and paste it to my notes. I as well as others have been complicating thing trying to make everyday a perfect day instead of trading what we see. Peak high hod sell it. If it gets stopped out wait and sell it again. When it runs load up and take each lot to 20 times the risk and boom your acct. doubles in no time. thanks again

[xrismak]

It's generally 3 to 5 days of price movement in one direction, higher or lower..... and these patterns are based on the 15M or 1H time frame....

These patterns will repeat across all the time frames.... if you can't determine the PEAK LOW and PEAK HIGH...give up FOREX...

The whole premiss here is to ONLY TRADE FROM THE PEAK HIGH OR THE PEAK LOW!

Your BUY or SELL should only be placed at the PEAK HIGH OR PEAK LOW when it coincides with the HOD or LOD....

PEAK HIGH? Yes.....HOD? Yes......SELL
PEAL LOW? Yes.....LOD? Yes.......BUY

PEAK HIGH? Yes...HOD? Yes.... ADR HIGH? Yes.....SELL THE SHIT OUT OF IT!!!
PEAL LOW? Yes.....LOD? Yes.....ADR LOW? Yes.....BUY THE SHIT OUT OF IT!!!!

These are the trades that run on for days.....these are the trades that will give you R:R of 10-20 or higher and cover all your small losses, where you set that tight stop ABOVE OR BELOW THE PEAK HIGH OR THE PEAK LOW....these are the trades on which to stack additional orders, when it is moving in the intended direction....YOU GOT IT RIGHT SO LAY IT TO THEM!

There are no other trades....do not take them at any other level than PEAK HIGH or PEAK LOW....

Rise or fall is determined from the PEAK HIGH or PEAK LOW, not candle open and candle close.....

CJ

El Capitaine CJ,

Yes... Sir,
Just what I look out for, so sometimes It might take me a While to Trade my Favorite Currency Pairs but when I do, I kick the Fox's Butt..... Nice to know that you are Well.... good to Hear from you Again...

Happy Trading Y'all

xrismak

[monty]

Cj

It's good to see you back every now and then with your valuable advice.

Although I miss your marked up charts you used to post the beginning of the week. But I realize we got to learn and practice it ourself .

Thank you again Cj.

[djhenry1981]

Your chart is very good for a newcomer here.

You are looking for the PEAK HIGHS AND PEAK LOWS....the cycle runs from 3-5 days, and it has completed in 5 days on your chart. Price rose 5 days from the PEAK LOW TO THE PEAK HIGH, and the "M" pattern formed, across 2 days, and price is falling. This is the 3 day cycle within the weekly pattern. The weekly pattern took 7 days here and the cycle took 5. Sometimes the weekly is 5 days and the cycle is 3.

Don't try to micro analyze this. Just trade the pattern/cycle WHEN it appears.

CJ

Thanks everyone, and especially CJ, your advice is very much appreciated

[Captain Jack]

cj good to see your post. been a while. Sell (buy) the shit out of it is what it is all about. I am going to cut and paste it to my notes. I as well as others have been complicating thing trying to make everyday a perfect day instead of trading what we see. Peak high hod sell it. If it gets stopped out wait and sell it again. When it runs load up and take each lot to 20 times the risk and boom your acct. doubles in no time. thanks again

You will notice time and time again, that the Fox doesn't always get enough chickens gathered up when the PEAK H or L appears, as it should in the cycle. When this happens, he will move price a little bit more, calling in his last little peep, before he turns and runs for the exit. When you catch the PEAKS, and it's easier than it looks, you place your order with a tight stop as you should. If he runs, you go with him. If he returns for more chicks...he gets a few when you stop is hit....DONT GIVE UP ON THIS TRADE...take the SL or ride it if you want. I do both, depending on my lot size. BUT WATCH FOR THE TURN TO COME, within 25-50pips from where you thought the PEAK H/L was....you were right as many are, but give up when the Fox double dips near the PEAK. He needs to do this at times to gather more orders to settle his books. Jump back in with a tight stop and stack the orders when the Fox is running.

We all complicate things more than we should because we have been programmed to complicate them, by the institutions and traders that we are trying to earn money from.

Time to deprogram ourselves, which quite a few have done if I'm to believe the PM's I receive. It's one of the reasons I keep checking in, to monitor the thread and read the messages, to see the changes that trading in this manner has brought to many people. That's my payday.

CJ

[djhenry1981]

I'm looking for a W on the EURAUD, looking for a failed retest of the 1.42 level and forming the second leg of a W.

Thoughts anyone?

[Captain Jack]

Cj

It's good to see you back every now and then with your valuable advice.

Although I miss your marked up charts you used to post the beginning of the week. But I realize we got to learn and practice it ourself .

Thank you again Cj.

I spend very little time in the charts nowadays...I know what to look for and no longer have to "search" for it. In doing this, I take far fewer trades with larger lot sizes, and reduce my exposure much quicker.

For some people this is the opposite of what they do. Most are taught and trained to "reduce their risk" by keeping lot sizes small, and spread the orders over several pair. Hoping a win here and there will offset too many losses, which come from over-trading under-capitalized accounts. The theory is, to protect your account to trade another day, We don't trade to substantially increase our accounts, we trade to lose 2%. BUT, we don't stick to the 2% loss because we are over-trading, we move are SL farther away as price moves from us, and stack orders in the wrong direction, trying not to lose, not 2% now, but 20%, 30% and higher on a failed trade. Who goes into a championship prize fight, not to win it all, but to stick it out to fight another day while you are taking an a$$ whoopin'. What warrior goes into battle, not to win the war, but to maybe just get injured enough to fight another day? What nations military conserves it ammo when it has it's enemy in it's sights? NONE!

This is a battle and a war for your money. I'm sure I've been on opposite sides on many trades and taken some of if myself. BUT, that is the goal. The goal is to win the battle EVERY time we CHOOSE to engage. This is our biggest advantage....WE choose when to put that trade on, not our opponent. HOWEVER, our clever opponents are well trained in matters at hand and they can FORCE you to engage, when it is to their advantage. This is what the Fox does, he "entices" us into positions that favor him, and beats us through attrition.

The GOLD chart I put up is very relevent for those who trade it. Very nice patterns, 3 clear levels of drop, with each level being comprised of 3 "pushes". So are we at a PEAK Low here? What do you expect to happen now, during Asian and later in London and NY? I don't trade gold in the US but I have a good idea what I would be looking for if I did. If I don't trade gold, why post it's chart? Simple, patterns repeat across all time frames and ALL pairs. There it is, 3 level drop of 3 pushes each, over 3 days or so, beginning from a PEAK HIGH and printing a possible PEAK LOW.... what now?? What do we do.....

CJ