The Captains Chest - Naked Trading & Other Stuff

[Jason]

The fox isn't always active....he tends to set out the 2nd level of a rise or fall....he is very active in step 1 and step 3. How can you tell? Tick volume!

Take a look at the chart, where is the fox doing his deeds? The 2nd level is usually in the control of traders who are reacting the what the fox has done in the previous step or level.

Level's 1 and 3 belong to the fox....level 2 is the traders....the tick volume shows this with increased volume in level or step 1 and 3. Levels 1 and 3 are usually larger in movement than level 2.

CJ

Would you mind showing the steps you are referring to? I can see 3 steps in the tick volume but the first step looks like the asian session when things are quiet.

[Captain Jack]

CJ, do you have any pairs with potential setups forming that we can keep an eye on for the coming London sess ?

I've already put 4 up....

CJ

[Jason]

When you want to enter the top of a stop hunt with an M top forming and there is some possibility that it might push higher, where is your usual recommended jumping in point? Thanks

[Captain Jack]

When you want to enter the top of a stop hunt with an M top forming and there is some possibility that it might push higher, where is your usual recommended jumping in point? Thanks

I trade as close to the top (edge) as I can enter....it's a 3 level drop, exit on 3....if you miss it, you get a 2nd chance on the 2nd leg of the "W"....

CJ

[Captain Jack]

I missed the drop in USDJPY while I was posting earlier but I still caught the straight away move back up off the bottom for a few....anybody else see it? No stop hunt, spike down and no 2nd leg to for a "W".... easy pips....

CJ

[Jason]

I missed the drop in USDJPY while I was posting earlier but I still caught the straight away move back up off the bottom for a few....anybody else see it? No stop hunt, spike down and no 2nd leg to for a "W".... easy pips....

CJ

How do you know when it's going to go up with no W, or does it just turn out that way?

[Captain Jack]

I missed the drop in USDJPY while I was posting earlier but I still caught the straight away move back up off the bottom for a few....anybody else see it? No stop hunt, spike down and no 2nd leg to for a "W".... easy pips....

CJ

How do you know when it's going to go up with no W, or does it just turn out that way?

The pins and 1st leg for a "W" are there...I'm taking the trade at that point....I don't wait...the 2nd spike down stops short...it doesn't continue as the next bar is up.... I got here late....tool the trade when saw it...I might have picked up another 5-10 pips but I'm happy with what I got...

To answer your question though, you don't "know"....your risk is 5-10 pips below the pins +the spread

CJ

[lhDT]

Maybe it is a too big shortcut but it make sense saying that :
- you wait the asian range is broken (up or down, whatever)
- Once broken, you wait for a RRT or a pin
- Then you enter at the opposite direction of the breakout

?

[Captain Jack]

Maybe it is a too big shortcut but it make sense saying that :
- you wait the asian range is broken (up or down, whatever)
- Once broken, you wait for a RRT or a pin
- Then you enter at the opposite direction of the breakout

?

When you look at the RRT patterns on the higher time frame, you will get the better moves. They tend to be longer in nature, offering up more in return. They hold the smaller moves that are seen on the 15M time frame within. If you have a hard time seeing them on the 15M look to the 1H and 4H and find the tracks.

CJ

[Pueo]

Captain, this looks like a great short to me, am I missing anything?

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