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Trade What You See - Almost Naked Trading

  • #1,821
  • Oct 20, 2010 10:31pm Oct 20, 2010 10:31pm
Thanks Lawgirl. On NZDUSD, instead of a BO on H1 I'm gonna try this 3-Tap.
Attached Image (click to enlarge)
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H4.
  • #1,822
  • Oct 20, 2010 10:37pm Oct 20, 2010 10:37pm
Hi Lawgirl

Luv yr simple trading system. Have been reading n following yr thread as much as I can. Must say the system is so clear n simple to use, totally agree that we must trade with what we see. Have tested few trades on live n demo too. I see u now have the trend indicator on on TF, where can I download it as have been reading the posts backward still can't seem to locate. BTW, saw the EA Steve design, how n what does it do actually? I have some questions on the RSI, esp trade BO on h1, does the RSI have to point same direction for both daily n h4 to be effective? Besides dou consider the overall trend direction or do just look for the 2-3 taps on current price action? Appreciate yr explanation. Tks.
  • #1,823
  • Oct 20, 2010 10:40pm Oct 20, 2010 10:40pm
Quoting wilkfx
Thanks LG for this awesome thread! I am fairly new to fx and have been following this thread since almost the beginning and have had some really good trades and some not so good, but I know it is a learning process.

In your first post you mentioned price action a couple of times as it relates to the 3 tap trade. Are you simply wanting to see a green candle if long or a red candle if short? Or is there more to it than that? I have gotten in some trades at the beginning of the third tap and that candle quickly went the other way. Is it better to...
Glad you are getting something out of this thread, wilk. You will always have winners and losers, but you know that.

When we talk about PA, yes we are talking about long and short candles..mine are red and green. If you have a 3rd tap for a short and the candle is long (green), wait for the next candle for PA to start down (turn red). If the 3rd tap for a short is short (red), generally you do not have to wait for the next candle to enter. Of course the opposite for a long trade. A lot depends on when you "arrive" at the 3 tap.
  • #1,824
  • Oct 20, 2010 10:44pm Oct 20, 2010 10:44pm
Quoting bobby2
Thanks Lawgirl. On NZDUSD, instead of a BO on H1 I'm gonna try this 3-Tap. Attachment H4.
Often there is more than one set-up for the same trade..as here. I am in short from a H1 BO. We should make some pips.
  • #1,825
  • Oct 20, 2010 10:48pm Oct 20, 2010 10:48pm
Quoting lawgirl21
Often there is more than one set-up for the same trade..as here. I am in short from a H1 BO. We should make some pips.
Three pairs seem to have exact setup for a 3-tap on 4 hr charts
ALL SHORT THAT IS
Taking all three of those means your are tripling your risk, so use money management wisely .. as if one trade fails, all three of those trades are likely to fail the same way
  • #1,826
  • Oct 20, 2010 10:54pm Oct 20, 2010 10:54pm
Quoting PurePrice
Three pairs seem to have exact setup for a 3-tap on 4 hr charts
ALL SHORT THAT IS
Taking all three of those means your are tripling your risk, so use money management wisely .. as if one trade fails, all three of those trades are likely to fail the same way
You can add that pair as having the same setup too on 4HR chart for a 3-tap short trade
  • #1,827
  • Oct 20, 2010 10:54pm Oct 20, 2010 10:54pm
Quoting PurePrice
Three pairs seem to have exact setup for a 3-tap on 4 hr charts
ALL SHORT THAT IS
Taking all three of those means your are tripling your risk, so use money management wisely .. as if one trade fails, all three of those trades are likely to fail the same way
So true..we should be using good MM at all times.
  • #1,828
  • Oct 20, 2010 11:03pm Oct 20, 2010 11:03pm
Quoting lawgirl21
If the 3rd tap for a short is short (red), generally you do not have to wait for the next candle to enter. Of course the opposite for a long trade. A lot depends on when you "arrive" at the 3 tap.
I'm not sure, but I think what you are saying here is that sometimes you get to the chart after there has been a third tap, but while the trade is still valid, meaning it should have some more to run. Otherwise, it seems pretty obvious that when the third tap on a short happens, the candle must be green.
  • #1,829
  • Oct 20, 2010 11:13pm Oct 20, 2010 11:13pm
I got into a demo trade on NZDJPY a couple of hours ago. A quick read said all TFs were down, and a third tap had just formed with price on the way down.

Here's what I didn't pay attention to: THE NEW DAY HAD JUST STARTED. Because of this, the H4 read and the D1 read were basically the same. The H4 charts use weekly separators, and I just wasn't thinking.

Anyway, price immediately jumped about 20 points against the trade. And by then, all RSI indicators were trending up. Still, just looking at the chart, I stayed in. Price came back to break even. And at that time, the RSI indicators were all down. When it went 15 pips in my favor, I closed the trade.

So, it looks like at least one and maybe two of the TFs are basically useless at the start of a new day. Is the answer to this simply not to worry. Or is there something I'm not considering about this time window, maybe something about how RSI(3) actually works?
  • #1,830
  • Oct 20, 2010 11:15pm Oct 20, 2010 11:15pm
Quoting duffypratt
I'm not sure, but I think what you are saying here is that sometimes you get to the chart after there has been a third tap, but while the trade is still valid, meaning it should have some more to run. Otherwise, it seems pretty obvious that when the third tap on a short happens, the candle must be green.
That is correct, the 3rd tap is really a retracement, wave, pullback, whatever you want to call it, before a continuation in the desired direction. The 3rd tap does not have to be green, it could be a tap with a long tail, but if it is green, we want to wait for the next candle to see if the 3rd tap will "hold" or if PA is going to shot through it.

But yes, sometimes we get to a chart after the 3rd tap but while there is still a valid trade. That is a judgement call. I generally will not take a trade if 3rd tap occurred hours before.
  • #1,831
  • Oct 20, 2010 11:25pm Oct 20, 2010 11:25pm
Quoting duffypratt
I got into a demo trade on NZDJPY a couple of hours ago. A quick read said all TFs were down, and a third tap had just formed with price on the way down.

Here's what I didn't pay attention to: THE NEW DAY HAD JUST STARTED. Because of this, the H4 read and the D1 read were basically the same. The H4 charts use weekly separators, and I just wasn't thinking.

Anyway, price immediately jumped about 20 points against the trade. And by then, all RSI indicators were trending up. Still, just looking at the chart, I stayed in. Price came back to break...
I'm not seeing the problem. A 20 pip move is really nothing and you had the right direction. At this point in the trading week, I will almost never trade against the weekly direction, unless I am making a countertrend trade. I believe the weekly RSI direction is the most powerful indicator I have ever worked with...especially, as I said, this late in the trading week.

I don't know that pair, but sounds like you handled the trade well.
  • #1,832
  • Oct 20, 2010 11:33pm Oct 20, 2010 11:33pm
Hi Lawgirl21
i just got to your thread and read your first post,but i really did not understand when you meantion about RSI poiting? even i dont see any RSI indicator in your chart in your second post where you are referring to look for trend line.
second between 12:00 and 2:00 ,you mean GMT time or something else?
Can you please explain it to me.i'll appriciated
regards
Fred

For LONG: RSI should be pointing between 12:00 and 2:00. 3:00 is neutral.

For SHORT: RSI should be pointing between 4:00 and 6:00. Again, 3:00 is neutral
  • #1,833
  • Oct 20, 2010 11:50pm Oct 20, 2010 11:50pm
Quoting fredgold3434
Hi Lawgirl21
i just got to your thread and read your first post,but i really did not understand when you meantion about RSI poiting? even i dont see any RSI indicator in your chart in your second post where you are referring to look for trend line.
second between 12:00 and 2:00 ,you mean GMT time or something else?
Can you please explain it to me.i'll appriciated
regards
Fred

For LONG: RSI should be pointing between 12:00 and 2:00. 3:00 is neutral.

For SHORT: RSI should be pointing between 4:00 and 6:00. Again, 3:00 is neutral
Fred, keep reading and looking at the posted charts, I think it will make sense to you. 12:00, 2:00...as in a clock face.
  • #1,834
  • Oct 20, 2010 11:51pm Oct 20, 2010 11:51pm
Is anyone in this trade?
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  • #1,835
  • Oct 20, 2010 11:53pm Oct 20, 2010 11:53pm
Even monthly is short on this pair.
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  • #1,836
  • Oct 20, 2010 11:55pm Oct 20, 2010 11:55pm
Chart
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  • #1,837
  • Oct 21, 2010 12:04am Oct 21, 2010 12:04am
Hey LG, yes I'm in all three as well as in EJ and swissy. Both haven't moved much yet though...
Trading Makes Money!
  • #1,838
  • Oct 21, 2010 12:05am Oct 21, 2010 12:05am
Quoting lawgirl21
I'm not seeing the problem. A 20 pip move is really nothing and you had the right direction. At this point in the trading week, I will almost never trade against the weekly direction, unless I am making a countertrend trade. I believe the weekly RSI direction is the most powerful indicator I have ever worked with...especially, as I said, this late in the trading week.

I don't know that pair, but sounds like you handled the trade well.
Thanks for your comments. The point about the weekly direction is good. It's probably what kept me in the trade. It was a bit disconcerting to see the daily bouncing around mid-trade.

In other contexts, I have gotten the impression that a 20 pip move against the trade is enough for you to get out. (And in other contexts, it may be.) One of the "areas for judgment" is how much price action is enough to cause concern. It may be that this can't be easily defined and is something that one gets better at with experience. I'm fine with that, but I'm also perfectly willing to admit that, in that area, my own experience is a bit wanting.
  • #1,839
  • Oct 21, 2010 12:07am Oct 21, 2010 12:07am
NZDUSD, H4 3-Tap
Attached Image (click to enlarge)
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  • #1,840
  • Oct 21, 2010 12:15am Oct 21, 2010 12:15am
I closed my three trades because I'm tired. Combined +80 pips.
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