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Trade What You See - Almost Naked Trading

  • #7,281
  • Dec 19, 2010 9:22am Dec 19, 2010 9:22am
Next, place horizontal lines at the most significant highs and lows. I am using red lines..as below. There is no right or wrong way to do this, just don't "overmark" the chart. I have placed 5 lines on the chart...so marked.
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  • #7,282
  • Dec 19, 2010 9:30am Dec 19, 2010 9:30am
Click on the daily chart, as below. Observe the 5 red lines. You will notice that the importance of each one of those lines has shifted with the change in time frames. Notice that lines 1 and 2 are so remote for us, that we will not be considering them at all. Instead we will be focusing our attention on the area between lines 3-5.
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  • #7,283
  • Dec 19, 2010 9:51am Dec 19, 2010 9:51am
I have removed horizontal lines 1 and 2 from the chart, as they have no bearing on further analysis.

I will now place horizontal lines (blue) at the highs and lows on the daily chart, just as I did when it was a weekly chart. BUT, before I do, please take note of the thin white line running across the chart. That line is the PA line. Note that it (PA) is right at an area that will be marked with a blue line. Bells should go off...that is telling us something..or at least saying.."take note of me!".
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  • #7,284
  • Dec 19, 2010 9:59am Dec 19, 2010 9:59am
I found only what I considered 3 highs/lows to mark on the daily chart. Note that D2 covers PA marker.
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  • #7,285
  • Dec 19, 2010 10:14am Dec 19, 2010 10:14am
Moving down to the H4 chart. I did the same..marked the highs and lows with horizontal lines (green).

Note the relationship of the red (weekly) lines to the chart now. Line 3 is too remote for us now, so I took it off the chart. Line 4, may be of interest in the future, but not the immediate future..leaving it on the chart, but took Line 5 off the chart also.

I could take D1 line off the chart also, as it is too remote for the upcoming week, but will leave it on the chart..totally arbitrary decision.
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  • #7,286
  • Dec 19, 2010 10:25am Dec 19, 2010 10:25am
We have now significantly narrowed down the areas of interest for us for the coming week at least, maybe longer....the areas between the 2 green lines and D2 and D3.

I will move to the H1 chart and making the chart larger take a look at what is there. Note that only the D2 line and the green lines are still significant to us now...maybe D3 ultimately.
  • #7,287
  • Dec 19, 2010 10:49am Dec 19, 2010 10:49am
I drew 2 lines (purple) on the H1 chart as above. Note that the 2nd purple line and D2 line are the same..also don't forget that the D2 line is on the PA marker..remember that "pay attention to me" flag right at that area.

So, what do we make of all this?

Well, we know that the D2 line,and the H1 line have now been both support and resistence areas. Current PA is at this level, which is now a resistence level. Will PA pierce that level and go up or be repelled and head down? If it heads down, there is little to stop it until the D3 level.

Also note that week before last, PA created a ditch/channel between the bottom green line and that big D2/H1 support level. PA may just go back into that "safe" area and stay for awhile. RSIs are currently mixed, so they don't tell us much at this time.
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  • #7,288
  • Edited 11:34am Dec 19, 2010 10:55am | Edited 11:34am
Looking closer at the H1 chart in relation to H1 4C BO from last week, we see that a perfect ZC (BO-->Pullback--> Continuation) trade has occurred. Whether the continuation will continue (lol) we will find out.

Sorry....that was actually a consolidation BO, not an H1 4C BO.
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  • #7,289
  • Dec 19, 2010 11:44am Dec 19, 2010 11:44am
Invaluable stuff!
Thank you LG
  • #7,290
  • Dec 19, 2010 11:53am Dec 19, 2010 11:53am
nice analysis,
but the eurusd thread is against your theory....they all bet for short...me as well


lets see
Hero calls followed by margin calls...
  • #7,291
  • Dec 19, 2010 12:03pm Dec 19, 2010 12:03pm
Quoting PhAnTi'
nice analysis,
but the eurusd thread is against your theory....they all bet for short...me as well


lets see
But, I don't have a theory....I think ultimately it will short. I just started reading the EURUSD thread..interesting, when people aren't insulting each other... (or is it interesting because people ARE insulting each other).
  • #7,292
  • Dec 19, 2010 1:07pm Dec 19, 2010 1:07pm
nice work, thanks a lot LG...
this is my theory for the eurusd...
nice trading...
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  • #7,293
  • Dec 19, 2010 1:11pm Dec 19, 2010 1:11pm
Quoting templario
nice work, thanks a lot LG...
this is my theory for the eurusd...
nice trading...
That's pretty much my theory too. May open with a gap down today and may go up to your red resistence level, but I believe it will head south after that.
  • #7,294
  • Dec 19, 2010 1:12pm Dec 19, 2010 1:12pm
Quoting templario
nice work, thanks a lot LG...
this is my theory for the eurusd...
nice trading...
yep 3184 keylevel, wait for PA confirmation
Hero calls followed by margin calls...
  • #7,295
  • Dec 19, 2010 2:04pm Dec 19, 2010 2:04pm
Hi LG and others

Here in Brazil we pay 15% of the profits in stock, futures, etc..., but here, Forex Market isn´t regulated so we don´t have Forex companies like Alpari, OANDA, etc...
I had to open an account in USA to deposit funds in OANDA by wire, but now i don´t know how should i pay tax over there, so can u say, how and how much, u that live in USA pay taxs.

Thank´s
Sorry bad english
Suba
  • #7,296
  • Dec 19, 2010 2:15pm Dec 19, 2010 2:15pm
Quoting Suba
Hi LG and others

Here in Brazil we pay 15% of the profits in stock, futures, etc..., but here, Forex Market isn´t regulated so we don´t have Forex companies like Alpari, OANDA, etc...
I had to open an account in USA to deposit funds in OANDA by wire, but now i don´t know how should i pay tax over there, so can u say, how and how much, u that live in USA pay taxs.

Thank´s
Sorry bad english
Suba
Profits are declared as ordinary income here. Sorry, I have no idea other than that. My CPA handles it. Maybe someone else will know about it.
  • #7,297
  • Dec 19, 2010 3:52pm Dec 19, 2010 3:52pm
any gap trading today guys and gals
Bay The earth is the Lord's and the fullness thereoff.
  • #7,298
  • Dec 19, 2010 3:55pm Dec 19, 2010 3:55pm
Quoting lawgirl21
Profits are declared as ordinary income here. Sorry, I have no idea other than that. My CPA handles it. Maybe someone else will know about it.
So if it's treated as ordinary income, you should pay tax? Maybe I should look this up here, but as fare as I remember here this doesn't count and no tax should be payed.
  • #7,299
  • Dec 19, 2010 3:58pm Dec 19, 2010 3:58pm
profits or gains...that's what is taxed when you are referring to an income tax!

Statutes must follow strict construction and every word must be defined.
  • #7,300
  • Dec 19, 2010 4:01pm Dec 19, 2010 4:01pm
Hello everyone!

Hey LG, ready for some gap trading?
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