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Trade What You See - Almost Naked Trading

  • #8,081
  • Jan 1, 2011 7:00pm Jan 1, 2011 7:00pm
Hello lawgal, ur thread has really shown me the beauty of using a simple system that works. Looking forward to working with this system this year. thanks for the info and HAPPY NEW YR
  • #8,082
  • Edited 6:39am Jan 2, 2011 5:17am | Edited 6:39am
Quoting whatfx
hi

what gap trades ?
Hi Whatfx,

A Gap Trade occurs when there is a difference in price between last week's Friday close price
and the price at the opening of the current week in Monday.
We assume that price will move to fill the gap, and trade accordingly.

You can see some examples of gap trading at this page, from post #7658:
http://www.forexfactory.com/showthre...57876&page=511

Hope this helps.
  • #8,083
  • Jan 2, 2011 8:02am Jan 2, 2011 8:02am
Hi All

I have been watching from the side and have asked a few questions, but have more. The biggest being how do we enter a trade using LG method?
Are we trading off the i hour charts?
Then when price breaks up or down does one move down to the 15 min chart, wait for a pullback to BO level and enter?
At the same time waiting for the WKLY, DAILY,4hour, RSI(3) to be in unisone UP/DOWN?
IT looks easy once you go back - hinde sight stuff........
Please advise?
Great thread and host..........
  • #8,084
  • Jan 2, 2011 8:07am Jan 2, 2011 8:07am
Lawgirl,

Great thread!

This is what i am eyeballing atm.

Regards

Warren
Attached Image (click to enlarge)
Click to Enlarge Name: gbp chf.gif Size: 18 KB
I need to finish something i started
  • #8,085
  • Jan 2, 2011 9:23am Jan 2, 2011 9:23am
Quoting bigwal
Lawgirl,

Great thread!

This is what i am eyeballing atm.

Regards

Warren
Hi Warren,

In My Humble Opinion, your GBPCHF chart looks very interesting.
Thank you for sharing with us!

In my platform, the Weekly and Monthly RSIs point down, but not the H4 and H1.

Perhaps we should observe price when the market opens this week and see how the H1 and H4 trend develops.
What do you think?

Happy trading!
  • #8,086
  • Edited 12:36pm Jan 2, 2011 12:15pm | Edited 12:36pm
Geula,

Thanks for the comment on my chart.

I like this setup because it is simple and clear. Also not only the trendline has been touched there are other confluences taking place. I dont really want to go into them here because this threads origin is "3 tap" approach.

As far as the rsi on 1hr and 4hr are not in agreement (so they must be pointing up). Remember we have been going upward in the last 20hrs of open market, so i would think that lower timeframe indi's will point up.

in this downtrend price has pulled back to find more sellers, the chart looks good so far. It is our job to place ourselves where the smart money is.


Trendlines are pretty good to use, but if used where support and resistance is also, the Probability goes in our favor.

Regards

Warren
I need to finish something i started
  • #8,087
  • Edited 12:40pm Jan 2, 2011 12:28pm | Edited 12:40pm
Considering that the price in Oanda has gone 30 pips lower, does anybody think the yellow line indicates a valid 3 tap selling signal?
Attached Image (click to enlarge)
Click to Enlarge Name: gbpchfh4h.gif Size: 38 KB
  • #8,088
  • Jan 2, 2011 12:34pm Jan 2, 2011 12:34pm
may i know how much is the winning percentage... hmm..
  • #8,089
  • Jan 2, 2011 1:14pm Jan 2, 2011 1:14pm
Quoting bigwal
Geula,

Thanks for the comment on my chart.

I like this setup because it is simple and clear. Also not only the trendline has been touched there are other confluences taking place. I dont really want to go into them here because this threads origin is "3 tap" approach.

As far as the rsi on 1hr and 4hr are not in agreement (so they must be pointing up). Remember we have been going upward in the last 20hrs of open market, so...
Hi Warren,

Thank you for your reply and sharing the logic behind your trade idea!

Just to clarify, when I asked about the 1H and 4H RSIs, I was referring to LG's "3 Tap H4" system, where we first look for trend confirmation in multiple time frames.

Anyway, I hope this trade goes well for you and brings you many pips!
  • #8,090
  • Jan 2, 2011 1:22pm Jan 2, 2011 1:22pm
Geula,

I just found this thread and like what i see. As far as rsi, i really havent used it before. It works for you guys so thats really cool.

Are we saying then that when rsi turn down on 4hr and 1hr then the trade would be good to go ?

Warren
I need to finish something i started
  • #8,091
  • Jan 2, 2011 1:41pm Jan 2, 2011 1:41pm
Geula,

I pulled this below from the front page. If your saying that rsi on weekly,daily, 4hr is pointing down...........Then we are good to go!

It doesnt say anything about 1hr RSI

Warren

Check Trend on Weekly, Daily, and H4 Charts

This is the most important part of this method. All three (3) timeframes (TFs) must be in agreement (confirmation) on direction.
Perhaps, the easiest way to do this is to attach the RSI Arrow Indicator to your charts. The indicator and directions can be found here: http://www.forexfactory.com/showpost.php?p=4127792

It is important that you develop the ability to confirm the RSI directions without using an indicator because you should visually verify the positioning of the RSI on the H4, Daily, and Weekly charts before entering a trade.
Scan through any or all pairs you wish to trade and jot down only those which have confirmation of direction on all three TFs. Do this by observing the RSI.
I need to finish something i started
  • #8,092
  • Jan 2, 2011 1:43pm Jan 2, 2011 1:43pm
Quoting bigwal
Geula,

I just found this thread and like what i see. As far as rsi, i really havent used it before. It works for you guys so thats really cool.

Are we saying then that when rsi turn down on 4hr and 1hr then the trade would be good to go ?

Warren
Hi Warren,

We are looking for a strong general trend in the 4H, daily and weekly charts.

Only after we see such a trend, do we look for a specific set-up.
An easy way to get confirmation of the trend in these TFs is by looking at the RSI indicator.

Please read the first post of this thread:
http://www.forexfactory.com/showpost...30&postcount=1

LG has done a great job explaining her system there IMHO.
If you have questions, please ask.
People here are very friendly and I'm sure will be glad to answer your questions.
  • #8,093
  • Jan 2, 2011 1:50pm Jan 2, 2011 1:50pm
Quoting bigwal
Geula,

I pulled this below from the front page. If your saying that rsi on weekly,daily, 4hr is pointing down...........Then we are good to go!

It doesnt say anything about 1hr RSI

Warren

Check Trend on Weekly, Daily, and H4 Charts

This is the most important part of this method. All three (3) timeframes (TFs) must be in agreement (confirmation) on direction.
[font=Cambria][size=3]Perhaps, the easiest way to...
Hi Warren,

Sorry. I saw this post only after I posted my previous message.
I think you are right; we don't need confirmation on the 1H trend,
when we try to trade the "3 Tap H4" setup.

Thank you for pointing this up!
That's way I always like to say "IMHO" = In My Humble Opinion
  • #8,094
  • Jan 2, 2011 2:01pm Jan 2, 2011 2:01pm
Geula,

Hey no worries, we all learn from each other.

I love knaked charts, i mainly work from trendlines, s&r, supply and demand zones.

I love the three tap approach. I can use this, in my general scheme of things.


I guess you could call me a pattern trader, a chart is just one big picture that tells a story. The better you get at reading the story as it unfolds the better your understanding of the market.


LOL......... 20.00pm gmt on a Sunday night, just cant leave the thought process of trading alone.

Warren
I need to finish something i started
  • #8,095
  • Jan 2, 2011 2:32pm Jan 2, 2011 2:32pm
Quoting bigwal
Geula,

Hey no worries, we all learn from each other.

I love knaked charts, i mainly work from trendlines, s&r, supply and demand zones.

I love the three tap approach. I can use this, in my general scheme of things.


I guess you could call me a pattern trader, a chart is just one big picture that tells a story. The better you get at reading the story as it unfolds the better your understanding of the market.


LOL......... 20.00pm gmt on a Sunday night, just cant leave the thought process of trading alone.

Warren
  • #8,096
  • Jan 2, 2011 2:34pm Jan 2, 2011 2:34pm
Quoting Oodr
Considering that the price in Oanda has gone 30 pips lower, does anybody think the yellow line indicates a valid 3 tap selling signal?
IMHO, the 3 Tap looks ok.
Please note the discussion in this page about confirmation from multiple time frames through RSI.
  • #8,097
  • Jan 2, 2011 2:51pm Jan 2, 2011 2:51pm
Good evening all! Hope everyone had a good New Year!
I'll be looking to take only gap trades and bo's (if I see any I like) and will wait until the RSI's get a chance to show their true colours before hopping into anything else.
Good trading to everyone
  • #8,098
  • Jan 2, 2011 3:09pm Jan 2, 2011 3:09pm
I read the book Jesse Livermore - World's Greatest Stock Trader by Richard Smitten over the weekend. While Livermore's personal life was nothing to admire, his trading advice has much to offer. I highly recommend this book...it reads like a intriging novel and there is lots to learn from it...how to trade..how not to live.

Livermore basically traded trends (like we do), but constantly looked for trend changes, as he believed that it was a change in major trends that hurt most traders. Here are just a few of his suggestions:

1. Know the direction of the major trend of the few stocks (I shall substitute pairs) on which you are concentrating. He chose only the industry "leaders".

2. Never enter a trade with your full position. Livermore sent out "small position probes" of 1/3 of his intended full position to test his appraisal of market direction. If the first probe was positive, he added the second position, etc.

3. Always watch for end of trend hints. Livermore looked for market price stalls (consolidations), with heavy volume, where price was not making higher highs or lower lows (ditch/channel PA). Heavy volume with no movement in price, he believed, was a strong clue or warning of a potential trend change. He would then send out a "probe" to test the change.

4. Do not spend time trying to figure out what moves the price of a particular pair. Rather, he says, examine the tape (ticker tape for him, for us..PA). The answer is what the PA says, not why it is saying it. The tape (PA) is never wrong.
  • #8,099
  • Jan 2, 2011 3:13pm Jan 2, 2011 3:13pm
hey,
thanks for your nice post lawgirl

question:
some of you are going to trade the gaps?
what's the basic idea/setup u have?

was thinking trying to close the gap following rsi H4+D+W indicator (if they are all in same direction) but never tried so far...

good pips to all !
  • #8,100
  • Jan 2, 2011 3:17pm Jan 2, 2011 3:17pm
Quoting Ph22
Good evening all! Hope everyone had a good New Year!
I'll be looking to take only gap trades and bo's (if I see any I like) and will wait until the RSI's get a chance to show their true colours before hopping into anything else.
Good trading to everyone
Thanks, Ph..I had a great holiday, but am glad it is coming to a close.

That is the order of things: gaps (if one choses), then BOs come next, and later 3 Taps, as the market gets to get up some "steam" for 3 Taps.
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