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Trade What You See - Almost Naked Trading

  • #15,161
  • May 23, 2011 1:22pm May 23, 2011 1:22pm
Hi lawgirl21

A great thread, I know you have heard this before this does feel like home

After chasing lots of indicators and using many robots and suffering a couple of years of a slow death !!


It’s a real pleasure having you show how trading can be so simple and effective, thanks in advance will post a few charts as I come across setups


eltax100
  • #15,162
  • May 23, 2011 1:30pm May 23, 2011 1:30pm
Quoting TraderinSD
Do you use your 1H Bo S/R lines to set up a continuation move as well? It would appear that is what I am seeing?
Exactly right. Everything for that particular trade setup would be measured/determined in relation to the S/R lines for the first 4 hours.
  • #15,163
  • May 23, 2011 1:31pm May 23, 2011 1:31pm
Quoting eltax100
Hi lawgirl21

A great thread, I know you have heard this before this does feel like home

After chasing lots of indicators and using many robots and suffering a couple of years of a slow death !!


It’s a real pleasure having you show how trading can be so simple and effective, thanks in advance will post a few charts as I come across setups...
Thank you for your kind words, eltax, and glad you have joined us.
  • #15,164
  • May 23, 2011 2:27pm May 23, 2011 2:27pm
Quoting lawgirl21
Thank you for your kind words, eltax, and glad you have joined us.
LG Thanks for your valuable contribution here. Can you explain why RSI 3? 3 Stands for what? I thought RSI14 means two weeks.
Also in the beginning you were showing us your 3 taps on hr 4 charts, now Hr 1 chart? How come please?
Thanks,
Bomi
Houston, Tx
  • #15,165
  • May 23, 2011 3:31pm May 23, 2011 3:31pm
Quoting behman8850
LG Thanks for your valuable contribution here. Can you explain why RSI 3? 3 Stands for what? I thought RSI14 means two weeks.
Also in the beginning you were showing us your 3 taps on hr 4 charts, now Hr 1 chart? How come please?
Thanks,
Bomi
Houston, Tx
No reason for RSI 3, other than I found after much testing, it to be the most accurate...meaning as closely related to current action as any lagging indicator can get.

No, no 3 Tap H1 setups. If there is a hourly chart shown with a three tap, it was probably just 3 Tap H4 moved to a lower timeframe. The only H1 setup we discuss is in the context of breakouts.
  • #15,166
  • May 23, 2011 5:39pm May 23, 2011 5:39pm
Quoting lawgirl21
Exactly right. Everything for that particular trade setup would be measured/determined in relation to the S/R lines for the first 4 hours.
Thanks LG for the quick response.
As per page 1 " bodies of the first four H1 candles of a new trading day. " Given this trade is well past the new trading day start, how do you determine what candles to use..? Which one would you start with? Or... Are we simply waiting for a range bound accurance with in the 1H TF.. And a break of the 4 - 1H TF frame candles per the rules?

Thanks again LG
  • #15,167
  • May 23, 2011 6:50pm May 23, 2011 6:50pm
Added a new position with 30 pip SL based on the new daily candle.
Attached Image
  • #15,168
  • May 23, 2011 6:55pm May 23, 2011 6:55pm
Quoting TraderinSD
Thanks LG for the quick response.
As per page 1 " bodies of the first four H1 candles of a new trading day. " Given this trade is well past the new trading day start, how do you determine what candles to use..? Which one would you start with? Or... Are we simply waiting for a range bound accurance with in the 1H TF.. And a break of the 4 - 1H TF frame candles per the rules?

Thanks again LG

Use the candles that constitute the consolidation, generally at least 4 candles. A consolidation is somewhat in the eye of the beholder. If you are not sure about them, you will need to study lots of charts and draw S/R lines.

Consolidation breakouts (BOs) are different from H1 4C BOs, but the same rules for entry.
  • #15,169
  • May 23, 2011 6:58pm May 23, 2011 6:58pm
Added a new position here too, although may have been a little premature. Should have waited for confirmation from Daily RSI.
Attached Image
  • #15,170
  • May 23, 2011 7:01pm May 23, 2011 7:01pm
New position added based on new daily candle and confirmation on the daily and weekly RSIs. 30 pip SL.
Attached Image
  • #15,171
  • May 23, 2011 7:54pm May 23, 2011 7:54pm
Quoting lawgirl21
Use the candles that constitute the consolidation, generally at least 4 candles. A consolidation is somewhat in the eye of the beholder. If you are not sure about them, you will need to study lots of charts and draw S/R lines.

Consolidation breakouts (BOs) are different from H1 4C BOs, but the same rules for entry.
No problem on trading Consolidation BO's... Trade them a lot, triangles, flags, break ups and break downs out of ranging markets...They tend to exhibit certain traits (give a ways) within multiple time frames. This is what draws me to your method. It is directional on the long term (key!) and entry on the shorter term.

The other thing I noticed is your use of body verses wick as it relates to S/R... The shooting of the wicks through the S/R is really not were the S/R is (the majority of the time) it is contained in the bodies of the candles... The wicks are the attempts in most cases... Ropes, hanging from the ledge J

Sorry … did not mean to go on and on.

Thanks for the response.. !!
  • #15,172
  • May 23, 2011 8:45pm May 23, 2011 8:45pm
Quoting TraderinSD
The other thing I noticed is your use of body verses wick as it relates to S/R... The shooting of the wicks through the S/R is really not where the S/R is (the majority of the time) it is contained in the bodies of the candles... The wicks are the attempts in most cases... J

Quoting TraderinSD
Ropes, hanging from the ledge.....
I like that!
"You Never Know.....Until You Find Out."
  • #15,173
  • May 23, 2011 8:55pm May 23, 2011 8:55pm
Quoting goldenequity


I like that!
I call them scouts or probes.
  • #15,174
  • May 23, 2011 8:57pm May 23, 2011 8:57pm
H1 4C BO
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  • #15,175
  • May 23, 2011 8:59pm May 23, 2011 8:59pm
Will use a BO to add a position.
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  • #15,176
  • May 23, 2011 9:01pm May 23, 2011 9:01pm
Quoting lawgirl21
No reason for RSI 3, other than I found after much testing, it to be the most accurate...meaning as closely related to current action as any lagging indicator can get.

No, no 3 Tap H1 setups. If there is a hourly chart shown with a three tap, it was probably just 3 Tap H4 moved to a lower timeframe. The only H1 setup we discuss is in the context of breakouts.
Thanks LG. Looking forward to your trades here.
  • #15,177
  • May 23, 2011 9:01pm May 23, 2011 9:01pm
Chart
Attached Image
  • #15,178
  • May 23, 2011 9:12pm May 23, 2011 9:12pm
Quoting lawgirl21
New position added based on new daily candle and confirmation on the daily and weekly RSIs. 30 pip SL.
LG Whats your TP on this?Please?
  • #15,179
  • Edited 10:07pm May 23, 2011 9:42pm | Edited 10:07pm
2:40 GMT | 10:40pm NYC | 11:40am Tokyo | 2:40am London

http://img828.imageshack.us/img828/5221/gbpy.png

http://img98.imageshack.us/img98/1199/gbpj.png

The above are indeed 'taps'... but the candles are WEAK..
and so many in a row... careful.... it is 'testing' this line
"You Never Know.....Until You Find Out."
  • #15,180
  • May 23, 2011 10:32pm May 23, 2011 10:32pm
Quoting behman8850
LG Whats your TP on this?Please?
There is no TP on this trade setup.

This trade is intended to take as much profit as the daily candle has to offer.....or hit the 30 pip SL. That's why it is entered as close to the open of the new daily candle as possible, when the weekly and daily confirm direction.

If the trade survives the day and confirmation continues the next day, add another position. There could eventually be a dozen or more positions.

The overall purpose of this trade setup is to eventually catch a trend that lasts several days to months. With added positions along the way, the potential for pips is tremendous...could be hundreds of pips, even thousands.

Look, for example, at GBPUSD on the monthly chart and notice that huge move down that started in Aug 2008 and lasted 7 months...thousands of pips. That's the kind of move this setup can catch.
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