Best Thread Trading Naked

Hello there,
I thought I try and get a thread going which focuses purely on clean charts with a couple of lines on them and what I perceive to be simple trading. Sometimes referred to as naked trading I think....

No indicators, MA's, fibs, trend lines, chart patterns, candlestick names, fundamentals, correlations etc. etc. etc.
Just price, support and resistance, higher highs, and lower lows, buying when price is going up and selling when it's going down

A little bit about me. I am very new to trading (less than 1 year) and purely trade as above. I mainly trade cable M5 but am starting to branch out a bit. I am not, and I repeat not, trying to teach anything, or any such nonsense as I am a complete beginner. What I am hoping is that there might be some like-minded souls on T2W who'd like to look at ideas to do with trading this way, different timeframes, markets etc. Some of you will know me from my trading journal but I am hoping that, by starting a thread, I can get better at what I do and learn a bit more. Sadly the place where I learnt most of what I do is a bit too focused on one instrument whereas I am keen to broaden my knowledge and experience to other markets.

At this point I can't go any further without saying a big thank you to Feb - those who know of me know that, to me anyway, he showed the way. That said there are lots of people on T2W who have helped me along the way and I'll try and find some links to stuff when I get a moment.

Anyway - what do I do? Basically I look to identify levels and then trade them. Simple as that. I personally believe that, whilst the market is not random (and every price movement has a reason behind it), it is 100% unpredictable. What this means is I have no expectation or desire to know what will happen next as I can't see into the future. All I do is find a level, generally trade in the existing direction which price is moving in, and see what happens next. To me the 'seeing what happens next' bit is the hardest bit and the one I struggle with the most.

In a nutshell that's it. Hopefully there may be others here who trade the same way who will be interested in contributing to this thread. If I could ask that anyone posting charts etc., please restrict them to horizontal lines and the less of those the better. In other words, keep it simple as I am a simple person.

If no-one is interested in this style of trading then at least I tried!!

Bye for now

Rob

Here's one I prepared earlier

Anyone trading cable the last couple of days will know she's been a nightmare on the lower timeframes - well she has been for me anyway so I thought I'd try cracking a level on H1 and seeing what would happen.

First chart from this morning. Simple bracket orders either side of the range with stops at the other ends.



Long got triggered, am currently offisde by a few pips which I hate, with stop moved to just below the breakout level. Might hold, might not. Am just going to let it run and see what happens...



P.S. Just looked at the chart again and there's a nice opportunity to add if the 1-2-3 triggers. A bit too tempting not to take.

Not much to say here. 1-2-3 might or might not happen. Price is certainly going up as far as I can see. Stop has to go to below higher low because, as far as I understand it, a break of that would invalidate the trend?

Hmmmmmm, well, i have to disagree with you on not knowing what is going to happen. If you subscribe to the Elliott Wave Principle, then the ball is definitely in your court. I would NOT trade with out the knowledge that EW provides.

forexkunta said:

Hmmmmmm, well, i have to disagree with you on not knowing what is going to happen. If you subscribe to the Elliott Wave Principle, then the ball is definitely in your court. I would NOT trade with out the knowledge that EW provides.

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Hello,
I guess that depends on whether you think EW has any bearing on a market which doesn't have zero as its baseline. Anyway, if it's OK with you, I'm keen to keep this thread focused on what I mentioned at the start. Just trying to keep it nice and simple
All the best
Rob

kitejedi said:

Hello,
I guess that depends on whether you think EW has any bearing on a market which doesn't have zero as its baseline. Anyway, if it's OK with you, I'm keen to keep this thread focused on what I mentioned at the start. Just trying to keep it nice and simple
All the best
Rob

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If you like nice and simple, EW only require you to count to 5. Cant get any more simple than that. Then trading a naked chart will be a possibility that will not leave you broke. Will leave you the website and then scoot. I prefer an advanced notice about what a move is going to do, precision trading instead of shooting with a shotgun from 500 yards.
Elliott Wave International: Expert Market Forecasting using the Elliott Wave Principle

Regards,
Kent

Hey kite, don't listen to that fool. I'm sure if you read my website on 2ema - 5ema cross over on the 4hr you'd make billions. although, since your trading naked i'll make it nice and simple. make sure you set the ma's colour to invisible...

Being serious now though. BoE tomorrow.

Hello Kent,
Thanks for your input but I think you may be missing the point of what this thread is meant to be about. I have no issue with EW and I know there are those who would argue that it has both relevance and irrelevance when applied to forex markets but that's not really what this thread is meant to be about. I am just a happy go lucky lunatic who likes price and as few lines as possible on a chart. I don't believe anything in life is predictable (except maybe death although I am working on becoming immortal ;-) ), therefore I certainly don't believe the markets can be. If you think otherwise then great - we're both right
I just wanted to start a thread about naked trading, not a debate about the whys and wherefor's of market philosophies.
Take care
Rob

T2 has been triggered and offside for the moment but price still looks to be going up....

mambo =D

what do you mean by 1-2-3/T2 etc?

I'm guessing you don't mean the 1-2-3 reversal a la trader vic?

rawrschach said:

mambo =D

what do you mean by 1-2-3/T2 etc?

I'm guessing you don't mean the 1-2-3 reversal a la trader vic?

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Jambo Bwana,

Habari?

The 1-2-3 is as in a normal 1-2-3. The T2 is just a habit from trading M5 in that each trade from first thing in the morning is numbered. On the hectic days I can sometimes have a few positions open at the same time and I just find it easier to number them all.

Great to hear from you

Rob

For those who are not familiar with basic 1-2-3 formation this is a good thread. 1-2-3 Formations and Ross Hook

If I am not wrong, what I have understood from Rob is 1-2-3 patterns is not just a reversal signal but a continuation patterns too. In simple terms price swings high/low and then it generally retraces/pull's back as price doesn't moves in a straight line up/down. If the trend has to continue then after retracement it should breakout out of swing's hi/lo in the direction of original move.

Hello APMF,
Thanks for dropping in. After throwing her toys out of the pram earlier in the week she's being a little better behaved now.



How GJ looking for you today?

All the best
Rob

Edit: Missed this level - explains why price has stalled...

apmf said:

For those who are not familiar with basic 1-2-3 formation this is a good thread. 1-2-3 Formations and Ross Hook

If I am not wrong, what I have understood from Rob is 1-2-3 patterns is not just a reversal signal but a continuation patterns too. In simple terms price swings high/low and then it generally retraces/pull's back as price doesn't moves in a straight line up/down. If the trend has to continue then after retracement it should breakout out of swing's hi/lo in the direction of original move.

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That's certainly how I understand them, although there are obviously reversals as well which is what I think was being alluded to. The key for me is your last few words about swing hi's and lo's etc. To me anyway, a 1-2-3 is just price taking out a previous high (for long) or low (for short). I tend to try and avoid giving things names too much as once one calls something on a chart an inverse shampoo or some such thing, one is loading oneself up for a big fall when the 'pattern' doesn't work.

A few small losses and then a nice 124 pip winner which im closing here.

kitejedi said:

Hello APMF,
Thanks for dropping in. After throwing her toys out of the pram earlier in the week she's being a little better behaved now.

View attachment 65286

How GJ looking for you today?

All the best
Rob

Edit: Missed this level - explains why price has stalled...
View attachment 65290

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Hi Rob,
Great, you are having a nice day!!
I took three trades so far( see attached chart below) all went fine. In T3 I exited earlier at the Hourly resistance area.
BoE news is neutral, lets see what ECB says...
As far as G/J is concerned longterm trend is down lets see 5 minutes shows any signs of nice short rally but at the moment I am waiting on sidelines.
Happy Trading.
Paul

apmf said:

Hi Rob,
Great, you are having a nice day!!
I took three trades so far( see attached chart below) all went fine. In T3 I exited earlier at the Hourly resistance area.
BoE news is neutral, lets see what ECB says...
As far as G/J is concerned longterm trend is down lets see 5 minutes shows any signs of nice short rally but at the moment I am waiting on sidelines.
Happy Trading.
Paul

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Nice one Paul. You really are converting me to GJ!! That said, cable is being more friendly than earlier in the week. I know what you mean about T3 - I always struggle with those coming into news but there'll always be another entry

kitejedi said:

Nice one Paul. You really are converting me to GJ!! That said, cable is being more friendly than earlier in the week. I know what you mean about T3 - I always struggle with those coming into news but there'll always be another entry

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Any particular reason which you are finding it better ? For me as I have said it before I dont have a particular reason, just that I am being married to this pair for a while. I was thinking to get into Eur/usd for low spread cost reason.

apmf said:

Any particular reason which you are finding it better ? For me as I have said it before I dont have a particular reason, just that I am being married to this pair for a while. I was thinking to get into Eur/usd for low spread cost reason.

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I guess I'm just not a one woman sort of guy LOL. In all seriousness, much that I love cable, she can try the patience of a saint sometimes and your chart from a couple of days ago gave me some ideas on a little bit of discrete two timing.

P.S. Please don't tell her I'm wandering though. I have a date with her 6.30am Monday morning and I don't want to be blown out.

Cable H1 - Update

Quick update on cable. Charts were getting a bit hectic with too much writing on them, so a bit of clarity needed. Currently T1 and T2 onside and T3 offside, but overall position looking OK. Nothing to do but wait and see, although she's looking a bit too lazy to break 1.61 again.