Trading Naked - Part 2

[foredog]

I'm in there too foredog, but I'm not exiting yet.

I'd have been out for nowt anyway as i try and get stop to Breakeven quickly and this retraced to about 1 point below my entry so i'd have been stopped. Hope it runs for you.

 

[Bloodhound]

Not a market that I look at very often and I can't post a chart as I'm not sure how to sort it out but the FTSE is looking interesting this morning. Gap up to hit a level from 23rd October and now stalled just below it........

 

[Bloodhound]

Not sure if this will be of any interest and possibly I highlighting the blindingly obvious but I'd welcome feedback. Here's 2 screenshots of cable. One from Monday and one from this morning. The more I trade her M5, the more I tend to shy away from mornings like this morning as the volatility kills me.

It's always easy to see it after the event but the difference in the range of individual candles and length of wicks is quite striking IMO and has a direct impact on whether I have good day or not.....





P.S. I should add that I'm thinking about the lead into the London open more than what happens after

 

[HawkTrader]

I'd have been out for nowt anyway as i try and get stop to Breakeven quickly and this retraced to about 1 point below my entry so i'd have been stopped. Hope it runs for you.

Just exited with 18 pips, I was aiming for about 30 but news is coming so it's time to hide!

Not a market that I look at very often and I can't post a chart as I'm not sure how to sort it out but the FTSE is looking interesting this morning. Gap up to hit a level from 23rd October and now stalled just below it........

I looked at a chart of the FTSE, and I don't see anything interesting, any chance you could post a chart or tell me what TF and I'll do it?

 

[foredog]

Not sure if this will be of any interest and possibly I highlighting the blindingly obvious but I'd welcome feedback. Here's 2 screenshots of cable. One from Monday and one from this morning. The more I trade her M5, the more I tend to shy away from mornings like this morning as the volatility kills me.

It's always easy to see it after the event but the difference in the range of individual candles and length of wicks is quite striking IMO and has a direct impact on whether I have good day or not.....

View attachment 68108

View attachment 68110

P.S. I should add that I'm thinking about the lead into the London open more than what happens after

Stating the obvious but a breakout from a 25 pip range is more probably going to be stronger than one from a 100 pip range. Maybe a quick look at 1hr charts for overnight will give you a pointer, if there all nicely in a small channel then happy days.

 

[Bloodhound]

Here you go Hawk!!



I guess I should add that I used to be fascinated by gaps, islands etc. so I'm looking at this chart and thinking is it going to fill that gap and then shoot to break resistance or just go straight for it, or do neither of those?

 

[HawkTrader]

Hah, I don't have a gap on my FTSE chart. Judging from mine it's already broken the resistance?

 

[Bloodhound]

Hah, I don't have a gap on my FTSE chart. Judging from mine it's already broken the resistance?

Yup - broke that level and just retested it. Now possibly setting up for an M5 1-2-3. I don't know the FTSE that well but it doesn't look like it's pulled back quite enough yet though.

 

[HawkTrader]

When I firsted started trading (which isn't long ago!) I was playing the FTSE. The thing about it is that it holds S/R more than your average currency pair IMO, my whole method was buying and selling S/R.

Of course at the moment those zones won't hold as much since it's trending, though you can't go wrong with buying pull backs in the up direction ATM. 🙂

 

[Bloodhound]

Stating the obvious but a breakout from a 25 pip range is more probably going to be stronger than one from a 100 pip range. Maybe a quick look at 1hr charts for overnight will give you a pointer, if there all nicely in a small channel then happy days.

Hi Foredog,

I completely agree with you re breakouts from tighter ranges. What I was thinking about was more the way cable carries on to behave during the day. Again this is purely from an M5 trend following perspective and using 20 pip hard stops. I may be completely wrong but it seems that on the days when the range of individual M5 candles is tight going into the Lodon session, and with little or no wicks, she tends to move more slowly, respect levels with much more precision and generally be much easier to trade. I was chatting to someone about this a few weeks ago and they highlighted that it had a lot to do with how other sterling (or dollar) crosses were behaving. In other words, if sterling were trending up across the board then cable would be a lot easier to trade.

All the best

Rob

 

[foredog]

What a choppy afternoon, glad i pretty much stayed out of it. Cable seem to go through Highs/lows by just enough to trigger before reversing. Hope you all kept out of trouble. Probably something to do with Memorial day in the USA so light volumes.

 

[neil]

What a choppy afternoon, glad i pretty much stayed out of it. Cable seem to go through Highs/lows by just enough to trigger before reversing. Hope you all kept out of trouble. Probably something to do with Memorial day in the USA so light volumes.

I'm of the same opinion so I am staying away until next week.🙂

 

[Bloodhound]

Thought this might be of interest. 2 phases. The first one is best explained on the chart:



The second is a picture perfect example of a chart I remember seeing, first on Feb's thread, and then with monotonous regularity in real time since. I'm not a fan of trading ranges but this one gave a nice early warning signal that there was a point (at about 3.25pm) when price (for whatever reason I care not why) decided it couldn't go any higher, produced a LrH and then broke out.

All the best

Rob

 

[neil]

just lookin'

Just looking at the charts I thought that the 5 min euro looks better to trade than cable which might trade better with simple trend lines. The euro seems to give better examples of small consolidations and bar action?

 

[neil]

testing cable 5min trendline etc?

Well I am looking at 5 min. chart of Cable. Seems to act differently to euro as stated above.trying breaks of simple trend lines etc. trying to keep things simple🙂

 

[Bloodhound]

Hi Neil,

I think it's a case of horses for courses. I trade cable as that's what I've been trading since April. I had a look at Euro but ended up moving back to cable again pretty quickly as it felt out of my comfort zone. I know Feb and all the chaps on his thread swear by it.

I agree with you that they are slightly different in how they behave.

Someone else who has posted here a little started trading GJ M5 1-2-3's etc. with success. Personally if I were to have a second favourite pair it would be EJ - I couldn't begin to explain why and it's not included within my trading plan - just one that I have been watching from time to time recently.

I think the basic principles of M5 1-2-3's following impulse waves from consolidations probably work on a lot of liquid markets - the key for me has been to focus on one pair and get to know it.

All the best

Rob

 

[senyorqueso]

Neil - that's a nice example of what i'd say is the highest probablity event in a chart.

 

[mb325]

GBP/USD so far...

Not been a very nice morning, for that reason i've been concentrating on capital preservation even more than usual. Therefore, I moved stop to BE asap on all 3 trades so far.

T3 is still in, stop moved down to the recent 1m resistance, but price has just put in a HrL on 1m so i'm not too hopeful for this trade atm!

N.B I trade off 5m but save all my charts on 1m as it's easier to look back on woulda coulda shoulda...

 

[neil]

Hi Neil,

I think it's a case of horses for courses. I trade cable as that's what I've been trading since April. I had a look at Euro but ended up moving back to cable again pretty quickly as it felt out of my comfort zone. I know Feb and all the chaps on his thread swear by it.

I agree with you that they are slightly different in how they behave.

Someone else who has posted here a little started trading GJ M5 1-2-3's etc. with success. Personally if I were to have a second favourite pair it would be EJ - I couldn't begin to explain why and it's not included within my trading plan - just one that I have been watching from time to time recently.

I think the basic principles of M5 1-2-3's following impulse waves from consolidations probably work on a lot of liquid markets - the key for me has been to focus on one pair and get to know it.

All the best

Rob

Agreed. Several traders of the smaller time frame state that it is wisest to really get to know one pair well.
Anyway - update for Cable 5Min.....Guess the direction now folks🙂

 

[Bloodhound]

Agreed. Several traders of the smaller time frame state that it is wisest to really get to know one pair well.
Anyway - update for Cable 5Min.....Guess the direction now folks🙂

Wouldn't possibly want to speculate on direction but I know where I'd have a buy order (and a sell for that matter!) ;-)