Trading Naked With Inside Days Candlestick Pattern

In this post, we are going to discuss what are inside days and how to trade naked using this pattern. Trading Naked is what the pro traders do. They trade naked. Now don’t get me wrong. Trading naked only means trading solely depending on price action and not using any indicators. Inside days are very important trend reversal patterns. Appearance of an inside day on the daily timeframe can mean a massive up or down movement in the market. An Inside Day occurs when the entire price range for a currency pair falls within the price range of the previous day. Sounds similar to the harami pattern which it is. But it is something more than a harami pattern. I want you to take a look at the following EUR/USD Daily timeframe screenshot.

Inside Days Candlestick Patterns

If you look at the above screenshot, you will see no indicators. That’s what trading naked is all about. Take a look at the first up red arrow in the above screenshot. An Inside Day is clearly visible. You could have entered into a short EUR/USD trade around 1.38177. Your stop loss would have been 1.38400. Your risk would have been only 23 pips.  Now a risk of 23 pips on the daily timeframe is very small.  You should not hesitate to take a trade when the risk is just 20-30 pips on the daily timeframe. Everytime it wont happen but it will happen often that you get an entry with low risk when you start trading naked. This is what happened in the next few days. The price fell to 3.2955 in the next 8 days making you around 700 pips in just 8 days. If you would have used pyramiding you could have made instead around 1400 pips. This is what I do. I open one position when gets into profit, I move the stop loss to break even and open a second position. Building this pyramid helps you multiply your profits 2-3 times.

Now take a look at the second up red arrow. Another Inside Day is clearly visible in the above screenshot. The price fell to 1.32955. You could have gotten into a long trade around 1.33448 with the stop loss at 1.32900. So your risk would have been around 60 pips. The price right now is 1.37575. It appears that price will break the previous resistance of 1.38177. So in just 1 month you could have made more than 2000 pips. This post should teach you how important it is to master certain candlestick patterns and then use them with your trading system if you want to make massive pips. You could have also traded this pattern alone if you wanted to but I would recommend that you should use this very important candlestick pattern with your swing trading system. I use this important candlestick pattern with my swing trading systems and get very good results.

This is what we want. A high winrate with very low risk. If you can achieve this, you are on your way to making a big fortune in trading. Focus on these 2 things. 1) Achieving a high winrate. 2) Reducing the risk as low as possible. Read this post on how to make 200 pips per trade with a low risk of 20 pips. In this post I explain in detail how you are going to use candlestick patterns in reducing risk and catching the big moves in the market. H4 timeframe is the best timeframe for this candlestick trading strategy. You can also read this post on how to make 1000 pips per month with low risk. In this post I explain how you can make 1000 pips per month with low risk. Now watch these Trading in the Buff videos below in which John Templeton explains how to trade naked using only price action. The first video explains how to identify a move in the market.

This video explains how to spot a false move in the market. This is something very important for you to understand as most of the time you will get burned by these false moves. Did you take a look at our Million Dollar Trading Challenge? Million Dollar Trading Challenge is a challenge that turns a small amount into a big sum in a few months.

This video explains how to identify the support and resistance levels in the market. The concept of support and resistance is central to trading. If you don’t understand this concept well you will never become a successful trader. Support is like a floor. When you throw the ball down, it bounces from the floor and returns. Support works just like that. When price hits support, it bounces up. In the same manner, resistance is like a ceiling. When you throw a ball up, it hits the ceiling and returns back to you. In the same manner, when price hits resistance it will bounce down.

This video explains the breaking of the support and resistance lines. Now breaking of support and resistance line means a big move in the market. Most of the time we traders are watching precisely this thing. We want to know if the price is going to break the support or resistance. If price breaks support or resistance we trade in the direction of the breakout.

This video explains going with the trend. Always remember this saying: “Trend is your friend until it bends.” Trend trading is what makes fortunes for the traders. Master trend trading and you will be a rich trader. The problem is knowing when the trend starts and when it ends.

The following 3 videos explains the different ways of trading. There are different ways to trade the market. You can become a scalper. You can become a swing trader. It all depends on you.

Whatever style of trading you choose, it should be something that is compatible with your personality. If you are an impatient person who cannot wait long then scalping is the style for you. On the other hand if you can patiently wait for days, then swing trading can be best for you. Did you take a look at our Million Dollar Trading Challenge II?

After watching all these videos on naked trading, you should have a fairly good idea what naked trading is all about. By now you should be an expert on naked trading. Naked traders master the art of reading price action. This is what matters in the market. Indicators are just formulas based on price and always lag behind price. Focus on price action and you will be succeed in trading.