Some of my thoughts + Trading System

[elang]

When we have a trend break like this, what we normaly want to do is fan out a probable trend line from the newly created H.

We would expect any bullish price action to be more or less in respect to this line.

Please view the attached chart.

Regards,
E. Lang

[elang]

It is possible to short at the break of this line.
( and loose a few pips, the price got chewed up and spat back up off the trendline )

Regards,
E. Lang

[elang]

Update,

The price will either break over the latest red line or, it will move lower off it, to retest the lows.

Regards,
E. Lang

GBP/USD

Cable's fall from 1.9731 resume today after recovery from 1.9457 was limited below 1.9600 resistance and reaches as low as 1.9437 so far. At this point further decline is expected towards next downside target of 1.9237/61 cluster support (23.6% retracement of 1.7047 to 1.9913 at 1.9237) as long as cable stays below 1.9566 resistance. Touching of 1.9566 will indicate lengthier consolidation will follow first before another fall.

In the bigger picture, rising trend line support (1.8517 to 1.8834, now at 1.9579) was taken out, confirming that the rally from 1.8517 has already completed at 1.9913. Hence, as long as cable stays below 1.9731 resistance, the fall from 1.9913 should still be in force. Also, bearish divergence conditions are being displayed in weekly RSI, daily MACD and RSI already, suggesting that the whole up trend from 1.7047 might have completed. Focus is now on 1.9237/61 cluster support.

Strong rebound from or above 1.9237/61 cluster support will indicate that the current fall from 1.9913 is merely correction to the rise from 1.8517 only and cable could make another high above 1.9913 and attempt to meeting 2.0106 cluster resistance (1992 high, 100% projection of 17047 to 1.9024 from 1.8090 at 2.0067) before having a medium term reversal. However, sustained break of 1.9237/61 cluster support will add much weight to the case that whole medium term up trend from 1.7047 has already completed much deeper decline should be seen towards next cluster support at 1.8834 (38.2% retracement of 1.7047 to 1.9913 at 1.8818) first.

[elang]

GBP/USD

Cable's fall was contained at 1.9437 and recovers mildly since then. As discussed before, further decline is expected towards next downside target of 1.9237/61 cluster support (23.6% retracement of 1.7047 to 1.9913 at 1.9237) as long as cable stays below 1.9566 resistance. Touching of 1.9566 will indicate lengthier consolidation will follow first before another fall.
In the bigger picture, rising trend line support (1.8517 to 1.8834, now at 1.9588) was taken out, confirming that the rally from 1.8517 has already completed at 1.9913. Hence, as long as cable stays below 1.9731 resistance, the fall from 1.9913 should still be in force. Also, bearish divergence conditions are being displayed in weekly RSI, daily MACD and RSI already, suggesting that the whole up trend from 1.7047 might have completed. Focus is now on 1.9237/61 cluster support.

Strong rebound from or above 1.9237/61 cluster support will indicate that the current fall from 1.9913 is merely correction to the rise from 1.8517 only and cable could make another high above 1.9913 and attempt to meeting 2.0106 cluster resistance (1992 high, 100% projection of 17047 to 1.9024 from 1.8090 at 2.0067) before having a medium term reversal. However, sustained break of 1.9237/61 cluster support will add much weight to the case that whole medium term up trend from 1.7047 has already completed much deeper decline should be seen towards next cluster support at 1.8834 (38.2% retracement of 1.7047 to 1.9913 at 1.8818) first.

[elang]

We need to break below Channel support as shown on the first chart.

Then we can aim for .9312 > .9260 and eventualy main target > .9237 / %23.6 of 1.7049 to 1.9913

Can't write much now v.busy at work.

Regards,
E. Lang

[napoleon]

E. Lang

I noticed that you change the parameters for your indicators RSI, MACD and stoch a lot. I have the same parameters you gave on the very first page on this thread. How is the new parameters helping your trade, will you recommend people change their parameters whenever you change yours? and how do you arrive at those parameter values? My currency pair is EURUSD.

Thnx

napoleon

[elang]

Dear Napoleon,

i can't write much right now, but i will be glad to explain anything i can over Yahoo Messenger or Skpype or Msn Messenger

Respectively:
effilang@yahoo.com
effilang
effilang@hotmail.com

[cyberrick]

Thanks for your great insite. I am a new FX trader and I am just getting into the basics.

The biggest thing that I see from your blog is to be emotional less ... in regards to this point I know that I will be successful because I am very system oriented and very disciplined.

In regards to your set up I am using ForexTrader and they call the RSI -> RSI EMA and RSI SMA

I have selected the RSI EMA ... is that correct for your system?

Also, what trading platform are you using.

I look forward to your response

[delvis]

elang

hi im new to this also. so i hope this isnt a stupid question.

my question is. is it possible to make a trading system with the setup you posted on the first page of this. if so then can you make one and post it.
i have been using your system and it has been working well for me.
thanks

[elang]

Hello guys,

Haven't posted in almost 1 week.

Apart from my two jobs i'm also a sports competitor and having the nationals coming up in a few days i've needed to put an extra "oomph" in on practice to keep my edge over the competition.

I will be back soon posting on the regular and we will be taking a new approach to things.

I will take some time to systemize things, so we have a set plan for starting the trading day, every day. I want everyone, both experienced and novice to be able to apply the tips and strategies in my explanations and trading way.

I'm sure you will find it useful and interesting.

I've had the pleasure of speaking to some of u over Yahoo Messenger, it has been a great experience, and its really something else to be able to comment in real time and exchange charts etc. Hope i get to meet even more of you!

Good luck to everyone and have a nice day.

Regards,
E. Lang