Some of my thoughts + Trading System

[elang]

Good morning people of the world!

Another beeeeeeeeeeeeeeeeautiful day is on the way.
Another sunrise, another day with BabyPips and another chance to praise life and better yourself as a trader and person

So enough of my boooooring blabbering, let's see how our trade progressed from yesterday.

From my previous and last post, i shorted GBP/USD @ 1.9524 with an initial target of 38.2 % Retracement 1.8836 to 1.9846 at >1.9458<

Now, i actualy closed my position of early for 30 pips profit as i had to leave the office in a rush, but if you held it from our entry of 1.9524 to our target of 9458 (38.2%) you could have easily bagged 66 pips! - Now aint that worth the hassle ?

The price moved further down to as far as .9433 so if you were reeeeaaal good you could have taken home another 20 - 25 pips.

Overall, everything is looking great.

Please view the picture bellow for a detailed trade update on the GBP Short.

Regards and Good luck to everyone!
E. Lang

[elang]

Hello Again Guys,

Most people trading GBP/USD or EUR/USD would think there is no point for me to post todays trade, but i consider it an even greater opportunity to describe how using Lang's Cross trading system can benefit you.

I talked about SPREADS and BUNCHES the other day regarding EMAs and how to recognize these patterns of consolidation and strong trends.

I'm sure those of you who read up on that are finding it much easier to determine where they should be trading and where they should be waiting to start trading.

The worst thing anyone wants to do is get caught in a consolidation that knocks out your stops all day long.

Using the base principles of my system ive shown you where you could have entered today to make the best profit and why you shouldnt have chickened out when GBP hit resistance using Fibonnaccis numbers.

Now this is just one of the Scenarios i have drawn up, there are others possible, however this seems the most likely.

Note also on the H4 chart to the right, RSI is over 50, Stochastics are looking very Fresh and so is MACD

Dont forget that all this price movement is just consolidation from the high of 1.9864, we will need to break 9727 and then run for a decisive break of 9864 in order to get out of this range and look to better things like 1.9971!

Regards,
E. Lang

[topgun]

Nice post. For candlestick lovers like me your GBP short also formed a nice hammer at that 38.2 Fibo Line which wouldv't been yet another reason to exit Keep up the good work!!

Originally Posted by elang

From my previous and last post, i shorted GBP/USD @ 1.9524 with an initial target of 38.2 % Retracement 1.8836 to 1.9846 at >1.9458<
E. Lang

[sambhu]

Hi E.Lang,
I like your way of thinking,art of writing and simplicity of expression.I can not believe you to be of 20years of age.However,go on thinkinging and writing
when you are not busy in trade or other serious business.You are a natural
philosopher.I shall be waiting for your next post.
Your trading system is also very simple and effective.I am now testing it on a demo account.It appears that your exit criteria requires a few more points ( as you have used support/resistanceverbought/oversold).Inform us all about your latest inventions.

thanks,
sambhu(newbie)

[elang]

Your gratitude, plus the possibility of helping you learn something that may benefit you is reason enough to keep me writing till my beard turns white

Todays GBP LONG trade seems to be going well for now, i am rather pleased with it.

If you traded on charts below H1 you may have gotten seriously discouraged to hold the trade as the volatility was incredulous.

Althought i sometimes move to smaller time frames like M30/M15 to pinpoint optimal entry positions, i strongly recommend sticking to frames higher than M30.

From what i can see here were are heading towards 1.9727 as prognosed in my previous post. If we break that we will probably have some consolidation above 9727 after which we will most likely see another rally to 1.9846.

Its all very interesting.

I will be able to update tomorrow when i have access to my charts.

Regards and MERRY CHRISTMAS!
E. Lang

[elang]

Good morning guys,

I hope you're all doing well and had the chance to make a good profit yesterday, dispite the news release at one point...brrrrr

Disgusting news :P

Anyway lets see what happened after our GBP Long yesterday.

"Using the base principles of my system ive shown you where you could have entered today to make the best profit and why you shouldnt have chickened out when GBP hit resistance using Fibonnaccis numbers.

Now this is just one of the Scenarios i have drawn up, there are others possible, however this seems the most likely.

Dont forget that all this price movement is just consolidation from the high of 1.9864, we will need to break 9727 and then run for a decisive break of 9864 in order to get out of this range and look to better things like 1.9971!"

....riiight.

So as we predicted the price bounced of the 38.2 which was around 9578, which was also 10 EMA on H1 and which was also resistance turned support..

...Really what more do you need ?

If you had the patience and experience you would have held that trade through its correction, and in fact you should learn to do so.

Our initial target of 9727 has been met and i am happy about that.
I "think" there will be a mild period of consolidation here with a logical correction before the price moves back up.

Think about it, if the price didn't stop to correct before it moved up again, how would you know where the support is when it started comming back down ?... Well simply put there wouldn't be any. A Price can never move just UP or just DOWN... it rallies, it corrects, it rallies it corrects... and each time it corrects it sets a news Supports and Resistances, and thats the way it works, just think of corrections as checkpoints the price has to place in order to solidify its progress, the faster you accept them and shake the fear of, the more options you will give yourself when trading.

For now thats pretty much it my bias is still long and i am asuming if the trend is still strong that any correction of the price on will be handled by the RED 10 EMA and the 20 GREEN EMA on H1,after which the rally to Target 2 (check attached chart) of 9846 should resume.

Thats pretty much it for now, guys.
I will update more today and dont forget to watch your economic calendars.

Aknowledge the presence of things around you, if not to utilize them then to abstract yourself from fear and suprize when they occur!

Regards,
E. Lang

[elang]

Hello guys,

GBP/USD Today went as far as .9747 before it came down to test 20 GREEN EMA on H1 @ 9686-ish.

I'm seeing a few Bearish signals here and there which lead me to believe we might have a top formed.

- RSI on H4 has gone over 70 and tipped back down below it with its eye on 50 and perhaps even below 50 ?
- Stochastics on H1 are crossing over at the peak and may perhaps make its way to 80 or below 80 ?

- RSI on H1 tried to break below 50 when it went into a clinch with 20 GREEN EMA on H1 @ 9866, but it got the uppercut back up to the days highs at an attempt for a break higher, which had no luck. Now RSI is popping back down trying to break 50, but in a very flat manner which im not very happy about.. there is obviously a lot of mixed oppinions and mutual headbutting around that area. We can either have the price get spat back up for another test of the highs or the second senario is a break of RSI 50 and break of GREEN 20 EMA on H1, which would have us weee down to the likes of 9656 (10 RED EMA on H4) and previous R turned S.

We are also seeing something of a 5/10 cross on H1 but its quite a struggle and the White 5 EMA hasnt quite decisively broken bellow the 10, neither has the RSI confirmed it with a break below 50, so we need to sit on our hands for now.

So basically and "all go" short situation is:

1. Definate 5/10 cross
2. RSI Break below 50
3. Break of 1.9677 Support

If we get a break of 1.9677, this will turn the situation bearish and would confirm that the break of 9727 held no water, pretty much putting things back in a consolidative perspective from the fall of 9846. Hence bearish action below 9677 would be in the range of 38.2% once more (1.9457) and as far as 50% (1.9338). Thats pretty much the bearish sentiment.

If this scenario fails, then we just go back to the logical next target of 9846

Thats all feel free to view the attached charts.

Regards and wishes for a MERRY CHRISTMAS
E. Lang

[elang]

Dear friends and Pippers,

I am sure you all watch the news, and you have all heard about the Bulgarian medics which were sentenced to death yesterday for something which enough evidence exists to proove their innocence.

I do not pesonally know them and i've never seen them, but i know life is too precious to throw away and it is not exceptable to use 5 people as a unit of exchange through which to meet selfish goals of strictly political nature.

The least i can do is sign this petition and i ask all of you who have a heart to do so as well, it takes less than a minute and it just may be possible that your voice adds the last required drop to force the stream of our humanity to finally appeal to the higher froces in our communities who posses the necessary factors of persuasion and diplomacy.

Over 30 thousand people have signed the petition so far.
Please send it to as many people as you can.

I am nobody to judge whether they are innocent or guilty, so i can only wish that they get what they really deserve.

http://www.petitiononline.com/bulgaria/petition.html

Regards,
E. Lang

[elang]

Just updating the GBP/USD Chart.

I wanted you to see an active screen showing areas of BUNCH and SPREAD.

If you read my previous post expalining this principle in detail, you would know that at this point in time that during a BUNCH; you should be sitting on your hands and waiting for good signal to enter a position.

I've specified both Short and Long entry criteria for the next move so thats pretty much it.

All you need to do for now is sit quietly in the midst of the pippage like a ninja, and wait for the "opportune moment".

Time will provide the opportune moment and all it requests of you is time in return. You give almost nothing and get a lot in return, this is the way of the Pip-jutsu Warrior :P hai! (Jutsu = Way/Art)

Regards,
E. Lang

[elang]

Hello again guys,

This will be my last, as I need to leave the office a little earlier today.

We are going to be working with H1 Charts.
What I want to do is go through a trade analysis of the GBP Long.

From the entry, through the correction, to the next rally and to the EMA Bunch which is still taking place as we speak.

Our Entry signified with #1 was based on several indications:

- There was a visible EMA Spread occurring, which means the price was evidently getting read for the next big move and was shaping its way out of the previous EMA Bunch-Range, which I have accented with the red negative sign.
- RSI had broken over 50 confirming the strength and possible intention of the move.
- Stochastics weren’t quite in the oversold zone, which is great because it means we were just catching the rally. The rally development of a price normally takes place while stochastics are in the oversold or overbought region; this is when the move is strong and extremely supported.
- Last but not least we had a 5/10 E-MA Cross-followed by a beautiful Chinese fan like EMA spread.

This is an “all go” situation. This is where all the Pip Ninjas pounce out of the dark after hours of hiding and act!
I can’t stress enough how important it is to be patient. You can loose all your money trading in EMA Bunches, so don’t!

Just sit and wait until the market clears out.

The price finds resistance at 1.9655 signified with #2 then corrects (#3)

Why? Pff.. Heck if I know. It just did. There was a rally, so logically there was going to be a correction soon enough, why 9655 I don’t know and frankly still can’t find out on my charts. It could have been traders Squaring out prior to news, it could have been some old quadrillionaire accidentally pressing the SELL button on his platform when he doze off or maybe some dog in the middle of a deserted village in Madagascar farted and accidentally set of the security alarm off in a Top Secret Underground Nuclear Weapons Research Facility-causing someone to jerk in fright and accidentally set of a launch command for a missile attack on BIG BEN.

Heck… The truth is we are TAs, Technical AnalyzOrz. That means we don’t care. There is enough trend lines and indicators and oscillators and other tools that work well enough to let us know how to react to such situations, when to trade and when not to.

We have facts and that’s enough for us to work with.
So what should we have done then once the correction started, well… You should have drawn your Fibs of course. If you did as you will not on the chart on the left, the most likely Support was 38.2 which coincided with 9578 which was a previous R turned S Aaand, it was also 10 EMA on H1. So there you have it you’ve got 3 factors. Its better than not having any, at least we know what MIGHT happen, once again we try and abstract ourselves from any surprises.

Holding on to a trade during a correction isn’t an easy job, and you will need time and patience to gain the discipline required to be able to wait for the price to retrace and get back to its previous course of movement.

So that’s Point 2 and 3 all you had to do was sit on your hands.


The price rallies like umn… a rally and then an EMA Bunch forms O_o (#4/5)

There isn’t much to explain here, but I would like to let you know how to reassure your participation in a trade like this.

When you get out of an EMA Bunch and you’ve got a nice EMA spread you should pretty much have a configuration like this, in order from bottom to top:

SMA 200 at the bottom
SMA 100 on top of that
EMA 50 on top of that (BLUE)
EMA 20 on top of that (GREEN)
EMA 10 on top of that (RED)

That is what a good move will look like on the chart.

Most corrections of the price on a lower time frame will be handled by the 10 and 20 EMAs on the higher time frames (H1 for eg).

Let that sink in and look at the charts on the right and left to understand exactly what I mean.

This is a great way to keep you from getting excited when you trade.

When the price breaks or gets into a clinch with EMA 20 and 50 EMA you need to become suspicious. It is pretty possible when this occurs that an EMA Bunch is forming. Use RSI/Stochs/MACD/S&R to confirm if you should exit and when to do so optimally. Additionally, our bias in such a situation, should you choose to hold the position during the Bunch should be neither bullish nor bearish.

It is difficult if not ridiculous to try and attain a bias from within a consolidation. Wait for decisive breaks before forming an opinion.

Just as a fighter in a ring facing an opponent. You need to remain calm and react only when they act, attack only once they have attacked you. When your opponent doesn’t move, not his body, not his eyes, there is no way to understand what his next action will be. What you need to understand is that when the price consolidates and gets into an EMA Bunch you need to wait for an action so you can react. What happens during that consolidation, is your opponent thinking, thinking about how to attack, where to attack. Although we would like to know that, we are not mind readers, so the best we can do as TAs is hone our skills to recognize patterns that may predict the move. These are the patterns you need to learn and memorize so you can recognize them when price breaks out of a range. Your reaction should be calm and immediate. Only time will train you to react to each of these situations with precision and excellence.

It is almost impossible for me at this moment to know if the price will go up or down right now that we are in an EMA Bunch, the best thing to do is wait for the market stop thinking and let it act, so that we can react and get rich

All I am going to do now is sit on my hands until I get an action.

That’s all I can say for now.
Regards,
E. Lang