Some of my thoughts + Trading System

Elang, I’ve completed setting up my charts using your 4 ema system. It looks promising. I am testing it now on gbp/usd,eur/usd,usd/jpy,usd/chf, and usd/cad on the 1H chart. Well see in the next few days. Are you trading this system live?

Yes, I trade with it on both my live and demo accounts, i try and enhance it on my demo account every day, where as i adhere to strict rules on my live.

The results are promissing as you can see in the trades logs in this thread.

The experimental positionentered at 1.3180 has gone great so far and it just goes to prove that D. Jones was right when he said news can�t change the market trend. After having digested the news the price has moved back to its previous bearish plans.

Previous Supports have been broken and thigs are looking very well.
Being the end of the week, i�ve set a Trailing order with a 30 pip stop, so i am just going to let it run.

My thoughts are that the price will most likely try and test 50 E-MA on the daily chart, till then i will have a good profit and have nothing to worry about.
Overall today has been a great trading day with over 60 Pips profits locked in and over 100 trailing with a 30 Stop Loss.

I will see how things look on monday, but either way my legs are kicked up and i�m happy.

Please view the attached image.

Regards,
E. Lang

PS: More on Monday! (Dont trade Sundays)


If you can, can you please clarify the purpose of the other 2 EMAs? What is the purpose of 20ema and 50ema. thanks

Dear RamRocket,

Kindly take a look at this thread: http://www.babypips.com/forums/showthread.php?p=1067#post1067

I feel it may be able to answer your question.

Regards,
E. Lang

way to go Elang, your work looks realy great. it’s really interesting to read. keep publishing your pipart.:slight_smile:

To, Elang

Let me shower words of praise n appreciation for the simplicity of your trade system n your great big generous heart of supplying your trade info along with your suplimentary comments n advice. God bless you n keepup the good work for ages to come.

As for me i was a beaten stock n option trader, so i m well versed with technical indicator
I happened to back test your system on 15m frame for 15 days of 2004 on
www.forexpractice.com, its lousy, (unless u can recomend somthing better) my observation below

  1. I have been working on the american sesion n i noticed entry n exits every hour in the range of 10/30 pips averaging more then 100 pips in one sesion consecutively by just following the ebb n flow

  2. I have been using EMA’s, MACD, RSI only as for stochs they seem a little confusing n also causing delay in decisions

  3. i get earlier signals on the RSI with followup with EMA 5/10 crosover ( i find the RSI better n easy to visualize on graphs as compared to histogram)

  4. I get earlier exit signals on the MACD followed by EMA 5/10

sugestions
If we can get 4 people to back test euro, swiss,london n jap sesions individually n discuss observation on the forum for harsh criticism/advice from our community, it would make us wise n wealthy

Elang without your support n encouragement this proposal will be a no show n no go so your participation is absolutely nessasary

Good morning fellow Pippers and Pippettes!

It’s such a beautiful and inspiring new week, isn’t it ? You can just feel the positive energy everywhere waiting for you to suck it up and make 100 pips today !

The sun is shining, the birds are chirping, pips are jumping up and down, what more do you want :smiley:

So how does boring me, start my trading day ?
I walk into the office, say good morning to everyone, the boss, the colleagues I hate, the hot chic who everyone flirts with, my plant by the window… its so sensitive, the poor thing. Then I sit on beloved second home of a work desk and boot my pet monster with an accompanying “Dee-Dee” like… “ooooohhh what does this button do” expression on my face….

Aaaahh la vie… Love it people, breath it, appreciate every second of it, it ticks away ever so quickly, the sooner you realize it the more things you will be able to accomplish in this life and the greater of a legacy you will leave behind when you are one day…sniff… gone :slight_smile:

So lets recap on last Friday yes ?… ofcourse YES!
Friday was a very interesting trading week, with news granting a lot of volatility and opportunity for experienced traders to make a carefully achieved profit.

If you haven’t been following through…

1: http://www.babypips.com/forums/attachment.php?attachmentid=53&d=1166104541
2: http://www.babypips.com/forums/attachment.php?attachmentid=63&d=1166183366
3: http://www.babypips.com/forums/attachment.php?attachmentid=61&d=1166177536
4: http://www.babypips.com/forums/attachment.php?attachmentid=64&dw=1166191862
5: http://www.babypips.com/forums/attachment.php?attachmentid=65&d=1166195798

Over all, the results using the system have been vary profitable as you can see.
I don’t expect you to have caught the last trade, as it was an experimental trade, which I placed with a very tight stop as the situation allowed me to do so.

Regardless the results were good and it’s once more proven that news cant change the major up-down-bias sentiment.
The trade was entered at 1.3180 and was trailed with a 30 pip stop loss to as far as 1.3090 for a profit of 90 pips, as if the other 20 we made coming up from 1.3145 and the 58 coming down from 1.3165 weren’t enough ?

Total 168 Pips on Friday. I’m happy.

So back to the Present.
How do I start working my charts at the beginning of the day and what do I do first ?

I open up the H4 and D1 charts and take deep breaths in na�ve attempts to better sense the trend direction.
Right… When I’m done breathing I start actually “looking” with my eyes : )

What do I look for ?
Something I like to call EMA Spreads and Bunches, aaaannnd they look like this:

http://www.babypips.com/forums/attachment.php?attachmentid=71&stc=1&d=1166432153

So, what did you notice there if anything ?
The regions which I have called SPREAD are where the EMAs (50,10,20,50) are showing respect for each other and have a significant gap between themselves.

This is a good trend or short term move. Your AIM is to try and notice spreads just as they happen, at that point where the EMAs start moving away from each other right after the consolidation, if you can catch that and all signals in my system are pointing to an “all go” situation, then trade as soon as RSI breaks 50 and you have a 5/10 EMA crossover.

Whether you just catch the EMAs as they start spreading apart or you come in later when the spread is greater, the important thing is to stick to the base principles of my system.

Further, after each SPREAD there is a period where the EMAs BUNCH together.
During a BUNCH your senses should alerted and you should be evaluating the situation carefully waiting for an entry confirmation based on signals using the 5/10 crossover.

Now that that’s over. Lets take a look at the charts today.

http://www.babypips.com/forums/attachment.php?attachmentid=74&stc=1&d=1166433123

The price is currently at 1.3093 after it bounced off 3059 to take a breather or correct.
NOTE: In a good trend or move the price action is normally handled by the 10 and 20 EMAS and occasionally the 50 EMA if the correction is larger. Should the 50 break though and your experience tells you it will go further then it is time to quit and wait for another trade.

For now the RED 10 EMA on the D1 Chart has handled the price correction at 3115.
My thoughts are as follows ( I try and avoid the word “feelings” ):

Scenario 1: The price will break 3059 with the following consecutive targets:
A: 3040 (200 EMA - AKA Great Wall Of China) B: 2938 C: 2899/2900 D: 2760

Scenario 2: The price breaks 3131 with the following consecutive targets:
A: 3188 B: 3292 C: 3364 D: 3482 E: 3668

The price correction from 3059 may go to as far as 3131 before coming back down to retest 3059 to carry out Scenario 1.

If it breaks 3131 starts moving to 3188 we could be having a much larger consolidation with which the bias would shift slightly to the upside.

- - - - - - - - - - - - - - - - - - - - - - - - - -

My bias today is bearish and this is my probable trade:

http://www.babypips.com/forums/attachment.php?attachmentid=76&stc=1&d=1166433360

That is all for now, we just have to wait and see what the market gives us.

Regards,
E. Lang




To, Elang

Let me shower words of praise n appreciation for the simplicity of your trade system n your great big generous heart of supplying your trade info along with your suplimentary comments n advice. God bless you n keepup the good work for ages to come.

[B]It is my pleasure. I do what i can to give back what i’ve been thought, it is my way of paying back and i will continue to do so untill my last breath as i always strive to learn more.[/B]

As for me i was a beaten stock n option trader, so i m well versed with technical indicator
I happened to back test your system on 15m frame for 15 days of 2004 on
www.forexpractice.com, its lousy, (unless u can recomend somthing better) my observation below

[B]I would rather say your method of application was lousy, the system does work and it is proven. Your mistake is in thinking theory is sufficient. You need a lot of practice with the system to get to know its specifics and its attitude towards each currency pair.[/B]

  1. I have been working on the american sesion n i noticed entry n exits every hour in the range of 10/30 pips averaging more then 100 pips in one sesion consecutively by just following the ebb n flow

[B]I’m sorry i do not understand what “ebb n flow” is ?[/B]

  1. I have been using EMA’s, MACD, RSI only as for stochs they seem a little confusing n also causing delay in decisions

[B]The Stochastics take some getting used to yes. Don’t forget that indicators are just confirmations and reflections of the price movement, the most important thing to watch are the EMAs and the Price itself + R & S + Trend Lines[/B]

  1. i get earlier signals on the RSI with followup with EMA 5/10 crosover ( i find the RSI better n easy to visualize on graphs as compared to histogram)

[B]I agree.[/B]

  1. I get earlier exit signals on the MACD followed by EMA 5/10

[B]MACD will give you a good “early” exit hint, but you need to combine it with RSI to guage the “optimal” exit.[/B]

sugestions
If we can get 4 people to back test euro, swiss,london n jap sesions individually n discuss observation on the forum for harsh criticism/advice from our community, it would make us wise n wealthy

Elang without your support n encouragement this proposal will be a no show n no go so your participation is absolutely nessasary

[B]I have absolutely no reason to believe that this system requires additional backtesting any longer. [/B]
[B]Those who wish to confirm its results may backtest ofcourse, its a free world :)[/B]

[B]To profit from it, you just need to practice with it. That is all.[/B]

[B]The best currency to apply it to is GBP/USD, which i consider to be one of the most reliable and disciplines pairs, character wise.[/B]

Regards,
E. Lang

While i was dooozing off analyzing the EUR/USD which normaly kicks in very slowly, GBP/USD was all out parading…

I didn’t manage to catch this trade at the 5/10 Crossover but i entered at 1.9524 coming down from the retrace.

http://www.babypips.com/forums/attachment.php?attachmentid=77&stc=1&d=1166438232

It is natural for prices to correct and make retracements, so don’t let that bother you.

After every long move, the price will stop to correct. Corrections are healthy and they are natural, so get used to them, and instead of letting them scare you out of a trade, just sit back and relax.

http://www.babypips.com/forums/attachment.php?attachmentid=78&stc=1&d=1166438232


EUR/USD Is still in a Bunch and i’m going to wait untill i see some nice EMA spreads and a good entry signal.

http://www.babypips.com/forums/attachment.php?attachmentid=79&stc=1&d=1166438402




Good morning Effi.
I’m currently looking for a good broker that uses MT4 as a platform (since this is the only platform I feel comfortable working with).
I was wondering which is yours and whether you’d recommand it.

Regards.

Good morning to you too :slight_smile: (If it is. wherever you are),

Believe it or not Parsush i actualy only chart with MT4, i actualy trade with www.forex.com

Their Platform is mega crappy and so are their charts and sync, but they are having a new software realeased begining of next year so thing will be up to date.

I have a friend who trades on MT4, i will speak to him and let you know who his broker is.

Regards,
E. Lang

but how could you use MT4 for a long period of time? don’t they have a trial version which expires after 60 days or so? I mean, unless your broker supports it…
…oh, and it’s noon here :slight_smile:

Hello Parsush,

I’ve only downloaded MT4 once.
Registered a DEMO account and used it every since.

As for the Broker i spoke with my friend and he claims he uses InterBank FX.
You can try to Google that.

Regards,
E. Lang

Hmm… interesting trade.

As per post #25 http://www.babypips.com/forums/showpost.php?p=1226&postcount=25 up there the trade entered on the retrace of GBP/USD short @ 1.9524 had a rather strante developement.

I would have held it further to let it reach its initial target: 38.2 % Retracement 1.8836 to 1.9846 at 1.9458 but i need to leave the office, so i am closing this for today.

As you will notice.
There was a news release which shot GBP up, nearly hitting my stop which was my Entry at 9524, although it luckily went only as far as 9522 after which it plummeted back down where i closed the trade @ 1.9494.

My bias still remains bearish and i believe the initial target of 38.2 retracement at 1.9458 will be met.

More updates tomorrow.

Regards,
E. Lang


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 :slight_smile:

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


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


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 :slight_smile: Keep up the good work!!

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/resistance:overbought/oversold).Inform us all about your latest inventions.

thanks,
sambhu(newbie)

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 :slight_smile:

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

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 :stuck_out_tongue:

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