Some of my thoughts + Trading System

[stech137]

Hi, I am demo testing your system and I was just wondering what your strategy was for your intitial stop and also if you adjust your stops along the way to lock in profit. How many pips above/below the entry price would be a good starting point?

[elang]

Good morning guys,

Hope you are all doing well.
I have attached two files here. The first is my update from 20th and the second is todays results based on those predictions.

Ok.

From there we can see that we predicted a fall to 50 EMA which happened, in fact it broke through 50 EMA and found support around 38.2% of .9433 to .9747 at .9627-ish

Although it found solid support, my bias is sort of bearish at the moment.

H1:

- Stochastics on H1 Look Very Bearish with a visible crossover
- RSI is under 50
- The EMAs are in a BUNCH, but we can see a clearly emerging bearish EMA SPREAD, we are just waiting for the 5/10 Crossover.
- MACD Is also looking rather bearish trying to head below 0

H4:

- Stochastics on H4 are bearish
- MACD is far under 0
- RSI bounced of 50 (38.2%), tried to pick up some momemntum, but now attempts to retest 50, perhaps for a break below (very bearish)

Either way i see two scenarios.

1: We break above 9671/77 and run for 9727 and continue with our previous bullish outlook with next target being .9846

2. We break below 9618 and weeeee down to 9578 with our eyes back on 9433. In other words a intentfull break of 9618 would put thing back in a trading range of HIGH (9727) / LOW (9433) which are the consolidative bounds established so far from the rally that began at .1833 (LOW) .9846 (HIGH)

That is pretty much it for GBP today guys.

Right now we just lay low in the tall grasslands like lion and wait for a juicy Long or Short to emerge so we can pounce and bit it in the rear for breakfast

Regards and MERRY CHRISTMAS,
E. Lang

[elang]

Originally Posted by stech137

Hi, I am demo testing your system and I was just wondering what your strategy was for your intitial stop and also if you adjust your stops along the way to lock in profit. How many pips above/below the entry price would be a good starting point?

Good day,

Stops for Longs should be placed below EMA Bunches.
Stops for Shorts should be palced above EMA Bunches.

Comment based on a bearish scenario:
My system gives you the opportunity to catch the trade exactly at its start, in a period during which if the price reversed and broke out of the range of the EMA Bunch you would be certain that things are not going your way.

In other words as i mentioned before, trade during EMA SPREADS and wait for an entry during EMA BUNCHES.

If you do that, then you will have no problem determining stop values as they will almost in all cases be located under the EMA Bunch (Long) or over the EMA Bunch (Short)

Regards,
E. Lang

[elang]

POSSIBLE GBP/USD LONG SCENARIO on CHART.

Regards,
E. Lang

[investor]

Thanks, Elang

I'm learning a lot from you as I read your post. Currently, I'm developing my own trading system and goals.And words of advice would be great!

Bests,
Investor

[elang]

Is GBP/USD going up or down ?

Although the indicators all point to a Bearish Scenario in the play it is difficult to determine with the price still hovering around the 38.2% and 50 EMA and 100 sMA.

All we can do for now is wait, so we can catch the big move down.

Overall anyone today trading Langs Cross could have bagged at least 50 pips, with no emotional stress whatsoever.

The price can develop in two ways from here, either bounce back up to test 9697 then 9747.

Or

If its BEARISH 9578 then 9433.

We just need to watch what happens and when we have enough data to execute an action, do it.

As TAs that is all we can do. Analyze, Come to a conclusive determination, Execute our preferences. From that moment on it is our responsibility to monitor the price and in real time determine if the determination we made was correct. That is our job, and that is all the power we have as individual traders. The market is nobody's pet.

Thats all.


PS: My sentiment remains Bearish.

Regards,
E. Lang

[elang]

Originally Posted by investor

Thanks, Elang

I'm learning a lot from you as I read your post. Currently, I'm developing my own trading system and goals.And words of advice would be great!

Bests,
Investor

It will be my pleasure to help you in any way i can.

Stick around

Merry Christmas,
E. Lang

[elang]

GBP Seems to have chosen the Bearish Scenario.

Here is where you should have entered using Langs Cross on the H4 Chart.

If you entered using Langs Cross on the H1 Chart you would be in about 70+ Pips profit right now as i am.

The current time is:

(Bulgaria) GMT +2: 15:26 PM
(New York) EST: 8:26 AM

Regards,
E. Lang

PS: Check out galvestoneforex's thread as well, there are some good trendline tips which you need to know to trade the FX! Very useful!

http://www.babypips.com/forums/showt...=1440#post1440

[ramrocket]

Originally Posted by elang

Is GBP/USD going up or down ?

Although the indicators all point to a Bearish Scenario in the play it is difficult to determine with the price still hovering around the 38.2% and 50 EMA and 100 sMA.

Elang,
Looking at your charts, do you use H1 for entry and timing then switch to H4 to measure profit target levels using fib?

[elang]

You got it!

I rarely go below H1, unless i want to scope a movement out in detail.

There is hardly any difference, profit wise, whether you enter on H1 or M30 using this system, all in all the eventual profit is good either way!

UPDATE:

GBP/USD is now tackling 9578 R turned S.
If we break below that its weeee to 9433.

Merry Christmas.
E. Lang

PS: If you like what you are reading here and you feel it has helped out, i would appreciate a modest gesture of gratitude through a deemed by you deserved amount of reputation points.

Alll you need to do is click on the GOOD or BADD Thumb Sign on the top right corner of my thread to judge.

Much appreciated!
Merry Christmas.