Some of my thoughts + Trading System

Started with $USD 250 when i was 18 - blew it all (1 month into Forex)

Told myself i wouldn’t trade live again, till i started profiting properly.

Now that i look back it’s foolish that i wud have even thought about trading back then with that 250, knowing now that i hardly knew anything then about trading, funny as it seems, i made good money in a lot of my trades, before actualy loosing the account. It was all luck though and that doesn’t count in this game. I had never heard the term “money management” then. Nor, fibonnaci, nor EMAs, nor trendlines, nor anything, in fact i have no idea how i even traded.

After nearly 2 years from then i took a bank loan for 5k.

Good luck!

Regards,
E. Lang

Haha. I had some wild notions about getting rich on forex myself. But at least I had the good sense to not put any money in until I had educated myself to some degree and practiced for a few months on a demo account.

I plan to start off with 500 dollars and follow a very conservative track (and if I follow the trading system you outlined in this thread). Would you say thats a reasonable start? I ask this since the tutorial on this site repeatedly tells you NOT to start with anything below a 1000. Has me really double minded.

Good morning guys,

I can’t write much now, but i want you to take a look at the charts. (attached too)

I will update later.

Regards,
E. Lang

GBP/USD - 1

Cable’s fall from 1.9731 was contained at 1.9457 and continues to recover today. Break of 1.9542 support turned resistance indicate an intraday low is formed and further consolidation will continue, but upside is expected to be limited by 1.9600 resistance and bring another fall. Below 1.9457 will indicate decline has resumed for next downside target of 1.9237/61 cluster support (23.6% retracement of 1.7047 to 1.9913 at 1.9237).

In the bigger picture, rising trend line support (1.8517 to 1.8834, now at 1.9574) 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.

2

The sterling pound dropped down last time since it couldn’t breach up the 1.6920s support level. this time the pound is restricted between 1.9490s support level and 1.960s resistance level. Hence the main trend today is neutral.
The general trend is up as far as 1.8850and 1.8460 remain intact, targets will be at 1.9858 and 2.0000.
The key resistance at 1.9850 and the key support at 1.8960.
Support: 1.9538, 1.9494, 1.9471, 1.9440, 1.9411
Resistance: 1.9557, 1.9591, 1.9623, 1.9654, 1.9686

3

This pair has tipped the support level 1.9470 last weekend bouncing back from the lower band of the daily Bollinger bends, with low volatility and no special market movers traders expect the range to be persistent in today’s trading session with minor gains from the GBP.

Comment: Dipping below 1.9500 but managing to recover this morning. These merely underlines the difficulty we are having at these historically very high levels but the tone is well bid nevertheless. Over the coming week we favour yet another upside test of 1.9700/1.9750.
Strategy: Buy at 1.9550; stop well below 1.9450. Short term target 1.9700/1.9750.



How you could have determined the price was going to reverse at 75% of .9457 to .9600 using the gap.

We have three types of gaps.

  1. Breakaway gaps
  2. Midway gaps
  3. Exhaustion gaps

Breakaway gaps occur at the near end of a trend. It indicates the reversal and initiation of a new trend in the oposite direction.

Midway gaps occur in the midle of a movement. They indicate the midpoint of a movement, the approximate 50%. (Using this information you could have eyed an approximate termination of the correction started at .9457 around the 75% of .9457 to .9600 using the gap.

Exhaustion gaps occur after rappid rallies. The price simply looses steam and reversals and position terminations happen so massly that there is a price jump/gap.

You will notice the gap, met support exactly on top of the falling trend line, which is the same area it is currently testing support now.

We will need a good break of the .9450 area to reach below the trend line and continue on downwards to targets like .9312 > .9260

I am a little over 100 pips Live in unrealized profit from the short i entered last week, not forgetting the other 100 pips bagged last week aswell. It is all recorded here.

I didnt close my position at the correction as technicals said the price was coming back down, so i held throughout the weekend, the gap, the correction etc.

My bias is pretty much short for the moment.

If you werent short already from last week and you only got in on the correctional tip today, i recommend you set a stop around .9600.

Thats all for now folks.
Regards,
E. Lang




I’ve terminated my short taking in a profit any trader would be happy with.

I will be shorting again only if i see good closing action under the falling trend line.

If .9566 (100%) is taken out, we will have a bullish move in play and confirmed with a HH otherwise it is still bearish.

The correction / bounce of trendline may be limited @ .9487 ~ 38.2% & Yesterdays LOW or it could go further up to 50% > 61.8 etc.

You will notice ive drawn a lot of red lines and one blue i think.
The blue line represents the overall trend. A Break of this line would mean things have gone bullish.

Since ive determined that were bearish, i look only for short entries so i draw supports visualized in red at every chance i get to pick out short entry or position adding points.

Some you will notice break the red line, others fake a break and reverse and others don’t break them at all.

See attached chart.

Regards,
E. Lang


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


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


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.


[B]GBP/USD[/B]

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.

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



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

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:
[email protected]
effilang
[email protected]

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

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

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

Thank you for your great help!, very useful thread.

Hi E

Look forward to your return ,Good Luck in your competitions.

E LAng,

Hi and thankd for sharing this system with evryone,
Inn reading the thread ther was mentioned of some the setting in your system changing since the Zip file you posted after the one on the first page.

Can you just list the latest settings for your system so we are all working from the same point?

Thanks
Theo

E LAng,

Hi and thanks for sharing this system with everyone,
In reading the thread there was mentioning by someone that the settings for your system have changed since the Zip file you posted on page 4 or 5 of this thread.

Can you list the latest settings for your system so we are all working from the same point?

Thanks
Theo

I welcome eveyone! The more the merrier!

YAHOO Messenger:
[email protected]

MSN Messenger:
[email protected]

I’ve had the pleasure to speak to some great people so far! Hope to talk to more of you guys!

Regards,
E. Lang