Some of my thoughts + Trading System

E Lang.

I just wanted to let you know that you have 1 more devoted thread reader.

After spending 1 months on this site, I have learned more then my past 1 1/2 years in FX. Charts make so much more sense now, thanks to your so complicated “bunches and spreads” terminology :slight_smile: .

All that I feel that I can contribute at the current time, is my appreciation to you for all that you have taught me. Keep the great posts coming.

Good luck at the nationals!!

Josh

Were is the latest zip file ?

Thanks
Theo

The Come Back

Hello to everyone.

It has been a while since I�ve posted on here.
The past month in my life has been very busy. I just couldn�t find the time to blog daily as I had before and I apologize to those of you who were following the thread enthusiastically. Regardless a lot of you added me to Yahoo Messenger and we�ve had a great time sharing our market experiences and communicating on a daily basis.

Most importantly though, thanks to my break I�ve once more proven to myself how important it is to take a short holiday from trading now and then. Somehow you performance increases when you get back to doing it again. As if you brain has finally been given the necessary cool down time to sit back and process all the information you�ve been soaking up during your daily trading sessions. Sort of like an athlete who trains a specific muscle group, if they keep on straining that muscle on a daily basis without giving it any time to recover instead of recuperating and advancing its form, it will inflict damage to itself. Seems we just need to take a break once in a while pretty much the same way.

The system I posted on here at the beginning of my thread on BabyPips was a method I started from scratch. It was one of my first attempts at making something somewhat mechanical. The more I�ve traded though the further my interest has distanced itself from creating a system driven by gears and operated by the push of a button. Is it because I just like trading or because I feel I have better control of my ability to profit when I have more information in perspective and when I am right there with the market? I think it is a little bit of both.

The way I actually trade is a little more different than what some of you might already know, more dynamic with a constant evaluation of market psychology.

As for the system on BabyPips I�m very happy to declare that many people have written me letters and sent me screen shots of their accounts in profit using the techniques I�ve posted there. In most of these testimonials I was frankly amazed with some of the results I was being shown, I honestly could not believe it lol.
It�s absolutely fantastic and I�m extremely pleased to see that I�ve been able to influence people towards such a profitable development. All I can say is pass it on and share what you know.

So let�s take a look at how we�ll be trading from now on.

We will be utilizing the following techniques and principles to trade and carry out our technical analysis (TA). Some of them you may know, others not if you are just getting started. Don�t let that bother you though as I will try and keep things as simple as possible, plus I�m always around, so you can get in touch with me if there is something you feel I can clarify further.

[B]Trading Tools and Techniques IOOI [/B](In order of importance [I]to me[/I])[B]:[/B]

-Support and Resistance
-Trend Lines / Channels
-Fibonacci Retracements / Fibonacci Extension
-Candle Stick Patterns and Formations
-Moving Averages

That�s it people. That is all we will use to trade. No MACD, No Stochastics, No RSI, at least we won�t be staring at them like a deer in front of a pair of xenon head lights throughout the trading session.

We will look at them once in a while, if we feel curious J

I will really try to emphasize how overrated oscillators and other indicators are.
Don�t forget that they are nothing more than a deviated logarithmic extrapolation of the actual price movement on the charts presented in a manner which hints to what is a potential possibility. They can translate what is already on the chart to you in a way which makes more sense, but it far from holds the capability to visually render the intricacies of the market movement and overall trading sentiment.

We will be looking merely at the price action on the charts.

The first thing you need to do is set your charts up. Once again I recommend downloading Meta Trader 4 (MT4) .
Setup up your charts so you have 4 windows: Two bigger ones on the bottom right , sort of like this:

Two reasons for this.

1.We don�t want to get caught trading �in-betweens�.
Sometimes viewing one or two smaller time frames, you might get overwhelmed by the rapid price action, causing you to lose control and logic. We want to be able to look at what is going on at a scope which will allow us to properly react to what the market is doing. The last thing we want to do is trade in between the actual price movements we are aiming to catch, not only will we expend ourselves emotionally but we will most likely lose money within the volatility that plays out. Our aim, will be to catch the fine market movements in order to make profit.

  1. If you really trade! You�ll notice how much you flip through times frames. It is exhausting. I�ve found that its best to have the most important time frames up and visible so you don�t have to abuse your trigger finger so much, you need to keep it fresh for more important things like busting headshots on Counter Strike! Boyaah! J
    Lets set up our indicators.

[B]RSI/MACD/STOCHASTICS[/B] all remain on default.
[B]Fibonacci:[/B] 0%, 23.6%, 38.2%, 50%, 61.8%, 78.6%, 100%
Moving Averages: EMA 6,50 and [I]20 (not critical)[/I]
SMA 13, 200 and [I]100 (not critical)[/I]

Make the EMA 6 [B]Blue[/B] and the SMA 13 [B]Red [/B], 50 and 100 you can make a light color, something close to white so they don�t distract you too much.

[B]STARTING THE TRADING DAY[/B]
The first thing we are going to do, when we wake up, well, ok maybe after we take a wee and all is go to the Daily chart, that�s D1 people!

So�

1.Go to the Daily Chart
2.Draw three horizontal lines
a: At the [B]H[/B]igh of the previous days candle
b: At the [B]L[/B]ow of the previous days candle
c: At the [B]M[/B]iddle of the previous days candle

3.We go to H4 and D1 and we draw trend lines
4.We go to H4 and D1 and we draw Fibonacci levels
5.We note the EMA/SMA position and configuration on the H4 and D1 charts
6.Based on the data collected we determine the trend direction and trade with it
7.We play out at least 1: Bearish Scenario and at least 1 Bullish Scenario
8.Once we�ve concluded 1 to 7 we move to a lower time frame eg: H1 / M30 / M15 and start looking for a good entry point.

Now, the question arises. How do we determine where to enter ?
The truth is there are a lot of different market setups available to any one trader. We will be using a few of them for our entries in detail.

A.Pinballing (Channel Trading)
B.[B]B[/B]ees ([B]B[/B]reak [B]B[/B]ounce [B]B[/B]reak)
C.Fibonacci Retracements

The application of these methods will be governed by basic market principles we will look at during the course of our trading sessions. Little details with big meaning and sometimes the difference between a losing and a winning trade.

We will be talking a lot about HHs/HLs, LHs/LLs, Market Waves and Market Movement, Candle Closing and Opening Prices

In brief for now:

[B]A Market Uptrend[/B]
When a price is in an uptrend, it is considered to have HHs and HLs.
[I]An inability of price action to establish a Higher High within a certain range is considered a warning signal.[/I]

[B]A Market Downtrend[/B]
When a price is in a downtrend, it is considered to have HLs and LHs.
[I]An inability of price action to establish a Lower Low within a certain range is considered a warning signal.[/I]

[B]Market Waves and Market Movement[/B]
Price action in a market moves 3 ways. Upwards, Downwards and Sideways.

The market moves in two waves. Impulsively and Correctively.
-And impulsive wave is in the direction of the trend
-A corrective wave is in the opposite direction of the trend
-A corrective wave is considered such as long as it retraces to a logical Fibonacci level of its impulse. [I]The individual significance of different Fibonacci levels will be covered during the course of our analysis[/I]

We will be utilizing these three basic theories to help determine market sentiment, entry and exit points when we start trading.

All of this is just a small taste of everything we will be covering during the sessions, that is where everything really happens.

I�m sorry to say that for those of you not capable of using Yahoo Messenger, you will be missing out a lot in real-time comments and other valuable information, but hey lol.

Regards,
E.Lang

Elang,

Could you please repost your chart?

Kind of hard to see.

Thanks

Eveyone is WELCOME! 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

Hi Effi,
I joined this thread couple of weeks ago and I learned so much from it thanks to you. However I learned mostly from the charts you posted. I don’t see you posting them anymore. It would be great to have opportunity to read your analyssis along with charts “live”. Therfore if you could post some more of your “live” comments and charts I would appreciate that.
Thanks,
Szymon

Hey Szymon!

Thanks for showing your appreciation!!!
I know i don’t post charts anymore, i just haven’t had the availiblity to do so, since i’m resigning from my current job and things are very tight during the day.

I will have a lot more time once i start my new job, since i wil be going to work in the afternoon, so lots of trading time in the morning.

I am sure i will be able to get back to doing what i was before.

I will be posting an update to my system here very soon, which i think will be very beneficial for a lot of traders here.

Regards,
E. Lang

Hello guys,

Please find attached my modest system with an even more modest tutorial to using it.

MT4 Indicators and Templates included.

Regards,
E. Lang

System.zip (709 KB)

Thanks for posting this.
Looks great on MT I like also the time counter :slight_smile:
For what time frame is recomanded and what pair of currency ?
I guess is a 4H but could it work for 5 min too ?

Pixter,
He answered this in this thread: http://www.babypips.com/forums/free-forex-trading-systems/1227-consistent-fx-trading-6.html#post6128

still can’t find the answer…

I strongly recommend that you trade using a time fram of 30 Minutes or over using this system, anything below that will produce extremely volatile and misleading signals.

Trade it preferably on: GBP/USD, GBP/JPY, USD/JPY, USD/CHF, EUR/USD

Regards,
E. Lang

Hi Mr. Lang…I noticed in your Zip file you still talk about the 5, 10, 20 and 50 EMA’s but just a couple of days ago mentioned know we’ll use no Stoch/RSI and the MA’s are now 6EMA and 13SMA…

I just want to make sure I am on the right path and wonder why the change in EMA’s though they are very similar?

Thank you…Joe

Hello there,

I might have made things more complicated that needed when creating the tutorial for that system.

I am writing a new one now which will be easy for ebsolutely everyone to implement.

I will be posting it soon, it will be based on the same system we made 800 pips with in just a few trades.

Regards,
E. Lang

Hi elang,

Could you please attach your system indicators and MT4 Template? As I have difficulty to set it.

Regards,

I would love ur updated indicators too. Can u please attach them?:smiley:

Hi Elang,

Sorry if Im covering old ground here, but I simply dont have time to read all of what has become a voluminous (and very useful) thread.

I have a few questions. Firstly, what is your typical weekly pip haul with this system? Secondly, what drawdowns are typical? Thirdly, whats your win/loss ratio?

Seems very promising, thanks in advance.

We are missing you :slight_smile:

Well tag along sometime:

Yahoo ID: effilang

Regards,
E. Lang

dobra strategiika si si napravil az bih preporachal drugo no nai vajno za edin trader e da ima rezultat ot vsichko koeto pravi a shtom pri teb ima bravo.;]Pisha ti taka zashtoto vidqh che si balgarin dori ot varna az sam ot dobrich i ser se zanimavam s forex kato teb.Ta za strategiikata bravo radvam se che si otkril neshto koeto da dava rezultati:P) happy trading :):stuck_out_tongue: