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
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 
.
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.
[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
