A Basic Trading System (BTS)

No worries. I'm only interested in giving to those willing to receive.

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On a trading note; GBP/USD now having broken the channel is retracing back to the R turned S.

The indicators are overbought, lets hope some consolidation starts now to relieve the overbought condition on the indis, so we can start looking for a long as per this elaboration: Emotional Fluctuation and Pressure Relief

Effi you are Da Man. keep up the good work matey.
regards

Made "small change" even on the GBPUSD and the last USDCHF trade, so no negative numbers for me from those.
The four users voting margin call are not four single individuals - we know the one-man-show from the other thread! It is getting a bit boring though.
USDCHF has an amazing up potential on the very long TFs (Monthly) and so people with decent MM could stick to that position long if needed.
Great system!

Ciao
Gnat

I'm posting this because someone contacted me yesterday in regards to determining the trend. I think others may find it useful.

thanx effi....it will very nice of u,bec. im one who trade a single trade,and close 1:1 profit,about 50 pips.....for me is more than excelent.
best regards.

We have PPI in under 5 minutes.

I've closed all my profitable trades and set SLs for my floating losses.

PPI - Producer Price Index; Core-PPI
Bureau of Labor and Statistics; The second full week of each month, 8:30am EST, covers previous month data
The PPI is not as widely used as the CPI, but it is still considered to be a good indicator of inflation. This indicator reflects the change of manufacturers’ cost of input (raw materials; semi-finished goods; etc.). Formerly known as the "Wholesale Price Index", the PPI is a basket of various indexes covering a wide range of areas affecting domestic producers. Each month approximately 100,000 prices are collected from 30,000 production and manufacturing firms. It is not as strong as the CPI in detecting inflation, but because it includes goods being produced it is often a forecast of future CPI releases

Please upload smaller charts so that it is not necessary to constantly scroll back and forth to read the excellent information posted here.

I was hoping this news release would give the dollar enough of a push to create a larger correction on H1 for GBP/USD so we could enter on at least H1, but no luck.

I don't wanna wait any longer so i'm gonna catch a trade on the lower time frame where there is a defined up trend.

I'm risking only 1% on this trade and i won't be adding it to the tally here.

GBP/USD M15
http://img152.imageshack.us/img152/4480/gbct2.jpg

I'm out on that little trade.

I will wait for the H1 correction to end above the channel now.

I'll post the trade when it happens, it could take a few hours.

Regards,
E. Lang

Hi Effi,

Please correct me if I'm wrong...

You place the stop buy at the high of the candle that breaks the high of the set up candle?

You place an order 1 PIP above the setup candle. It's written in the rules....

http://img409.imageshack.us/img409/9113/gbpte5.jpg

Ok guys we finally have that long we've been waiting for all day.
We talked about it, we drew about it, we posted charts, we speculated, so here is the moment of truth - keep your cool and try not to fold like a bad poker player as a close friend of mine said

The price moved up and finally pulled back.

We're looking to get in with the incoming buying pressure on the dip and the new buyers that missed the initial channel top break.

The candle i've boxed is the current H1 Candle which will be closing in about 3 minutes. This is our setup candle.

Next hour's candle will trigger our entry 1 PIP above that.

This will be trade #11 - i will post it during the next hour.

Best Regards,
E. Lang

OK It is official.

Now you just sit back and watch the new buyers and the added positions carry us up to 1:1.

AS you can see the system is set up in a way to provide minimal risk by getting you in at the end of profit taking and allowing you to leverage your gain probability by letting you take advantage of new positions being added.

TECHNICAL TARGET: 2.0500

http://img145.imageshack.us/img145/8564/t11gi7.jpg

Now that i am in the trade. I start considering other profit taking levels other than 1:1.

Firstly i ask myself. Where did people start buying ?? - The answer to this is easy; approximately where trade #11 was triggered.

How do we determine this ? - The answer is visual, if you can see where the price explodes, then you can determine where most of the buyers come in, this gives you a rough establishment of the preferred area of entry for that single trade.

Why is this important ? - Because it is like a bad math problem. If you manage to find one variable you're either a lot closer to, or able to find the other.

So what variable are we looking for ? - The Stop Loss.

Where is it ? - Find the area of most recent lows on the chart prior to the price explosion on trade #11. - WHY ?

Because now you can accurately measure where traders entered, and where they placed their stop loss - What does this help you with ?

By determining this value, you can project the difference from the approximated entry point to visualize 1:1, 1:2, 1:3 areas on the chart where traders who entered will be taking profit. - DO WE Always take profit based on the difference between the two values (SL and ENTRY) ?

No, we do not, which is why we are going to look for other places on the chart. - HOW ??

By asking a fundamental question; What area on the chart nearest to my entry has the price had a collective problem at previously ?

The answer is 1.9839 (Alternate Take Profit Level) - And if we break through that ?? - then the next up 1.9938

Is it for sure that people will take profit there ? - No, nothing is for sure, but it's the only thing we have next to managing our risk.

It doesn't have to be difficult, just ask yourself this everytime "Where did the price have problems before?"

Regards,
E. Lang

http://img508.imageshack.us/img508/3...ttakinglc4.jpg

Here is a real time example of Projecting the difference to see where yourself and other traders may be taking profit.

These profit taking pullbacks will not always appear as full blown corrections. Sometimes they are just small counters on the current candle, although, they would certainly look like a profit taking correction on a lower time frame such as M5.

Anyways, I won't be posting any more trades today, i'm a little tired.

If anyone has questions on the scenarios gone over today, please post your questions. If they are utterly Sith-Noobius, i may ignore them i.e; How many pairs do you trade? How do you enter a position? Where do you place your SL? etc. - It's already been covered.

Thanx.

http://img209.imageshack.us/img209/5297/oktw6.jpg

Wow! This is awesome!
(Thanks for the correction, by the way.)

I was looking at that GU however I only entered on GJ. As per rule, SL ended up being 51pips from entry. I wondered if first TP of 1:1 will be hit. It did get hit at +51 pips. Next TP is another +50 some pips and have moved my SL to B/E +1. Either I get the next TP or I stop out. Either way, the trade is already satisfied and has no more chance of getting red pips. Cool!

I must have been watching TV or something lol; almost perfect setup.

The Stochs confirm the downwards trend.
The MACD Starts Adjusting with lower bars.
The OSMA shows the divergence.

http://img247.imageshack.us/img247/769/chfil8.jpg

I believe you're referring to this trade ? :

http://img246.imageshack.us/img246/8679/gyrc3.jpg

If so, nice setup RSBGM! Looks like you've being paying attention in class

Regards,
Effi

For those of you who prefer to hold your positions for a longer period of time (As i will be doing for trade #11)

We have a monthly Setup Bar available; 1:1 is ~600 PIPs.

If the high of the STB is broken take the signal.
The current Monthly STB high is 1.9954

My TECHNICAL TARGET for trade #11 is 2.0500, which should give us an approximately 60% return; *knocks on wood

Regards,
E. Lang

http://img442.imageshack.us/img442/8144/gy2ej9.jpg

USD/CHF has officially broken its channel low.

Wait for H1 retracements and look for short trades only.

Regards,
FE

http://img442.imageshack.us/img442/4654/chfflw3.jpg