Baruch's Forex System Journal

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Yes, I tried nearly all time periods and EMAs - but I found that 50 worked best.


Hi Baruch,

As far as I understand you are using EMA and RSI(EMA). Have you tried using MACD to confirm the entry points?

Regards,
 
Quote from eggressive:

Yes, I tried nearly all time periods and EMAs - but I found that 50 worked best.


Hi Baruch,

As far as I understand you are using EMA and RSI(EMA). Have you tried using MACD to confirm the entry points?

Regards,
More...

1. I also use momentum.

2. No. Good idea?
 
Quote from Baruch:

I have spent some time watching 4 hr charts - and they look very good. But can we trade with those big charts? And what about the big eco news?
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Big charts: yes because you get the microview on the possible turning points.

eco new: i don't play those most of the time. i will wait and trade after the news is released.

Now for some observations

Based on the 4hr chart for usd/jpy:

buy usd/jpy @ 114.56 & 114.98
sell usd/jpy @ 113.85 & 113.53 & 112.93

rationale: the 4hr chart is overbought but shows signs of potential breakout long giving the mkt one more leg up attempt. stochastic is turning down hinting toward a possible pullback toward support thus creating a sell opportunity.
 
Quote from Baruch:

1. I also use momentum.

2. No. Good idea?
More...

Never tried using the momentum so far but the idea seems similar.
MACD is simply a more detailed method of using moving averages (shows the difference between 26EMA and 12EMA). Also uses 9 EMA as a trigger. So far what I notice is when it crosses below the 9 EMA it is a signal to go long and when it crosses above it, it's a go short signal. I would like if you (or someone else reading the tread) could confirm this since I am still a very new and inexperienced trader :)
 
Quote from eggressive:

Never tried using the momentum so far but the idea seems similar.
MACD is simply a more detailed method of using moving averages (shows the difference between 26EMA and 12EMA). Also uses 9 EMA as a trigger. So far what I notice is when it crosses below the 9 EMA it is a signal to go long and when it crosses above it, it's a go short signal. I would like if you (or someone else reading the tread) could confirm this since I am still a very new and inexperienced trader :)
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eggressive,
the problem with MACD is that it is not very effective when used solely as a moving average crossover system. You will find that the MACD Crossover method will leave you with many a whipsaw during congestion phases. MACD is best used as a 'momentum' indicator when overlayed as a histogram with the MACD and Signal line on top. you will notice with my previous example above that on the 4hr usd/jpy the MACD Histogram is heading down per the prior days close. this info is significant in giving us possible mkt direction for the comming days trend.
 
Quote from Guardian Angel:

eggressive,
the problem with MACD is that it is not very effective when used solely as a moving average crossover system.
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Thanks GA. I wouldn't use the MACD as my only indicator. I was however trying to find its possible application in regards to the interesting system of Baruch.
 
eggressive,
i believe Baruchs system has evolved somewhat since the inception of this journal. however you will note that the original indicators that are posted on page 1 of this thread still have some merit when used in conjunction with other rules and other indicators. in order to build your own system you will have to find your niche. in order to find your niche you will have to develope a thorough understanding of each indicator discussed in this thread.
there are so many indicators out there so you will have to kinda find the one(s) that are convienant to use for your benefit.

welcome aboard mate.
 
Quote from Guardian Angel:

Big charts: yes because you get the microview on the possible turning points.

eco new: i don't play those most of the time. i will wait and trade after the news is released.

Now for some observations

Based on the 4hr chart for usd/jpy:

buy usd/jpy @ 114.56 & 114.98
sell usd/jpy @ 113.85 & 113.53 & 112.93

rationale: the 4hr chart is overbought but shows signs of potential breakout long giving the mkt one more leg up attempt. stochastic is turning down hinting toward a possible pullback toward support thus creating a sell opportunity.
More...

Eco News: Yes, I also trade after the news is released. It's very difficult to know before release how the news will be - and how the market reacts to the news.

USD/JPY: OK, let's see what happens. Are you also following the Nikkei?
 
Quote from Baruch:

Eco News: Yes, I also trade after the news is released. It's very difficult to know before release how the news will be - and how the market reacts to the news.

USD/JPY: OK, let's see what happens. Are you also following the Nikkei?
More...

nah, i dont usually follow the nikkei.
however, from what i gather the nikkei will follow the dow jones.
i base that assumption on the fact the U.S. is a world leader and that foreign interest in the U.S. make it vulnerable to U.S. mkt price fluctuations.
 
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