BGX-Forex Sistem Trading

Following are the conditions and variables where the BGX approach works most effectively:
Suggested Currencies (a1,a53)
· EUR/USD
· GBP/USD
· USD/CHF
· EUR/JPY (a53,a158)
Bunnygirl originally recommended trading 4 currency pairs – EURUSD, GBPUSD, USDCHF,
EURJPY. These pairs were considered to be the ones most likely to respond to her methodology,
based on her own back testing of BGX. However, as recently as April 2005, Bunnygirl had
temporarily discontinued trading the cable (b340), which had previously been her favorite. Since
then, she has picked the cable back up, indicating the flexibility of BGX to work with changing
market conditions.

Recommended Trading Sessions (a11, a158, a520)
· European
· US
· Best Trading times from 06:00 GMT – 16:00 GMT (7 AM UK – 5:00 UK)
Bunnygirl maintained that the best times to trade were the European session and the open of the
US session. Specifically, she indicated that the best time for crosses was at the beginning of the
European session after a flat Asian session (a11, a99, a520). Additionally, she recommended
observing "no touch" days. These are days where the daily or 4-hour bar does not touch the
WMA5. She clarified that this was more relevant to the cable than the other pairs (b197).
Primary Charts
- 30m for crosses (a11)
- 5m for scalping and exiting (a11, a52)
- Daily and 4h for longer term trends (a334)
Bunnygirl uses 30 minute charts to determine crosses and 5 minute charts for exiting and scalping
using the "Gimme Bar" method. She used daily and 4-hour charts to plot resistance points, fibs,
and to check for no-touch bars (addressed later).
Chart Setup
· 30 minute candlesticks
· 5, 20 and 100 Period Weighted Moving Average lines
· RSI 14 indicator with 50 line
Preparation
1. Setup charts for targeted pairs.
2. On the daily and weekly charts, observe any significant patterns, support or resistance points,
and Fibonacci points.
3. Also add the WMA 5, WMA 20, and WMA 100 lines to the daily and weekly charts. Observe
the general trend and whether the price is near any of the WMA lines.
4. On the 30 minute charts, determine any near term highs and lows, chart patterns, or other
resistance points.
The BGX starts with a crossing signal. Crossing signals occur when the WMA 5 and WMA 20 lines cross
each other. Following are the appropriate signals and the ideal position of the WMA 100 line for each
signal:
Long Signal
· WMA 5 Crosses above WMA 20
· WMA 5 and WMA 20 above WMA 100
Short Signal
· WMA 5 Crosses below WMA 20
· WMA 5 and WMA 20 below WMA 100

The signal is not the entry point. Entering at this point may often result in a whipsaw – a rapid reversal
immediately following a cross, frequently occurring in ranging markets.
Also, while these examples show the
WMA 100 either above the WMA 5 and
WMA 20 lines for a bear cross, or below
the WMA 5 and WMA 20 lines for a bull
cross, signals can occur when the WMA
100 is not in this preferred position. There
are, however, rules for trading "into" the
WMA 100 line, which will be discussed
later.