Dude! So you've read just about everything you could possibly get your hands on about the Forex. Now you want to get your feet wet but aren't sure where to start. Well then this blog is for you! Follow along as I take a simple system and apply it to an unsimple market. If you're new to the blog you should Cowabunga System Daily Update: 07/26/07
If this is your first time visiting this blog, read this first!
Main Trend
Current Trend= The trend remained down the entire day
Today I only looked for short trades.
Today's Surf
1:15 am ET- There was a moving average crossover for a short trade. RSI was less than 50, stochastics were trending down and MACD was positive and losing value. This was a valid trade. The entry was at the close of the candle which was at 2.0507 with a stop at the most recent high at 2.0515. I was only 7 pips away from the nearest 00 level at 2.0500 and if I went for the same amount of pips I was risking, I would only be going for a target of 8 pips. Either way my two potential targets to really make it worth my while to trade. I still entered but I set a target at 2.0490 just so I could at least go and try for 17 pips. This is not really in the rules but I wanted to go for something more than 10 pips because the spread alone would make the profit potential very small.
1:30 am ET- Unfortunately I was stopped out of my trade for a loss of 8 pips.
1:45 am ET- There was a moving average crossover for a short trade. RSI was less than 50, stochastics were trending down and MACD was positive and losing value. This was a valid trade. The entry was at the close of the candle which was at 2.0503 with a stop at the most recent high at 2.0519. Since I was only 3 pips away from the nearest 00 level at 2.0500, I decided to go for the same amount of pips I was risking which in this case was 16 pips. This put my target at 2.0487.
2:00 am ET- My target was hit at 2.0487 and didn't make a clean break. I took my final profit for a gain of 16 pips.
4:30 am ET- There was a moving average crossover for a short trade. RSI was less than 50, stochastics were trending down and MACD was positive and losing value. This was a valid trade. The entry was at the close of the candle which was at 2.0490 with a stop at the most recent high at 2.0512. Since I was 40 pips away from the nearest 50 level I decided to put my target at 2.0450.
7:15 am ET- My target was hit at 2.0450 and the price made a clean break of that level. Instead of taking final profit I moved my stop to 2.0450 and decided to try and go for 2.0400.
8:00 am ET- Unfortunately I was stopped out at 2.0450 and my final profit on the trade was 40 pips.
Trade Result: -8 +16 +40= +48 pips; R-Multiple: -1.00, +1.00, +1.82
