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: 08/28/07
If this is your first time visiting this blog, read this first!
For those of you looking for a post yesterday, I did not trade since it was a bank holiday over in England.
Main Trend
Current Trend= The trend was up until 4am ET. From 12am ET - 4am ET, a new trend change candle formed and changed the trend from up to DOWN. After 4am ET, the trend remained down the rest of the day.
Today I looked for long trades until 4am ET. After 4am ET, I only looked for short trades.
Today's Surf
4:15 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 entry. The entry was at the close of the candle at 2.0051 with a stop at the most recent swing high at 2.0070. Since I was only 1 pip away from the nearest 50 level (2.0050) I decided to go for the same amount of pips I was risking on the trade, which in this case was 19 pips. This put my target at 2.0032.
Entry: Short at 2.0051
Stop: 2.0070
Initial Target:2.0032
6:00 am ET- Unfortunately I was stopped out of my trade.
9:15 am ET- There was a moving average crossover for a short trade. RSI was less than 50, stochastics were trending down and MACD went from positive to negative. This was a valid entry. The entry was at the close of the candle at 2.0092 with a stop at the most recent swing high at 2.0141. Since I was 42 pips away from the nearest 50 level I decided to put my target at 2.0050.
Entry: Short at 2.0092
Stop: 2.0141
Initial Target:2.0050
11:45 am ET- My target was hit at 2.0050!
Trade Result: -19 +42= +23 pips; R-multiple: -1.00, 0.86
