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: 10/31/07
If this is your first time visiting this blog, read this first!
Main Trend
Current Trend= The trend remained up the entire day.
Today I only looked for long trades.
Today's Surf
1:45am ET- There was a moving average crossover for a long trade. RSI was greater than 50, stochastics were trending up, and MACD was negative and gaining value. This was a valid signal. The entry was at the close of the candle at 2.0695 with a stop at the most recent low at 2.0678. Since I was only 5 pips away from the nearest 00 or 50 level (2.0700), I decided to go for the same amount of pips I was risking on the trade, which in this case was 17. This put my initial target at 2.0712.
Entry: Long at 2.0695
Stop: 2.0678
Initial Target: 2.0712
3:00am ET- My target was hit. Price made a clean break of my target so I moved my s/l to 2.0712 and set my next target for 2.0750.
6:45am ET- Unfortunately I was stopped out at 2.0712.
7:45am ET- There was a moving average crossover for a long trade. RSI was greater than 50, stochastics were trending up, and MACD was negative and gaining value. This was a valid entry. The entry was at the close of the candle at 2.0734 with a stop at the most recent swing low at 2.0712. Since I was 16 pips away from the nearest 50 or 00 level, I decided to put my target at 2.0750.
Entry: Long at 2.0734
Stop: 2.0712
Initial Target: 2.0750
8:15am ET- My target was not hit by this time and I knew that US GDP was coming out at 8:30. According to my rules I don't hold trades over major news events, so I manually closed my trade. I was able to get out at 2.0720.
9:30am ET- There was a moving average crossover for a long trade. RSI was greater than 50, stochastics were trending up, and MACD was negative and gaining value. This was a valid entry. The entry was at the close of the candle at 2.0728 with a stop at the most recent swing low at 2.0688. Since I was 22 pips away from the nearest 50 or 00 level, I decided to put my target at 2.0750.
Entry: Long at 2.0728
Stop: 2.0688
Initial Target: 2.0750
11:45am ET- My target was hit. Price made a clean break of my target so I moved my stop to 2.0750 and set my next target for 2.0800.
2:00pm ET- Unfortunately my target still wasn't hit by this time and I knew that the US Interest Rate Statement was coming out at 2:15pm ET. According to my rules I don't hold trades over important news events, so I manually closed my trade. I was able to get out at 2.0775.
Trade Result: +17 -14 +47= +50 pips; R-Multiple: 1.00, -0.63, 1.25
Tomorrow's news events to watch out for:
- 8:30am ET- US Core PCE Price Index
- 10:00am ET- US ISM Manufacturing Index
For the rest of tomorrow's news lineup, check out our Forex Calendar
