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: Thursday, 11/15/07
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
2:45am EDT- 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 2.0549 with a stop at the most recent swing high at 2.0602. Since I was 49 pips away from the nearest 50 or 00 level, I put my initial target at 2.0500.
Entry: Short at 2.0549
Stop: 2.0601
Initial Target: 2.0500
4:15am EDT- My target wasn't hit by this point and I knew that GBP Retail Sales was coming out at 4:30, so I closed out my trade at 2.0520.
8:30am EDT- There was a valid signal here but because it occurred on a news candle, I did not enter.
10:45am EDT- 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 2.0452 with a stop at the most recent swing high at 2.0491. Since I was only 2 pips away from the nearest 50 or 00 level, I decided to go for the same amount of pips I was risking on the trade, which in this case was 39. This put my target at 2.0413.
Entry: Short at 2.0452
Stop: 2.0491
Initial Target: 2.0413
4:00pm EDT- My target wasn't hit by this time, and according to my rules I always exit by 4pm. I manually closed my trade and was able to get out at 2.0437.
Trade Result: +29 +15= +44 pips; R-Multiple: 0.55, 0.38
News events to watch for tomorrow :
- 9:00am EDT- US TIC Data
- 9:15 EDT- US Industrial Production
For a list of all of tomorrow's news events, check out our Forex Calendar
Jeff- gryat is right. I don't take any signals after 12pm EDT. If I'm in a trade before then and my target is not hit by 4pm EDT, I exit whether I'm up or down. I don't begin taking signals again until 12am EDT the following day. Hope that helps!
PS