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: Wednesday, 12/05/07
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
12:00am 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 2.0555 with a stop at the most recent swing high at 2.0578. Since I was only 5 pips away from the nearest 50 or 00 level (2.0550) I decided to go for the same amount of pips I was risking on the trade which in this case was 23. This put my initial target at 2.0532.
Entry: Short at 2.0555
Stop: 2.0578
Initial Target: 2.0532
3:00am EDT- This was an interesting candle because not only did hit my initial target at 2.0532, but it also hit what would've been my 2nd target at 2.0500. To top it off, the candle made a clean break of 2.0500 which kept my trade open. I moved my stop to 2.0500 and set my next target for 2.0450.
3:45am EDT- My next target was hit at 2.0450. Price made a clean break again so I moved my stop to 2.0450 and set my next target for 2.0400.
4:00am EDT- My target at 2.0400 was hit. This time, price did not make a clean break so I took my final profit. I managed to exit at 2.0405.
Trade Result: +150 pips; R-Multiple: 6.52
News events to watch for tomorrow :
- 4:30am EDT- GBP Industrial Production
- 7:00am EDT- BOE Interest Rate Statement
- 8:30am EDT- US Unemployment Claims
- 8:30am EDT- ECB President Trichet Speaks
For a list of all of tomorrow's news events, check out our Forex Calendar
