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: 12/18/07
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
2:15am 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 2.0182 with a stop at the most recent swing high at 2.0224. Since I was 32 pips away from the nearest 50 or 00 level, I decided to put my target at 2.0150.
Entry: Short at 2.0182
Stop: 2.0224
Initial Target: 2.0150
4:15am EDT- My target was not hit by this time. I knew that the GBP CPI was coming up at 4:30am EDT. According to my rules, I don't hold trades over important news events. I manually exited at 2.0190 and took a small loss.
3:30am EDT- Unfortunately I was stopped out at 2.0150
10:30am 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 2.0154 with a stop at the most recent swing high at 2.0194. Since I was only 4 pips away from the nearest 50 or 00 level (2.0150), I decided to go for the same amount of pips I was risking on the trade, which in this case was 40. This put my initial target at 2.0114.
Entry: Short at 2.0154
Stop: 2.0194
Initial Target: 2.0114
12:15pm EDT- My target was hit. Price did not make a clean break of my target so I went ahead and took my final profit.
Trade Result: -8 +40= +32 pips; R-Multiple: -0.19; 1.00
News events to watch for tomorrow :
- 4:30am EDT- MPC Minutes
For a list of all of tomorrow's news events, check out our Forex Calendar
