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: 01/02/08
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
7:30am 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 1.9832 with a stop at the most recent swing high at 1.9864. Since I was 32 pips away from the nearest 50 or 00 level, I decided to put my initial target at 1.9800.
Entry: Short at 1.9832
Stop: 1.9864
Initial Target: 1.9800
8:15am EDT- My target was hit. Price did not make a clean break of my target so I took my final profit. I was able to get out at 1.9802.
Trade Result: +30 pips; R-Multiple: 0.93
News events to watch for tomorrow :
- 8:15am EDT- US ADP Employment Change
- 8:30am EDT- US Unemployment Claims
cyclone- on the 4hr chart, all the indicators must line up. i.e. for a downtrend the EMAs must have crossed down, RSI must have been less than 50 at the time of the crossover, and stochastics must have crossed down or trend down at the time of the EMA crossover. Once a trend is formed, it stays in tact until there is an opposite trend candle (meaning all the indicators have reversed)
Mondavie- My MACD histogram is showing the difference between the 2 MACD lines. Some charting programs only show a histogram in which it shows the line of the slow line and the histogram displays the value of the fast line. I believe this is what is happening with your software.