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: Friday, 01/04/08
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
1:30am 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 1.9714 with a stop at the most recent swing high at 1.9730. Since I was only 14 pips away from the nearest 50 or 00 level (1.9700) I decided to go for the same amount of pips I was risking on the trade which in this case was 16. This put my target at 1.9698.
Entry: Short at 1.9714
Stop: 1.9730
Initial Target: 1.9698
2:15am EDT- My target was hit. Price made a clean break of my target so I moved my stop to 1.9698 and set my next target for 1.9650.
2:45am EDT- Unfortunately I was stopped out at 1.9698.
7:15am 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 1.9747 with a stop at the most recent swing high at 1.9798. Since I was 47 pips away from the nearest 50 or 00 level, I decided to put my initial target at 1.9700.
Entry: Short at 1.9747
Stop: 1.9798
Initial Target: 1.9700
8:15am EDT- Unfortunately my target was not hit by this time. I knew that the NFP was coming out at 8:30am EDT, so I went ahead and exited my trade at 1.9772.
9:45am 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 1.9751 with a stop at the most recent swing high at 1.9849. Since I was only 1 pip away from the nearest 50 or 00 level (1.9750) I decided to go for the same amount of pips I was risking on the trade, which in this case was 98. This put my initial target at 1.9653.
Entry: Short at 1.9751
Stop: 1.9849
Initial Target: 1.9653
4:00pm ET- Unfortunately my target was not hit by this time. According to my rules I exit all trades at this time whether I'm up or down. I managed to get out at 1.9717 for a 34 pip gain.
Trade Result: +16 -25 +34= +25 pips; R-Multiple: 1.00, -0.49, 0.34
