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: Monday, 01/07/08
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
1:15am 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 1.9686 with a stop at the most recent swing high at 1.9710. Since I was 36 pips away from the nearest 50 or 00 level, I decided to put my initial target at 1.9650.
Entry: Short at 1.9686
Stop: 1.9710
Initial Target: 1.9650
2:45am EDT- My target was hit. Price did not make a clean break of my target so I took my final profit. I managed to get out at 1.9655.
7:45am 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 1.9711 with a stop at the most recent swing high at 1.9747. Since I was only 11 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 36. This put my initial target at 1.9675.
Entry: Short at 1.9711
Stop: 1.9747
Initial Target: 1.9675
10:45am EDT- Unfortunately I was stopped out.
11:15am 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 1.9686 with a stop at the most recent swing high at 1.9754. Since I was 36 pips away from the nearest 50 or 00 level, I decided to set my initial target at 1.9650.
Entry: Short at 1.9686
Stop: 1.9754
Initial Target: 1.9650
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 1.9696 for a 10 pip loss.
Trade Result: +31 -36 -10= -15 pips; R-Multiple: 1.29, -1.00, -0.15
News events to watch for Monday :
- 10:00 EDT- US Pending Home Sales
Pipslinger- My charts that I post are a generic feed because I don't want to show bias to any one broker. The broker that I use did in fact hit my target. Remember, I didn't quite get out at the exact target level because it only nipped it. I had to manually close my trade which is why I didn't get the full 36 pip profit. Hope that helps.
Thanks for the comments everyone. Happy trading!
-PS