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, 05/14/08
Due to technical difficulties yesterday, I did not get a chance to trade. Thankfully I was back in the markets today.
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Main Trend
Current Trend= The trend remained up until 4am EST. From 4am - 8am EST, a new trend change candle formed and changed the trend from up to DOWN. After 8am EST, the trend remained down the rest of the day.
Today I only looked for long trades until 4am EST. After 4am EST, I only looked for short trrades.
News events to watch for today :
- 4:30am EST- UK Claimant Count Change
- 5:30am EST- BOE Inflation Report
- 8:30am EST- US CPI
Today's Surf
12:30am EST- 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 1.9442 with a stop at the most recent swing high at 1.9458. Since I was 42 pips away from the nearest 50 or 00 level, I decided to put my initial target at 1.9400.
Entry: Short at 1.9442
Stop: 1.9458
Initial Target: 1.9400
2:00am EST- Unfortunately I was stopped out of my trade.
2:30am EST- There was a moving average crossover for a short trade. However, stochastics were trending up which cancelled the signal. No entry.
4:30am EST- This was a news candle so no entry.
10:30am EST- 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 1.9411 with a stop at the most recent swing high at 1.9472. Since I was 11 pips away from the nearest 50 or 00 level, I decided to put my initial target at 1.9400.
Entry: Short at 1.9411
Stop: 1.9472
Initial Target: 1.9400
4:00pm EST- My target wasn't hit by this time and since it was 4pm EST, it was time to end my day. I closed my trade and exited at 1.9446.
Trade Result: -16 -35= -51 pips : R-Multiple: -1.00; -0.57
News events to watch for tomorrow :
- 8:30am EST- US Empire State Business Index
- 9:00am EST- US TIC Data
- 9:30am EST- Bernanke Speaks
- 10:00am EST- US Philadelphia Fed Index
For a complete list of news events check out our News Section
