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: Tuesday, 05/27/08
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Main Trend
Current Trend= The trend remained up until 4am EST. From 12am EST - 4am EST, a new trend change candle formed and changed the trend from up to DOWN. After 4am 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 trades.
News events to watch for today :
- 2:00am EST- German Consumer Confidence
- 10:00am EST- US New Home Sales
Today's Surf
12:45am EST- There was a moving average crossover for a long trade. RSI was greater than 50, stochastics were trending up, and MACD was negative and gaining value.. This was a valid entry. The entry was at the close of the candle at 1.9817 with a stop at the most recent swing low at 1.9812. Since I was 33 pips away from the nearest 50 or 00 level, I decided to put my target at 1.9850.
Entry: Long at 1.9817
Stop: 1.9812
Initial Target: 1.9850
1:45am EST- My target wasn't hit by this time and I knew that news was coming out at 2:00am EST, so I closed my trade. I managed to exit out at 1.9837.
9:00am 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 1.9755 with a stop at the most recent swing high at 1.9782. Since I was only 5 pips 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 27. This put my initial target at 1.9728.
Entry: Short at 1.9755
Stop: 1.9782
Initial Target: 1.9728
9:45am EST- My target was hit by this time and I knew that news was coming out at 10:00am EST, so I closed my trade. I managed to exit out at 1.9750.
Trade Result: +20 +5= +25 pips (THIS DOESN'T INCLUDE SPREAD): R-Multiple: 4.00; 0.18
News events to watch for tomorrow :
- 8:30am EST- US Durable Goods Orders
For a complete list of news events check out our News Section
