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: 03/05/07
If this is your first time visiting this blog, read this first!
Main Trend
Current Trend= Trend remained down the entire day.
Today I only looked for short trades.
Today's Surf
11:30 pm ET; 1:15 am ET - There was a moving average crossover for a short trade. However, MACD was already negative so this cancelled out the signal. No entry!
11:45 am ET- There was a moving average crossover for a short trade. RSI<50, Stochastics were trending down, and MACD was positive and losing value. This was a valid entry. Entry was at the close of the candle which was at 9231 with a stop at the most recent swing high which was at 9282. I could either target the nearest 00 level at 9200 which would give me a potential +31 target or go for the same amount of pips which would give me a potential +51 target. Since the entry came during the later part of the US session I figured that volume had probably died down for the rest of the day and decided to go for the smaller target which was at 9200.
4:00 pm ET- Unfortunately volume really died down and my target was not hit. As part of my rules, I closed my trade out at this time. I ended up getting out at 9221.
Trade Result: +10 pips
As of this day forward, I will only be taking signals that occur after midnight. I know this will probably decrease the number of trades I make but I'd like to test it out and see if it helps filter out some of the whipsaws we get during the early part of the trading day. Keep in mind, we will probably miss out on some good moves but it should also help eliminate some of our losses. I'll try it for a couple of months and see if it helps. If not then I'll make adjustments at that time.
