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, 10/08/08
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Main Trend
Current Trend= The trend remained down the entire day.
Today I only looked for short trades
News events to watch for today :
- 10:00am EST- US Pending Home Sales
Today's Surf
1:15am 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 1.7489 with a stop at the most recent swing high at 1.7595. Since I was 39 pips away from the nearest 50 or 00 level, I decided to put my initial target at 1.7450.
Entry: Short at 1.7489
Stop: 1.7595
Initial Target: 1.7450
1:30am EST- My target was hit. Price did not make a clean break of my target so I took my final profit. I exited at 1.7450.
4:30am 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 1.7509 with a stop at the most recent swing high at 1.7564. Since I was only 9 pips away from the nearest 50 or 00 level (1.7500), I decided to go for the same amount of pips I was risking on the trade, which in this case was 55. This put my initial target at 1.7454.
Entry: Short at 1.7509
Stop: 1.7564
Initial Target: 1.7454
8:45am 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 1.7457 with a stop at the most recent swing high at 1.7587. Since I was only 7 pips away from the nearest 50 or 00 level (1.7450), I decided to go for the same amount of pips I was risking on the trade, which in this case was 130. This put my initial target at 1.7327.
Entry: Short at 1.7457
Stop: 1.7587
Initial Target: 1.7327
9:45am EST- My target was not hit by this time. Since news was coming out at 10:00am EST, I decided to manually exit my trade. I exited at 1.7379.
Trade Result: +39 +53 +78= +170 pips (NOT INCLUDING SPREAD) R-Multiple: 0.36; 0.96; 0.60
News events to watch for tomorrow :
- 4:30am EST- UK Trade Balance
- 7:00am EST- UK Bank Rate
- 8:30am EST- US Unemployment Claims
- All Day- G7 Meeting
For a complete list of news events check out our News Section
