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Main Trend
Current Trend= Trend remained down for the entire day.
Today I only looked for short trades.
Today’s Surf
9:30 pm ET-There was a moving average crossover for a short trade but MACD was negative which cancelled the signal. No entry.
11:45 pm ET- Another moving average crossover for a short trade but MACD was still negative which cancelled the signal. No entry.
5:00 am ET- There is a moving average crossover for a short trade. RSI<50, Stochastics are trending down, and MACD is positive while losing value. This is a valid entry. Entry was at the close of the candle which was at 9683 with a stop at the most recent swing high which was at 9733. Since I was 33 pips away from a 50 level I decided to target 9650 as my first target.
2:15 pm ET- My initial target is hit and the price actually makes a clean break and closes under 9650. Seeing this price action, I move my stop to 9650 and decide to go for my next target. What’s my next target? Well since I was initially risking 50 pips on this trade, why not go for a 50 pip profit? This effectively put my sights on 9633 as my next target.
2:30 pm ET– Price makes a clean break of 9633 and closes below it. Once again I decide to move my stop and capture more pips. This time my target is set for 9600.
2:45 pm ET– Unfortunately, the Cable was done moving and I was stopped out at 9633.
Trade Result:+50 pips. Initial R-Multiple= 0.66; Final R-Multiple= 1.00
Tomorrow we have Durable Goods and New Home Sales. If I am in a trade before then, I will exit before the news reports whether I’m positive or negative. Happy trading!