EUR/USD DAY TRADING SYSTEM IS NOW 2 FOR 2

Let's look to see if the day trading forex system that was described earlier worked again. Click on the chart to the left and you will notice that it has. So this system is so far 2 for 2 on wins.

In order to see the system rules, click in the white box in the upper left hand corner of the blog, type in FOREX SYSTEM and then click on search blog. This will take you to the system rules.

I was also looking at an interesting strategy just by looking at the charts. What if you took a Stochastic signal (15,5,0) and bought when a signal was given and set a target of 100 pips? and the reverse where you sell when a Stoch signal is given and set the same 100 pip goal? This looks like a once a month trade, however.

GBP/AUD just gave a Stoch signal today on a daily chart. Since I can't trade the pair with my forex.com account, I guess I will paper trade it. I am buying at 2.3550 and setting a goal of 2.3650. Stop loss of 2.3400 since that is below previous support. Also it is not too smart to have a goal of 100 pips profit and a stop loss of 150 pips. We'll just have to see how this pans out. I went back and looked at a chart and noticed that the USD/CAD pair put out a stochastic buy signal a few days ago at $1.0666. Currently, the pair is at $1.0665. So I tried it. I bought at $1.0655 and set a goal for $1.0755. This is a risky trade but the $TNX is heading up again which means that the USD is going to gain a little strength.

As for the overall stock market, IBD quipped this:

Stocks Close Sharply Lower On Higher Volume

Not a good sign for the current rally. It is also not a good sign for the $TNX to be heading back up again. The best plan of action is to take some $$$ off the table or sell some covered calls.

There are some stocks that are bucking the downtrend and are good candidates for buying when the stocks make their move. These include: CMI near $100, FWLT above $110, SPWR -well, now.

GOOD LUCK TRADING
JD