Cowabunga System Daily Update: Wednesday, 01/15/2014

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Main Trend

Trend

Current Trend

The trend was DOWN the entire day.

Today I only looked for short trades.

News events to watch for today :

Today’s Surf

12:15am 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 1.6417 with a stop at the most recent swing high at 1.6424. Since I was 17 pips away from the nearest 50 or 00 level I decided to put my initial target at 1.6400.

Entry: Short at 1.6417 Stop: 1.6424 Target: 1.6400

2:00am EST– My target was hit. Price closed right around 1.6400 so I decided to exit my trade. I got out at 1.6401. (+16 pips)

4:30am EST– There was a moving average crossover for a short trade. RSI was less than 50, MACD was positive and losing value, but stochastics were still trending up. This cancelled out the signal and I did not enter.

7:15am 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 1.6411 with a stop at the most recent swing high at 1.6436. Since I was only 11 pips away from the nearest 50 or 00 level (1.6400), I decided to go for the same amount of pips I was risking on the trade, which in this case was 25. This put my initial target at 1.6386.

Entry: Short at 1.6411 Stop: 1.6436 Target: 1.6386

8:15am EST– My target was hit. Since news was coming out at 8:30am EST, I decided to go ahead and exit. I got out at 1.6380. (+31 pips)

Entry

Trade Result: +16 +31= +47 pips R-Multiple: 2.28; 1.24

News events to watch for Thursday:

For a complete list of news events check out our Forex Economic Calendar.
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