Cowabunga System Daily Update: Wednesday, 07/02/2014

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Main Trend

Trend

 

Current Trend

The trend was UP the entire day.

Today I only looked for long trades.

News events to watch for today :

Today’s Surf

2:00am EST- There was a moving average crossover for a long trade. RSI was greater than 50, stochastics were trending up and MACD went from negative to positive. This was a valid entry.

The entry was at the close of the candle at 1.7148 with a stop at the most recent swing low at 1.7142. I was only 2 pips away from the nearest 50 or 00 level (1.7150), but at the same time my target would be too small if I only targeted the same amount of pips I was risking on the trade (6 pips). Since it was a low risk trade, I went ahead and decided to set my target for 1.7200 since my possible reward to risk ratio was very high.

Entry: Long at 1.7148 Stop: 1.7142 Target: 1.7200

4:15am EST- My target wasn’t hit by this time, and news was coming out at 4:30. Since I was up on my trade, I just tried to catch as many pips as I could before closing out. I exited at 1.7167. (+19 pips)

10:00am EST- Didn’t even look at this possible signal because it was during a news candle.

Entry

 

Trade Result: +19 pips R-Multiple: 3.16

News events to watch for Thursday:

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

    Hi!

    I have a question. Why did you not take the trade 15 minutes after the ADP Report? After the report (based on your system rules) it is a valid signal. I entered the trade and made 25 pips (exit at 1.7170).

    Good luck

    • ChrisN

      I believe it was because the MACD histogram was already in positive territory.