Cowabunga System Daily Update: 08/28/07

If this is your first time visiting this blog, read this first!

For those of you looking for a post yesterday, I did not trade since it was a bank holiday over in England.

Main Trend

Current Trend= The trend was up until 4am ET. From 12am ET – 4am ET, a new trend change candle formed and changed the trend from up to DOWN. After 4am ET, the trend remained down the rest of the day.

Today I looked for long trades until 4am ET. After 4am ET, I only looked for short trades.

Today’s Surf

4:15 am ET– 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 2.0051 with a stop at the most recent swing high at 2.0070. Since I was only 1 pip away from the nearest 50 level (2.0050) I decided to go for the same amount of pips I was risking on the trade, which in this case was 19 pips. This put my target at 2.0032.

Entry: Short at 2.0051
Stop: 2.0070
Initial Target:2.0032

6:00 am ET– Unfortunately I was stopped out of my trade.

9:15 am ET- 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 2.0092 with a stop at the most recent swing high at 2.0141. Since I was 42 pips away from the nearest 50 level I decided to put my target at 2.0050.

Entry: Short at 2.0092
Stop: 2.0141
Initial Target:2.0050

11:45 am ET– My target was hit at 2.0050!

Trade Result: -19 +42= +23 pips; R-multiple: -1.00, 0.86

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