Cowabunga System Daily Update: Wednesday, 10/03/07

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Main Trend

Current Trend= The trend remained up until 12pm ET. From 8am – 12pm ET, a new trend change candle formed and changed the trend from up to DOWN. After 12pm ET, the trend remained down the rest of the day.

Today I only looked for long trades until 12pm ET. Since I was not in a trade by 12pm ET, I stopped looking for trades for the day.

Today’s Surf

6:15am ET– 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 2.0401 with a stop at the most recent swing low at 2.0361. Since I was 49 pips away from the nearest 50 or 00 level, I decided to put my target at 2.0450.

Entry: Long at 2.0401
Stop: 2.0361
Initial Target: 2.0450

8:00am ET– My target was not hit by this point. I knew that the Nonfarm ADP report was coming out at 8:15am ET, and according to my rules, I don’t hold trades during important news events. I closed out right before the release of the report and managed to exit at 2.0406.

Trade Result: +5 pips; R-Multiple: 0.12

Tomorrow’s news events to watch out for:

7:00am ET- GBP Interest Rate Statement

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