Cowabunga System Daily Update: 12/18/07

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Main Trend

Current Trend= The trend remained down the entire day.

Today I only looked for short trades.

Today’s Surf

2:15am EDT- 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 2.0182 with a stop at the most recent swing high at 2.0224. Since I was 32 pips away from the nearest 50 or 00 level, I decided to put my target at 2.0150.

Entry: Short at 2.0182

Stop: 2.0224

Initial Target: 2.0150

4:15am EDT- My target was not hit by this time. I knew that the GBP CPI was coming up at 4:30am EDT. According to my rules, I don’t hold trades over important news events. I manually exited at 2.0190 and took a small loss.

3:30am EDT- Unfortunately I was stopped out at 2.0150

10:30am EDT- 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 2.0154 with a stop at the most recent swing high at 2.0194. Since I was only 4 pips away from the nearest 50 or 00 level (2.0150), I decided to go for the same amount of pips I was risking on the trade, which in this case was 40. This put my initial target at 2.0114.

Entry: Short at 2.0154

Stop: 2.0194

Initial Target: 2.0114

12:15pm EDT- My target was hit. Price did not make a clean break of my target so I went ahead and took my final profit.

Trade Result: -8 +40= +32 pips; R-Multiple: -0.19; 1.00

News events to watch for tomorrow :
  • 4:30am EDT- MPC Minutes

For a list of all of tomorrow’s news events, check out our Forex Calendar

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  • gryat

    Did the same as you. Luckily I too chose to go for the same amount as i was risking in the second trade. If i’d have gone for the 2.000000 level…

  • gryat

    2.0100 level

  • gryat

    Did the same as you. Luckily I too chose to go for the same amount as i was risking in the second trade. If i’d have gone for the 2.000000 level…

  • gryat

    2.0100 level