Cowabunga System Daily Update: Monday, 08/11/08

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Main Trend

Current Trend= The trend remained down the entire day.

Today I only looked for short trades

News events to watch for today :

  • 4:30am EST- UK PPI Input

Today’s Surf

4:30am EST- 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 1.9159 with a stop at the most recent swing high at 1.9206. Since I was only 9 pips away from the nearest 50 or 00 level (1.9150), I decided to go for the same amount of pips I was risking on the trade, which in this case was 47. This put my initial target at 1.9112.

Entry: Short at 1.9159

Stop: 1.9206

Initial Target: 1.9112

3:45am EST- Unfortunately I was stopped out of my trade.

6:30am, 7:15 EST- There was a crossover for a short trade, but MACD was already negative so it cancelled out the signal. No entry!

entry2

Trade Result: -47 pips (NOT INCLUDING SPREAD!) R-Multiple: -1.00

News events to watch for tomorrow :

  • 4:30am EST- UK CPI
  • 8:30am EST- US Trade Balance

For a complete list of news events check out our News Section

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  • chibai73

    At the time of your entry, it seemed like the 4 hr stochastics is trending up. This means the main trend is not clear. I would be careful to make an entry if this is the case. Also, can I ask why does a MACD that is already negative cancel out the short signal? Doesn’t a negative MACD mean that the trend is down? I am not questioning your judgement. I’m just trying to learn and follow along.

  • chibai73

    At the time of your entry, it seemed like the 4 hr stochastics is trending up. This means the main trend is not clear. I would be careful to make an entry if this is the case. Also, can I ask why does a MACD that is already negative cancel out the short signal? Doesn’t a negative MACD mean that the trend is down? I am not questioning your judgement. I’m just trying to learn and follow along.