Cowabunga System Daily Update: Tuesday, 12/08/09

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Main Trend

Current Trend

The trend stayed down the entire day.

Today I only looked for short trades.

News events to watch for today :

  • 4:30am EST– UK Manufacturing Production m/m
  • 10:00am EST- US IBD/TIPP Economic Optimism

Today’s Surf

12:45am 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 1.6444 with a stop at the most recent high at 1.6462. Since I was 44 pips away from the nearest 50 or 00 level, I decided to put my initial target at 1.6400.

Entry: Short at 1.6444 Stop: 1.6462 Target: 1.6400

1:15am EST- My target was hit. Price made a clean break so I moved my stop to 1.6400 and set my next target for 1.6350.

1:30am EST- Unfortunately the momentum didn’t continue in my favor. I exited at 1.6400.

10:30am, 11:15am EST– There was a moving average crossover for a short trade. RSI was less than 50, MACD was positive and losing value, but stochastics were trending up. This cancelled out the signal and I did not enter.

entry2

Trade Result: +44 Pips (NOT INCLUDING SPREAD) R-Multiple: 2.44

News events to watch for tomorrow:

  • 4:30am EST- UK Trade Balance
  • 10:00am EST- US Wholesale Inventories m/m
  • 10:30am EST- US Crude Oil Inventories

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