Cowabunga System Daily Update: Tuesday, 12/22/09

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Main Trend

Current Trend

The trend stayed up until 3am EST. From 11pm – 3am EST, a new trend change candle formed and changed the trend from up to DOWN. After 3am EST, the trend remained down the rest of the day.

Today I only looked for long trades until 3am EST. After 3am EST, I only looked for short trades.

News events to watch for today :

  • 4:30am EST- UK Current Account
  • 6:00am EST– UK Gross Domestic Product
  • 8:30am EST– US Gross Domestic Product
  • 10:00am EST– US Existing Home Sales

Today’s Surf

1:45am 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 1.6050 with a stop at the most recent high at 1.6067. Since I was 50 pips away from the nearest 50 or 00 level, I decided to put my initial target at 1.6000.

Entry: Short at 1.6050 Stop: 1.6067 Target: 1.6000

2:00am EST- Unfortunately I was stopped out of my trade.

4:00am EST– There was a valid signal here but because it was right before a news event I did not enter.

entry2

Trade Result: -17 pips (NOT INCLUDING SPREAD) R-Multiple: -1.00

News events to watch for tomorrow:

  • 4:30am EST- UK MPC Meeting Minutes
  • 8:30am EST- US Core PCE Price Index m/m
  • 10:00am EST- US New Home Sales

For a complete list of news events check out our Forex Economic Calendar.
Questions? Read the Cowabunga FAQ.

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  • Filo

    Pip Surfer,
    I’m curious, I know your system does not allow you to trade on a news candle for either the USD or the GBD, but what is your strategy when a high impact news event for the EUR is scheduled? Also, what would be your consideration for a high impact event on the GBD if you were trading the USD/EUR pair. Thanks for the insight.

    Cheers, Filo

  • Filo

    Pip Surfer,
    I’m curious, I know your system does not allow you to trade on a news candle for either the USD or the GBD, but what is your strategy when a high impact news event for the EUR is scheduled? Also, what would be your consideration for a high impact event on the GBD if you were trading the USD/EUR pair. Thanks for the insight.

    Cheers, Filo