Cowabunga System Daily Update: Wednesday, 12/01/10

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Main Trend

Current Trend

The trend was down until 7am EST. From 3am – 7am EST, a new trend change candle formed and changed the trend from down to UP. After 7am EST, the trend remained up the rest of the day.

Today I only looked for short trades until 7am EST. After 7am EST, I only looked for long trades.

News events to watch for today :

Today’s Surf

1:30am EST– There was a valid signal here but because it was right before the 2am EST news I did not enter.

6:30am 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 1.5592 with a stop at the most recent swing high at 1.5647. Since I was 42 pips away from the nearest 50 or 00 level, I decided to put my initial target at 1.5550.

Entry: Short at 1.5592 Stop: 1.5647 Target: 1.5550

9:45am EST- Unfortunately my target wasn’t hit by this time. Since news was coming out at 10:00am EST I decided to close out my trade. I exited at 1.5582.

entry2

Trade Result: +10 pips R-Multiple: 0.18

News events to watch for Wednesday:

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