Cowabunga System Daily Update: Wednesday, 01/26/11

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Main Trend

Current Trend

The trend was down the entire day.

Today I only looked for short trades.

News events to watch for today :

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 was positive and losing value. This was valid entry.

The entry was at the close of the candle at 1.5806 with a stop at the most recent swing high at 1.5837. Since I was only 6 pips away from the nearest 50 or 00 level (1.5800), I decided to go for the same amount of pips I was risking on the trade, which in this case was 31. This put my initial target at 1.5775.

Entry: Short at 1.5806 Stop: 1.5837 Target: 1.5775

2:45am EST– My target was hit. Price did not make a clean break so I took my final profit. I exited at 1.5778. (+28 pips)

8:00, 9:15am EST– There was a moving average crossover for a short trade. RSI was less than 50, stochastics were trending down but MACD was already negative from the previous candle. This cancelled out the signal and I did not enter.

entry2

Trade Result: +28 pips R-Multiple: 0.90

News events to watch for Thursday:

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