Cowabunga System Daily Update: Tuesday, 04/05/11

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Main Trend

Current Trend

The trend was down until 4am EST. From midnight to 4am EST a new trend change candle formed and changed the trend from down to UP. After 4am EST the trend remained up the rest of the day.

Today I only looked for short trades until 4am EST. After 4am EST, I only looked for long trades.

News events to watch for today :

Today’s Surf

12:00, 1:00am EST– There was a moving average crossover for a long trade. RSI was greater than 50, stochastics were trending up, but MACD was already positive from the previous candle. This cancelled out the signal and I did not enter.

3:00am EST– There was a moving average crossover for a long trade. RSI was greater than 50, stochastics were trending up and MACD went from negative to positive. This was valid entry.

The entry was at the close of the candle at 1.6140 with a stop at the most recent swing low at 1.6090. Since I was only 10 pips away from the nearest 50 or 00 level (1.6150), I decided to go for the same amount of pips I was risking in the trade, which in this case was 50. This put my initial target at 1.6190.

Entry: Long at 1.6140 Stop: 1.6090 Target: 1.6190

4:15am EST– My target was hit and price made a clean break. Since news was coming out at 4:30am EST, I tried to capture as many pips as I could before the news report. I ended up closing out at 1.6205. (+65 pips)

entry2

Trade Result: +65 pips R-Multiple: 1.30

News events to watch for Wednesday:

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