Cowabunga System Daily Update: Tuesday, 05/23/11

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Main Trend

Current Trend

The trend was up until 4am EST. From 12am – 4am EST a new trend change candle formed and changed the trend from up to DOWN. After 4am EST the trend stayed down the rest of the day.

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

News events to watch for today :

  • None

Today’s Surf

10:45am 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 1.6118 with a stop at the most recent swing high at 1.6140. Since I was 18 pips away from the nearest 50 or 00 level I decided to put my target at 1.6100.

Entry: Short at 1.6118 Stop: 1.6140 Target: 1.6100

11:15am EST– My target was hit. Price did not make a clean break so I took my final profit. I exited at 1.6100. (+18 pips)

entry2

Trade Result: +18 pips R-Multiple: 0.81

News events to watch for Tuesday:

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