Cowabunga System Daily Update: Wednesday, 08/03/11

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Main Trend

Current Trend

The trend was DOWN until 8am EST. From 4am – 8am EST a new trend change candle formed and changed the trend from down to UP. After 8am EST, the trend remained up the rest of the day.

Today I only looked for short trades until 8am EST. After 8am EST I only looked for long trades.

News events to watch for today :

Today’s Surf

1:15am 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 1.6266 with a stop at the most recent swing high at 1.6290. Since I was 16 pips away from the nearest 50 or 00 level I decided to put my target at 1.6250.

Entry: Short at 1.6266 Stop: 1.6290 Target: 1.6250

3:00am EST– Unfortunately I was stopped out of my trade. (-24 pips)

10:45am EST– There was a moving average crossover for a long trade. RSI was greater than 50, stochastics were trending up and MACD was negative and gaining value. This was valid entry.

The entry was at the close of the candle at 1.6408 with a stop at the most recent swing low at 1.6355. Since I was 42 pips away from the nearest 50 or 00 level I decided to put my target at 1.6450.

Entry: Long at 1.6408 Stop: 1.6355 Target: 1.6450

12:00am EST– My target wasn’t hit by this time. Since it was 12 noon EST I decided to exit my trade. I closed out at 1.6412 (+4 pips)

entry2

Trade Result: -24 +4= -20 pips R-Multiple: -1.00; 0.07

News events to watch for Thursday:

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