Cowabunga System Daily Update: Wednesday, 08/24/11

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Main Trend

Current Trend

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

Today’s Surf

2:00am 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.

7:00am 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 1.6494 with a stop at the most recent high at 1.6533. Since I was 44 pips away from the nearest 00 or 50 level I decided to put my initial target at 1.6450.

Entry: Short at 1.6494 Stop: 1.6533 Target: 1.6450

8:00am EST– My target was hit. Price didn’t make a clean break so I took my final profit. I exited at 1.6453. (+41 pips)

entry2

Trade Result: +41 pips R-Multiple: 1.05

News events to watch for Thursday:

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