Cowabunga System Daily Update: Wednesday, 08/31/11

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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

1:30am 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 1.6307 with a stop at the most recent high at 1.6317. Since I was only 7 pips away from the nearest 50 or 00 level (1.6300), I decided to go for the same amount of pips I was risking on the trade, which in this case was 10 pips. This put my initial target at 1.6297.

Entry: Short at 1.6307 Stop: 1.6317 Target: 1.6297

2:15am EST– Unfortunately I was stopped out of my trade. (-10 pips)

3:15am 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.

4:15am 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.

10:30am 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 1.6307 with a stop at the most recent high at 1.6333. Since I was only 7 pips away from the nearest 50 or 00 level (1.6300), I decided to go for the same amount of pips I was risking on the trade, which in this case was 26 pips. This put my initial target at 1.6281.

Entry: Short at 1.6307 Stop: 1.6333 Target: 1.6281

10:45am EST– My target was hit. Price made a clean break so I moved my stop to 1.6281 and set my next target for 1.6250.

11:00am EST– Unfortunately I got stopped out at my original target. (+26 pips)

entry2

Trade Result: -10 +26= +16 pips R-Multiple: -1.00; 1.00

News events to watch for Thursday:

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