Cowabunga System Daily Update: Wednesday, 10/12/11

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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

8:30am 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 a valid entry. The entry was at the close of the candle at 1.5748 with a stop at the most recent low at 1.5715. Since I was only 2 pips away from the nearest 50 or 00 level (1.5750), I decided to go for the same amount of pips I was risking on the trade, which in this case was 33. This put my initial target at 1.5781.

Entry: Long at 1.5748 Stop: 1.5715 Target: 1.5781

9:15am EST– Unfortunately I got stopped out of my trade. (-33 pips)

9:45am 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 a valid entry. The entry was at the close of the candle at 1.5746 with a stop at the most recent low at 1.5711. Since I was only 4 pips away from the nearest 50 or 00 level (1.5750), I decided to go for the same amount of pips I was risking on the trade, which in this case was 35. This put my initial target at 1.5781.

Entry: Long at 1.5746 Stop: 1.5711 Target: 1.5781

9:15am EST– Unfortunately I got stopped out of my trade. (-33 pips)

10:15am EST– My target was hit. Price made a clean break so I moved my stop to 1.5781 and set my next target for 1.5800.

10:30am EST– Unfortunately I got stopped out at my initial target. (+35 pips)

entry2

Trade Result: -33 +35= +2 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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