Cowabunga System Daily Update: Wednesday, 05/23/2012

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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

12:45am 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 a valid entry.

The entry was at the close of the candle at 1.5753 with a stop at the most recent swing high at 1.5762. Since I was only 3 pips away from the nearest 50 or 00 level and the same amount of pips I was risking on the trade was less than 10, I had to make a decision. Was this trade worth the entry. In this case where both target options are smaller than 10 pips, it is ok to sit the trade out. However, if you do decide to enter it is best to go for the next 50 or 00 level, which in this case was 1.5700.

Entry: Short at 1.5753 Stop: 1.5762 Target: 1.5700

2:30am EST- Unfortunately I was stopped out of my trade. (-9 pips)

3:00am 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 a valid entry.

The entry was at the close of the candle at 1.5739 with a stop at the most recent swing high at 1.5763. Since I was 39 pips away from the nearest 50 or 00 level, I decided to put my initial target at 1.5700.

Entry: Short at 1.5739 Stop: 1.5763 Target: 1.5700

4:15am EST- My target was hit. Since news was coming out, I was going to close my trade and grab as many pips as possible. I exited at 1.5695. (+44 pips)

entry2

Trade Result: -9 +44= +35 pips R-Multiple: -1.00; 1.83

News events to watch for Thursday:

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