Cowabunga System Daily Update: Wednesday, 05/30/2012

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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

1:45am 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 1.5612 with a stop at the most recent swing high at 1.5620. Since I was 12 pips away from the nearest 50 or 00 level, I decided to put my initial target at 1.5600.

Entry: Short at 1.5612 Stop: 1.5620 Target: 1.5600

2:15am EST– Unfortunately I was stopped out of my trade. (-8 pips)

2:30am 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 1.5610 with a stop at the most recent swing high at 1.5625. Since I was only 10 pips away from the nearest 50 or 00 level (1.5600), I decided to go for the same amount of pips I was risking on the trade, which in this case was 15 pips. This put my initial target at 1.5595.

Entry: Short at 1.5610 Stop: 1.5625 Target: 1.5595

3:00am EST– My target was hit. Price made a clean break so I moved my stop to 1.5595 and set my next target for 1.5550.

4:15am EST– My 2nd target wasn’t hit by this time. Since news was coming out at 4:30am EST, I decided to manually exit my trade. I got out at 1.5572. (+38 pips)

9:00am 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 1.5564 with a stop at the most recent swing high at 1.5614. Since I was 14 pips away from the nearest 50 or 00 level, I decided to put my initial target at 1.5550.

Entry: Short at 1.5564 Stop: 1.5614 Target: 1.5550

9:45am EST– My target wasn’t hit by this time. Since news was coming out at 10:00am EST, I decided to manually exit my trade. I got out at 1.5552. (+12 pips)

entry2

Trade Result: -8 +38 +12= +42 pips R-Multiple: -1.00; 2.53; 0.24

News events to watch for Thursday:

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