Cowabunga System Daily Update: Tuesday, 06/12/2012

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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

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 1.5483 with a stop at the most recent swing high at 1.5500. Since I was 33 pips away from the nearest 50 or 00 level, I decided to put my initial target at 1.5450.

Entry: Short at 1.5483 Stop: 1.5500 Target: 1.5450

3:15am EST– Unfortunately I was stopped outo of my trade. (-17 pips)

4:15am EST– There was a potential signal here but because it was right before the 4:30am EST news I did not enter.

8:00am EST– The trend now changed from down to UP. Now I was only looking for long trades.

10:45am 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 1.5545 with a stop at the most recent swing low at 1.5511. Since I was only 5 pips away from the nearest 50 or 00 level (1.5550), I decided to go for the same amount of pips I was risking on the trade, which in this case was 34. This put my initial target at 1.5479.

Entry: Long at 1.5545 Stop: 1.5511 Target: 1.5479

11:45am EST– My target wasn’t hit by this time. Since it was approaching 12 noon EST, I decided to go ahead and exit my trade. I exited at 1.5565. (+20 pips)

entry2

Trade Result: -17 +20= +3 pips R-Multiple: -1.00; 0.58

News events to watch for Wednesday:

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