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

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Main Trend

Current Trend

The trend was DOWN until 7am EST. From 3am – 7am EST, a new trend change candle formed and changed the trend from down to UP. The trend stayed UP until 11am EST. From 7am – 11am EST, another new trend change candle formed and changed the trend from up back to DOWN. From 11am EST moving forward, the trend remained down.

Today I only looked for short trades until 7am EST. From 7am -11am EST, I only looked for long trades. From 11am EST on out I only looked for short trades.

News events to watch for today :

Today’s Surf

1:15am 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 signal. I entered at the close of the candle at 1.6086 with a stop at the most recent swing high at 1.6091. Since I was 36 pips away from the nearest 50 or 00 level, I decided to put my initial target at 1.6050.

Entry: Short at 1.6086; Stop: 1.6091; Target: 1.6050

3:0am EST– Unfortunately I was stopped out of my trade. (-5 pips)

9:15am 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 gainingThis was a valid signal. I entered at the close of the candle at 1.6115 with a stop at the most recent swing low at 1.6096. Since I was 35 pips away from the nearest 50 or 00 level I decided to put my initial target at 1.6150.

Entry: Long at 1.6115; Stop: 1.6096; Target: 1.6150

10:00am EST- Unfortunately I was stopped out of my trade. (-19 pips)

entry2

Trade Result: -5 -19= -24 pips R-Multiple: -1.00; -1.00

News events to watch for Friday:

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