Cowabunga System Daily Update: Tuesday, 01/15/2013

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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

2:30am EST- There was a moving average crossover for a short trade. RSI was less than 50, but stochastics were trending up and MACD was already negative from the previous candle. This cancelled out the signal and I did not enter.

5:15am EST- There was a moving average crossover for a short trade. RSI was less than 50, stochastics were trending down, and MACD went from positive to negative. This was a valid signal. I entered at the close of the candle at 1.6070 with a stop at the most recent swing high at 1.6094. Since I was 20 pips away from the nearest 50 or 00 level I decided to put my initial target at 1.6050.

Entry: Short at 1.6070; Stop: 1.6094; Target: 1.6050

6:30am EST- My target was hit. Price made a clean break so I moved my stop to 1.6050 and set my next target for 1.6000.

6:45am EST– Unfortunately I was stopped out of my original target at 1.6050. (+20 pips)

9:30am EST- There was a valid signal here but because it was right before the 10:00am EST news event, I did not enter.

entry2

Trade Result: +20 pips R-Multiple: 0.83

News events to watch for Wednesday:

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