Cowabunga System Daily Update: Wednesday, 01/23/2013

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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

12:45am EST- There was a moving average crossover for a short trade. RSI was less than 50, MACD was positive and losing value, but stochastics were trending up. This cancelled out the signal and I did not enter.

1:30am 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 signal. I entered at the close of the candle at 1.5825 with a stop at the most recent swing high at 1.5837. Since I was 25 pips away from the nearest 50 or 00 level I decided to put my initial target at 1.5800.

Entry: Short at 1.5825; Stop: 1.5837; Target: 1.5800

3:15am EST- My target was hit. Price didn’t make a clean break so I took my final profit. I exited at 1.5805. (+20 pips)

6:45am EST- There was a moving average crossover for a short trade. Stochastics were trending down, MACD went from positive to negative, but RSI was greater than 50. This cancelled out the signal and I did not enter.

10:15am 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 negativeThis was a valid signal. I entered at the close of the candle at 1.5855 with a stop at the most recent swing high at 1.5892. Since I was only 5 pips away from the nearest 50 or 00 level (1.5850), I decided to go for the same amount of pips I was risking on the trade, which in this case was 37. This put my initial target at 1.5818.

Entry: Short at 1.5855; Stop: 1.5892; Target: 1.5818

11:45am EST- Unfortunately my target was not hit by this time. Since it was approaching 12 noon EST, I decided to manually exit my trade. I got out at 1.5845. (+10 pips)

entry2

Trade Result: +20 +10= +30 pips R-Multiple: 1.67; 0.27

News events to watch for Thursday:

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