Cowabunga System Daily Update: Tuesday, 02/05/2013

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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

1:30am 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 1.5743 with a stop at the most recent swing high at 1.5764. Since I was 43 pips away from the nearest 50 or 00 level I decided to put my initial target at 1.5700.

Entry: Short at 1.5743; Stop: 1.5764; Target: 1.5700

4:00am EST- Unfortunately I was stopped out of my trade. (-21 pips)

6:00am 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 signal. I entered at the close of the candle at 1.5756 with a stop at the most recent swing high at 1.5804. Since I was only 6 pips away from the nearest 50 or 00 level (1.5750), I decided to go for the same amount of pips I was risking on the trade, which in this case was 48. This put my initial target at 1.5708.

Entry: Short at 1.5756; Stop: 1.5804; Target: 1.5708

8:45am EST- My target was hit. Price did not make a clean break so I took my final profit. I exited at 1.5710. (+46 pips)

entry2

Trade Result: -21 +46= +25 pips R-Multiple: -1.00; 0.95

News events to watch for Wednesday:

  • None

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