Cowabunga System Daily Update: Thursday, 06/06/2013

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Main Trend

Current Trend

The trend was UP the entire day.

Today I only looked for long trades.

News events to watch for today :

Today’s Surf

2:00am EST– There was a moving average crossover for a long trade. RSI was greater than 50, stochastics were trending up but MACD was already positive from the previous candle. This cancelled out the signal and I did not enter.

8:45am 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 1.5456 with a stop at the most recent swing low at 1.5433. Since I was 44 pips away from the nearest 50 or 00 level I put my initial target at 1.5500.

Entry: Long at 1.5456 Stop: 1.5433 Target: 1.5500

10:45am EST– My target was hit. Price made a clean break so I moved my stop to 1.5500 and set my next target for 1.5550.

11:45am EST- This candle went crazy and not only blasted past my target at 1.5550, but it also shot above what would’ve been my next target at 1.5600. Since it was getting close to 12 noon EST, and the fact that I already was in a big profit, I intended to exit this trade and capture as many pips as possible. I ended up getting out at 1.5610. (+154 pips)

entry2

Trade Result: +154 pips R-Multiple: 6.69

News events to watch for Friday:

  • 4:30am EST– UK Trade Balance
  • 8:30am EST– US Private Payrolls; Unemployment; NFP

For a complete list of news events check out our Forex Economic Calendar.
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  • AL10

    AlThanks for your report. How do you check the news? On Babypips forex calendar there were USD news at 8:30 EST (Fed’s Raskin speaks…), and also on 10:30 EST (IMF’s Rice holds usual press briefing…). Also according Forex factory calendar there was Unemployment claims USD at 8:30 EST.

    Why did you enter the trade at 8:45 then?
    Also, why didn’t you exit at 10:15, before the 10:30 news, as you usually do?
    In addition, after your second target was hit, there were still several targets to place before the candle you exited in. Are all of them ended with a clean break?

    Thanks!
    Al.

  • Victor Gomez Portorreal

    I’m already set with your trading system. Do you think we are coming close a reversal? As I see in the H4 GBP/USD chart the STOCH is loosing momentum… Do you think we can join a short position soon or the positive trend will keep pushing forward?