Cowabunga System Daily Update: Wednesday, 07/31/2013

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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

4:15am 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 still trending up. This cancelled the signal and I did not enter.

4:45am 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 entry.

The entry was at the close of the candle at 1.5211 with a stop at the most recent swing high at 1.5237. Since I was only 11 pips away from the nearest 50 or 00 level (1.5200), I decided to go for the same amount of pips I was risking on the trade, which in this case was 26. This put my initial target at 1.5185.

Entry: Short at 1.5211 Stop: 1.5237 Target: 1.5185

8:00am EST– My target wasn’t hit by this time. Since news was coming out at 8:15am EST, I decided to manually exit my trade. I got out at 1.5189. (+22 pips)

entry2

Trade Result: +22 pips R-Multiple: 0.84

News events to watch for Thursday:

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