Cowabunga System Daily Update: 07/26/07

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Main Trend

Current Trend= The trend remained down the entire day

Today I only looked for short trades.

Today’s Surf

1:15 am ET– 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 trade. The entry was at the close of the candle which was at 2.0507 with a stop at the most recent high at 2.0515. I was only 7 pips away from the nearest 00 level at 2.0500 and if I went for the same amount of pips I was risking, I would only be going for a target of 8 pips. Either way my two potential targets to really make it worth my while to trade. I still entered but I set a target at 2.0490 just so I could at least go and try for 17 pips. This is not really in the rules but I wanted to go for something more than 10 pips because the spread alone would make the profit potential very small.

1:30 am ET– Unfortunately I was stopped out of my trade for a loss of 8 pips.

1:45 am ET– 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 trade. The entry was at the close of the candle which was at 2.0503 with a stop at the most recent high at 2.0519. Since I was only 3 pips away from the nearest 00 level at 2.0500, I decided to go for the same amount of pips I was risking which in this case was 16 pips. This put my target at 2.0487.

2:00 am ET– My target was hit at 2.0487 and didn’t make a clean break. I took my final profit for a gain of 16 pips.

4:30 am ET– 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 trade. The entry was at the close of the candle which was at 2.0490 with a stop at the most recent high at 2.0512. Since I was 40 pips away from the nearest 50 level I decided to put my target at 2.0450.

7:15 am ET– My target was hit at 2.0450 and the price made a clean break of that level. Instead of taking final profit I moved my stop to 2.0450 and decided to try and go for 2.0400.

8:00 am ET– Unfortunately I was stopped out at 2.0450 and my final profit on the trade was 40 pips.

Trade Result: -8 +16 +40= +48 pips; R-Multiple: -1.00, +1.00, +1.82

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