Cowabunga System Daily Update: 08/07/07

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Main Trend

Current Trend= The trend remained down the entire day.

Today’s Surf

2:15 am ET– 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 entry. The entry was at the close of the candle which was at 2.0304 with a stop at the most recent swing high at 2.0335. Since I was only 4 pips away from the nearest 00 level (2.0300), I decided to go for the same amount of pips I was risking on the trade which in this case was 31. This put my target at 2.0273.

Entry: Short at 2.0304
Stop: 2.0335
Initial Target: 2.0273

3:15 am ET– My target was hit at 2.0273 and the candle made a clean break of that level. Instead of closing out my trade I trailed my stop to that level and went for my 2nd target at 2.0250.

3:30 am ET– Unofortunately I was stopped out at 2.0273 for a gain of +31 pips.

8:30 am ET- There was a valid signal here but it was the result of a major news event (USD Nonfarm Productivity) so I did not enter.

Trade Result: +31 pips; R-Multiple: 1.00

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  • lowy

    well i was fowllowing the move today but Actully The 15 Min MACD never went to positive up to this moment !!
    (MACD defualt settings 12,26,9 ).
    Any explinations ?

  • PipSurfer

    Well since we were looking for short trades, the MACD would have to be positive and then either turn negative or start losing value in order to have a valid signal. You can see from the chart that on our entry candle, the MACD histogram changed from positive to negative which makes it a valid trade.

  • PipSurfer

    Well since we were looking for short trades, the MACD would have to be positive and then either turn negative or start losing value in order to have a valid signal. You can see from the chart that on our entry candle, the MACD histogram changed from positive to negative which makes it a valid trade.

  • leepaynesnake

    i wanna ask some question about clean break… what if a candle break our target but pull back after? Example:(long @2.0220 , limit @2.0250 , stop @2.0205 at sometime the candle reach 2.0264 and pull back to 2.0248 in just 15 minutes…. if i close at 2.0250 but the candle make a clean break then i’ll miss out target no.2 (2.0300) if i wait until the candle close then only close my trade i might be not earn the pips that i set.what’s the solution?

  • leepaynesnake

    i wanna ask some question about clean break… what if a candle break our target but pull back after? Example:(long @2.0220 , limit @2.0250 , stop @2.0205 at sometime the candle reach 2.0264 and pull back to 2.0248 in just 15 minutes…. if i close at 2.0250 but the candle make a clean break then i’ll miss out target no.2 (2.0300) if i wait until the candle close then only close my trade i might be not earn the pips that i set.what’s the solution?