Cowabunga System Daily Update: 09/17/07

Posted 16:48 17 September 2007 | 3
If this is your first time visiting this blog, read this first!

Main Trend

Current Trend= The trend remained down the entire day.

Today I only looked for short trades.

Today's Surf

1:15am 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 at 2.0073 with a stop at the most recent swing high at 2.0086. Since I was 23 pips away from the nearest 00 or 50 level I decided to put my target at 2.0050.

Entry: Short at 2.0073
Stop: 2.0086
Initial Target: 2.0050

2:15am ET- My target was hit! The price made a clean break of my target so I moved my stop to 2.0050 and set my next target for 2.0000.

2:45am ET- My 2nd target at 2.0000 was hit but the price did not make a clean break of that level so I took my final profit.

11:00am 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 entry. The entry was at the close of the candle at 1.9998 with a stop at the most recent swing high at 2.0026. Since I was 48 pips away from the nearest 00 or 50 level I decided to put my target at 1.9950.

Entry: Short at 1.9998
Stop: 2.0226
Initial Target:1.9950

11:45am ET- My target was hit. The price made a clean break of my target so I moved my stop to 1.9950 and set my next target for 1.9900.

12:45am ET- Unfortunately I was stopped out at my initial target at 1.9950.

Trade Result: +73 +48= +121 pips; R-Multiple: 5.61, 1.71

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Comments (3)

Hi, i've noticed that the 4hr RSI and Stoch filters are seldom used when determining trade direction for the day. When do you use the 4hr RSI/Stochs?....or could we just drop them off the chart? Great day for your method! The equity curve for the year to date looks re-assuringly stable too.
ChowClown | Posted 02:52 18 September 2007
PS, how do you get the closing price of the candle so accurately all the time? Do you wait for the candle to first close and then wait for a retracement on the next candle? That is what I have been doing. However, that does not work all the time like on 11:00am trade --short entry at 1.9998. There was no retracement on the next candle --so I decided to not enter the trade. How did you manage to enter at 1.9998 ---cheers.
pinetree | Posted 07:28 18 September 2007
ChowClown- I actually do use 4hr RSI and Stochastics as a filter. Notice that on the trend change candle, RSI was less than 50 and stochastics were trending down. That means the trend change candle was valid, and until a new trend change candle forms, the trend remains down.

Pinetree- I usually get in right as the candle is about to close. Sometimes I may be a pip or 2 off if the market is moving extremely fast, but usually I can get it right on the nail. You just have to have a quick trigger finger :)
PipSurfer | Posted 12:05 19 September 2007

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