Cowabunga System Daily Update: 10/16/07

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Main Trend

Current Trend= The trend remained up until 8am ET. From 4am – 8am ET, a new trend change candle formed and changed the trend from up to DOWN. After 8am ET, the trend remained down the rest of the day.

Today I looked for long trades until 8am ET. After 8am ET, I only looked for short trades.

Today’s Surf

10:30am 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 2.0325 with a stop at the most recent swing low at 2.0380. Since I was 25 pips away from the nearest 50 or 00 level, I decided to put my target at 2.0300.

Entry: Short at 2.0325

Stop: 2.0380

Initial Target: 2.0300

3:30pm ET- My target was not hit by this time. I normally like to wait until 4pm ET to close my trades, but this one didn’t look like it was going anywhere. I managed to exit at 2.0318.

Trade Result: +7 pips; R-Multiple: 0.13

Tomorrow’s news events to watch out for:

  • 4:30am ET- UK MPC Minutes, UK Average Earnings
  • 8:30am ET- US Core CPI

For the rest of tomorrow’s news lineup, check out our Forex Calendar

Questions? Read the Cowabunga FAQ.
Want to discuss the Cowabunga System? Visit our Forums.

8 comments

  1. gailellis

    I have a question about how to determine the main trend, especially in these choppy markets. Lets say that the main trend on the four hour chart is down since 8 am the prior day. We are now at the candle starting 8 am today. It is now 9 am. On the four hour chart the 5 MA has crossed the 10 MA, meaning the trend is up.However, the candle has 3 more hours to its close. We are trading the 15 minute chart. Are we looking to go short (per the prior confirmed trend), or long (per the developing new trend.) Or is it best not to trade at all in this situation?

    Reply
  2. gailellis

    I have a question about how to determine the main trend, especially in these choppy markets. Lets say that the main trend on the four hour chart is down since 8 am the prior day. We are now at the candle starting 8 am today. It is now 9 am. On the four hour chart the 5 MA has crossed the 10 MA, meaning the trend is up.However, the candle has 3 more hours to its close. We are trading the 15 minute chart. Are we looking to go short (per the prior confirmed trend), or long (per the developing new trend.) Or is it best not to trade at all in this situation?

    Reply
  3. Big PippinBigPippin

    You would wait until the 4hr candle closed before you look for trades on the new trend. Until then, you are still looking for trades in the current trend, even if the moving averages have crossed.

    Reply
  4. Big PippinBigPippin

    You would wait until the 4hr candle closed before you look for trades on the new trend. Until then, you are still looking for trades in the current trend, even if the moving averages have crossed.

    Reply

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