Cowabunga System Daily Update: 10/17/07

If this is your first time visiting this blog, read this first!

Main Trend

Current Trend= The trend remained up until 12pm ET. From 8am – 12pm ET, a new trend change candle formed and changed the trend from down to UP. After 12pm ET, the trend remained up.

Today I looked for short trades until 12pm ET. Since I wasn’t in a trade by 12pm ET, I called it quits for the day.

Today’s Surf

1:00am 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 2.0304 with a stop at the most recent swing high at 2.0325. Since I was only 4 pips away from the nearest 50 or 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 21. This put my target at 2.0283.

Entry: Short at 2.0304

Stop: 2.0325

Initial Target: 2.0283

2:00pm ET- My target was hit. Price did not make a clean break of my target so I closed out my trade. I managed to exit at 2.0286.

6:15am 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 2.0326 with a stop at the most recent swing high at 2.0369. Since I was 26 pips away from the nearest 50 or 00 level, I decided to put my target at 2.0300.

Entry: Short at 2.0326

Stop: 2.0369

Initial Target: 2.0300

8:15am ET- Unfortunately I was stopped out of my trade.

Trade Result: +18 -43= -25 pips; R-Multiple: 0.86, -1.00

Tomorrow’s news events to watch out for:

  • 4:30am ET- GBP Retail Sales

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.
  • SteveT

    Hi, so just to confirm, its not written in stone that to go short the macd must be positive as per orignal instructions – and visa versa? Its just nice if it is :)

    “We want to catch trends early so the MACD histogram must be positive”

    Thanks.

  • VonSmeid

    I belive it is going from positive to negative. In both entries. :)

  • SteveT

    Hi, so just to confirm, its not written in stone that to go short the macd must be positive as per orignal instructions – and visa versa? Its just nice if it is :)

    “We want to catch trends early so the MACD histogram must be positive”

    Thanks.

  • VonSmeid

    I belive it is going from positive to negative. In both entries. :)