Cowabunga System Daily Update: 02/08/07

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Main Trend

Current Trend= Trend remained up until after the 7:00 am ET candle. Trend changed from up to DOWN after 11:00 am ET.

I only looked for long trades until 11:00 am ET. After 11:00 am ET, I only looked for short trades.

Today’s Surf

9:45 pm ET- There was a moving average crossover for a long trade. RSI>50, Stochastics were trending up, but MACD was positive. This was a false signal. No entry!

5:30 am ET- There was a moving average crossover for a long trade. RSI>50, Stochastics were trending up, and MACD was negative and gaining value. This was a valid entry. Entry was at the close of the candle which was at 9688 with a stop at the most recent swing low which was at 9657. Since the entry was after midnight there was a good chance for some movement. The dilemma however, was that I was only 12 pips away from the nearest 00 level (9700). So in this case, I decided to go for the same amount of pips that I was risking which was 31 pips. This put my target at 9719.

6:45 am ET- My target is not yet hit. At 7:00 am ET I knew that the BOE was going to announce their interest rate decision and part of my rules is to exit before important news events. I decide to take what little profit I have at 9700.

7:00 am ET- BOE Interest Rate Statement! Good thing I exited!

11:00 am ET- Trend change candle was complete. Now I only looked for short trades.

Trade Result: +12 pips; R-Multiple= 0.38

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  • bigjim1958

    Hi BP, First thanks for sharing and all your hard work, you really get the attitude of baby pips, it’s nice to see people that want to help without trying to sell indicators. Quick question, at the end of a 4 hr candle, a trend could be up, and we would be looking for long entries during the next 4 hrs, but that candle could be dropping through the basement, but we would be still looking for longs on the 15 min until the end of that candle, even when it’s dropping, until the start of the next 4 hrs and then we would look short? am I understanding that correctly? Thanks for all your contribution
    Jimbo

  • bigjim1958

    Hi BP, First thanks for sharing and all your hard work, you really get the attitude of baby pips, it’s nice to see people that want to help without trying to sell indicators. Quick question, at the end of a 4 hr candle, a trend could be up, and we would be looking for long entries during the next 4 hrs, but that candle could be dropping through the basement, but we would be still looking for longs on the 15 min until the end of that candle, even when it’s dropping, until the start of the next 4 hrs and then we would look short? am I understanding that correctly? Thanks for all your contribution
    Jimbo

  • bigpippin

    Yes, you are understanding it correctly. Until a 4hr CLOSES to form a new trend change candle, the trend is still in the direction of the most recent trend change candle. Therefore you only look for trades on the 15 minute chart in that direction.

  • bigpippin

    Yes, you are understanding it correctly. Until a 4hr CLOSES to form a new trend change candle, the trend is still in the direction of the most recent trend change candle. Therefore you only look for trades on the 15 minute chart in that direction.