Cowabunga System Daily Update: 10/31/07

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

Main Trend

Current Trend= The trend remained up the entire day.

Today I only looked for long trades.

Today’s Surf

1:45am ET– There was a moving average crossover for a long trade. RSI was greater than 50, stochastics were trending up, and MACD was negative and gaining value. This was a valid signal. The entry was at the close of the candle at 2.0695 with a stop at the most recent low at 2.0678. Since I was only 5 pips away from the nearest 00 or 50 level (2.0700), I decided to go for the same amount of pips I was risking on the trade, which in this case was 17. This put my initial target at 2.0712.

Entry: Long at 2.0695
Stop: 2.0678
Initial Target: 2.0712

3:00am ET– My target was hit. Price made a clean break of my target so I moved my s/l to 2.0712 and set my next target for 2.0750.

6:45am ET– Unfortunately I was stopped out at 2.0712.

7:45am ET– There was a moving average crossover for a long trade. RSI was greater than 50, stochastics were trending up, and MACD was negative and gaining value. This was a valid entry. The entry was at the close of the candle at 2.0734 with a stop at the most recent swing low at 2.0712. Since I was 16 pips away from the nearest 50 or 00 level, I decided to put my target at 2.0750.

Entry: Long at 2.0734
Stop: 2.0712
Initial Target: 2.0750

8:15am ET– My target was not hit by this time and I knew that US GDP was coming out at 8:30. According to my rules I don’t hold trades over major news events, so I manually closed my trade. I was able to get out at 2.0720.

9:30am ET– There was a moving average crossover for a long trade. RSI was greater than 50, stochastics were trending up, and MACD was negative and gaining value. This was a valid entry. The entry was at the close of the candle at 2.0728 with a stop at the most recent swing low at 2.0688. Since I was 22 pips away from the nearest 50 or 00 level, I decided to put my target at 2.0750.

Entry: Long at 2.0728
Stop: 2.0688
Initial Target: 2.0750

11:45am ET– My target was hit. Price made a clean break of my target so I moved my stop to 2.0750 and set my next target for 2.0800.

2:00pm ET– Unfortunately my target still wasn’t hit by this time and I knew that the US Interest Rate Statement was coming out at 2:15pm ET. According to my rules I don’t hold trades over important news events, so I manually closed my trade. I was able to get out at 2.0775.

Trade Result: +17 -14 +47= +50 pips; R-Multiple: 1.00, -0.63, 1.25

Tomorrow’s news events to watch out for:

  • 8:30am ET- US Core PCE Price Index
  • 10:00am ET- US ISM Manufacturing Index

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.