Cowabunga System Daily Update: 02/09/07

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Main Trend

Current Trend= Trend remained down the entire day.

Today I only looked for short trades

Today’s Surf

7:00 pm ET– There was a moving average crossover for a short trade. RSI<50, Stochastics were trending down, but MACD was negative. This was a false signal. No entry!

12:00 am ET– There was a moving average crossover for a short trade. RSI<50, Stochastics were trending down, and MACD was positive and losing value. This was a valid entry. Entry was at the close of the candle which was at 9582 with a stop at the most recent swing high which was at 9601. Since the entry was after midnight and because I was 32 pips away from the nearest 50 level, I decided to go for 9550 as my initial target.

2:15 am ET– My target was hit at 9550 and the price made a clean break of that level. Instead of closing my trade, I moved my stop to that level and set my next target for 9500.

2:45 am ET– My second target was hit at 9500 but the price didn’t make a clean break. I decided to take my final profit at that level.

Trade Result: +82 pips; R-Multiple= 4.31

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  • ybop01

    What do you consider a “clean break”? What is the precise criteria that constitutes this?

  • pacifier

    Hi ! Nice run on GBP yesterday.

    MA crossover on my chart occurs 15 minutes later. You do require that MA(5) is of smaller value than MA(10) right ? If they are of the same value its not a cross ? Probably its different data.

    Also, at your entry point, Stoch %K is in oversold territory. Do you need both %K and %D to be

  • ybop01

    What do you consider a “clean break”? What is the precise criteria that constitutes this?

  • barracuda905

    That was a great trade. Using your system along with my system I was able to make a 70 pip gain. I entered at 1.9571. I can’t thank you enough for this website. It has helped me tremendously with my trading education and implementation.

  • pacifier

    Hi ! Nice run on GBP yesterday.

    MA crossover on my chart occurs 15 minutes later. You do require that MA(5) is of smaller value than MA(10) right ? If they are of the same value its not a cross ? Probably its different data.

    Also, at your entry point, Stoch %K is in oversold territory. Do you need both %K and %D to be

    Nevertheless, I got in at the 14:00 crossover (in at 9577) trail until 9500 and attempt for 9450. But got out at 9489 bid. Basically I put a trailer 5 pip above the high of the first candle that touched 9500. Then it kept going down. But I saw both Sotch and RSI out of oversold and MACD also increasing in value (at 5:30 candle). I moved my trailer to 5 pips above that candle and taken out on the next candle.

    Getting to understand the system better though :)

    Pacifier (hey, do you do put paragraphs on this thing ??? Preview looks okay but comes out all wrong)

  • barracuda905

    That was a great trade. Using your system along with my system I was able to make a 70 pip gain. I entered at 1.9571. I can’t thank you enough for this website. It has helped me tremendously with my trading education and implementation.

  • bigpippin

    ybop- A clean break is if the price can push through a level rather than just touch it. I usually like to see if a price can close below a level when deciding to move my stop or exit altogether.

    pacifier- unless both lines on the stoch are well into overbought/oversold territory the trade is still ok. To put paragraphs in the comment box, add a

    tag. It’s HTML code that will make a line break.