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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Related Posts:
- Cowabunga System Daily Update: 02/12/07 14:10 12 February 2007
- Cowabunga System Daily Update: Friday, 05/09/08 16:22 09 May 2008
- Cowabunga System Daily Update: 01/18/08 12:12 18 January 2008
- Cowabunga System Daily Update: 04/09/07 16:10 09 April 2007
- Cowabunga System Daily Update: 02/16/07 14:11 16 February 2007
Archived Comments (4)
Forex Blog: Pip My System
What do you consider a "clean break"? What is the precise criteria that constitutes this?
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)
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.
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.