Cowabunga System Daily Update: Thursday, 11/15/07

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

Main Trend

Current Trend= The trend remained down the entire day.

Today I only looked for short trades.

Today’s Surf

2:45am EDT- 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 2.0549 with a stop at the most recent swing high at 2.0602. Since I was 49 pips away from the nearest 50 or 00 level, I put my initial target at 2.0500.

Entry: Short at 2.0549

Stop: 2.0601

Initial Target: 2.0500

4:15am EDT- My target wasn’t hit by this point and I knew that GBP Retail Sales was coming out at 4:30, so I closed out my trade at 2.0520.

8:30am EDT- There was a valid signal here but because it occurred on a news candle, I did not enter.

10:45am EDT- There was a moving average crossover for a short trade. RSI was less than 50, stochastics were trending down, and MACD was positive and losing value. This was a valid entry. The entry was at the close of the candle at 2.0452 with a stop at the most recent swing high at 2.0491. Since I was only 2 pips away from the nearest 50 or 00 level, I decided to go for the same amount of pips I was risking on the trade, which in this case was 39. This put my target at 2.0413.

Entry: Short at 2.0452

Stop: 2.0491

Initial Target: 2.0413

4:00pm EDT- My target wasn’t hit by this time, and according to my rules I always exit by 4pm. I manually closed my trade and was able to get out at 2.0437.

Trade Result: +29 +15= +44 pips; R-Multiple: 0.55, 0.38

News events to watch for tomorrow :

For a list of all of tomorrow’s news events, check out our Forex Calendar

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  • gryat

    Thanks for the report

  • LittleHeadThinker

    gyrat – (rollover from the other post) I made two mistakes: I used the wrong swing high (the higher of the two most recent instead of the SINGLE MOST RECENT) and I let the trade carry over the news report. I also missed the trade later in the day (but did at least recognize it :) That’s how got the 59 pips on one trade instead of approx 44 pips for two trades like Pip Surfer. Thanks for the input…Those little things can cost big bucks!

  • gryat

    Thanks for the report

  • LittleHeadThinker

    gyrat – (rollover from the other post) I made two mistakes: I used the wrong swing high (the higher of the two most recent instead of the SINGLE MOST RECENT) and I let the trade carry over the news report. I also missed the trade later in the day (but did at least recognize it :) That’s how got the 59 pips on one trade instead of approx 44 pips for two trades like Pip Surfer. Thanks for the input…Those little things can cost big bucks!

  • yennek

    Confused by “R Multiple 0.55, 0.38″ please explain.
    Yennek (newbe)

  • yennek

    Confused by “R Multiple 0.55, 0.38″ please explain.
    Yennek (newbe)

  • JeffNLisa

    R Multiple –

    The first trade:
    2.0549 entry – 2.0601 stop meant 52 pips risk.
    2.0520 final – 2.0549 entry meant 29 pips profit.
    29/52 = 55% return on risk.

    The second trade:
    2.0452 entry – 2.0491 stop meant 39 pips risk.
    2.0437 final – 2.0452 entry meant 15 pips profit.
    15/39 = 38% return on risk.

    Hopefully helpful

    Jeff

  • JeffNLisa

    Pip Surfer – At 5:45 EDT, I got a perfect signal, but you didn’t list that one on yours. Perhaps because it had not happened yet when you posted the report? Do you not take any more trades on the same day after you post the report? Or I wonder if you have rules against being in a trade when London opens? If you see this, would love to see your response. Thanks, Jeff.

  • JeffNLisa

    R Multiple –

    The first trade:
    2.0549 entry – 2.0601 stop meant 52 pips risk.
    2.0520 final – 2.0549 entry meant 29 pips profit.
    29/52 = 55% return on risk.

    The second trade:
    2.0452 entry – 2.0491 stop meant 39 pips risk.
    2.0437 final – 2.0452 entry meant 15 pips profit.
    15/39 = 38% return on risk.

    Hopefully helpful

    Jeff

  • JeffNLisa

    Pip Surfer – At 5:45 EDT, I got a perfect signal, but you didn’t list that one on yours. Perhaps because it had not happened yet when you posted the report? Do you not take any more trades on the same day after you post the report? Or I wonder if you have rules against being in a trade when London opens? If you see this, would love to see your response. Thanks, Jeff.

  • gryat

    He never trades after 4pm ET, or maybe 5, don’t remember

  • gryat

    He never trades after 4pm ET, or maybe 5, don’t remember

  • PipSurfer

    I’m glad you all are able to help each other out.

    Jeff- gryat is right. I don’t take any signals after 12pm EDT. If I’m in a trade before then and my target is not hit by 4pm EDT, I exit whether I’m up or down. I don’t begin taking signals again until 12am EDT the following day. Hope that helps!

    PS

  • PipSurfer

    I’m glad you all are able to help each other out.

    Jeff- gryat is right. I don’t take any signals after 12pm EDT. If I’m in a trade before then and my target is not hit by 4pm EDT, I exit whether I’m up or down. I don’t begin taking signals again until 12am EDT the following day. Hope that helps!

    PS

  • JeffNLisa

    OK, that explains it. Thanks PipSurfer. I have understood time zones since I was like 5 years old. But getting around all these multiple time frames for forex is a constant pain in the @$$. Still, I can always do the math from what you said, and thanks for that.

  • JeffNLisa

    OK, that explains it. Thanks PipSurfer. I have understood time zones since I was like 5 years old. But getting around all these multiple time frames for forex is a constant pain in the @$$. Still, I can always do the math from what you said, and thanks for that.

  • Sem007

    Hi, I am newbie
    Can somebody explain regarding “New candle”.

  • JeffNLisa

    New candle. Yes, you certainly must be a newbie! No worries, we were all there once! In brief, when you open your chart you can set it to line chart bar chart or candle chart. Almost everyone uses candle. You set it to 1min periods, or 5min, or 15 or 30, or 1hr, 4hr, 1day, 1week, or 1month. A few charting packages may offer different periods, such as 2hour. Each full period is represented by a candle, so if you are looking at a 15min chart, every 15 minutes opens a new candle. At the top of this page is a tab that says “School” and I recommend you click it. There is a cute little girl in the upper right that says “New to Forex? Follow me to pre-school” Start there. Best and most complete education you can get. It takes some time, there is no substitute for that. If you try to just open a chart and take it all in by osmosis, it will be harder IMO. Hopefully helpful– Jeff

  • Sem007

    Thanks Jeff. I will do it – Sem

  • Sem007

    Hi, I am newbie
    Can somebody explain regarding “New candle”.

  • JeffNLisa

    New candle. Yes, you certainly must be a newbie! No worries, we were all there once! In brief, when you open your chart you can set it to line chart bar chart or candle chart. Almost everyone uses candle. You set it to 1min periods, or 5min, or 15 or 30, or 1hr, 4hr, 1day, 1week, or 1month. A few charting packages may offer different periods, such as 2hour. Each full period is represented by a candle, so if you are looking at a 15min chart, every 15 minutes opens a new candle. At the top of this page is a tab that says “School” and I recommend you click it. There is a cute little girl in the upper right that says “New to Forex? Follow me to pre-school” Start there. Best and most complete education you can get. It takes some time, there is no substitute for that. If you try to just open a chart and take it all in by osmosis, it will be harder IMO. Hopefully helpful– Jeff

  • Sem007

    Thanks Jeff. I will do it – Sem

  • ForexSignals

    Thanks for the great info you provide..a valuable resource for Forex traders.

    Jordan
    http://www.iforexsignals.com

  • ForexSignals

    Thanks for the great info you provide..a valuable resource for Forex traders.

    Jordan
    http://www.iforexsignals.com