Cowabunga System Daily Update: 02/12/07

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

Main Trend

Current Trend= Trend remained down the entire day.

Today I only looked for short trades

Today’s Surf

8:30 pm 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 9519 with a stop at the most recent swing high which was at 9535. Since the entry was before midnight and because I wasn’t too far away from the nearest 00 level, I decided to set my initial target for 9500 and then try to go for more pips if that was hit.

12:45 am ET– Unfortunately I was stopped out of my trade. Result: -16 pips

2:45 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 9519 (that’s odd…this was the same entry price for the first price!) with a stop at the most recent swing high which was at 9556. Since the entry was after midnight, there was a good chance for some movement. Instead of targeting the nearest 00 level (9500) which would’ve only gotten me 19 pips, I decided to go for the same amount of pips I was risking. In this case, I was risking 37 pips which put my target at 9482.

5:15 am ET– Price hits my second target at 9550 and makes a nice clean break, getting as low as 9436. However, the price ends up closing above 9550 so I decide to go ahead and exit my trade at 9552.

Trade Result: -16 +67= +51 pips; R-Multiple= 0.81

Questions? Read the Cowabunga FAQ.
Want to discuss the Cowabunga System? Visit our Forums.
Like what you've read?
Join over 40,000 other traders who get our newsletter. Tutorials, EAs, chart setups, free forex trading systems, and more!
  • pacifier

    Hi Bigpipin,

    I didn’t get a crossover @ 8:30 pm ET. Just to confirm, EMA(5)

    On R multiple, the first trade would result in -1.00R (since its a full loss). And the second trade resulted in +1.81R (67pips/37pips). So the net result for the day should be +0.81R.

  • pacifier

    Hmm some of my post got cut off. I wanted to make sure that EMA5 needs to be below EMA10 for a crossover. If EMA5 equals EMA10 its NOT considered a crossover.

  • pacifier

    Hi Bigpipin,

    I didn’t get a crossover @ 8:30 pm ET. Just to confirm, EMA(5)

    On R multiple, the first trade would result in -1.00R (since its a full loss). And the second trade resulted in +1.81R (67pips/37pips). So the net result for the day should be +0.81R.

  • pacifier

    Hmm some of my post got cut off. I wanted to make sure that EMA5 needs to be below EMA10 for a crossover. If EMA5 equals EMA10 its NOT considered a crossover.

  • bigpippin

    Yea sorry about that. I don’t know where I got 1.38 from. Regarding the cross, the 5 EMA should be lower than the 10 EMA for a short trade and vice versa for a long trade. Looking back at 8:30 yesterday, the 5 EMA was 1 pip lower than the 10 EMA which is why I saw a cross.

  • bigpippin

    Yea sorry about that. I don’t know where I got 1.38 from. Regarding the cross, the 5 EMA should be lower than the 10 EMA for a short trade and vice versa for a long trade. Looking back at 8:30 yesterday, the 5 EMA was 1 pip lower than the 10 EMA which is why I saw a cross.