Cowabunga System Daily Update: Wednesday, 12/05/07

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

12:00am 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 2.0555 with a stop at the most recent swing high at 2.0578. Since I was only 5 pips away from the nearest 50 or 00 level (2.0550) I decided to go for the same amount of pips I was risking on the trade which in this case was 23. This put my initial target at 2.0532.

Entry: Short at 2.0555

Stop: 2.0578

Initial Target: 2.0532

3:00am EDT- This was an interesting candle because not only did hit my initial target at 2.0532, but it also hit what would’ve been my 2nd target at 2.0500. To top it off, the candle made a clean break of 2.0500 which kept my trade open. I moved my stop to 2.0500 and set my next target for 2.0450.

3:45am EDT- My next target was hit at 2.0450. Price made a clean break again so I moved my stop to 2.0450 and set my next target for 2.0400.

4:00am EDT- My target at 2.0400 was hit. This time, price did not make a clean break so I took my final profit. I managed to exit at 2.0405.

Trade Result: +150 pips; R-Multiple: 6.52

News events to watch for tomorrow :
  • 4:30am EDT- GBP Industrial Production
  • 7:00am EDT- BOE Interest Rate Statement
  • 8:30am EDT- US Unemployment Claims
  • 8:30am EDT- ECB President Trichet Speaks

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

Questions? Read the Cowabunga FAQ.
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  • cosgrove

    OK, so just to be sure, you’re closing trades before which news events? Interest rates? What about non-farm payrolls?

  • Pipslinger

    Yea, I was wondering about that too since UK housing data came out right before that 150 pip drop.

  • cosgrove

    OK, so just to be sure, you’re closing trades before which news events? Interest rates? What about non-farm payrolls?

  • Pipslinger

    Yea, I was wondering about that too since UK housing data came out right before that 150 pip drop.

  • PipSurfer

    I will usually put out which news events to watch out for. I had made a mistake in Tuesday’s posts which is why those news events weren’t up. I apologize about that.

  • cosgrove

    I saw that correction, thanks, but I guess what I was asking for in the comment to this post was a list of 100% without a doubt close-the-trade-before-the-candle news events. If you’re just going to post them the day before, I understand.

    I got tripped up thinking the tumble in the cable was caused by the 430AM news event, so I was wondering why you didn’t close the trade beforehand, but by further inspection of your charts, it wasn’t, so you didn’t. Problem solved.

  • PipSurfer

    I will usually put out which news events to watch out for. I had made a mistake in Tuesday’s posts which is why those news events weren’t up. I apologize about that.

  • cosgrove

    I saw that correction, thanks, but I guess what I was asking for in the comment to this post was a list of 100% without a doubt close-the-trade-before-the-candle news events. If you’re just going to post them the day before, I understand.

    I got tripped up thinking the tumble in the cable was caused by the 430AM news event, so I was wondering why you didn’t close the trade beforehand, but by further inspection of your charts, it wasn’t, so you didn’t. Problem solved.

  • peterburg

    Awesome trade! I like this trading system very much and I think the track record is impressive. Will you give further daily updates?

  • peterburg

    Awesome trade! I like this trading system very much and I think the track record is impressive. Will you give further daily updates?