Cowabunga System Daily Update: 12/19/07

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

2:15am 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 2.0141 with a stop at the most recent swing high at 2.0154. Since I was 41 pips away from the nearest 50 or 00 level, I decided to put my target at 2.0100.

Entry: Short at 2.0141

Stop: 2.0154

Initial Target: 2.0100

2:00am EDT- My target was hit. Price did not make a clean break so I took my final profit.

4:30am EDT- This was a news candle so there was no entry.

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 2.0032 with a stop at the most recent swing high at 2.0072. Since I was 32 pips away from the nearest 50 or 00 level, I decided to put my initial target at 2.0000

Entry: Short at 2.0032

Stop: 2.0072

Initial Target: 2.0000

11:00am EDT- My target was hit. Price did not make a clean break of my target so I went ahead and took my final profit.

Trade Result: +41 +32= +73 pips; R-Multiple: 3.15; 0.64

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

    Yep, look’s good

  • tonymand

    Just something I have noticed in backtesting. Where a trade is not taken it is nearly always because MACD has already crossed. RSI and Stoch seem pretty well superfluous

  • gryat

    Yep, look’s good

  • tonymand

    Just something I have noticed in backtesting. Where a trade is not taken it is nearly always because MACD has already crossed. RSI and Stoch seem pretty well superfluous

  • thundercv

    Hy!
    I’m new to forex. I tried your sistem, but I guess I don’t understand it. I can get my macd as you gave it on the charts.
    Yours is going from positive to negative.
    Mine has only one side so I can’t read the signal.
    If you know what I’m doing wrong please teel me.
    Thanks
    If you could answer to my e-mail mitja.zitnik@hotmail.com

  • thundercv

    Hy!
    I’m new to forex. I tried your sistem, but I guess I don’t understand it. I can get my macd as you gave it on the charts.
    Yours is going from positive to negative.
    Mine has only one side so I can’t read the signal.
    If you know what I’m doing wrong please teel me.
    Thanks
    If you could answer to my e-mail mitja.zitnik@hotmail.com

  • malikkal

    Hello thudercv, He’s using the MACD histogram using spread without the MACD, Average lines. It all depends on how you plot using your charting software. If your software allows plot the spread with or without the lines to suite to your preferences.

  • malikkal

    Hello thudercv, He’s using the MACD histogram using spread without the MACD, Average lines. It all depends on how you plot using your charting software. If your software allows plot the spread with or without the lines to suite to your preferences.

  • VonSmeid

    Hello, I would like someone to tell me how is defined “clean break”.

    Thank you.

    AK

  • thundercv

    That’s a good question VonSmeid. I would like to know that to.
    I wanted to ask thing.
    Why are we using a 5,10 moving average. It’s a bit late in the trend. Could a 3,6 moving average make a quicker entry.

  • VonSmeid

    Hello, I would like someone to tell me how is defined “clean break”.

    Thank you.

    AK

  • thundercv

    That’s a good question VonSmeid. I would like to know that to.
    I wanted to ask thing.
    Why are we using a 5,10 moving average. It’s a bit late in the trend. Could a 3,6 moving average make a quicker entry.

  • craigfx

    Check out Cowabunga System FAQ for answers to these questions.

  • craigfx

    Check out Cowabunga System FAQ for answers to these questions.