Cowabunga System Daily Update: 01/02/08

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Main Trend

trend2

Current Trend= The trend remained down the entire day.

Today I only looked for short trades.

Today’s Surf

7:30am 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 1.9832 with a stop at the most recent swing high at 1.9864. Since I was 32 pips away from the nearest 50 or 00 level, I decided to put my initial target at 1.9800.

Entry: Short at 1.9832

Stop: 1.9864

Initial Target: 1.9800

8:15am EDT- My target was hit. Price did not make a clean break of my target so I took my final profit. I was able to get out at 1.9802.

entry2

Trade Result: +30 pips; R-Multiple: 0.93

News events to watch for tomorrow :
  • 8:15am EDT- US ADP Employment Change
  • 8:30am EDT- US Unemployment Claims
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  • tonymand

    Looking closely at your results you dont seem to take into account spread or commissions. Is this correct?

  • tonymand

    Looking closely at your results you dont seem to take into account spread or commissions. Is this correct?

  • cyclone_35

    Do both the stochs and rsi have to be going in the same direction on the 4 hour chart before we even bother looking at the 15 minute chart to trade? i.e. what if our overall trend is “up” on the 4 hour based on the EMAs, but the rsi and stochs are both down? Can we still trade, or should we wait till all indicators are in the same direction on the 4 hour before looking at the 15? Thank you!!

  • mondavie

    I’m using Interbankfx chart and didn’t see MACD gave the same signal as yours @7:30 am EDT, because all the day 01/02/08 was in negative area and i am sure that i already set the MACD at the right parameters. Was it because different data feed with the Xtick that you use?. Any advice, which broker supported data feed as your’s?

  • cyclone_35

    Do both the stochs and rsi have to be going in the same direction on the 4 hour chart before we even bother looking at the 15 minute chart to trade? i.e. what if our overall trend is “up” on the 4 hour based on the EMAs, but the rsi and stochs are both down? Can we still trade, or should we wait till all indicators are in the same direction on the 4 hour before looking at the 15? Thank you!!

  • mondavie

    I’m using Interbankfx chart and didn’t see MACD gave the same signal as yours @7:30 am EDT, because all the day 01/02/08 was in negative area and i am sure that i already set the MACD at the right parameters. Was it because different data feed with the Xtick that you use?. Any advice, which broker supported data feed as your’s?

  • PipSurfer

    Tony- That’s correct. What I’m posting are my gross results because spreads are different with every broker.

    cyclone- on the 4hr chart, all the indicators must line up. i.e. for a downtrend the EMAs must have crossed down, RSI must have been less than 50 at the time of the crossover, and stochastics must have crossed down or trend down at the time of the EMA crossover. Once a trend is formed, it stays in tact until there is an opposite trend candle (meaning all the indicators have reversed)

    Mondavie- My MACD histogram is showing the difference between the 2 MACD lines. Some charting programs only show a histogram in which it shows the line of the slow line and the histogram displays the value of the fast line. I believe this is what is happening with your software.

  • PipSurfer

    Tony- That’s correct. What I’m posting are my gross results because spreads are different with every broker.

    cyclone- on the 4hr chart, all the indicators must line up. i.e. for a downtrend the EMAs must have crossed down, RSI must have been less than 50 at the time of the crossover, and stochastics must have crossed down or trend down at the time of the EMA crossover. Once a trend is formed, it stays in tact until there is an opposite trend candle (meaning all the indicators have reversed)

    Mondavie- My MACD histogram is showing the difference between the 2 MACD lines. Some charting programs only show a histogram in which it shows the line of the slow line and the histogram displays the value of the fast line. I believe this is what is happening with your software.

  • tonny47

    I might be wrong but wasnt it a valid signal for short entry at 1.15 pm ET? Why u didnt enter this trade?

  • hypnos63

    hi: re your 7.15 entry. i have the cowabunga indicator but it didn’t show a red arrow any way near your entry point. is it okay to enter if the the other conditions are satisfied but not the indicator? i use metatrader 4 UK.
    i have been days without a signal the last one was dec 28.

    also can you tell me where i can get a MACD with the two lines?

    appreciate it hypnos63@yahoo.com

  • hypnos63

    also what is a swing high? and ‘clean break’ hypnos63@yahoo.com thanks

  • tonny47

    I might be wrong but wasnt it a valid signal for short entry at 1.15 pm ET? Why u didnt enter this trade?

  • hypnos63

    hi: re your 7.15 entry. i have the cowabunga indicator but it didn’t show a red arrow any way near your entry point. is it okay to enter if the the other conditions are satisfied but not the indicator? i use metatrader 4 UK.
    i have been days without a signal the last one was dec 28.

    also can you tell me where i can get a MACD with the two lines?

    appreciate it hypnos63@yahoo.com

  • hypnos63

    also what is a swing high? and ‘clean break’ hypnos63@yahoo.com thanks

  • cc1cc2

    There is another possibly another signal at 12:45 gmt but I don’t think you can say for sure that the ema’s have crossed. the whole idea of this system is that you need confirmation and this is just too close to call. The ema’s have crossed at 13:00 gmt but by then the macd is negative invalidating the entry. I did however take the trade at 12.45 as at the time for whatever reason it looked ok on the chart. I got +22. Not sure it was the right thing to do but live and learn.

    the cowabunga indicator doesn’t alwasys work imho. this is why you need to actually understand and trade the system rather than relying on indicators other people have written. The indicator should be just a guide – it doesn’t know when news is or any number of other variables for example

  • cc1cc2

    There is another possibly another signal at 12:45 gmt but I don’t think you can say for sure that the ema’s have crossed. the whole idea of this system is that you need confirmation and this is just too close to call. The ema’s have crossed at 13:00 gmt but by then the macd is negative invalidating the entry. I did however take the trade at 12.45 as at the time for whatever reason it looked ok on the chart. I got +22. Not sure it was the right thing to do but live and learn.

    the cowabunga indicator doesn’t alwasys work imho. this is why you need to actually understand and trade the system rather than relying on indicators other people have written. The indicator should be just a guide – it doesn’t know when news is or any number of other variables for example