Cowabunga System Daily Update: Monday, 01/07/08

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

Main Trend

trend2

Current Trend= The trend remained down the entire day.

Today I only looked for short trades.

Today’s Surf

1:15am 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 1.9686 with a stop at the most recent swing high at 1.9710. Since I was 36 pips away from the nearest 50 or 00 level, I decided to put my initial target at 1.9650.

Entry: Short at 1.9686
Stop: 1.9710
Initial Target: 1.9650

2:45am EDT– My target was hit. Price did not make a clean break of my target so I took my final profit. I managed to get out at 1.9655.

7:45am 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 1.9711 with a stop at the most recent swing high at 1.9747. Since I was only 11 pips away from the nearest 50 or 00 level (1.9700) I decided to go for the same amount of pips I was risking on the trade, which in this case was 36. This put my initial target at 1.9675.

Entry: Short at 1.9711
Stop: 1.9747
Initial Target: 1.9675

10:45am EDT– Unfortunately I was stopped out.

11:15am 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 1.9686 with a stop at the most recent swing high at 1.9754. Since I was 36 pips away from the nearest 50 or 00 level, I decided to set my initial target at 1.9650.

Entry: Short at 1.9686
Stop: 1.9754
Initial Target: 1.9650

4:00pm ET– Unfortunately my target was not hit by this time. According to my rules I exit all trades at this time whether I’m up or down. I managed to get out at 1.9696 for a 10 pip loss.

entry2

Trade Result: +31 -36 -10= -15 pips; R-Multiple: 1.29, -1.00, -0.15

News events to watch for Monday :
  • 10:00 EDT– US Pending Home Sales
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  • jsc

    I took the first trade and was stopped out after getting within 3.8 pips of the 19650.00 target. Very disappointing. I guess prices must be slightly different on different vendor platforms?

  • john50000

    I lost also 16 pips, that was a sad day, but I am looking for better days. Do you really need to wait for the candle to open and close below/over the cross over line to enter the trade?

  • jsc

    I took the first trade and was stopped out after getting within 3.8 pips of the 19650.00 target. Very disappointing. I guess prices must be slightly different on different vendor platforms?

  • john50000

    I lost also 16 pips, that was a sad day, but I am looking for better days. Do you really need to wait for the candle to open and close below/over the cross over line to enter the trade?

  • cristi12

    I only took the first trade, entry at 1.9722, SL 1.9760. My target wasn’t hit but I got out before going to bet, at 1.9679. Thank God I went to sleep just before things got messy. :)

  • Pipslinger

    Same here, jsc. I traded all three signals that Pipsurfer mentioned and my final result was more like -24 -36 -10. Those couple of pips would have made it a much nicer day for me.

  • Pipslinger

    Pipsurfer, upon closer inspection of your chart for the day, it looks like even your chart shows that you were a pixel or so above 1.9650 (yes, I opened up Paint). This tells me that your ask price never crossed 1.9650. What’s up with that?

  • cristi12

    I only took the first trade, entry at 1.9722, SL 1.9760. My target wasn’t hit but I got out before going to bet, at 1.9679. Thank God I went to sleep just before things got messy. :)

  • Pipslinger

    Same here, jsc. I traded all three signals that Pipsurfer mentioned and my final result was more like -24 -36 -10. Those couple of pips would have made it a much nicer day for me.

  • Pipslinger

    Pipsurfer, upon closer inspection of your chart for the day, it looks like even your chart shows that you were a pixel or so above 1.9650 (yes, I opened up Paint). This tells me that your ask price never crossed 1.9650. What’s up with that?

  • DirkNowpipski

    My target was hit on the first trade like PipSurfers. I’m thinking it’s probably because of the different brokers.

  • PipSurfer

    John- Yes you do need to wait. Remember, you want the complete information before jumping in. You wouldn’t invest in a stock if you only read half of its earnings report would you? :)

    Pipslinger- My charts that I post are a generic feed because I don’t want to show bias to any one broker. The broker that I use did in fact hit my target. Remember, I didn’t quite get out at the exact target level because it only nipped it. I had to manually close my trade which is why I didn’t get the full 36 pip profit. Hope that helps.

    Thanks for the comments everyone. Happy trading!

    -PS

  • DirkNowpipski

    My target was hit on the first trade like PipSurfers. I’m thinking it’s probably because of the different brokers.

  • PipSurfer

    John- Yes you do need to wait. Remember, you want the complete information before jumping in. You wouldn’t invest in a stock if you only read half of its earnings report would you? :)

    Pipslinger- My charts that I post are a generic feed because I don’t want to show bias to any one broker. The broker that I use did in fact hit my target. Remember, I didn’t quite get out at the exact target level because it only nipped it. I had to manually close my trade which is why I didn’t get the full 36 pip profit. Hope that helps.

    Thanks for the comments everyone. Happy trading!

    -PS

  • jsc

    Pipslinger – I also took the others as well, and my results were very close to yours. I’ve been using the system for a month and yesterday took me into negative expectancy (R multiple). Positive pips still …. just

    Really like this system as I understand it and can follow it easily on the evenings I’m home and its a good one to trade after work in Australia, the time zone here makes it good for me. Thanks for the efforts to share this with us every day PipSurfer!!!

  • jsc

    Pipslinger – I also took the others as well, and my results were very close to yours. I’ve been using the system for a month and yesterday took me into negative expectancy (R multiple). Positive pips still …. just

    Really like this system as I understand it and can follow it easily on the evenings I’m home and its a good one to trade after work in Australia, the time zone here makes it good for me. Thanks for the efforts to share this with us every day PipSurfer!!!