Cowabunga System Daily Update: Tuesday, 05/06/08

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Main Trend

Current Trend= The trend remained down the entire day.

Today I only looked for short trades.

News events to watch for today :
  • 4:30am EST- UK Services PMI

Today’s Surf

6:45am EST- 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 1.9683 with a stop at the most recent swing high at 1.9716. Since I was 33 pips away from the nearest 50 or 00 level, I decided to put my initial target at 1.9650.

Entry: Short at 1.9683

Stop: 1.9716

Initial Target: 1.9650

7:45am EST- Unfortunately I was stopped out of my trade.

entry2

Trade Result: -34 pips : R-Multiple: -1.00

News events to watch for tomorrow :
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  • gryat

    Down with bummer days! More positive pips.

    By the way, how come you traded yesterday despite it being a GBP holiday? It seems as volatility was pretty much normal, so I can only assume that most of the GBP/USD trading is done by non-british banks

  • Jyjgoh

    Hey man,

    Been following your trades closely and love the simplicity and yet how effective it has been!

    1 question though for today, the 4HR Stochs was trending up and yet you still traded short but I thought the rules says Stochs have to trend the same way as the 5/10 EMA crossovers for a valid entry or does it just apply to the 15Min chart? If so, then why have Stochs on the 4HR?

    Thanks in advance and keep it up, I’m definitely a believer!

  • jsese

    Hey Jygoh..The 4 hr. chart was trending down all night. The trend is established by the Crossover in the EMA’s. The stochs are only for confirmation of a trend change. Hope that clears it up.

  • gryat

    Down with bummer days! More positive pips.

    By the way, how come you traded yesterday despite it being a GBP holiday? It seems as volatility was pretty much normal, so I can only assume that most of the GBP/USD trading is done by non-british banks

  • Jyjgoh

    Hey man,

    Been following your trades closely and love the simplicity and yet how effective it has been!

    1 question though for today, the 4HR Stochs was trending up and yet you still traded short but I thought the rules says Stochs have to trend the same way as the 5/10 EMA crossovers for a valid entry or does it just apply to the 15Min chart? If so, then why have Stochs on the 4HR?

    Thanks in advance and keep it up, I’m definitely a believer!

  • jsese

    Hey Jygoh..The 4 hr. chart was trending down all night. The trend is established by the Crossover in the EMA’s. The stochs are only for confirmation of a trend change. Hope that clears it up.

  • viv_1612

    Hi,
    I am using the cowabunga indicator that I downloaded from the forum and I have been following your trades for the past couple of weeks. So far, I have been able to spot all of your trades on my chart, but not this one. The indicator did not give a signal at 6.45 am EST, even though the candle did close, as you have mentioned, at 1.9683 and the previous swing high was at 1.9716. The signals that I have on my chart are at 12.15 PM EST (1.9741) and another redundant signal at 5.30 PM EST (1.9732). I took that trade with a stop at 1.9773 and it did hit target at 1.9700. Am I missing something? I would very much appreciate a response, as I have been greatly impressed with your simple yet effective system and I want to be sure that the indicator is giving me the right signals.
    Thanks a lot.

  • MissPips

    Hi Viv,

    I can confirm both that there was a signal and that it did not show up in the MT indicator. I use both CMS (my real broker) and MT4. CMS signals are very close to Pip Surfers signals, and in CMS there was a trade. In MT4 there was no trade because apparently the small price differnce between them was enough to cause the moving averages to cross in CMS but not in MT. (I didn’t take the trade myself, because one reason I use them both is to filter out bad trades. When MT4 and CMS do not agree about whether there is a valid signal, I have noticed that a lot of times these are bad trades.)

  • MissPips

    Oh and I forgot to mention that PipSurfer doesn’t take signals after 12 pm Eastern time. If he is already in a trade he stays in until 4 pm but he doesn’t take new ones after 12

  • viv_1612

    Hi,
    I am using the cowabunga indicator that I downloaded from the forum and I have been following your trades for the past couple of weeks. So far, I have been able to spot all of your trades on my chart, but not this one. The indicator did not give a signal at 6.45 am EST, even though the candle did close, as you have mentioned, at 1.9683 and the previous swing high was at 1.9716. The signals that I have on my chart are at 12.15 PM EST (1.9741) and another redundant signal at 5.30 PM EST (1.9732). I took that trade with a stop at 1.9773 and it did hit target at 1.9700. Am I missing something? I would very much appreciate a response, as I have been greatly impressed with your simple yet effective system and I want to be sure that the indicator is giving me the right signals.
    Thanks a lot.

  • MissPips

    Hi Viv,

    I can confirm both that there was a signal and that it did not show up in the MT indicator. I use both CMS (my real broker) and MT4. CMS signals are very close to Pip Surfers signals, and in CMS there was a trade. In MT4 there was no trade because apparently the small price differnce between them was enough to cause the moving averages to cross in CMS but not in MT. (I didn’t take the trade myself, because one reason I use them both is to filter out bad trades. When MT4 and CMS do not agree about whether there is a valid signal, I have noticed that a lot of times these are bad trades.)

  • MissPips

    Oh and I forgot to mention that PipSurfer doesn’t take signals after 12 pm Eastern time. If he is already in a trade he stays in until 4 pm but he doesn’t take new ones after 12

  • viv_1612

    Thanks for clearing that up, MissPips. Now I can finally sleep easy!

  • viv_1612

    Thanks for clearing that up, MissPips. Now I can finally sleep easy!