Cowabunga System Daily Update: Tuesday, 05/27/08

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Main Trend

Current Trend= The trend remained up until 4am EST. From 12am EST – 4am EST, a new trend change candle formed and changed the trend from up to DOWN. After 4am EST, the trend remained down the rest of the day.

Today I only looked for long trades until 4am EST. After 4am EST, I only looked for short trades.

News events to watch for today :
  • 2:00am EST- German Consumer Confidence
  • 10:00am EST- US New Home Sales

Today’s Surf

12:45am EST- There was a moving average crossover for a long trade. RSI was greater than 50, stochastics were trending up, and MACD was negative and gaining value.. This was a valid entry. The entry was at the close of the candle at 1.9817 with a stop at the most recent swing low at 1.9812. Since I was 33 pips away from the nearest 50 or 00 level, I decided to put my target at 1.9850.

Entry: Long at 1.9817

Stop: 1.9812

Initial Target: 1.9850

1:45am EST- My target wasn’t hit by this time and I knew that news was coming out at 2:00am EST, so I closed my trade. I managed to exit out at 1.9837.

9:00am 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 1.9755 with a stop at the most recent swing high at 1.9782. Since I was only 5 pips away from the nearest 50 or 00 level (1.9750), I decided to go for the same amount of pips I was risking on the trade, which in this case was 27. This put my initial target at 1.9728.

Entry: Short at 1.9755

Stop: 1.9782

Initial Target: 1.9728

9:45am EST- My target was hit by this time and I knew that news was coming out at 10:00am EST, so I closed my trade. I managed to exit out at 1.9750.

entry2

Trade Result: +20 +5= +25 pips (THIS DOESN’T INCLUDE SPREAD): R-Multiple: 4.00; 0.18

News events to watch for tomorrow :

For a complete list of news events check out our News Section

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  • MissPips

    Hi Pip Surfer,

    I ‘ve noticed that it’s sort of unusual for you to exit a trade that hasn’t hit its target for a news item that is flagged green (low impact) on the Euro. If you don’t mind, could you explain your reasoning on this one?

    Thanks for all your help :-)

  • MissPips

    Hi Pip Surfer,

    I ‘ve noticed that it’s sort of unusual for you to exit a trade that hasn’t hit its target for a news item that is flagged green (low impact) on the Euro. If you don’t mind, could you explain your reasoning on this one?

    Thanks for all your help :-)

  • hchomat

    Pip Surfer – Noticed that you claim that the S2 target was hit, however your target for S2 was 1.9728 which was never hit. Your planned target for s2 was 1.9750. Therefore I believe you should amend your claim to indicate “the target wasn’t hit” from “My target was hit”. If your target was hit your R-multiple on the second set would have been 1 and not .18 as per posting. Thanks for all your work, it is great!

  • hchomat

    Pip Surfer – Noticed that you claim that the S2 target was hit, however your target for S2 was 1.9728 which was never hit. Your planned target for s2 was 1.9750. Therefore I believe you should amend your claim to indicate “the target wasn’t hit” from “My target was hit”. If your target was hit your R-multiple on the second set would have been 1 and not .18 as per posting. Thanks for all your work, it is great!