Cowabunga System Daily Update: Wednesday, 10/22/08

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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 MPC Minutes

Today’s Surf

3:30am 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 1.6285 with a stop at the most recent swing high at 1.6426. Since I was 35 pips away from the nearest 50 or 00 level, I decided to put my target at 1.6250.

Entry: Short at 1.6285

Stop: 1.6426

Initial Target: 1.6250

4:00am EST- My target wasn’t quite hit, but it was the 2nd candle in a row my target was narrowly missed. With a long down trend taking place I felt like my trade might be exhausted and exited. I exited at 1.6260.

7:00am 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 1.6329 with a stop at the most recent swing high at 1.6449. Since I was 29 pips away from the nearest 50 or 00 level, I decided to put my target at 1.6300.

Entry: Short at 1.6329

Stop: 1.6449

Initial Target: 1.6300

8:00am EST- My target was hit. Price made a clean break so I trailed my stop to 1.6300 and set my next target for 1.6250.

8:15am EST- Unfortunately I was stopped out at 1.6300.

10:30am EST- 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 1.6362 with a stop at the most recent swing high at 1.6470. Since I was only 12 pips away from the nearest 50 or 00 level (1.6350), I decided to go for the same amount of pips I was risking on the trade, which in this case was 108. This put my initial target at 1.6254.

Entry: Short at 1.6362

Stop: 1.6470

Initial Target: 1.6254

11:15am EST- My target was hit. Price made a clean break so I trailed my stop to 1.6254 and set my next target for 1.6200.

11:30am EST- My 2nd target was hit at 1.6200. Price made a clean break so I trailed my stop to 1.6200 and set my next target for 1.6150. During this same candle, my 3rd target at 1.6150 was hit so I trailed my stop to 1.6150 in hopes of getting my next target at 1.6100. Unfortunately the price continued to retrace up and stopped me out at 1.6150.

entry2

Trade Result: +25 +29 +212= +266 pips (NOT INCLUDING SPREAD) R-Multiple: 0.61; 0.24; 1.96

News events to watch for tomorrow :
  • 4:30am EST- UK Retail Sales
  • 8:30am EST- US Unemployment Claims

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

Questions? Read the Cowabunga FAQ.
Want to discuss the Cowabunga System? Visit our Forums.
  • DZMouloudia

    Hi,
    Why you do not trade on Fridays?

    Thanc for all your help.

  • therbcoe

    Who sent you an email 9 minutes into the video?

  • -Conan-

    Fridays are when the market begins to shift for the following week. It’s not very predictable so most people just avoid them altogether.

    Great update, Pip Surfer. :)

  • DZMouloudia

    Hi,
    Why you do not trade on Fridays?

    Thanc for all your help.

  • therbcoe

    Who sent you an email 9 minutes into the video?

  • johnnyjohnjohnjohnny

    Hi,

    You guys are the nicest guys in forex, for sure.

    I would like some clarification on one issue. I see that sometimes your risk/reward ratios are not in keeping with adage of at least 1:2 risk/reward.

    For instance one of today’s trades that you posted looked like this:

    Entry: Short at 1.6285
    Stop: 1.6426
    Initial Target: 1.6250

    That’s a 141 Pip risk to make 35 Pips.

    Just wanted to get your thoughts on this.

    Thank you for all the help you give people with trading.

  • -Conan-

    Fridays are when the market begins to shift for the following week. It’s not very predictable so most people just avoid them altogether.

    Great update, Pip Surfer. :)

  • johnnyjohnjohnjohnny

    Hi,

    You guys are the nicest guys in forex, for sure.

    I would like some clarification on one issue. I see that sometimes your risk/reward ratios are not in keeping with adage of at least 1:2 risk/reward.

    For instance one of today’s trades that you posted looked like this:

    Entry: Short at 1.6285
    Stop: 1.6426
    Initial Target: 1.6250

    That’s a 141 Pip risk to make 35 Pips.

    Just wanted to get your thoughts on this.

    Thank you for all the help you give people with trading.

  • sanju005ind

    Hello Pip Surfer thanks for all the videos I learned a great deal from them.However I am not able to get the entry right.Most of the time I see that I am 50-80 pips away from the crossover.Is there any specific stategy for entry in this system?

  • sanju005ind

    Hello Pip Surfer thanks for all the videos I learned a great deal from them.However I am not able to get the entry right.Most of the time I see that I am 50-80 pips away from the crossover.Is there any specific stategy for entry in this system?