Cowabunga System Daily Update: Thursday, 11/13/08

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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 :

  • 8:30am EDT- US Trade Balance

Today’s Surf

1:45am EDT- There was a moving average crossover for a short trade. RSI was less than 50, MACD was positive and losing value, but stochastics were still trending up. This cancelled out the signal and I did not enter.

7:00am 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 1.4859 with a stop at the most recent swing high at 1.4966. Since I was only 9 pips away from the nearest 50 or 00 level (1.4850), I decided to go for the same amount of pips I was risking on the trade, which in this case was 107. This put my initial target at 1.4752.

Entry: Short at 1.4859

Stop: 1.4966

Initial Target: 1.4752

8:15am EDT- My target was not hit by this point. Since news was coming out at 8:30am EDT, I closed out my trade. I exited at 1.4839 for a 20 pip gain.

entry2

Trade Result: +20 pips (NOT INCLUDING SPREAD) R-Multiple: 0.18

News events to watch for tomorrow :

  • 8:30am EDT- US Retail Sales
  • 10:00am EDT- Consumer Sentiment

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.

  • robert_lee

    With your system do you wait until you close with the EMA x and all criteria met or trade as a cross forms but still not closed out?

  • LA1

    When you get into a news candle and close your trade, wouldn’t it be better to place a stop loss order to protect opposite direction movement following the news? That way if the news candle cause no change (like in your today’s report) you can continue according your plan.

  • robert_lee

    With your system do you wait until you close with the EMA x and all criteria met or trade as a cross forms but still not closed out?

  • robert_lee

    Adding to LA1’s comment, and even open up the T/P in case a massive profit surge unfolds?

    Before a news candle, close all winning positions, tighten S/L’s on losing positions and ride the wave with an open T/P if it goes in favour or take the tightened up loss.

    Would that be a good tactic?

  • LA1

    When you get into a news candle and close your trade, wouldn’t it be better to place a stop loss order to protect opposite direction movement following the news? That way if the news candle cause no change (like in your today’s report) you can continue according your plan.

  • robert_lee

    Adding to LA1’s comment, and even open up the T/P in case a massive profit surge unfolds?

    Before a news candle, close all winning positions, tighten S/L’s on losing positions and ride the wave with an open T/P if it goes in favour or take the tightened up loss.

    Would that be a good tactic?

  • lissyking

    Hey Pipsurfer,
    I was looking over your archives from as early as march 2007 because I am confused how to determine the trend of the day. I mean, when I watched your videos, I realised you are showing us videos of trades that had occurred a day before. Why I said that is because if you are trading on a day, how would you know the trend of the day if the day has not come to an end to determine the day’s trend?

    So could you please tell me this: If you are going to trade now, what method would you use to determine the trend you must go with according to the 4HR chart? Do you use the stoch or the RI on the 4HR to determine what trend you must take or you look at some candles before the current candle to see if the market is moving up or down.

    Thanks dude!

  • lissyking

    Hey Pipsurfer,
    I was looking over your archives from as early as march 2007 because I am confused how to determine the trend of the day. I mean, when I watched your videos, I realised you are showing us videos of trades that had occurred a day before. Why I said that is because if you are trading on a day, how would you know the trend of the day if the day has not come to an end to determine the day’s trend?

    So could you please tell me this: If you are going to trade now, what method would you use to determine the trend you must go with according to the 4HR chart? Do you use the stoch or the RI on the 4HR to determine what trend you must take or you look at some candles before the current candle to see if the market is moving up or down.

    Thanks dude!

  • FXPRESS

    Hey Pipsurfer…love the blog. How many lots do you trade when using this system? When you enter a trade do you use a limit order or a market order? Thanks!

  • FXPRESS

    Hey Pipsurfer…love the blog. How many lots do you trade when using this system? When you enter a trade do you use a limit order or a market order? Thanks!