Cowabunga System Daily Update: Wednesday, 01/21/09

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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 EDT- UK Claimant Count Change

Today’s Surf

12:00am 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 1.3944 with a stop at the most recent high at 1.4020. Since I was 44 pips away from the nearest 50 or 00 level, I decided to put my initial target at 1.3900.

Entry: 1.3944

Stop: 1.4020

Target: 1.3900

1:45am EDT- My target was hit. Price made a clean break so I moved my stop to 1.3900 and set my next target for 1.3850.

2:00am EDT- Unfortunately I was stopped out at 1.3900.

10:45am 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 1.3732 with a stop at the most recent high at 1.3859. Since I was 32 pips away from the nearest 50 or 00 level, I decided to put my initial target at 1.3700.

Entry: 1.3732

Stop: 1.3859

Target: 1.3700

11:00am EDT- My target was hit. Price did not make a clean break so I took my final profit. I exited at 1.3705.

entry2

Trade Result: +44 +27= +71pips (NOT INCLUDING SPREAD) R-Multiple: 0.58; 0.21

News events to watch for tomorrow :

  • 8:30am EDT- US Building Permits: 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.

  • komissar

    10:45 – Precisely! I was in the same boat. Entered around 3740, and got out at 3701 with 39 pips in my pocket. Thanks, Pip Surfer.

  • komissar

    10:45 – Precisely! I was in the same boat. Entered around 3740, and got out at 3701 with 39 pips in my pocket. Thanks, Pip Surfer.

  • dsnow1226

    Just a few ideas and questions for the system, love the site dude, its been a learning and motivationg experience. these thoughts totaly take into consideration your trading style so maybe their not right for everyone but might leave less food on the table for some.
    ADX could be a lot of help for the 4hr and Daily chart to examine the overall strength of the trend and multi time frame analysis- knowing when to trade is pretty important. (eur/usd and cable look like their running out of gas; just notice the divergence of DI- on the 4hr and falling adx, confirming Euros strength on 1 hr ), ADX can let you know how aggressive you can be on the lower time frame when your expecting trend continuations or a possible bounce the other way. anticipate don’t create beliefs.
    Why (10) and (20)”daily moving averages” as initial signal? these figures really lag price on 15 min. entry.
    How come MACD below 0 is ignored, from my experience using OSMA with same parameters 12,26,9 as your macd, this is as stronger signal than just decreasing value from macd because more often than not the trend was just taking a breather and showed weakness on macd (falling values in uptrend) and then prices for financial instrument continued to increase and larger bars form. just saying that falling macd is not as strong a signal as fall then close below because trend could pick of stregnth.
    Which brings me to the more important two questions, what about pivot points, as conservative a system it is we need to be aware of where the higher risk areas to take take trades are. More IMPORTANT for trading is how price action is reacting to support and resistance. previous highs and lows and closes offer great points to time your set of indie’s off of.
    Also, why do you use market orders, buy stops and sell stops are the way to go, that way when you get a set up you like you can also retrace price back to the absolute best entry without sitting on a loss or worse getting stopped out. Shouldn’t take profit points be pivot and support and resitance. Your absolutely right about momentum on a lower time frame, (listening to the message of the market) all the more reason why don’t you manualy trail your stop until your stopped out with max profit, this way you can hop back on board at the next sign of strength. (look at what happened to USD/JPY).
    Anyway, sorry for length of post, first time, really like the site and thanks for considering these ideas. Cowabinga dude!

  • dsnow1226

    Just a few ideas and questions for the system, love the site dude, its been a learning and motivationg experience. these thoughts totaly take into consideration your trading style so maybe their not right for everyone but might leave less food on the table for some.
    ADX could be a lot of help for the 4hr and Daily chart to examine the overall strength of the trend and multi time frame analysis- knowing when to trade is pretty important. (eur/usd and cable look like their running out of gas; just notice the divergence of DI- on the 4hr and falling adx, confirming Euros strength on 1 hr ), ADX can let you know how aggressive you can be on the lower time frame when your expecting trend continuations or a possible bounce the other way. anticipate don’t create beliefs.
    Why (10) and (20)”daily moving averages” as initial signal? these figures really lag price on 15 min. entry.
    How come MACD below 0 is ignored, from my experience using OSMA with same parameters 12,26,9 as your macd, this is as stronger signal than just decreasing value from macd because more often than not the trend was just taking a breather and showed weakness on macd (falling values in uptrend) and then prices for financial instrument continued to increase and larger bars form. just saying that falling macd is not as strong a signal as fall then close below because trend could pick of stregnth.
    Which brings me to the more important two questions, what about pivot points, as conservative a system it is we need to be aware of where the higher risk areas to take take trades are. More IMPORTANT for trading is how price action is reacting to support and resistance. previous highs and lows and closes offer great points to time your set of indie’s off of.
    Also, why do you use market orders, buy stops and sell stops are the way to go, that way when you get a set up you like you can also retrace price back to the absolute best entry without sitting on a loss or worse getting stopped out. Shouldn’t take profit points be pivot and support and resitance. Your absolutely right about momentum on a lower time frame, (listening to the message of the market) all the more reason why don’t you manualy trail your stop until your stopped out with max profit, this way you can hop back on board at the next sign of strength. (look at what happened to USD/JPY).
    Anyway, sorry for length of post, first time, really like the site and thanks for considering these ideas. Cowabinga dude!

  • pipsprof.

    hello pipsurfer,thanks for the great trading system,I have been consistently using it and profiting from it. Enjoy

  • pipsprof.

    hello pipsurfer,thanks for the great trading system,I have been consistently using it and profiting from it. Enjoy

  • PipDiddy

    Thanks for the comments dudes!

    dsnow- thanks for taking the time to write that post! All your contributions are great. The system is always ready to be tweaked and made better. By no means is it perfect…but then again, what system is? :) I encourage you to start a blog detailing your configuration and trading methods on MeetPips.com. My blog here is to hopefully inspire other traders to make better discoveries and help with their overall trading. I think people can really benefit from you and I personally would love to read a daily blog of yours :) Thanks again for the feedback and happy trading!

  • PipDiddy

    Thanks for the comments dudes!

    dsnow- thanks for taking the time to write that post! All your contributions are great. The system is always ready to be tweaked and made better. By no means is it perfect…but then again, what system is? :) I encourage you to start a blog detailing your configuration and trading methods on MeetPips.com. My blog here is to hopefully inspire other traders to make better discoveries and help with their overall trading. I think people can really benefit from you and I personally would love to read a daily blog of yours :) Thanks again for the feedback and happy trading!