Cowabunga System Daily Update: Tuesday, 02/03/09

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Main Trend

Current Trend= The trend remained down until 11am EDT. From 7am – 11am EDT, a new trend change candle formed and changed the trend from down to UP. After 11am EDT, the trend remained up the rest of the day.

Today I only looked for short trades until 11am EDT. After 11am EDT, I only looked for long trades.

News events to watch for today :

  • 10:00am EDT- US Pending Home Sales

Today’s Surf

12:15am 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 1.4222 with a stop at the most recent high at 1.4268. Since I was 22 pips away from the nearest 50 or 00 level, I decided to put my target at 1.4200.

Entry: Short at 1.4222

Stop: 1.4268

Target: 1.4200

12:30pm EDT- My target was hit. Price did not make a clean break so I took my final profit. I exited at 1.4204.

4:30am 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 1.4219 with a stop at the most recent high at 1.4270. Since I was 19 pips away from the nearest 50 or 00 level, I decided to put my target at 1.4200.

Entry: Short at 1.4219

Stop: 1.4270

Target: 1.4200

12:30pm EDT- My target was hit. Price made a clean break so I trailed my stop to 1.4200 and set my next target for 1.4150.

5:45am EDT- Unfortunately I was stopped out at 1.4200.

8:15am 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 1.4194 with a stop at the most recent high at 1.4276. Since I was 44 pips away from the nearest 50 or 00 level, I decided to put my target at 1.4150.

Entry: Short at 1.4194

Stop: 1.4276

Target: 1.4150

9:15pm EDT- Unfortunately I was stopped out of my trade.

entry2

Trade Result: +18 +19 -82= -45 pips (NOT INCLUDING SPREAD) R-Multiple: 0.39; 0.37; -1.00

News events to watch for tomorrow :

  • 4:30am EDT- UK Services PMI
  • 8:15am EDT- US ADP Non-Farm Employment Change
  • 10:00am EDT- US ISM Non-Manufacturing PMI

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.

  • pipsprof.

    Hello,pipsurfer,the market is very treacherous these days, though as at the time of your third trade,the ADX indicator was already below 20 telling us the trade could change at anytime,also the market was trading sideways and no clear cut breakout,momemtum was also very low.I think if we incoorporate these factors into our trade,we will have one deadly forex weapon at our disposal,anyway thanks for all ur good works,enjoy

  • xexsus

    Hi Pipsurfer! Thank you so much for the posts. As a Forex noobe, I really appreciate the objective insight and education.

    Question – What charting platform are you using? It seems very intuitive and user friendly. I’m currently paper trading on 3 sites and the one you demonstrate on the videos looks MUCH better.

    Thanks in advance.

  • MaoriPip

    I would have to agree with you about changing your tactics all the time. I think when we begin to lose a few trades we try to adjust our system to help cater to the ‘could have’ trades. You know, those trades that we all look back on and say, ‘why didn’t I do this’. Your system made me about about 120 pips last month and while I lost a few trades that I shouldn’t have, the overall outcome was profitable.
    Others may laugh at my increase but I am happy to be in the positive. Thanks for you help.

  • pipsprof.

    Hello,pipsurfer,the market is very treacherous these days, though as at the time of your third trade,the ADX indicator was already below 20 telling us the trade could change at anytime,also the market was trading sideways and no clear cut breakout,momemtum was also very low.I think if we incoorporate these factors into our trade,we will have one deadly forex weapon at our disposal,anyway thanks for all ur good works,enjoy

  • xexsus

    Hi Pipsurfer! Thank you so much for the posts. As a Forex noobe, I really appreciate the objective insight and education.

    Question – What charting platform are you using? It seems very intuitive and user friendly. I’m currently paper trading on 3 sites and the one you demonstrate on the videos looks MUCH better.

    Thanks in advance.

  • MaoriPip

    I would have to agree with you about changing your tactics all the time. I think when we begin to lose a few trades we try to adjust our system to help cater to the ‘could have’ trades. You know, those trades that we all look back on and say, ‘why didn’t I do this’. Your system made me about about 120 pips last month and while I lost a few trades that I shouldn’t have, the overall outcome was profitable.
    Others may laugh at my increase but I am happy to be in the positive. Thanks for you help.