Cowabunga System Daily Update: Friday, 05/22/09

If this is your first time visiting this blog, read this first! 

Main Trend

Current Trend

The trend remained up the entire day.

Today I only looked for long trades.

News events to watch for today :

  • 4:30am EST- UK Revised GDP q/q
  • 2:00pm EST- US Bernanke Speaks

Today’s Surf

2:15am EST- There was a moving average crossover for a long trade. RSI was greater than 50, MACD was negative and gaining value, but stochastics were not trending up. This cancelled out the signal and I did not enter.

5:15am EST- There was a moving average crossover for a long trade. RSI was greater than 50, stochastics were trending up and MACD went from negative to positive. This was a valid entry.

The entry was at the close of the candle at 1.5848 with a stop at the most recent low at 1.5754. Since I was only 2 pips away from the nearest 50 or 00 level (1.5850) I decided to go for the same amount of pips I was risking on the trade, which in this case was 94. This put my initial target at 1.5942.

Entry: Long at 1.5848 Stop: 1.5754 Target: 1.5942

7:45am EST- My target was hit. Price did not make a clean break so I took my final profit. I managed to exit at 1.5935.

11:00am 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 1.5904 with a stop at the most recent low at 1.5853. Since I was only 46 pips away from the nearest 50 or 00 level, I decided to put my target at 1.5950.

Entry: Long at 1.5904 Stop: 1.5853 Target: 1.5950

1:45am EST- My target wasn’t hit by this time. News was coming out at 2pm EST, so I went ahead and closed my trade at 1.5911.

entry2

Trade Result: +87 +7= +94 pips (NOT INCLUDING SPREAD) R-Multiple: 0.92; 0.13

News events to watch for tomorrow:

  • No trading! Memorial Day!

For a complete list of news events check out our Forex Economic Calendar.
Questions? Read the Cowabunga FAQ.

Want to discuss the Cowabunga System? Visit our Forex Forums.

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18 comments

  1. ThePolyglot

    Cudos on the site. I have been trying to educate myself on Forex trading for quite some time. Spending the semester in France hasn’t made it quite as easy with the time change. The site and blogs have been amazing.

    Just wondering if you think it would be wise to implement possibly two different trading systems at one time. For example the Cowabunga system for Intradray trading and possibly a seperate longer term trading system on a daily chart? Would there be too much conflict in that?

    Reply
  2. ThePolyglot

    Cudos on the site. I have been trying to educate myself on Forex trading for quite some time. Spending the semester in France hasn’t made it quite as easy with the time change. The site and blogs have been amazing.

    Just wondering if you think it would be wise to implement possibly two different trading systems at one time. For example the Cowabunga system for Intradray trading and possibly a seperate longer term trading system on a daily chart? Would there be too much conflict in that?

    Reply
  3. meza

    On Thursday, 21 May, your profit target was 16 pips (without taking spread into account). Based on your comments previously, I thought this would not be sufficient. Could you please explain how do you decide on the target. In appears that sometimes you are happy with a very small profit and other times you go for the same amount of pips as you are risking.

    Meza

    Reply
  4. ahsing82

    Thank you for the video. May I ask what charting system are you using, I am new to forex and was wondering how do you actually get the black candle that you always mention that its a trend changing candle?

    Thank you

    Reply
  5. meza

    On Thursday, 21 May, your profit target was 16 pips (without taking spread into account). Based on your comments previously, I thought this would not be sufficient. Could you please explain how do you decide on the target. In appears that sometimes you are happy with a very small profit and other times you go for the same amount of pips as you are risking.

    Meza

    Reply
  6. mrcool4

    Hi Meza..
    The tgt is based on the SL..
    The dif between the point of entry and SL is equal to the target.
    For Example: your entry is @1.5848 and SL is recent low which is somethng 1.5758. Now the SL is around 90 pips.. So update the tgt to 1.5848+90 =1.5838 .. U can book profits around this price.

    @Pip Surfer:Correct me if am wrong mate.. This is just my understanding.
    I really thank u so much for your postings…

    Reply
  7. ahsing82

    Thank you for the video. May I ask what charting system are you using, I am new to forex and was wondering how do you actually get the black candle that you always mention that its a trend changing candle?

    Thank you

    Reply
  8. mrcool4

    Hi Meza..
    The tgt is based on the SL..
    The dif between the point of entry and SL is equal to the target.
    For Example: your entry is @1.5848 and SL is recent low which is somethng 1.5758. Now the SL is around 90 pips.. So update the tgt to 1.5848+90 =1.5838 .. U can book profits around this price.

    @Pip Surfer:Correct me if am wrong mate.. This is just my understanding.
    I really thank u so much for your postings…

    Reply
  9. Pips-ahoy

    I am trading the metatrader 4 and the parameters under each indicator setting ask for “fixed minumum” and “fixed maximum” values. What values do you set here?

    Reply
  10. xexsus

    Hey Pipsurfer,

    Thank you so much for the posts…awesome! Just need some clarification on the times you choose to assess and place your trades using the system. You always start by reviewing the trend on a 4-hour chart at mid-night. Does that mean that you ‘physically’ stay awake until mid-night to make the assessment or just do a post review of the trend when you wake up each morning? Sorry if this is a silly question ;) Are you placing trades during the night post London open?

    Reply
  11. Pips-ahoy

    I am trading the metatrader 4 and the parameters under each indicator setting ask for “fixed minumum” and “fixed maximum” values. What values do you set here?

    Reply
  12. xexsus

    Hey Pipsurfer,

    Thank you so much for the posts…awesome! Just need some clarification on the times you choose to assess and place your trades using the system. You always start by reviewing the trend on a 4-hour chart at mid-night. Does that mean that you ‘physically’ stay awake until mid-night to make the assessment or just do a post review of the trend when you wake up each morning? Sorry if this is a silly question ;) Are you placing trades during the night post London open?

    Reply
  13. jvizzini

    Awesome information!

    You have posted some really good tips for both the novice and expert forex trader.

    I totally agree with the part about keeping it realistic and simple. Forex trading should be simple and when it comes to using automated forex software, it can really supercharge your results.

    If you wanted to supercharge your current or potential forex income, you need to look at forex robots/forex automation, I recently found a great review site that has independant reviews on all the top forex robots/forex automation software. Checkout
    Forex Traders Edge

    Keep up the good work and awesome articles.

    -Jeremy

    http://www.lampcorporation.com

    Reply
  14. jvizzini

    Awesome information!

    You have posted some really good tips for both the novice and expert forex trader.

    I totally agree with the part about keeping it realistic and simple. Forex trading should be simple and when it comes to using automated forex software, it can really supercharge your results.

    If you wanted to supercharge your current or potential forex income, you need to look at forex robots/forex automation, I recently found a great review site that has independant reviews on all the top forex robots/forex automation software. Checkout
    Forex Traders Edge

    Keep up the good work and awesome articles.

    -Jeremy

    http://www.lampcorporation.com

    Reply
  15. pipsrgood

    Thank you so much for this system and this blog!

    I would like to find out about your swing trading system…..have you posted anything about your system(s) in any of the forums? If not, would you mind sharing the info. on how you swing trade?

    Reply
  16. pipsrgood

    Thank you so much for this system and this blog!

    I would like to find out about your swing trading system…..have you posted anything about your system(s) in any of the forums? If not, would you mind sharing the info. on how you swing trade?

    Reply
  17. Tayo

    Dear Sir/Madam,
    Greetings.
    I am relatively a new person in FOREX and trying to get together the specifics before launching into deep. Please do not mind my questions especially if you are a mature and professional forex trader.
    Can I ask you to please help and assist me with the full details on how to customise my charts with all the appropriate indicators with their parameters and settings.
    I believe that this will certainly help me to quickly spot the appropriate trend easily, instead of setting up the indicators on each occasion that I decide to learn the systems, to practice and trade.
    Is it possible to use the same set-up indicators on both my demo and live (mini/micro) accounts? If so, how do I go about doing this immediately. The reason being that I do not want to be flicking between the two (2) platforms – i.e. demo and live accounts.
    Is it possible to use the same set-up indicators for all currency pairs OR do I need to set up different indicators for different currency pairs?.
    Finally, Is it possible to enter a trade from the chart with the newly set-up indicators? If so, where do I begin?.
    Is it possible to SAVE the new set-up indicators (a) on the menu list of the trading platform so that I do not need to start all over again and (b) on my USB Flask Drive so that wherever I am, I can use this with any laptop and/or PC as long as I have access to the internet?
    I practice and trade on FXCM. Kindly forward your detailed answers, suggestions, responses to my email address – aooyebade@aol.com
    Thank you for your kind assistance and co-operation. I am very grateful and honoured.

    Akintola.

    Reply
  18. Tayo

    Dear Sir/Madam,
    Greetings.
    I am relatively a new person in FOREX and trying to get together the specifics before launching into deep. Please do not mind my questions especially if you are a mature and professional forex trader.
    Can I ask you to please help and assist me with the full details on how to customise my charts with all the appropriate indicators with their parameters and settings.
    I believe that this will certainly help me to quickly spot the appropriate trend easily, instead of setting up the indicators on each occasion that I decide to learn the systems, to practice and trade.
    Is it possible to use the same set-up indicators on both my demo and live (mini/micro) accounts? If so, how do I go about doing this immediately. The reason being that I do not want to be flicking between the two (2) platforms – i.e. demo and live accounts.
    Is it possible to use the same set-up indicators for all currency pairs OR do I need to set up different indicators for different currency pairs?.
    Finally, Is it possible to enter a trade from the chart with the newly set-up indicators? If so, where do I begin?.
    Is it possible to SAVE the new set-up indicators (a) on the menu list of the trading platform so that I do not need to start all over again and (b) on my USB Flask Drive so that wherever I am, I can use this with any laptop and/or PC as long as I have access to the internet?
    I practice and trade on FXCM. Kindly forward your detailed answers, suggestions, responses to my email address – aooyebade@aol.com
    Thank you for your kind assistance and co-operation. I am very grateful and honoured.

    Akintola.

    Reply

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