Cowabunga System Daily Update: Monday, 07/27/2009

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

Main Trend

Current Trend

The trend stayed down until 8am EST. From 4am – 8am EST a new trend change candle formed which changed the trend from down to UP. After 8am EST, the trend remained up the rest of the day.

Today I only looked for short trades until 8am EST. After 8am EST, I only looked for long trades.

News events to watch for today :

  • 10:00am EST- US New Home Sales

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 went from positive to negative. This was a valid entry

The entry was at the close of the candle at 1.6446 with a stop at the most recent high at 1.6520. Since I was 46 pips away from the nearest 50 or 00 level, I decided to put my initial target at 1.6400.

Entry: Short at 1.6446 Stop: 1.6520 Target: 1.6400

9:45am EST- My target wasn’t hit by this time and I knew that news was coming out at 10:00am EST. I manually exited my trade for a loss at 1.6490.

11:15am 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 1.6493 with a stop at the most recent low at 1.6456. Since I was only 7 pips away from the nearest 50 or 00 level (1.6500), I decided to go for the same amount of pips I was risking on the trade, which in this case was 37. This put my initial target at 1.6530.

Entry: Long at 1.6493 Stop: 1.6456 Target: 1.6530

2:00pm EST- My target wasn’t hit by this time and I had to go so I manually exited my trade at 1.6490.

entry2

Trade Result: -44 -3= -44 pips (NOT INCLUDING SPREAD) R-Multiple: -0.59; -0.08

News events to watch for tomorrow:

  • 6:00am EST- UK CBI Realized Sales
  • 10:00am EST- US Consumer Confidence

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.

Forex

Forex News

Forex Reviews

Forex Trading Journal

  • dazza2

    Welcome back. Can I just confirm you say you only take trades between midnight and noon EST (but will let trades run until 4PM at the latest).

    Thanks

  • dazza2

    Welcome back. Can I just confirm you say you only take trades between midnight and noon EST (but will let trades run until 4PM at the latest).

    Thanks

  • forexexchangeguides

    Forex Market beings at Sunday 5PM EST to Friday at 4PM EST then it beings again at 5 PM EST. Is it hard to trade on Sunday?

    Cheers,

  • forexexchangeguides

    Forex Market beings at Sunday 5PM EST to Friday at 4PM EST then it beings again at 5 PM EST. Is it hard to trade on Sunday?

    Cheers,

  • pas

    when looking at the 4 hr chart are we also looking at the rsi and the stoch on the 4hr to see if it is overbought or oversold? Can we still trade if the 4hr is overbought or oversold

  • pas

    when looking at the 4 hr chart are we also looking at the rsi and the stoch on the 4hr to see if it is overbought or oversold? Can we still trade if the 4hr is overbought or oversold

  • CoenDeDerde

    I am using ninja trader and my RSI exists of two curves, which one should I be using?

    Further more it is not exactly clear to me what I should fill in at the stochastics I periodD periodK and smooth where do teh 3,3,10 go?

  • CoenDeDerde

    I am using ninja trader and my RSI exists of two curves, which one should I be using?

    Further more it is not exactly clear to me what I should fill in at the stochastics I periodD periodK and smooth where do teh 3,3,10 go?

  • http://taufan.siterubix.com/ taufandroidz

    hi thanks a lot! keep the great work !