Cowabunga System Daily Update: Tuesday, 09/08/09

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

Main Trend

Current Trend

The trend stayed down until 4am EST. From 12am – 4am EST, a new trend change candle formed and changed the trend from down to UP. After 4am EST, the trend remained up the rest of the day.

Today I only looked for short trades until 4am EST. After 4am EST, I only looked for long trades.

News events to watch for today :

  • 4:30am EST- UK Manufacturing Production m/m

Today’s Surf

10:45am 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 1.6562 with a stop at the most recent low at 1.6514. Since I was 38 pips away from the nearest 50 or 00 level, I decided to put my initial target at 1.6600.

Entry: Long at 1.6562 Stop: 1.6514 Target: 1.6600

11:30am EST- Unfortunately I was stopped out of my trade.

entry2

Trade Result: -48 pips (NOT INCLUDING SPREAD) R-Multiple: -1.00

News events to watch for tomorrow:

  • 4:30am EST- UK Trade Balance
  • 2:00pm EST- US Beige Book

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.

  • JohnStarlo

    I went long earlier because I eliminate the 4 hour chrt by now and use a ema 48 to determine the trend, doest that make sense? I was stopped out for 32 pips also though buy i know there are pips to be gained.

  • soulja4lyf

    Thank you soo much man. These videos are absolutely great. I have to tell you that I’ve learnt so much from watching you trade. Although the trades are not “live” I have gained so much experience. I am particularly amazed by how calm and controlled you seem even when you make a loss. I have much to learn from you. I have just one question, in babypips’ forex economic calender what timezone should I set it to? I live in London. And how do I save this setting, as it seems to always revert back? Your assistance will be greatly appreciated. Thank you.
    P.S. Just out of curiosity, are you the owner of babypips.com?

  • JohnStarlo

    I went long earlier because I eliminate the 4 hour chrt by now and use a ema 48 to determine the trend, doest that make sense? I was stopped out for 32 pips also though buy i know there are pips to be gained.

  • soulja4lyf

    Thank you soo much man. These videos are absolutely great. I have to tell you that I’ve learnt so much from watching you trade. Although the trades are not “live” I have gained so much experience. I am particularly amazed by how calm and controlled you seem even when you make a loss. I have much to learn from you. I have just one question, in babypips’ forex economic calender what timezone should I set it to? I live in London. And how do I save this setting, as it seems to always revert back? Your assistance will be greatly appreciated. Thank you.
    P.S. Just out of curiosity, are you the owner of babypips.com?

  • soulja4lyf

    I have noticed that you specifically focus on various news events whilst ignoring others, although they are related to the cable. My question is, how do you determine which news events are significant and which ones are of little importance?

  • soulja4lyf

    I have noticed that you specifically focus on various news events whilst ignoring others, although they are related to the cable. My question is, how do you determine which news events are significant and which ones are of little importance?

  • Cypippy

    I’ve been reading that you should only enter a trade when the risk/reward ratio is atleast 1:2. It seems that alot of the trades using the ‘bunga system, the ratio seems to be 1:1, atleast with my calc. of setting the stop-loss at the most recent high/low against the trade. It looks as if you don’t take the profit at the 1:1 alot of the trades will turn against you and turn into losses! I’m still having a problem setting the profit taking mark, as the 00/50 places seem to be so far away from where I enter the price never seems to go that high/low before a reversal stops me out!!

  • Cypippy

    I’ve been reading that you should only enter a trade when the risk/reward ratio is atleast 1:2. It seems that alot of the trades using the ‘bunga system, the ratio seems to be 1:1, atleast with my calc. of setting the stop-loss at the most recent high/low against the trade. It looks as if you don’t take the profit at the 1:1 alot of the trades will turn against you and turn into losses! I’m still having a problem setting the profit taking mark, as the 00/50 places seem to be so far away from where I enter the price never seems to go that high/low before a reversal stops me out!!