Cowabunga System Daily Update: Wednesday, 11/18/09

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

Main Trend

Current Trend

The trend stayed up until 11am EST. From 7am – 11am EST, a new trend change candle formed and changed the trend from up to DOWN. After 11am EST, the trend remained down.

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

News events to watch for today :

  • 4:30am EST- UK Bank of England Meeting Minutes
  • 6:00am EST- UK CBI Industrial Order Expectations
  • 8:30am EST- US Core CPI m/m

Today’s Surf

3:45am EST- There was a valid signal here, but since it was near a news event, I did not enter.

6:15am 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 1.6824 with a stop at the most recent low at 1.6769. Since I was 26 pips away from the nearest 50 or 00 level, I decided to put my initial target at 1.6850.

Entry: Long at 1.6824 Stop: 1.6769 Target: 1.6850

8:15am EST- My target wasn’t hit by this time. Since news was coming out at 8:30am EST, I decided to close out my trade. I exited at 1.6804.

entry2

Trade Result: -20 pips (NOT INCLUDING SPREAD) R-Multiple: -0.36

News events to watch for tomorrow:

  • 4:30am EST- UK Retail Sales m/m
  • 8:30am EST- US Unemployment Claims
  • 10:00am EST- US Philly Fed Manufacturing Index

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.

  • AKS

    Hello Pipsurfer..does the cowabunga system settings mentioned in the school section work for scalping as well? Also, what do the different painted candles mean? How do I identify crossovers and paint candles accordingly..Pls respond..

  • AKS

    Hello Pipsurfer..does the cowabunga system settings mentioned in the school section work for scalping as well? Also, what do the different painted candles mean? How do I identify crossovers and paint candles accordingly..Pls respond..

  • PipSurfer

    Hi AKS-

    The system in the school section is NOT the Cowabunga System. They are 2 separate systems…just thought I should clarify that.

    The painted candles are a feature in my charting software that paints my candles whenever a crossover takes place…black for up crossovers and purple for down crossovers.

    If you want to try it out, go to http://www.xtick.com (I’m not affiliated with them)

  • robun

    Hi Pipsurfer, your system is great thanks for that one.
    But I really don’t understand why you were looking for long trades on the 18th, since the main trend was down as we can see in the beginning of your video and on my charts as well.
    It occured at 2 pm (gmt+1 for me)on the 4H. The entry candle ont the 15 min was at 2.30 pm at 1.68 for a nice ride down till 1.6750. I live in France by the way. Just one last question, do you make a living from this system only ?
    Bruno

  • fantastico08

    Hiya PipSurfer!

    I would firstly like to let you know how grateful i am that you take time out of your day to produce this blog for us. I am sure you are creating many pips for your fellow man, how could we ever repay you? Haha. You’re system and walkthrough techniques are absolutely brilliant for honing my skills as a trader (Natural born teacher, haha). My medium-term goal is to trade part time and make enough pips to put myself through college. Currently you are a big part of that! So again, many thanks.

    For other followers, if anyone is interested this could be helpful. I personally follow the blog by trading the same hours Pipsurfer does(which means i trade midnight – 8am NZ time! ouch!)on a demo account obviously, and then comparing my graphs to his when he graces us with a video.

    Anyway, down to my question. I was stopped from entering a short trade due to stochastics not trending down when all other indicaters pointed to a correct trade.
    Here is a direct link: http://img52.imageshack.us/img52/8479/cowabungasystemchart.png

    Now as you can see, the trade would have been brilliant(i understand this is part of the game).

    Anyway, i am wondering if i did the right thing in that situation? I feel like i stayed true to the system. But im not sure of the protocol in that situation. Please be brutally honest! Thank you so much for any help!

    And finally i was wondering if this thought process is correct. If you don’t stay true to the system and make profits, you are still in the wrong. Because the change you made will not always pay off and is untested. Therfore you are jeprodizing pips in the long-term?

    One final time, thank you for everything you do for us!
    Cowabunga dudes!

  • fantastico08

    I am sorry for the lack of paragraphs in the comment, i put them in but they didn’t turn out in the actual comment. That must just be the way it is? Hard to read a long comment without paragraphs!

  • PipSurfer

    Hi AKS-

    The system in the school section is NOT the Cowabunga System. They are 2 separate systems…just thought I should clarify that.

    The painted candles are a feature in my charting software that paints my candles whenever a crossover takes place…black for up crossovers and purple for down crossovers.

    If you want to try it out, go to http://www.xtick.com (I’m not affiliated with them)

  • robun

    Hi Pipsurfer, your system is great thanks for that one.
    But I really don’t understand why you were looking for long trades on the 18th, since the main trend was down as we can see in the beginning of your video and on my charts as well.
    It occured at 2 pm (gmt+1 for me)on the 4H. The entry candle ont the 15 min was at 2.30 pm at 1.68 for a nice ride down till 1.6750. I live in France by the way. Just one last question, do you make a living from this system only ?
    Bruno

  • fantastico08

    Hiya PipSurfer!

    I would firstly like to let you know how grateful i am that you take time out of your day to produce this blog for us. I am sure you are creating many pips for your fellow man, how could we ever repay you? Haha. You’re system and walkthrough techniques are absolutely brilliant for honing my skills as a trader (Natural born teacher, haha). My medium-term goal is to trade part time and make enough pips to put myself through college. Currently you are a big part of that! So again, many thanks.

    For other followers, if anyone is interested this could be helpful. I personally follow the blog by trading the same hours Pipsurfer does(which means i trade midnight – 8am NZ time! ouch!)on a demo account obviously, and then comparing my graphs to his when he graces us with a video.

    Anyway, down to my question. I was stopped from entering a short trade due to stochastics not trending down when all other indicaters pointed to a correct trade.
    Here is a direct link: http://img52.imageshack.us/img52/8479/cowabungasystemchart.png

    Now as you can see, the trade would have been brilliant(i understand this is part of the game).

    Anyway, i am wondering if i did the right thing in that situation? I feel like i stayed true to the system. But im not sure of the protocol in that situation. Please be brutally honest! Thank you so much for any help!

    And finally i was wondering if this thought process is correct. If you don’t stay true to the system and make profits, you are still in the wrong. Because the change you made will not always pay off and is untested. Therfore you are jeprodizing pips in the long-term?

    One final time, thank you for everything you do for us!
    Cowabunga dudes!

  • fantastico08

    I am sorry for the lack of paragraphs in the comment, i put them in but they didn’t turn out in the actual comment. That must just be the way it is? Hard to read a long comment without paragraphs!