Cowabunga System Daily Update: Tuesday, 11/24/09

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

Main Trend

Current Trend

The trend stayed up until 3am EST. From 11pm – 3am EST, a new trend change candle formed and changed the trend from up to DOWN. After 3am EST, the trend remained down the rest of the day.

Today I only looked for long trades until 3am EST. After 3am EST, I only looked for short trades.

News events to watch for today :

  • 4:30am EST- UK BBA Mortgage Approvals
  • 8:30am EST- US Prelim GDP q/q
  • 9:00am EST- US S&P/CS Composite-20 HPI y/y
  • 10:00am EST- US CB Consumer Confidence

Today’s Surf

10:00am EST- There was a valid signal here but because it was a news candle I did not enter.

entry2

Trade Result: +0 pips R-Multiple: N/A

News events to watch for tomorrow:

  • 4:30am EST- UK Gross Domestic Product Price
  • 8:30am EST- US Initial Jobless Claims
  • 10:00am EST- US New Home Sales

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.

  • babypips123

    Hi, pip surfer.

    First of all, thanks for the good work, I learn a lot from here.

    Just a quick question for today’s trade, you mentioned you stayed out the news candle, what happen the candle after it? what is the reason you don’t get in short for the candle at 10:15.

    I check that at 10:15, RSI is going down, sto is heading down too, and MACD has just began negative, it should be still okay to get in.

    Or is it just one of your “intuition”?

    Thanks.
    Babypips123

  • mabidashraf

    @babypips123: Valid signal has to be a combination of 4 events i.e. EMA cross-over to the downside (in the direction of trend which is determined from the 4 hour chart), RSI less than 50, Stocs crossed down, and MACD is decreasing in value and not negative in the candle before the signal candle and as 10:15 had no EMA cross-over to the downside there was no valid signal.

  • babypips123

    Hi, pip surfer.

    First of all, thanks for the good work, I learn a lot from here.

    Just a quick question for today’s trade, you mentioned you stayed out the news candle, what happen the candle after it? what is the reason you don’t get in short for the candle at 10:15.

    I check that at 10:15, RSI is going down, sto is heading down too, and MACD has just began negative, it should be still okay to get in.

    Or is it just one of your “intuition”?

    Thanks.
    Babypips123

  • mabidashraf

    @babypips123: Valid signal has to be a combination of 4 events i.e. EMA cross-over to the downside (in the direction of trend which is determined from the 4 hour chart), RSI less than 50, Stocs crossed down, and MACD is decreasing in value and not negative in the candle before the signal candle and as 10:15 had no EMA cross-over to the downside there was no valid signal.

  • babypips123

    Thanks for clear that out, mabidashraf, appreciate your help.

  • fxfix

    Hi Pipsurfer,

    Thanks for all your teaching! I’m a graduate of the School of Pipsychology and have been following your videos for many months. Please answer the following question:

    My platform does not paint candles so it’s not so easy to identify the trend change. I see in your charts that sometimes the EMAS cross before the painted candle and sometimes in the middle of them. Is there a rule to figure out which is the correct trend change candle all the time?

    Thanks a lot. Your videos are awesome!

    FxFix

  • fxfix

    Another question allowed??? :)

    There were news today at 8:30 AM EST. That happened to be the Trend Change Candle (8:30 to 8:45 candle). I heard you saying that you do not trade “news candles” but yes the candle after. Can I enter a trade at 8:45 (15 minutes after the news)? Please expand on this and clarify. THANKS!!!

  • PipSurfer

    Thanks mabidashraf for helping out:)

    fxfix- Regarding crossovers, you want to wait til the candle closes and then take a look at the values of each moving average. For a short trade if the fast moving average value is lower than the slow moving average value then you have a valid crossover. I just want to stress the importance of looking at the data when the candle closes because that gives you the whole picture :)

    – regarding news. If there is a signal during the 8:30-8:45 candle then that is a no entry. If the signal occurs on the 8:45-9:00 candle then that is ok. Keep in mind when I say signal it means ALL the criteria has to be met.

    Happy trading everyone!

    -PS

  • babypips123

    Thanks for clear that out, mabidashraf, appreciate your help.

  • fxfix

    Another question allowed??? :)

    There were news today at 8:30 AM EST. That happened to be the Trend Change Candle (8:30 to 8:45 candle). I heard you saying that you do not trade “news candles” but yes the candle after. Can I enter a trade at 8:45 (15 minutes after the news)? Please expand on this and clarify. THANKS!!!

  • PipSurfer

    Thanks mabidashraf for helping out:)

    fxfix- Regarding crossovers, you want to wait til the candle closes and then take a look at the values of each moving average. For a short trade if the fast moving average value is lower than the slow moving average value then you have a valid crossover. I just want to stress the importance of looking at the data when the candle closes because that gives you the whole picture :)

    - regarding news. If there is a signal during the 8:30-8:45 candle then that is a no entry. If the signal occurs on the 8:45-9:00 candle then that is ok. Keep in mind when I say signal it means ALL the criteria has to be met.

    Happy trading everyone!

    -PS

  • ja5on

    is there any chance in the h4 chart that the trend is changing to down/up trend but the rsi is not below/above 50? and same for the stoch. its pointing in the opposite direction. if this happens, what shud the trend be? follow the previous one?

  • ja5on

    is there any chance in the h4 chart that the trend is changing to down/up trend but the rsi is not below/above 50? and same for the stoch. its pointing in the opposite direction. if this happens, what shud the trend be? follow the previous one?

  • mabidashraf

    @ja5on: Yes, this is possible and the trend will change in the following candle if rsi and stoch meet the criteria however it will not require EMA to cross-over as they would have already crossed in the candle before. Hope this helps. I’ll let Pipsurfer confirm and clarify this.

    I have been using this system for more than a year now and after watching so many videos and constant learning I was able to code the Cowbunga signal where I do not have to validate the signal after each EMA cross-over as my alarm triggers only when all the conditions are met. Refer the attached chart where we had 1 valid signal @ 6am GMT for 81 pips profit.
    http://chart.ly/f8kq26

    @Pipsurfer > Thanks for all your help and videos

  • PipSurfer

    Mabidashraf- yes you are correct in your answer. You know this system well. Thanks again for helping!

  • babypips123

    Thanks for mabidashraf and PipSurfer, I am really appreciate your wisdom. okay, I am going to a bit picky now. 1) When PipSurfer mentioned above that “For a short trade if the fast moving average value is lower than the slow moving average value then you have a valid crossover.”, what would consider as fast/slow moving average? EMA(5) OR EMA(10)? is this crossover for the 15 minute chart? 2)when fxfix mentioned above that “That happened to be the Trend Change Candle (8:30 to 8:45 candle). ” (Nov 25), please correct me if I am wrong, the Trend doesn’t change at this point, right? I meant by look at 4H chart at this time, we should still looking at long trade, right? but (8:30 to 8:45 candle) is not a crossover candle, it is only touch, the next candle at 8:45 is the crossover candle, looks like 8:45 candle should be a valid entry candle, right? Thanks guys, babypips123

  • mabidashraf

    @ja5on: Yes, this is possible and the trend will change in the following candle if rsi and stoch meet the criteria however it will not require EMA to cross-over as they would have already crossed in the candle before. Hope this helps. I’ll let Pipsurfer confirm and clarify this.

    I have been using this system for more than a year now and after watching so many videos and constant learning I was able to code the Cowbunga signal where I do not have to validate the signal after each EMA cross-over as my alarm triggers only when all the conditions are met. Refer the attached chart where we had 1 valid signal @ 6am GMT for 81 pips profit.
    http://chart.ly/f8kq26

    @Pipsurfer > Thanks for all your help and videos

  • PipSurfer

    Mabidashraf- yes you are correct in your answer. You know this system well. Thanks again for helping!

  • mabidashraf

    @babypips 123: 1 – You are correct, Fast = EMA(5) and Slow = EMA (10) both for 15 minute charts and 2 – Depending on the charting platform you use its very close and I usually leave this to my Cowabunga alert trigger to determine if it had marginally crossed over. Refer the chart at http://chart.ly/qfhga9 which confirms that 8:30 EST (GMT 13:30) was the cross-over candle as this chart shows in EMA in decimal points as opposed to the chart I posted earlier i.e. http://chart.ly/f8kq26 Note that both the charts have GMT timezone

  • babypips123

    Thanks for mabidashraf and PipSurfer, I am really appreciate your wisdom. okay, I am going to a bit picky now. 1) When PipSurfer mentioned above that “For a short trade if the fast moving average value is lower than the slow moving average value then you have a valid crossover.”, what would consider as fast/slow moving average? EMA(5) OR EMA(10)? is this crossover for the 15 minute chart? 2)when fxfix mentioned above that “That happened to be the Trend Change Candle (8:30 to 8:45 candle). ” (Nov 25), please correct me if I am wrong, the Trend doesn’t change at this point, right? I meant by look at 4H chart at this time, we should still looking at long trade, right? but (8:30 to 8:45 candle) is not a crossover candle, it is only touch, the next candle at 8:45 is the crossover candle, looks like 8:45 candle should be a valid entry candle, right? Thanks guys, babypips123

  • mabidashraf

    @babypips 123: 1 – You are correct, Fast = EMA(5) and Slow = EMA (10) both for 15 minute charts and 2 – Depending on the charting platform you use its very close and I usually leave this to my Cowabunga alert trigger to determine if it had marginally crossed over. Refer the chart at http://chart.ly/qfhga9 which confirms that 8:30 EST (GMT 13:30) was the cross-over candle as this chart shows in EMA in decimal points as opposed to the chart I posted earlier i.e. http://chart.ly/f8kq26 Note that both the charts have GMT timezone

  • SoulDaddy

    Yo PipSurfer… I’m just getting into this forex stuff and for now I’m slowly learning the basics. This site is awesome. I have an off-topic question – Do you actually surf? I’m getting into forex to hopefully make some more time to surf. haha, cheers

  • SoulDaddy

    Yo PipSurfer… I’m just getting into this forex stuff and for now I’m slowly learning the basics. This site is awesome. I have an off-topic question – Do you actually surf? I’m getting into forex to hopefully make some more time to surf. haha, cheers

  • fxfix

    PipSurfer, thanks so much for your helpful and prompt answers! You rock!

  • fxfix

    PipSurfer, thanks so much for your helpful and prompt answers! You rock!

  • babypips123

    Thanks for mabidashraf, sorry for late reply, I was away for a while.

  • babypips123

    Thanks for mabidashraf, sorry for late reply, I was away for a while.