Cowabunga System Daily Update: Monday, 11/30/09

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Main Trend

Current Trend

The trend stayed up until 11:00am 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 the rest of the day.

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 Net Lending to Individuals m/m
  • 9:45am EST- US Chicago PMI

Today’s Surf

2:15am 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 1.6564 with a stop at the most recent low at 1.6508. Since I was 36 pips away from the nearest 50 or 00 level, I decided to put my initial target at 1.6600.

Entry: Long at 1.6564 Stop: 1.6508 Target: 1.6600

3:00am EST- Unfortunately I was stopped out of my trade.

5:00am 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 1.6532 with a stop at the most recent low at 1.6473. Since I was 18 pips away from the nearest 50 or 00 level, I decided to put my initial target at 1.6550.

Entry: Long at 1.6532 Stop: 1.6473 Target: 1.6550

6:00am EST- Unfortunately I was stopped out of my trade.

entry2

Trade Result: -46 -59= -105 pips (NOT INCLUDING SPREAD) R-Multiple: -1.00; -1:00

News events to watch for tomorrow:

  • 4:30am EST– UK Manufacturing PMI
  • 10:00am EST- US Pending Home Sales m/m

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

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  • fxfix

    Good Morning PipSurfer!

    Regarding the losses from yesterday, I noticed that the Stochastics were in overbought territory in the 4H chart at the entry times. Any comments on this?

    Thanks and best regards.

  • mabidashraf

    Bingo!! chop time with these trend changes on 4 hour chart. Anyway, I am glad to take those losses and feel confident that I followed the system correctly and my alerts trigerred on the right time. http://chart.ly/x5mqra

  • mabidashraf

    @fixfix: Entry criteria does not take into account the reading on 4 hour chart. 4 hour chart determines the direction of trade i.e. long or short. Once that is determined 4 criteria for 15 minute charts are followed. Hope this helps.

  • fxfix

    Good Morning PipSurfer!

    Regarding the losses from yesterday, I noticed that the Stochastics were in overbought territory in the 4H chart at the entry times. Any comments on this?

    Thanks and best regards.

  • mabidashraf

    Bingo!! chop time with these trend changes on 4 hour chart. Anyway, I am glad to take those losses and feel confident that I followed the system correctly and my alerts trigerred on the right time. http://chart.ly/x5mqra

  • mabidashraf

    @fixfix: Entry criteria does not take into account the reading on 4 hour chart. 4 hour chart determines the direction of trade i.e. long or short. Once that is determined 4 criteria for 15 minute charts are followed. Hope this helps.

  • fxfix

    Hi mabidashraf, thanks for your comment. I understand the entry criteria. I mentioned the overbought issue on 4H to see if there is anything we can learn from that. Is there?

    Congrats on your alerts triggering correctly. All the best!

  • PipSurfer

    fxfix- there is no criteria for overbought/oversold territories. When first testing the system I factored them in, but I later realized that it doesn’t really have an impact on the system.

  • fxfix

    Hi mabidashraf, thanks for your comment. I understand the entry criteria. I mentioned the overbought issue on 4H to see if there is anything we can learn from that. Is there?

    Congrats on your alerts triggering correctly. All the best!

  • fxfix

    Thanks PipSurfer! I look forward to a good Cowatrading day tomorrow!

  • PipSurfer

    fxfix- there is no criteria for overbought/oversold territories. When first testing the system I factored them in, but I later realized that it doesn’t really have an impact on the system.

  • fxfix

    Thanks PipSurfer! I look forward to a good Cowatrading day tomorrow!