Cowabunga System Daily Update: Thursday, 01/14/2010

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Main Trend

Current Trend

The trend stayed up the entire day.

Today I only looked for long trades.

News events to watch for today :

  • 8:30am EST- US Advance Retail Sales
  • 10:00am EST- US Business Inventories

Today’s Surf

2:00am EST- There was a moving average crossover for a long trade. RSI was greater than 50, stochastics were trending up and MACD went from negative to positive. This was a valid entry.

The entry was at the close of the candle at 1.6302 with a stop at the most recent low at 1.6271. Since I was 48 pips away from the nearest 50 or 00 level, I decided to put my initial target at 1.6350.

Entry: Long at 1.6302 Stop: 1.6271 Target: 1.6350

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

3:45am EST- There was a moving average crossover for a long trade. RSI was greater than 50, stochastics were trending up and MACD went from negative to positive. This was a valid entry.

The entry was at the close of the candle at 1.6291 with a stop at the most recent low at 1.6264. Since I was only 9 pips away from the nearest 50 or 00 level (1.6300), I decided to go for the same amount of pips I was risking, which in this case was 27. This put my initial target at 1.6318.

Entry: Long at 1.6291 Stop: 1.6264 Target: 1.6318

6:15am EST- Unfortunately I was stopped out of my trade.

8:30am EST- There was a valid signal here but because it was a news candle I did not enter.

entry2

Trade Result: -31 -27= -58 pips (NOT INCLUDING SPREAD) R-Multiple: -1.00; -1.00

News events to watch for tomorrow:

  • 8:30am EST- US Core CPI m/m
  • 9:15am EST- US Capacity Utilization
  • 9:55am EST- US Prelim UoM Consumer Sentiment

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.

  • colstreamer

    Hi, it’s a pity you got stopped out, I had a good day yesterday 01/14/’10 I have to say a big “THANK YOU” for the system, it has worked very well for me, I have made a few tweaks to make it suit me a little better although it’s still the exact same system and I have become very confident in it. I do trade more than just the Cable however as I seem to have an aversion to shorting the Pound, I have no idea why although it’s probably because it’s my currency and I like it when it is strong lol!

    I always check out your blog and am always returning to the babypips school to recap or check something out. I have no questions as such as you are very thorough and explain things very well in your blogs.

    Again, thanks you for the system!! :-D

  • colstreamer

    Hi, it’s a pity you got stopped out, I had a good day yesterday 01/14/’10 I have to say a big “THANK YOU” for the system, it has worked very well for me, I have made a few tweaks to make it suit me a little better although it’s still the exact same system and I have become very confident in it. I do trade more than just the Cable however as I seem to have an aversion to shorting the Pound, I have no idea why although it’s probably because it’s my currency and I like it when it is strong lol!

    I always check out your blog and am always returning to the babypips school to recap or check something out. I have no questions as such as you are very thorough and explain things very well in your blogs.

    Again, thanks you for the system!! :-D

  • cds4686

    Hi,

    When using this system on a one hour chart, would I look for the trend on the daily chart or still look at the 4 hour chart? Thank you!

  • cds4686

    Hi,

    When using this system on a one hour chart, would I look for the trend on the daily chart or still look at the 4 hour chart? Thank you!

  • bailbondearl

    FOR THE COWABUNGA SYSTEM:

    Ive asked for help on this system before–Im still waiting–I’ll try the questions again.
    First: Which ever way the trend is going—if the cross has already happened–and you just seen it–can you still get in on the trade?
    Second: Which ever way the trend is going—if it crosses the opposite way you are not to take the trade because you are going against the trade?.
    Third: Is a 4 hour candle enough to show a trend or does it take more than one?.
    Fourth: When the cross happens- should you wait for a 15 min candle to pass and another start to confirm the trend before entering your trade?.
    I started using this system of the Cowabunga after I was useing the Its so Ridiculous system—I was at Intraday 15 min—I was doing very good with the system–I didnt know if it was beginners luck–I changed to the Cowabunga system and Im haveing alot of losses. Any help you can give will be greatly appreciated. I need to learn this system to generate monthly income.
    Thank you:

  • mabidashraf

    @bailbondearl: Let me try and answer your questions. I’ll answer them in the sequence you had. First, If the cross had already happened you would prefer to enter as close as possible to the trigger price. If it has moved too far from the signal trigger price you can consider risk reward on that trade or let it simply pass as there you’ll always find the next opportunity to trade. Second, I understand you are referring to cross-overs on 15 minutes charts. You are correct that you wont take the trade if the cross-over is at the opposite side. You’ll only take the trades in the direction of the trend determined from the 4 hour chart. Third, 4 hour candle is good enough to show the trend per Cowabunga system. Fourth, once the cross happens and all other criterias are met, you simply execute the trade. You can always tweak the system in a way that you think is the most profitable. Hope that helps. Abid

  • bailbondearl

    FOR THE COWABUNGA SYSTEM:

    Ive asked for help on this system before–Im still waiting–I’ll try the questions again.
    First: Which ever way the trend is going—if the cross has already happened–and you just seen it–can you still get in on the trade?
    Second: Which ever way the trend is going—if it crosses the opposite way you are not to take the trade because you are going against the trade?.
    Third: Is a 4 hour candle enough to show a trend or does it take more than one?.
    Fourth: When the cross happens- should you wait for a 15 min candle to pass and another start to confirm the trend before entering your trade?.
    I started using this system of the Cowabunga after I was useing the Its so Ridiculous system—I was at Intraday 15 min—I was doing very good with the system–I didnt know if it was beginners luck–I changed to the Cowabunga system and Im haveing alot of losses. Any help you can give will be greatly appreciated. I need to learn this system to generate monthly income.
    Thank you:

  • mabidashraf

    @bailbondearl: Let me try and answer your questions. I’ll answer them in the sequence you had. First, If the cross had already happened you would prefer to enter as close as possible to the trigger price. If it has moved too far from the signal trigger price you can consider risk reward on that trade or let it simply pass as there you’ll always find the next opportunity to trade. Second, I understand you are referring to cross-overs on 15 minutes charts. You are correct that you wont take the trade if the cross-over is at the opposite side. You’ll only take the trades in the direction of the trend determined from the 4 hour chart. Third, 4 hour candle is good enough to show the trend per Cowabunga system. Fourth, once the cross happens and all other criterias are met, you simply execute the trade. You can always tweak the system in a way that you think is the most profitable. Hope that helps. Abid