Cowabunga System Daily Update: Thursday, 01/28/2010

The CFTC may be changing the rules for retail traders in the US. This affects many of us in a negative way and we need your help getting our voices heard.

Read more of the details

I can not find better words to describe my position on all this than those from Andrei Pehar, Chief Currency Strategist at fxKnight.com.  

Andrei says: "I am not opposed to regulation nor regulatory agencies. But that regulation needs to be fair, transparent, and open to public input. Otherwise it becomes corrupt and self-serving. Sure high leverage can get you into trouble if used thoughtlessly. Sure hedging when not done properly turns one loss into two. But I believe the cure is EDUCATION, not restricting what people can and cannot do with their investment decisions. Guide, don’t dominate – government was invented to protect people and their property, not to limit their potential.

We at BabyPips.com disagree with the CFTC proposal.

If you disagree as well, you may submit your comments to secretary@cftc.gov.  

Include “Regulation of Retail Forex” in the subject line of the message and the identification number RIN 3038-AC61 in the body of the message. Please, help us to spread the word!

I think this is a very important matter that affects us all, and we should try our hardest to ensure that things will be done for the best of the trading community.

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

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 Core Durable Goods Orders m/m

Today’s Surf

1:45am 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 1.6201 with a stop at the most recent swing low at 1.6170. Since I was 49 pips away from the nearest 50 or 00 level, I decided to put my initial target at 1.6250.

Entry: Long at 1.6201 Stop: 1.6170 Target: 1.6250

2:45am EST- My target was hit. Price closed right at 1.6250, and since I’m in conservative mode I decided to take my final profit.

7:30am EST- There was a valid signal here, but because it was close to the 8:30am EST news event, I did not enter.

9:15am EST- There was a moving average crossover for a long trade. RSI was greater than 50, MACD was negative and gaining value, but stochastics were trending down. This cancelled out the signal and I did not enter.

entry2

Trade Result: +49 pips (NOT INCLUDING SPREAD) R-Multiple: 1.58

News events to watch for tomorrow:

  • 8:30am EST- US Gross Domestic Product
  • 9:55am EST- US U. of Michigan Confidence

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.

  • turnerator66

    Just wanted to say thankyo for keeping this so up to date.
    However, i am knew to forex and was just wondering how do you know when there is a trend change candle or a candle which shows a valid entry point.

    Cheers

  • turnerator66

    Just wanted to say thankyo for keeping this so up to date.
    However, i am knew to forex and was just wondering how do you know when there is a trend change candle or a candle which shows a valid entry point.

    Cheers

  • Wicksted

    Hi – you mention determining the trend on the 4hr chart and waiting for the black candle.

    How to I get the black candle..

  • mabidashraf

    @turnerator66 and @wicksted Please refer the following link for your answers and watch the video again which will help you in understanding the trend change candle criterias and the valid signal trigger points. /blogs/pip-my-system/so_youve_finished_the_school_o.html

  • Wicksted

    Hi – you mention determining the trend on the 4hr chart and waiting for the black candle.

    How to I get the black candle..

  • mabidashraf

    @turnerator66 and @wicksted Please refer the following link for your answers and watch the video again which will help you in understanding the trend change candle criterias and the valid signal trigger points. link to babypips.com