Cowabunga System Daily Update: Tuesday, 04/20/2010

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 down until 8am EST. From 4am – 8am EST a new trend change candle formed and changed the trend from down to UP. After 8am EST, the trend remained up the rest of the day.

Today I only looked for short trades until 8am EST. After 8am EST, I only looked for long trades.

News events to watch for today :

  • 4:30am EST- UK Core Consumer Price Index

Today’s Surf

1:00am EST- There was a moving average crossover for a short trade. RSI was less than 50, stochastics were trending down and MACD went from positive to negative. This was a valid entry.

The entry was at the close of the candle at 1.5312 with a stop at the most recent swing high at 1.5334. Since I was only 12 pips away from the nearest 50 or 00 level (1.5300), I decided to go for the same amount of pips I was risking on the trade, which in this case was 22. This put my initial target at 1.5290.

Entry: Short at 1.5312 Stop: 1.5334 Target: 1.5290

1:45am EST- My target was hit. Price didn’t make a clean break so I took my final profit. I exited right at 1.5290.

entry2

Trade Result: +22 pips (NOT INCLUDING SPREAD) R-Multiple: 1.00

News events to watch for Wednesday:

  • 4:30am EST- UK Claimant Count Rate; Bank of England Meeting Minutes

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.

6 comments

  1. FergAnthony

    Hey this might seem like a pretty basic question but was wondering if you could clear things up for me . I’m not quite sure how to classify trends . For example say the GBP/USD was going north , how long would it have to continue rising(or to what degree would it have to rise) before you could say for sure that it’s an uptrend ? I saw in the video you used indicators to determine the end of a trend but I’m just a little uncertain overall .

    Reply
  2. FergAnthony

    Hey this might seem like a pretty basic question but was wondering if you could clear things up for me . I’m not quite sure how to classify trends . For example say the GBP/USD was going north , how long would it have to continue rising(or to what degree would it have to rise) before you could say for sure that it’s an uptrend ? I saw in the video you used indicators to determine the end of a trend but I’m just a little uncertain overall .

    Reply
  3. gabriel888

    Hi PipSurfer,
    After e trend change candle has closed n’ immediately when e new candle open, it is in e overbought/ oversold territory; do u still enter a trade?
    There are times when i wanna enter a trade after e trend change candle has closed but only to find out that e new candle is in e overbought/ oversold territory immediately upon opening.
    So do we enter or do we not? Appreciate if u can advise me on this dilemma of mine.
    Thanks, Gabriel.

    Reply
  4. gabriel888

    Hi PipSurfer,
    After e trend change candle has closed n’ immediately when e new candle open, it is in e overbought/ oversold territory; do u still enter a trade?
    There are times when i wanna enter a trade after e trend change candle has closed but only to find out that e new candle is in e overbought/ oversold territory immediately upon opening.
    So do we enter or do we not? Appreciate if u can advise me on this dilemma of mine.
    Thanks, Gabriel.

    Reply
  5. jasonsaww

    Hi Sir,

    I am Jason from Singapore.

    I have gone through Babypips school and I find it very useful, I did some research and I find that swing/ short-term trading suits my personality.
    I need to consult you regarding the time frames for the Cowabunga system. I have read your FAQs and I understand that the higher the time frame, the more reliable the signals are. You recommended 15mins chgart for entry and 240mins chart for trend identifying. I would like to make my entry on the 240mins, how would you recommend the time frame used in this ratio to identify the trends?

    Please advise me.

    Thanks
    JasonSAWW

    Reply
  6. jasonsaww

    Hi Sir,

    I am Jason from Singapore.

    I have gone through Babypips school and I find it very useful, I did some research and I find that swing/ short-term trading suits my personality.
    I need to consult you regarding the time frames for the Cowabunga system. I have read your FAQs and I understand that the higher the time frame, the more reliable the signals are. You recommended 15mins chgart for entry and 240mins chart for trend identifying. I would like to make my entry on the 240mins, how would you recommend the time frame used in this ratio to identify the trends?

    Please advise me.

    Thanks
    JasonSAWW

    Reply

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