Cowabunga System Daily Update: Thursday, 04/22/2010

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 :

  • 4:30am EST- UK Retail Sales
  • 6:00am EST- UK CBI Industrial Trends
  • 8:30am EST- US Initial Jobless Claims
  • 10:00am EST- US Existing Home Sales

Today’s Surf

10:45am 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 1.5385 with a stop at the most recent swing low at 1.5340. Since I was 15 pips away from the nearest 50 or 00 level I decided to put my initial target at 1.5400.

Entry: Long at 1.5385 Stop: 1.5340 Target: 1.5400

12:00pm EST- My target wasn’t hit by this time. Since it was past 12 noon I used my discretion and went ahead and exited my trade. I closed my position at 1.5364.

entry2

Trade Result: -21 pips (NOT INCLUDING SPREAD) R-Multiple: -0.46

News events to watch for Friday:

  • 4:30am EST- UK Gross Domestic Product
  • 8:30am EST- US Durable Goods Orders
  • 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.

4 comments

  1. pip72

    I’ve been watching this system for years now and I have to ask, why don’t you use fibonacci levels. I used you system with fibonacci tools and the outcome is pretty awesome.

    Reply
  2. gabriel888

    Hi PipSurfer,
    Thanks for your advice once again. I appreciate that.
    Here is another scenario: What if e trend change candle itself is already in e overbought/ oversold territory; do we still enter?
    Thanks for your advice in advance.
    Cheers, Gabriel.

    Reply
  3. pip72

    I’ve been watching this system for years now and I have to ask, why don’t you use fibonacci levels. I used you system with fibonacci tools and the outcome is pretty awesome.

    Reply
  4. gabriel888

    Hi PipSurfer,
    Thanks for your advice once again. I appreciate that.
    Here is another scenario: What if e trend change candle itself is already in e overbought/ oversold territory; do we still enter?
    Thanks for your advice in advance.
    Cheers, Gabriel.

    Reply

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